★ First-time buyer mortgage specialists ★ Defaults, CCJs & missed payments considered ★ Whole-of-market advice
First-Time Buyer
Mortgages with Bad Credit
Drummonds Finance Group
A missed payment, a default or a CCJ in your past does not mean you have to keep renting. Plenty of lenders accept first-time buyers with credit problems, and some will still lend with a 5% or 10% deposit if the issues are older or settled. We find the lenders that fit your credit history, so you apply in the right place the first time.
At Drummonds Finance Group, we compare mortgage options from across the market to find lenders that consider first-time buyers with adverse credit, including defaults, CCJs, missed payments and other credit issues, alongside your income, deposit and individual circumstances.
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Can a first-time buyer get a mortgage with bad credit?
Yes. Lenders look at what went wrong, when it happened, whether it has been settled and how you have managed your money since. A couple of late payments on a phone contract two years ago are treated very differently from a default registered last month.
Buying for the first time adds two things lenders pay close attention to. You usually have a smaller deposit than someone who is moving home, and you have no record of paying a mortgage. That makes the deposit and your recent conduct even more important, and it is why the lender you choose matters so much.
Why Choose Drummonds for First-Time Buyer Mortgages with Bad Credit?
✅Whole-of-Market Access
We compare options from across the market, including specialist lenders that may be more flexible with adverse credit.
✅Specialist in Adverse Credit
We help first-time buyers with defaults, CCJs, missed payments and other credit issues understand what mortgage options may be available.
✅We look beyond your credit score
We consider your full circumstances, including your income, deposit, credit history and how recent any issues were.
✅Access to specialist lenders
Some lenders specialise in helping applicants with adverse credit and may consider cases that mainstream lenders decline.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
What counts as bad credit for a mortgage?
Lenders use "adverse credit" to mean anything on your credit file that shows money was not repaid as agreed. For first-time buyers, the most common issues we see are:
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late or missed payments on credit cards, loans, phone contracts or buy now pay later
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defaults, often from old mobile phone, utility or credit card accounts
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County Court Judgments (CCJs)
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payday loans
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debt management plans (DMPs) and IVAs
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Each lender treats these differently. Our adverse credit mortgages page explains how lenders view each type in detail.
Can I get a 95% mortgage with bad credit?
Sometimes. A number of lenders offer 95% mortgages to first-time buyers with minor or older credit problems, such as late payments that have since been brought up to date, or a small default that was settled a few years ago. The choice is narrower than at 90%, and lenders look closely at the last 12 months of your credit file.
If your issues are recent or there are several of them, a 5% deposit is unlikely to be enough today. Waiting a few months for a problem to age, or adding to your deposit, can make a big difference to the lenders and rates available. We can tell you which applies to you before you apply anywhere.
How long after a default or CCJ can I get a mortgage?
There is no fixed waiting time. Some specialist lenders will consider a default or CCJ registered within the last few months, while many high street lenders want the issue to be satisfied and at least one to three years old.
Defaults and CCJs stay on your credit file for six years, but their effect fades well before then. Our guide on how long after a default or CCJ you can get a mortgage sets out the timings lender by lender type.
Can I get a mortgage with no credit history?
Often, yes, but having little or no credit history can cause problems in its own right. Many first-time buyers have never had a credit card or loan, so lenders' scoring systems have nothing to go on, and an automatic decline can follow even when nothing has gone wrong.
Registering on the electoral roll at your current address is the single quickest fix, because lenders use it to confirm who you are. Beyond that, a mobile phone contract or a credit card used for small purchases and cleared in full each month will build a record within six to twelve months. Some lenders also rely less on credit scoring and more on a person reviewing the application, which suits buyers with thin files.
Will I pay a higher interest rate with bad credit?
Possibly. If your issues are minor or older, you may get the same rates as anyone else. Recent defaults, CCJs or a debt management plan usually mean a specialist lender, and their rates are higher.
That does not have to last. Once your credit history improves, you can move to a better rate at the end of your deal, either through a product transfer with your lender or by remortgaging elsewhere. Some buyers choose a shorter fix for this reason, so we will talk through which length suits your plans.
Can family help if I have bad credit?
Yes, and it is one of the most effective ways to widen your options.
A gifted deposit from a parent or relative is accepted by most lenders, including many specialist lenders, and a bigger deposit can take you into a lower deposit band in the table above. Our gifted deposit mortgages page and gifted deposit rules guide explain what lenders and solicitors need.
