Can I Get a Mortgage with Bad Credit History?
Last Updated: October 23, 2026
Quick Summary
Yes, you can get a mortgage bad credit, though your options differ from those with clean credit files. Many specialist lenders work with borrowers who have adverse credit records, assessing your full financial picture rather than just your credit score. The key is understanding what lenders see and positioning yourself as manageable risk.
- Adverse credit records stay on your file for six years, but lenders focus on recency and improvement since the incident.
- Most specialist lenders consider defaults that are at least two to three years old with stable finances and a reasonable deposit.
- A larger deposit of 15-20% significantly improves your chances of approval with adverse credit on your file.
- Specialist lenders typically charge higher interest rates than high-street banks but are your realistic option with recent adverse credit.
- Check your credit file for errors before applying, as mistakes can be corrected within 28 days and improve your chances.
Table of Contents
- Can You Get a Mortgage with Bad Credit?
- What Lenders Consider Adverse Credit
- How Long Does Bad Credit Stay on Your Credit Report
- Mortgage After a Default: What You Need to Know
- Mortgage After a County Court Judgment
- How Lenders Assess Your Application
- Improve Credit Score Before Applying for a Mortgage
- Specialist Lenders vs High-Street Banks
- Frequently Asked Questions
Can You Get a Mortgage with Bad Credit?
Yes, you can get a mortgage bad credit, though your options differ from those with clean credit files.
At Cornerstone Mortgages Limited, we help clients with poor credit secure mortgages by matching them with specialist lenders who assess the full picture of your finances, not just your credit score.
This guide walks you through what adverse credit means, how long it affects your applications, and practical steps to improve your chances of approval.
What Lenders Consider Adverse Credit
Adverse credit encompasses several types of financial difficulty. Lenders don’t treat all adverse credit equally, a single missed payment carries less weight than a default or County Court Judgment. Understanding these categories helps you anticipate what lenders will see on your credit file.
Missed and Late Payments
Missed or late payments occur when you don’t pay a bill by its due date. A payment that’s 30 days overdue appears on your credit file. Multiple missed payments signal to lenders that you struggle with regular commitments.
Lenders view recent missed payments as higher risk than older ones. A missed payment from last month concerns them more than one from three years ago.
What matters most:
- How recent the missed payments are
- How many accounts were affected
- Whether you’ve since caught up
Defaults and Arrears
A default is a formal record that you’ve failed to meet a credit agreement. It typically appears after three to six months of non-payment. Arrears mean you’re behind on payments but haven’t yet defaulted.
Defaults stay on your credit file for six years from the date they’re recorded. They’re more serious than missed payments because they show a complete breakdown of the agreement. However, lenders don’t treat a default from five years ago the same as one from six months ago. Time works in your favour.
A default doesn’t mean you can never borrow again. It means you’ll face stricter lending criteria and possibly higher interest rates.
County Court Judgments and Bankruptcy
A County Court Judgment (CCJ) is a court order issued when you don’t pay a debt (County court judgments for debt: Overview). It appears on your credit file and signals that the matter escalated to legal action.
Bankruptcy and Individual Voluntary Arrangements (IVAs) are also recorded on your credit file. An IVA is a formal agreement to repay creditors over a set period, usually five years.
These records carry significant weight with lenders, but time and circumstance matter:
- CCJs recorded more than six years ago may not appear on your file at all
- An IVA that’s been completed shows you honoured a formal agreement
- Bankruptcy that’s over three years old is viewed differently than recent bankruptcy
How Long Does Bad Credit Stay on Your Credit Report
Your credit file is maintained by credit reference agencies. Adverse credit records remain on your file for six years from the date they’re recorded.
This doesn’t mean you can’t borrow during those six years. It means lenders see the adverse record and assess whether enough time has passed and enough positive behaviour has followed to outweigh it.
Key timelines:
- Missed payments: six years from the date recorded
- Defaults: six years from the date of default
- CCJs: six years from the judgment date (or when satisfied, if earlier)
Lenders often focus on recency. A default from one year ago carries more concern than one from five years ago.
Mortgage After a Default: What You Need to Know
Getting a mortgage after a default is possible, but timing and circumstances matter. Most specialist lenders will consider applications where the default is at least two to three years old and your circumstances have improved.
Lenders want to see:
- The default is not recent
- You’ve maintained clean credit since the default
- Your income is stable and sufficient to cover the mortgage
If your default is less than two years old, your options narrow significantly. You may need to wait or look at lenders who specifically work with very recent adverse credit, though they typically charge higher interest rates.
The deposit you can offer also affects your chances. With a larger deposit (15-20%), you’re a lower-risk borrower even with a default on your file. With a smaller deposit (5-10%), lenders become more cautious.
Mortgage After a County Court Judgment
A CCJ is treated more seriously than a default because it represents a court process.
Most lenders look for:
- The CCJ is at least three years old (some require four to five years)
- The judgment has been satisfied (paid in full)
- No other CCJs or defaults in recent years
A satisfied CCJ (one you’ve paid) is viewed more favourably than an unsatisfied one. If you’ve paid the judgment, include evidence of this with your application.
If the CCJ is recent or unsatisfied, your options are limited. You may need to wait longer or seek specialist lenders who work with very recent CCJs, again, typically at higher rates.
How Lenders Assess Your Application
Lenders don’t make decisions based on credit history alone. They conduct a full affordability assessment. Understanding this process helps you prepare a strong application.
Credit File and Credit Reference Agencies
Your credit file is held by credit reference agencies such as Equifax, Experian, and TransUnion. Lenders request your file when you apply. They see:
- Your payment history across all accounts
- Any defaults, CCJs, or other adverse records
- Your current debts and credit limits
Before applying, check your own credit file. Errors are common, a missed payment might be recorded twice, or a debt might be listed under the wrong name. If you spot errors, contact the credit reference agency to dispute them. Correcting errors can improve your chances significantly.
