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Can You Get a Mortgage with Bad Credit?

 

Yes, and Drummonds Finance Group is here to help.

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Mortgages can be a bit of a maze, especially if your credit history isn’t perfect. Many people assume that a bad credit rating means they have no chance of getting approved, especially if a high street bank has already declined them. But the reality is quite different.

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With the right advice and access to specialist lenders, it is absolutely possible to get a mortgage with bad credit.

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What Is a Bad Credit Mortgage?

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A bad credit mortgage—also known as an adverse credit mortgage or subprime mortgage—is a home loan designed for applicants with a less-than-perfect credit history. These products are typically offered by specialist lenders who take a more flexible approach to assessing risk.

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Rather than simply relying on your credit score, these lenders look at your full financial profile, including:

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  • The reason for your credit issues

  • How long ago they occur

  • Your current income and outgoings

  • The size of your deposit

  • Your overall affordability

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The goal is to assess you as a whole person—not just a number on a credit report.

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Types of Credit Issues Lenders May Consider

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At Drummonds Finance Group, we work with lenders who consider a wide range of credit situations, including:

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  • Missed or late payments on loans, credit cards, or utility bills

  • County Court Judgments (CCJs) – both satisfied and unsatisfied

  • Defaults or arrears

  • Debt Management Plans (DMPs)

  • Individual Voluntary Arrangements (IVAs)

  • Previous bankruptcies

  • Low or no credit history

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Each lender has different criteria. Some may accept applicants with recent issues, while others prefer a track record of improved financial behaviour over the past 6–12 months.

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How Much Can You Borrow with Bad Credit?

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The amount you can borrow will depend on several factors:

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  • Your income (and your partner’s, if applying jointly)

  • Your monthly financial commitments (e.g., credit repayments, childcare)

  • Your credit history and the severity of any adverse credit

  • Your deposit size—typically, the bigger your deposit, the better your chances

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Generally, you may need a minimum deposit of 15–25% for a bad credit mortgage, but this can vary depending on your specific circumstances.

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What About Interest Rates?

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Interest rates for bad credit mortgages are usually higher than standard mortgage products. This is because lenders are taking on greater risk. However, this doesn’t mean you’re stuck with that rate forever.

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In many cases, borrowers with bad credit start with a higher rate but remortgage to a better deal after a few years—once their credit history has improved and they’ve built up more equity in the property.

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Why Choose Drummonds Finance Group?

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We understand how stressful and emotional it can be to apply for a mortgage with bad credit. That’s why we take a calm, clear, and client-focused approach.

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  • ✅ Access to 100+ lenders, including many not found on the high street

  • ✅ Specialist experience in complex and adverse credit cases

  • ✅ Honest, straightforward advice—no jargon, no pressure

  • ✅ Support with credit report reviews and application preparation

  • ✅ A dedicated adviser to guide you from start to finish

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Let’s Talk – No Obligation, Just Friendly Advice

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Your bank might have said no—but that doesn't mean the journey is over. With the right broker on your side, your dream of owning a home is still within reach.

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Get in touch with Drummonds Finance Group today for a free, no-obligation chat. We’ll listen to your story, assess your situation, and explore the lenders who may be willing to say yes—when others won’t.

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👉 [Contact Us Now] to take the first step toward a brighter financial future.

