If you have bad credit you could still be accepted for a mortgage.

Use this comparison to find a specialist mortgage from lenders who are more likely to accept you even if you have bad credit.

Most of these mortgages are only available through brokers. This broker can look at your circumstances and find suitable mortgages from lenders likely to accept you.

Here is how to find a mortgage broker and how much their services cost.

Do you have bad credit?

Bad credit is anything on your credit record that may put off lenders giving you a mortgage, including:

  • Missed payments on credit cards, loans, mortgages or other debt

  • Going over your agreed credit limit or overdraft amount

  • High levels of debt

  • Too many applications for more credit (e.g. mortgages or credit cards)

  • Debt problems like bankruptcy and county court judgments (CCJs)

  • Sharing an account with someone who has debt problems

Can you improve your credit record?

There are several things you can do that could help to repair your credit record. You could wait for six months or more before you apply because you will have a greater choice of cheaper mortgages if your credit record is better.

How do their interest rates work?

Many adverse credit mortgages track the London Inter Bank Offered Rate (LIBOR), which is an interest rate the banks set when they lend to each other.

Your mortgage's interest rate would rise and fall whenever the LIBOR rate changes.

However, you can also get bad credit mortgages that are fixed or discounted against the lender's SVR. Here are the types of interest rate explained so you can decide which is best.

Bad credit mortgage FAQs


What is a sub prime mortgage?


It is another name for a bad credit mortgage, which you can usually only get through a broker.


How do I check my credit record?


You can check your credit history for free; this guide explains how credit records work and how to check them yourself.


Will applying for a mortgage affect my credit rating?


Yes, every time you apply it appears on your credit record, so avoid applying for too many mortgages. Here is how your credit history works.


Can a mortgage improve my credit record?


Yes, if you keep up with the repayments every month your credit record could improve over several months or more.


How much will I need for a deposit?


If you have bad credit you will usually need a higher mortgage deposit than other borrowers: usually at least a 15% of the purchase price.