What is a bad credit mortgage?
A bad credit mortgage is for borrowers with adverse credit, a poor credit score or low credit rating. Specialist providers will provide loans to bad credit applicants, although the rates and payments offered might be higher than for customers with clean credit. If you have enough income or a healthy deposit, it may be possible to find a competitive deal.
Specialists who sell niche financial products like this tend to be more flexible in their lending and decisions will be based on the age, severity and cause of the credit issue in question, as well as how likely they are to reoccur.
How to get a mortgage with bad credit
The key is finding the right mortgage lender, one who specialises in customers with your type of credit problem, fully understands it and is best positioned to lend under those circumstances. You can improve your chances by approaching a bad credit mortgage broker, as they can find you the best deals and mortgage providers to suit your needs.
Here are the steps to take when preparing for a bad credit mortgage application…
1. Get your credit reports
This should be your first port of call, as checking which credit issues are showing up on your Experian, Equifax and Callcredit reports will give you a good idea of the mortgage providers you’re able to approach. They’ll show your past loans, credit cards, overdrafts and even some utility bills. Remember, all three files can differ in terms of what they include, so it may be possible to find a favourable deal even if one or more of the agencies reports issues. By obtaining data from the three agencies, you can also make sure they’re up-to-date and challenge any potential mistakes.
2. Raise as much deposit as possible and carry out credit repair
Next, you should optimise your credit rating in preparation for your application, to minimise any risk your adverse might create. See the section titled ‘How to improve your credit rating for a mortgage’ for tips on how to do this. It may also be a good idea to raise as much extra deposit as you can at this stage, because putting down extra can also offset some of the risk involved in the deal.
3. Avoid multiple credit searches
Making multiple applications online or approaching a mainstream bank for a bad credit loan comes with the risk of being turned away. This is because not all customers with adverse are catered for, and having a number of ‘hard’ credit checks for a mortgage on your credit profile can further jeopardise your chances of getting approved.
4. Find a broker who specialises in bad credit mortgages
The best way for someone with a poor credit history to get a loan is through a broker with access to the whole market. That way, you can rest assured that the most favourable deals you’re eligible for will be within reach.
Here’s what you should look for in a broker…
- Whole of market & independent
- Reasonable and fair fee structure – they should only bill you on success
- Gives you access to direct deals
- Has exclusive products
- Has links with commercial finance
- Is whole-of-market for insurance
- Has years of experience
- Has plenty of happy customers
The advisors we work with have been hand-picked to ensure they have all of the above qualities, and they have a strong track record of finding the best deals for people with poor credit history.
How to apply
As we mentioned above, the best way to apply is through a whole-of-market broker. This way, you can be sure you have access to all of the best deals you’re eligible for.
Fees and charges
Typical charges may include…
- Arrangement fees
- Booking fees
- Valuation fees
- Legal fees
- Stamp Duty
- Early repayment charges and exit fees
You should note that you may not have to pay all of the above, as some lenders offer inclusive deals and things like Stamp Duty may not be payable in certain scenarios.
Bad credit borrowers should also bear in mind that the additional fees they’re asked to pay might be somewhat higher than a customer with pristine credit, but that doesn’t mean finding a favourable deal is impossible.
The table below shows a range of the latest UK mortgages from lenders considering applications where one or more applicants have bad credit. Updated as of August 2026
Mortgage amount £150,000, over 30 years