Bad Credit

Getting a mortgage with bad credit

Having bad credit doesn't mean you can't get a mortgage — it means you need the right lender. Specialist lenders look at the story behind your credit file: when issues occurred, whether they're satisfied, and how your finances look now.

The size of your deposit and the age of the credit issues both matter. A satisfied CCJ from three years ago is very different to an active default from last month. We'll assess your file and match you to lenders most likely to accept you before any formal credit search takes place.

Types of bad credit we can help with

Specialist lenders consider a wide range of credit issues. The key is understanding which lenders treat each type favourably and what deposit or rate adjustments they require. We avoid a scattergun approach that leaves multiple hard searches on your file.

• County Court Judgements (CCJs) — satisfied and unsatisfied
• Defaults and missed payments on loans, credit cards, or mortgages
• Individual Voluntary Arrangements (IVAs) and debt management plans
• Discharged bankruptcy and payday loan history

Lenders that look past small issues

Not every bad credit entry is treated equally. We work with lenders who take a genuinely tolerant view of common blips. Defaults and CCJs under £300 are ignored altogether, and communications and utilities defaults or arrears (mobile phones, broadband, energy, water) are disregarded entirely — so a missed phone bill or an old energy dispute won't count against you.

Even recent unsecured arrears — missed payments on credit cards, personal loans, or catalogues — are acceptable to selected lenders, provided the overall picture is manageable. This is far more lenient than the high street, where any recent missed payment can trigger a decline.

• Defaults and CCJs under £300 — ignored
• Communications & utilities defaults/arrears — ignored
• Recent unsecured arrears — acceptable to selected lenders
• No need to wait years before applying

Mortgage arrears — a missed month isn't a missed payment

Mortgage arrears are treated more harshly than almost any other credit blip — many lenders see a missed mortgage payment as an automatic decline, even if you caught up within days. But one lender we work with draws a clear line between a genuine missed payment and a late one settled within the same calendar month.

Their underwriters assess arrears on missed payments, not a single slip — so if your payment was late but landed within the month it was due, it isn't counted as an arrears event. This is far more sympathetic than the high street, where a payment a few days late can still register as a missed payment and derail an application.

• Late mortgage payment within the same calendar month — not counted as arrears
• Arrears assessed on genuinely missed payments, not slips
• Far more sympathetic than typical high-street lenders

Manual underwriting — assessed at completion, not application

Most high-street lenders apply their criteria at the point of application. That means if you've recently changed jobs, or you're clearing an old default this month, you can be declined before your situation has had time to settle — even though you'd comfortably qualify by completion.

One specialist lender we work with takes a different approach: they manually underwrite using the criteria as they will stand at completion, not as they stand on the day you apply. So you can buy your property now rather than waiting months for your file to tick every box on application day. If an old adverse entry is due to drop off, or a waiting period is nearly over, the underwriter looks at where you'll be at completion — not where you are today.

• Criteria assessed at completion date, not application date
• Buy your property now instead of waiting for time to pass
• Manual, human underwriting — not automated scorecards

Started a new job? Minimum employment terms met at completion

Changing jobs usually trips up a mortgage application. High-street lenders often want 3–6 months of payslips from your new employer, or even a full year if you're on probation — leaving you unable to buy until you've served that time, by which point the property may be gone.

With the same manual-underwriting lender, the minimum employment-term criteria are applied at completion rather than application. So if you start a new job and your probation or qualifying period ends before completion, you can proceed on the new role from day one — no waiting for payslips to stack up. This is ideal for professionals moving roles, graduates starting their first position, or anyone who's accepted a new job and found a home to buy at the same time.

• New job accepted — no waiting to build up payslips
• Probation periods can be served before completion
• Ideal for professionals changing roles or starting fresh positions

IVAs — day one exit on discharge

An Individual Voluntary Arrangement (IVA) usually sits on your credit file for six years and leaves many lenders unwilling to consider you until well after it's been discharged. But one lender we work with takes a far more practical view: if your IVA is being or has been discharged, they'll consider you from day one of discharge — with no waiting period to sit out before you can apply.

This means you don't have to spend years rebuilding your file before a high-street lender will look at you. As soon as the discharge is in place, we can approach this lender and get your mortgage moving, whether you're buying a new home or remortgaging away from an expensive existing deal.

• Considered from day one of IVA discharge
• No mandatory waiting period after discharge
• Buy or remortgage as soon as the discharge is in place

Protecting your credit score while applying

Every hard credit search leaves a mark on your file, and multiple searches in a short period can lower your score. That's why we assess your circumstances first and approach a lender we're confident will accept you, rather than applying broadly.

We recommend obtaining a multi-agency credit report (such as Checkmyfile) before you apply, so we can see exactly what lenders will see and choose the right approach. Over time, keeping up with payments and reducing balances will strengthen your position and unlock better rates.