If you’ve had financial difficulties in the past—missed payments, defaults, or even bankruptcy—you might be wondering: “Can I still get a mortgage with bad credit?” The good news is, the answer is often yes. While bad credit can make the process more challenging, it doesn’t necessarily mean your homeownership dreams are over.
At Everest Mortgages, we regularly help clients secure mortgages even after they’ve been told “no” by high street banks. With the right advice and access to specialist lenders, you may still be able to buy a home, remortgage, or release equity—regardless of past credit issues.
What Is “Bad Credit”?
In the UK, your credit history is recorded by three main credit reference agencies: Experian, Equifax, and TransUnion. If your report shows negative financial events, you may be considered a higher risk by lenders.
Common reasons for bad credit include:
- Missed or late payments on loans or credit cards
- Defaults on credit agreements
- County Court Judgments (CCJs)
- Debt Management Plans (DMPs)
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy
- Repossessions
Even small mistakes, like forgetting a mobile phone bill, can affect your credit score and how lenders see you.
Can You Get a Mortgage with Bad Credit?
Yes—especially if you approach the right lenders. Mainstream banks often have strict lending criteria and may reject applications with any signs of bad credit. However, there are specialist mortgage lenders who cater specifically to people with adverse credit histories.
These lenders assess each application individually, looking beyond the credit score to understand your full financial situation.
Factors That Affect Your Chances
When applying for a mortgage with bad credit, lenders will consider:
- Type of Credit Issue – A missed payment is less serious than bankruptcy.
- How Long Ago It Happened – Issues from several years ago may have less impact than recent problems.
- Deposit Size – The bigger your deposit, the less risky you appear to lenders.
- Current Financial Stability – Demonstrating steady income and responsible recent financial behaviour helps.
- Property Value & Loan-to-Value (LTV) – Lower LTV ratios (e.g., 70% or less) are often more acceptable to lenders.
Deposit Requirements for Bad Credit Mortgages
If you have bad credit, expect to put down a larger deposit than the standard 5–10%. Many specialist lenders may ask for:
- 15–20% deposit for moderate credit issues
- 25–30% deposit for serious adverse credit
The higher your deposit, the more likely you are to be approved, and the better the interest rate you can secure.
Interest Rates for Bad Credit Mortgages
Mortgages for people with bad credit often have higher interest rates, reflecting the increased risk to the lender. However, these rates can still be competitive—especially if you work with a broker like Everest Mortgages who has access to the whole of the market.
Once your credit improves, you may be able to remortgage to a better rate after a few years.
Improving Your Chances Before Applying
Even if you have bad credit, taking a few steps before applying can make a big difference:
- Check Your Credit Reports – Identify errors or outdated information and get them corrected.
- Register on the Electoral Roll – This boosts your score and verifies your address history.
- Pay All Bills on Time – Show lenders you’re now managing your finances responsibly.
- Reduce Debt – Lowering credit card balances can improve your credit utilisation ratio.
- Avoid Multiple Applications – Too many credit checks in a short time can harm your score.
Can First-Time Buyers Get a Mortgage with Bad Credit?
Yes, but options may be more limited. Some lenders specialise in helping first-time buyers with credit challenges, provided they can show stable income and have a larger deposit. At Everest Mortgages, we often help first-time buyers secure a mortgage even with past financial mistakes, by finding lenders willing to look at the bigger picture.
Remortgaging with Bad Credit
If your current mortgage deal is ending and you have bad credit, you may still be able to remortgage—especially if you have equity in your property. This could help you avoid moving onto your lender’s higher standard variable rate (SVR) and potentially lower your monthly repayments.
How Everest Mortgages Can Help
Applying for a mortgage with bad credit can be daunting, but you don’t have to do it alone. At Everest Mortgages, we:
- Search the whole of the market, including specialist lenders not available on the high street
- Match you with lenders who are open to your credit profile
- Advise on steps to strengthen your application before submission
- Handle the paperwork and liaise with the lender on your behalf
Our goal is to give you the best possible chance of approval—while securing competitive rates and terms.
Common Myths About Bad Credit Mortgages
- Myth: Bad credit means you can’t get a mortgage.
Reality: Specialist lenders can often help, even with serious past issues. - Myth: You must wait 6 years for problems to disappear from your credit file.
Reality: Many lenders will consider you much sooner, depending on the circumstances. - Myth: Interest rates will always be sky-high.
Reality: Rates have become more competitive, especially for those with larger deposits.
Key Takeaways
- Bad credit doesn’t automatically mean you can’t get a mortgage.
- Specialist lenders assess each case individually and may be more flexible than high street banks.
- Larger deposits, stable income, and recent responsible financial behaviour improve your chances.
- Working with an experienced broker like Everest Mortgages can save you time, stress, and money.
Ready to Explore Your Options?
If you’ve been told “no” before, it might just be that you haven’t spoken to the right lender. At Everest Mortgages, we believe everyone deserves a fair chance at homeownership—no matter their past.
📞 Call us today for a free, confidential consultation
🌐 Visit everest-mortgages.co.uk
Everest Mortgages – Helping you climb to your property goals, whatever your credit history.
