Bad Credit Mortgages: What You Need to Know

Finding a mortgage can feel challenging if you have a poor credit history—but it’s not impossible. Many lenders offer solutions tailored for people with less-than-perfect credit. Here’s what you need to know if you’re considering a bad credit mortgage.

What Is a Bad Credit Mortgage?

A bad credit mortgage is designed for borrowers who have had financial difficulties in the past, such as:

  • Missed or late payments
  • Defaults or County Court Judgements (CCJs)
  • Bankruptcy or IVA history

These mortgages often come with higher interest rates or require a larger deposit, but they can help you get on the property ladder.

How Does Bad Credit Affect Your Options?

Lenders assess risk based on your credit score and history. If your score is low, you may:

  • Have fewer lenders to choose from
  • Need a deposit of 15–30% instead of 5–10%
  • Pay slightly higher interest rates

The good news? Improving your credit score and working with a broker can open up better deals.

Tips for Getting Approved

  1. Check Your Credit Report
    Review your report for errors and correct them before applying.
  2. Save a Larger Deposit
    The more you can put down, the less risk for the lender—and the better your chances.
  3. Avoid New Credit Applications
    Multiple applications can harm your score. Focus on stability.
  4. Work With a Specialist Broker
    A broker can access lenders who are more flexible with credit issues.

Are Bad Credit Mortgages Right for You?

They can be a stepping stone to home ownership, but it’s important to understand the costs and terms. Always seek professional advice before committing.

How We Can Help

At South West Mortgage Brokers, we specialise in finding solutions for clients with challenging credit histories. We’ll guide you through the process and help you secure the best possible deal.

Ready to explore your options?
Contact us today for expert advice and a free initial consultation.

Get Free Advice

Independent & Whole-of-Market – We search the entire market to find the deal that’s truly right for you

Expert, Personal Service – Clear advice, no jargon, and support from your first call to completion.

Local Knowledge, National Reach – Based in Exeter, helping clients across Devon and the UK.

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