Quick Answer
Yes, you can get a mortgage in the UK with bad credit, but your options may be more limited, and you may need a larger deposit or pay higher interest rates. Specialist lenders are often available for applicants with credit issues.
What Counts as Bad Credit?
Bad credit means your financial history shows missed payments or other issues that make lenders cautious.
This can include:
- Missed or late payments
- Defaults
- County Court Judgments (CCJs)
- Payday loans
- High credit card balances
The severity and recency of these issues will affect your chances.
Can You Still Get Approved?
Yes — many lenders consider applications with bad credit, especially if:
- Your issues are older (2–3+ years)
- You have a stable income
- You can provide a larger deposit
- You’ve improved your financial behaviour
However, mainstream lenders may be stricter, so you may need to use specialist lenders.
How Bad Credit Affects Your Mortgage
Having bad credit can impact:
1. How Much You Can Borrow
Lenders may reduce your borrowing amount to limit risk.
2. Your Interest Rate
You may be offered higher rates compared to applicants with strong credit.
3. Deposit Requirements
You may need a larger deposit, such as:
- 10% minimum (in many cases)
- 15–25% for better deals
Types of Bad Credit and Their Impact
Minor Issues
- Occasional missed payments
👉 Often still acceptable to many lenders
Moderate Issues
- Defaults or recent missed payments
👉 Fewer lenders, stricter checks
Serious Issues
- CCJs, bankruptcy, IVAs
👉 Specialist lenders usually required
How to Improve Your Chances
If you have bad credit, you can still strengthen your application:
✔ Check Your Credit Report
Make sure there are no errors and understand your position.
✔ Pay Off Existing Debts
Reducing balances improves affordability.
✔ Avoid New Credit Applications
Too many applications can reduce your chances further.
✔ Build Positive Credit History
Make payments on time and reduce credit utilisation.
✔ Save a Larger Deposit
This significantly improves your chances.
The Role of a Mortgage Broker
If you have bad credit, a broker can:
- Match you with suitable lenders
- Avoid unnecessary rejections
- Improve your chances of approval
This can be especially useful if your credit history is complex.
What Lenders Look At
Even with bad credit, lenders will still assess:
- Your income stability
- Your monthly expenses
- Your debt levels
- Your deposit size
To understand how this affects you, use our
Mortgage & Cost Calculators UK (2026) page.
How Much Can You Borrow with Bad Credit?
You may still be able to borrow around:
👉 4 to 4.5 times your income
However, this can be lower depending on:
- Your credit history
- Your financial commitments
- Lender criteria
Common Reasons for Rejection
Even with specialist lenders, applications can fail due to:
- Too many recent credit issues
- High existing debt
- Unstable income
- Poor affordability
For more detail, see:
What Will Get You Declined for a Mortgage UK
Is It Better to Wait?
In some cases, waiting can improve your chances.
You may benefit from delaying if:
- Your credit issues are recent
- You can clear debts
- You can save a larger deposit
Even waiting 6–12 months can make a difference.
Check Your Budget First
Before applying, it’s important to understand your full financial position.
Use our tools to:
- Estimate mortgage payments
- Test affordability
- Combine housing and living costs
👉 See: Mortgage & Cost Calculators UK (2026)
Related Guides
- What Will Get You Declined for a Mortgage UK
- How Much Can I Borrow for a Mortgage UK
- Mortgage Fees UK
- Fixed vs Tracker Mortgage UK
Final Thoughts
Getting a mortgage with bad credit is possible, but preparation is key.
By improving your financial position, understanding your affordability, and using the right lender, you can significantly increase your chances of approval.