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  • First Time buyers
    One of the things many first time buyers worry most about is applying for a mortgage. With so many factors to consider it can be difficult to know where to begin when looking for your first mortgage. ​ Drummonds Finance Group makes it easy for first-time buyers to choose the right mortgage. We are specialists in providing mortgage advice to first time buyers. We have access to first-time buyer mortgages from a wide range of lenders so it’s one less thing for you to worry about.
  • Purchasing or Moving Home
    We can guide you through the process and offer expert mortgage advice specific to your circumstances. Drummonds Finance Group makes it easy for people moving house. From working out how much you could borrow, completing all the paperwork, to picking up the keys to your new home, we’ll be there every step of the way. ​ We will discuss your personal circumstances with you, including such areas as, your income, outgoings, future plans and savings. From this, we can determine the most appropriate new mortgage for you, give you an indication of how much you can borrow and the level of purchase price you can afford
  • Remortgage
    Protection Against Rate Rises ​ Many people want to take advantage of the current low interest rates and secure a deal at a good time. ​ Releasing Equity ​ For those that have built up equity in their home, remortgaging can be an attractive option. It can release funds to extend your home, or undertake other home improvements, or it may offer a method to pay off other debts, such as loans and credit cards, that have higher rates of interest. ​ Your current deal is about to end soon ​ It could be beneficial to review your mortgage at this point to avoid paying your current lenders high standard variable rates.
  • Buy To Let
    Whether you’re an accidental landlord, buying your first investment property or you already have a portfolio of properties, we’re here to help you build your future nest egg. ​ Increased buy to let regulation, and subsequent complex lender criteria has made it vital that you get professional advice. At Drummonds Finance Group we have extensive experience and knowledge in this area as well as access to mortgages from a wide range of lenders so it’s one less thing for you to worry about. If you need advice in this area, and you want to move fast, then get in touch now, either fill in our enquiry form or give us a call.
  • Right To Buy
    Your home could be a valuable asset for you and your family and an investment for the future. Home ownership could give you more freedom to make the changes you want to your home. ​ Drummonds Finance Group are on hand to provide expert advice on the right mortgage product to assist with your purchase. We can help you by confirming your eligibility for a mortgage and talking you through the process of buying your home. ​ Are you worried because you have no deposit ? No problem, we have lenders who will lend up to 100% of the discounted purchase price. Are you worried you wont be be able to get a mortgage due to your credit history ? No problem, we have lenders who may consider your individual circumstances.
  • Shared Ownership
    Are you finding it difficult to get on the property ladder? It could be that your earnings are not high enough to enable you to obtain a mortgage which is sufficient to buy a property or the high cost of renting means that you just don’t have any spare money to put away for the huge deposit needed. The answer could be a shared ownership mortgage. ​ The shared ownership mortgage scheme works by property buyers ‘sharing’ the ownership of the property. On the initial purchase you will typically buy 25/50/75% of the total property value. The remaining 75/50/25% of the property is owned jointly, usually with a housing association. They charge you a ‘rent’ for the section you do not own.
  • Commercial
    A commercial mortgage can be used to buy property (or land) that will be used for business purposes.
  • Adverse / Poor credit
    Maybe you have applied for a mortgage with your bank and failed the credit score. ​ The good news is that there are mortgages available for people with a bad credit rating if you know where to look. At Drummonds Finance Group we have access to over 90 lenders, some of which are not available on the high street. Some of our lenders specialise in considering your personal circumstances where other other lenders will not lend. ​ Contact us today for a no obligation chat about your circumstances, we are here to help you get your dream home.
  • 🕒 How long does the first-time buyer process take?
    From viewing a home to moving in, it typically takes 8–17 weeks. The mortgage application part alone usually takes 2–4 weeks, depending on the lender and documentation.
  • 📈 How much can I borrow as a first-time buyer?
    It depends on your income, outgoings, and credit score. Typically, lenders will offer 4.5 to 6 times your annual salary, but this varies based on your circumstances.
  • 💰 How much deposit do I need as a first-time buyer?
    Most lenders require a minimum deposit of 5% of the property’s purchase price. However, putting down 10–15% can give you access to better mortgage deals with lower interest rates.
  • 📋 What documents do I need to apply for a mortgage?
    Most lenders will ask for: Proof of ID (passport or driving licence) Payslips (last 3 months) Bank statements Proof of deposit For self-employed applicants: 2–3 years of tax year overviews and SA302s.
  • 💬 What is a mortgage in principle?
    A Mortgage in Principle (also called an Agreement in Principle or AIP) is a statement from a lender saying how much they might lend you, based on a quick financial check. It helps show estate agents and sellers that you're serious.
