First Time Buyer
Poor Credit
Buying your first home can feel daunting at the best of times. If you are a first-time buyer with poor credit, it can feel even harder. Many people worry they will be declined automatically, judged, or told to wait years before they can even think about owning a home.
The reality is more positive than most people expect.
At Drummonds Finance Group, we regularly help first-time buyers with poor credit secure mortgages. The key is understanding what lenders actually care about, how your credit history is viewed today, and choosing the right lender from the start.
Key points for first-time buyers with poor credit
Many lenders will still consider applications with historic credit issues. What matters most is how recent the problems were, how they were resolved, and how your finances look today. Drummonds can help match you to the right lender and avoid unnecessary declines.
Can a first time buyer get a mortgage with poor credit?
Yes, in many cases, it is possible for a first-time buyer to get a mortgage with poor credit. Lenders do not all assess credit issues in the same way. Some focus heavily on recent problems, while others are more flexible if the issues were historic and your situation has improved.
What matters most is not whether you have ever had credit issues, but what type of issues, how long ago they occurred, and how you manage your finances now.
Poor credit does not automatically mean a mortgage is impossible.
What counts as poor credit for a mortgage?
Poor credit can mean different things to different lenders. Common examples include missed payments, defaults, CCJs, debt management plans, or a history of payday loans.
Some issues are viewed more seriously than others. A missed mobile phone payment several years ago is very different from a recent default on a loan. Context matters, and this is where expert mortgage advice makes a real difference.
How lenders assess poor credit for first time buyers
Mortgage lenders look at the full picture, not just a score. They will usually consider:
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How recent the credit issue was
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Whether it has been settled
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How many issues there are
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Whether there have been problems in the last twelve to twenty four months
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Your income stability
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Your deposit size
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Your current financial behaviour
If your recent history shows improvement, many lenders are willing to be flexible.
Does the type of credit issue matter?
Yes, very much so.
Missed payments that are old and isolated are often less of a concern. Defaults and CCJs carry more weight, but even these can be acceptable depending on age and amount. Payday loans can be viewed negatively, but not all lenders treat them the same.
This is why applying blindly can be risky. One decline can make things harder. Choosing the right lender the first time is crucial.
How much deposit is needed if you have poor credit?
In general, a larger deposit improves your chances if you have poor credit. While some first-time buyers can buy with a smaller deposit, many lenders prefer more security where there has been credit difficulty.
That does not mean you need a huge deposit. The right lender choice can make a significant difference, and we will always tell you what is realistic based on your exact circumstances.
Will interest rates be higher?
Sometimes yes, but not always.
Rates for first time buyers with poor credit can be higher than mainstream products, particularly if the issues are recent. However, this is not always permanent. Many clients use an initial mortgage as a stepping stone, then remortgage onto better rates once their credit profile improves.
We will always explain the full cost clearly so there are no surprises.
First time buyer affordability with poor credit
Affordability is assessed separately from credit. Even with poor credit, lenders still look at income, expenditure, and financial commitments.
If you are employed, self-employed, or a company director, lenders can assess your income differently. We regularly help self-employed first-time buyers and those with variable income.
You can also explore our self-employed mortgage advice and mortgage broker Oxford pages for more details on affordability assessments.
Credit reports and preparation
Before applying, it is important to understand exactly what is showing on your credit file. We will advise which credit report to use and what lenders are likely to focus on.
In some cases, small changes can improve your position quickly, such as correcting errors, reducing balances, or timing the application properly.
If waiting a short period could significantly improve your chances, we will be honest and explain why.
Common reasons first time buyer mortgages are declined
Many declines happen because the wrong lender was chosen, not because the buyer could never get a mortgage. Common reasons include applying too early, not explaining credit issues properly, or using a lender with strict criteria.
A declined application can be frustrating, but it does not mean all options are gone. Often it simply means a different approach is needed.
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