A joint borrower sole proprietor mortgage lets a parent join the mortgage to help with affordability without owning part of the home. The lender will check their credit too, so this works best where the family member has a clean record. See our joint borrower sole proprietor mortgages page.
If you are buying with a partner whose credit is clean, some lenders focus mainly on the stronger applicant, while others decline if either of you has recent problems. This is a common reason joint applications are turned down, and it is very fixable with the right lender.
Can I buy through shared ownership or Right to Buy with bad credit?
Yes, both can work. With shared ownership, you need a mortgage only on the share you buy, so the deposit and borrowing are smaller. The housing association will carry out its own checks, and lenders active in shared ownership vary in how they treat credit problems.
Council and housing association tenants buying through Right to Buy can usually use the discount in place of a cash deposit, which often helps where credit history limits the lenders available. Any rent arrears will be looked at closely.
How much can I borrow as a first-time buyer with bad credit?
Most lenders offer around four to four and a half times income, and some go higher for first-time buyers on good incomes. Specialist lenders often lend slightly less, and some reduce the multiple where there are recent issues.
Our mortgage calculator gives a quick guide. If you are on a higher income or in a profession such as nursing, our 5x and 6x income mortgages page explains when larger multiples are possible. Remember to budget for legal fees, a survey and any stamp duty. First-time buyers get relief on homes up to £500,000 in England, which you can check with our stamp duty calculator.
How can I improve my chances before applying?
Small changes in the three to six months before you apply can open up noticeably more lenders.
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Check your credit file with all three agencies. Experian, Equifax and TransUnion each hold different information, and lenders may use any of them. Correct anything that is wrong.
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Register on the electoral roll at your current address.
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Settle any defaults or CCJs you can. A satisfied default is viewed more favourably than an unsatisfied one.
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Keep every payment on time. Lenders weigh the last 12 months more heavily than anything else.
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Bring down credit card balances and avoid new credit, including buy now pay later, while you are applying.
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Avoid payday loans. Many lenders decline any application with a payday loan in the last 12 months.
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Save consistently. A Lifetime ISA adds a 25% government bonus to your deposit savings.
Will a mortgage in principle affect my credit score?
Many lenders now use a soft search for a mortgage in principle, which other lenders cannot see and which does not affect your score. Some still use a hard search.
What does cause problems is applying to several lenders and being declined, because each hard search is recorded. That is the main reason first-time buyers with bad credit benefit from advice first. We check your credit history against lender criteria before any application is made.
A first-time buyer with a default: a recent example
A client in Oxford came to us after being declined by their own bank. They had a default from two years earlier that had since been satisfied, a steady job and a 10% deposit.
Instead of trying more high street lenders, we placed the case with a lender that looks at the age and circumstances of a default rather than relying on an automated score. The mortgage was approved, and they completed on their first home. Every case is different, but it shows how much depends on choosing the right lender at the start.
Why use a broker for a first-time buyer bad credit mortgage?
Lenders rarely publish their credit criteria in full, and online eligibility checkers often decline buyers that a person reviewing the case would accept. A broker who works with first-time buyers and adverse credit every week knows which lenders accept which issues, at what deposit and for how long after the event.
We are a whole-of-market broker, so we compare high street and specialist lenders side by side. That means fewer credit searches, no wasted applications, and a clear answer on whether to apply now or wait a few months for a better deal.
How the process works
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We talk through your credit history, income, deposit and plans.
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We review your credit reports with you to see exactly what lenders will see.
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We match you to the lenders that accept your circumstances at your deposit.
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We get a mortgage in principle so you can make offers with confidence.
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We manage the application with the lender, valuer and solicitor through to completion.
First-time buyer bad credit mortgages in Oxfordshire and across the UK
We are based in Wendlebury and help first-time buyers in Oxford, Bicester, Banbury and across the UK, with appointments by phone or video. For the wider buying process, see our first-time buyer mortgages page.
Frequently asked questions
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page, we have explained whether a first-time buyer can get a mortgage with bad credit, what lenders count as adverse credit, how much deposit you need and whether a 95% mortgage is possible. We have covered how long to wait after a default or CCJ, mortgages with no credit history, interest rates, help from family, shared ownership and Right to Buy, how much you can borrow, how to improve your chances before applying, and how we arrange your mortgage from start to finish.