  • 📉 What are the extra costs first-time buyers should budget for?
    Besides your deposit, you should budget for: Legal fees Valuation/survey fees Mortgage arrangement fees Stamp Duty (if the home is over £425,000) Moving costs Furniture and setup costs ➡️ Ask your broker for a full breakdown of costs.
  • 🏦 Can I get a mortgage as a first-time buyer with bad credit?
    Yes, it’s possible. Some lenders specialise in helping buyers with poor credit history, missed payments, or even defaults. A mortgage broker can help you find the right lender for your situation.
  • 🏘️ Are there government schemes to help first-time buyers?
    Yes! Popular schemes include: Shared Ownership First Homes Scheme (discounted new builds) Lifetime ISA (savings with a 25% government bonus)
  • 💼 Should I use a mortgage broker as a first-time buyer?
    Absolutely. A mortgage broker: Gives you access to more lenders and deals Helps you prepare your documents Supports you through the entire process It’s especially helpful if you’re not sure where to start or have unique circumstances.
  • 🔍 What is a first-time buyer?
    A first-time buyer is someone who has never owned a property before, either in the UK or abroad. If you’re buying with someone else, both of you must be first-time buyers to qualify for certain schemes and exemptions.
  • What is a Buy-to-Let mortgage?
    A Buy-to-Let (BTL) mortgage is a type of loan for purchasing a property that you intend to rent out to tenants, rather than live in yourself. It differs from a residential mortgage and typically requires a larger deposit and has different eligibility criteria.
  • How much deposit do I need for a Buy-to-Let property?
    Most lenders require a deposit of at least 20–25%, though some may ask for up to 40% depending on the property and your circumstances. The more you put down, the better your mortgage rate is likely to be.
  • Can I live in my Buy-to-Let property?
    No — Buy-to-Let mortgages are specifically for rental properties. If you want to live in the property, you’ll need to switch to a residential mortgage or get the lender’s permission, which could involve a "consent to let" arrangement.
  • How is affordability assessed for a Buy-to-Let mortgage?
    Lenders base affordability on the expected rental income, not your personal income. However, they often require that the rent covers 125–145% of the mortgage payments (based on a notional interest rate), and you may need a minimum personal income (e.g. £25,000).
  • What’s the difference between interest-only and repayment Buy-to-Let mortgages?
    Most Buy-to-Let investors opt for interest-only mortgages, where you only pay the interest each month, keeping monthly payments lower. The loan capital is repaid at the end of the term, usually via sale of the property. Repayment mortgages cover both capital and interest, reducing your debt over time.
  • Do I pay more stamp duty on Buy-to-Let properties?
    Yes. In England, you pay an additional 3% stamp duty surcharge on top of the standard rates for second homes and Buy-to-Lets.
  • What taxes do I pay on rental income?
    Rental income is subject to Income Tax. You can deduct certain allowable expenses, such as letting agent fees, insurance, and maintenance costs. Mortgage interest relief is limited to a basic rate tax credit (20%).
  • Can I buy a Buy-to-Let through a limited company?
    Yes, many landlords now buy through a limited company to potentially save on tax, especially higher-rate taxpayers. However, mortgage rates are often higher and there are additional admin and costs (e.g. accountancy, legal).
  • Is now a good time to invest in Buy-to-Let?
    It depends on your goals. Despite market fluctuations, demand for rental properties remains strong in many areas. With interest rates stabilising and rents rising, Buy-to-Let can still offer solid long-term returns — especially in commuter towns, student hubs, and regeneration areas.
  • Can Drummonds Finance Group help with Buy-to-Let mortgages?
    Absolutely. Whether you’re a first-time landlord or expanding your portfolio, our expert brokers can: Find the best Buy-to-Let deals from across the market Advise on company vs personal ownership Mortgages Help structure your application for rental affordability Guide you through limited company lending
  • How can Drummonds Finance Group help me?
    We work with over 90 lenders, including specialists in bad credit mortgages. We’ll assess your situation, explain your options clearly, and match you with the most suitable lenders—giving you the best chance of success.
  • Will checking my credit damage my chances?
    No. In fact, checking your credit report is a smart first step. It allows you to spot and correct errors and understand what lenders will see. We recommend getting a copy of your credit report from agencies like Experian, Equifax, or Checkmyfile.
  • Can I apply with someone else to improve my chances?
    Yes. Applying jointly with a partner or family member with good credit can sometimes improve your application. However, the lender will still assess both applicants’ credit histories
  • Can I get a mortgage if I’m self-employed with bad credit?
    Yes. There are lenders who specialise in self-employed applicants, even with credit issues. You’ll need to show consistent income—typically through SA302s, tax returns, or business accounts—and may need a larger deposit.
  • What documents will I need to apply?
    You’ll typically need to provide: Proof of ID (passport or driving licence) Proof of address (utility bill, bank statement) Credit report Payslips or proof of income (last 3 months) Bank statements Details of your credit issues We’ll help guide you through exactly what you need during your consultation.