Affordability and Income Assessment
Lenders assess whether you can afford the mortgage payments alongside your other commitments. They calculate your income and deduct your outgoings, rent, utilities, existing debts, childcare, and so on.
Your mortgage payment must fit comfortably within what remains. A lender might approve you for £150,000 based on affordability, even if your credit history would otherwise qualify you for more.
Stable income is crucial. Employed borrowers with a steady salary are lower risk than self-employed borrowers or those with variable income.
Deposit and Loan-to-Value Ratio
Your deposit directly affects your chances. Loan-to-value (LTV) is the mortgage amount divided by the property price. A 20% deposit means an 80% LTV. A 5% deposit means a 95% LTV.
The larger your deposit, the lower your LTV and the lower the risk to the lender. With adverse credit, a larger deposit significantly improves your chances:
- 20%+ deposit: many mainstream lenders will consider you
- 15-20% deposit: specialist lenders view you as reasonable risk
- 5-15% deposit: options narrow; specialist lenders only, often at higher rates
Saving a larger deposit takes time, but it’s one of the most effective ways to strengthen your application.
Improve Credit Score Before Applying for a Mortgage
You don’t need a perfect credit score to get a mortgage, but improving your score before you apply strengthens your position. These steps take time but genuinely help.
Step 1: Check Your Credit Report for Errors
Start by requesting your credit file from each of the three main credit reference agencies. Check for:
- Payments recorded as missed when you paid on time
- Debts listed twice
- Accounts opened in your name that you don’t recognise
If you find errors, contact the agency immediately with evidence (bank statements, payment confirmations). Errors can be corrected within 28 days.
Step 2: Register on the Electoral Register
Being on the electoral register is a basic but important step (The electoral register and the ‘open register’: Get on the electoral register). Lenders use it to verify your identity and confirm your address. If you’re not registered, register now. It’s free and takes minutes online.
Step 3: Pay Down Existing Debt
Lenders look at your credit utilisation, the proportion of your available credit you’re using. If you have a £5,000 credit limit and owe £4,500, you’re using 90% of available credit. This signals financial strain.
Paying down existing debts improves your credit utilisation and demonstrates financial discipline. Aim to use less than 30% of your available credit on any account.
Step 4: Avoid New Credit Searches
Every time you apply for credit, the lender conducts a search. These searches appear on your file and signal to other lenders that you’re actively seeking credit. Multiple searches in a short period raise concerns.
Before applying for a mortgage, avoid:
- New credit card applications
- Personal loan applications
- Car finance applications
Each search can stay on your file for 12 months. If you’re planning to apply for a mortgage within the next few months, hold off on new credit.
Specialist Lenders vs High-Street Banks
Your options divide broadly between high-street lenders and specialist lenders.
High-street banks like HSBC, Barclays, and Lloyds have strict lending criteria. They typically require:
- Clean credit history (no defaults or CCJs in the past 3-5 years)
- Stable employment
- Deposit of at least 10-15%
If your adverse credit is recent or severe, you’ll be declined by high-street lenders.
Specialist lenders work specifically with borrowers who have adverse credit. They:
- Accept defaults and CCJs older than 2-3 years
- Consider recent adverse credit in context
- Assess affordability more flexibly
The trade-off is that specialist lenders typically charge higher interest rates.
However, specialist lenders are not predatory. They charge more because they accept greater risk.
| Lender Type | Credit Requirements | Typical Deposit | Interest Rate Range | Best For |
|---|---|---|---|---|
| High-street banks | Clean history (3-5 years) | 10-15% | 4-5% | Excellent credit, stable employment |
| Specialist lenders | Adverse credit accepted (2+ years old) | 10-25% | 5.5-7% | Recent defaults, CCJs, or self-employed |
Getting a mortgage bad credit is challenging but achievable. The key is time, stability, and the right lender.
At Cornerstone Mortgages Limited, we specialise in matching borrowers with adverse credit to lenders who’ll approve them. If you’re ready to explore what’s possible for your situation, get in touch for no-obligation independent mortgage advice.
Frequently Asked Questions
Can I get a mortgage with a bad credit history?
Yes. Many lenders, including specialist providers, will consider applications from people with adverse credit. Your mortgage application depends on more than your credit history alone, lenders assess your current financial situation, income stability, deposit size, and the age of negative marks on your credit file. Recent adverse credit makes approval harder, but older issues carry less weight. A mortgage broker can help identify lenders with criteria suited to your circumstances.
How long does bad credit stay on your credit report?
Most adverse credit information remains on your credit file for six years from the date the issue occurred. This includes missed payments, defaults, County Court Judgments, and individual voluntary arrangements. After six years, the information is removed automatically and should no longer affect your mortgage application. However, older adverse credit often carries less weight with lenders even before it drops off completely.
Can I get a mortgage after a default or County Court Judgment?
Yes, you can obtain a mortgage after either a default or County Court Judgment, though approval depends on how recent the event is and your current financial health. Lenders typically want to see evidence that you’ve managed your finances responsibly since the default or judgment occurred. A larger deposit, stable income, and time elapsed since the adverse event all improve your chances. Specialist lenders are more likely to consider applications where high-street banks decline.
What should I do to improve my credit score before applying for a mortgage?
Check your credit report for errors and dispute any inaccuracies with the credit reference agency. Register on the electoral register at your current address. Pay down existing debts where possible to reduce your credit utilization. Avoid applying for new credit in the months before your mortgage application, as multiple credit searches can harm your score. Ensure you meet payment deadlines on all existing commitments. These steps demonstrate financial responsibility to lenders.