  • Can I get a mortgage if I’ve been bankrupt?
    Yes, some lenders will consider applicants with a history of bankruptcy, but it depends on how long ago it occurred and whether it has been discharged. Most lenders will expect the bankruptcy to be discharged for at least 12 months, with some requiring longer.
  • Will I have to pay higher interest rates?
    In most cases, yes—at least initially. Lenders charge higher rates to reflect the increased risk. However, once you’ve built a good payment history and improved your credit, you may be able to remortgage at a lower rate later on.
  • What is considered bad credit?
    Bad credit can include missed payments, defaults, CCJs (County Court Judgments), IVAs, debt management plans, or bankruptcy. Even having little or no credit history can make some lenders cautious. The severity and age of the issue will affect your mortgage options.
  • Can I get a mortgage if I have bad credit?
    Yes, you can. While high street banks may be more cautious, there are many specialist lenders who consider applicants with poor credit histories. These lenders look beyond your credit score and assess your full financial situation.
  • What is a product transfer?
    A product transfer is when you switch your current mortgage deal to a new one with the same lender. It usually happens when your fixed, tracker or discounted rate period ends, and you want to avoid moving onto your lender’s Standard Variable Rate (SVR).
  • When should I start looking at product transfer options?
    Ideally, 3 to 6 months before your current deal ends. This gives you time to compare options and avoid falling onto the Standard Variable Rate.
  • How long does a product transfer take?
    It’s usually very quick — often just a few days. Some lenders even allow you to complete it online or over the phone with minimal paperwork.
  • Is a product transfer better than remortgaging?
    It depends. A product transfer is simpler and quicker, but you’re limited to your current lender’s deals. A remortgage might get you a better interest rate or more flexible terms, but it can take longer and require more checks.
  • Can I borrow more money during a product transfer?
    Yes, some lenders allow you to borrow more (known as a “further advance”) as part of the product transfer process. However, this could trigger additional checks and may come with a different interest rate.
  • Will I need a credit check or affordability assessment?
    Not usually. Most lenders won’t carry out a credit check or full affordability assessment for a straightforward product transfer, unless you're making changes to your loan amount or term.
  • Do I need a solicitor for a product transfer?
    No. Since you’re staying with the same lender and not changing ownership or borrowing more money, solicitors are not typically needed.
  • Can a mortgage broker help with a product transfer?
    Yes! At Drummonds Finance Group, we can help you: Review your lender's current offers Check if a remortgage is better value Handle all the paperwork for you
  • What is Shared Ownership?
    Shared Ownership is a government-backed scheme that allows you to buy a share of a property (usually 10%–75%) and pay rent on the remaining share. You can gradually buy more shares over time, a process known as staircasing.
  • What are the pros and cons?
    Pros: Lower deposit & mortgage Ideal for first-time buyers Option to staircase over time Access to new build or modern homes Cons: You’ll pay rent + mortgage Leasehold fees may apply Limited choice of locations Selling process can be slower
  • Who is eligible for Shared Ownership?
    To qualify, you typically need to: Your annual household income must not exceed £80,000 (£90,000 per annum within Greater London) You must not currently own a property in the UK or overseas. You are a British or EU Citizen, or you have the right to remain in the UK. You must be over 18 if you are applying for a mortgage.
  • How much deposit do I need?
    Deposits are usually much lower than for full market value homes — often around 5–10% of the share you're buying, not the full property price. ✅ Example: If you're buying a 25% share of a £300,000 property (£75,000), a 5% deposit would be just £3,750.
  • Who owns the rest of the property?
    The remaining share is usually owned by a housing association or housing provider. You pay rent on that share — often at a reduced rate compared to market rents.
  • Can I buy more of my shared ownership property later?
    Yes! Through a process called staircasing, you can buy additional shares — all the way up to 100% in most cases. Each time you staircase, your rent reduces accordingly.
  • Can I sell a Shared Ownership property?
    Yes. You can sell your share at any time. The housing provider usually has “first refusal” to find a buyer for a set period. If they can't, you can sell it on the open market.
  • Do I still need a mortgage for Shared ownership?
    Yes — but only for the share you're buying. So if you're purchasing 40% of a home, your mortgage is only for that portion, making borrowing more accessible for many.
  • Are Shared Ownership homes leasehold?
    Yes, Shared Ownership properties are leasehold. This means you’ll likely pay service charges and ground rent, so it's important to factor that into your monthly costs.
  • Can Drummonds Finance Group help with Shared Ownership mortgages?
    Definitely. We’re experienced in helping first-time buyers: Understand Shared Ownership in plain English Secure great mortgage deals with low deposits Work out affordability with combined rent/mortgage payments Plan ahead for staircasing
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