Bad Credit Mortgages — Get Approved in 2025

Having bad credit doesn't mean you can't get a mortgage. Specialist lenders consider your full situation, not just your credit score. Here's everything you need to know.

✓ Updated: June 2025·✓ FCA regulated partners·FCA guidance ↗

⚡ Quick Answer

Yes, you can get a mortgage with bad credit. Specialist lenders including Kensington, Pepper Money, Together and Bluestone offer mortgages for those with CCJs, defaults, IVA, or missed payments. Expect higher rates (6–10%+) and to need a larger deposit (15–25%).

What Counts as Bad Credit?

  • CCJ (County Court Judgment) — a court order requiring debt repayment
  • Defaults — missed payments registered on your file
  • IVA (Individual Voluntary Arrangement) — formal debt repayment plan
  • Bankruptcy — most lenders need 6 years clear; some after 3 years
  • Missed mortgage/loan payments
  • Low credit score (below 580 Experian / 550 TransUnion)
💡

Expert Tip

Time heals credit issues. A CCJ from 4 years ago is much less damaging than one from 6 months ago. Most negative marks drop off your credit file after 6 years. Check your full credit report at annualcreditreport.co.uk ↗ — you're entitled to a free statutory report.

Specialist Bad Credit Mortgage Lenders (2025)

LenderAccepts CCJ?Accepts IVA?Min DepositTypical Rate
Kensington✅ Yes (satisfied)✅ Yes (2yr+)15%From 5.5%
Pepper Money✅ Yes✅ Yes15%From 6.0%
Together✅ Yes✅ Yes25%From 6.5%
Bluestone✅ Yes✅ Yes (3yr+)20%From 5.9%
Precise✅ Yes (minor)❌ Limited15%From 5.7%

How to Improve Your Chances

  1. Check and dispute any errors on your credit file (Experian, Equifax, TransUnion)
  2. Save a larger deposit — 20–25% shows commitment and reduces lender risk
  3. Register on the electoral roll at your current address
  4. Pay all current bills on time for 6+ months
  5. Use a specialist bad credit mortgage broker — they know which lenders are most likely to approve
  6. Avoid multiple applications — each leaves a mark. Get a soft search Decision in Principle first

Frequently Asked Questions

Yes. Some high street lenders accept satisfied CCJs over 2 years old. Specialist lenders accept more recent or unsatisfied CCJs but charge higher rates. The key factors are: how much the CCJ was for, how recent it is, and whether it's been satisfied (paid off). Citizens Advice CCJ guide ↗
Most negative marks (missed payments, defaults, CCJs) stay on your credit file for 6 years from the date they were registered. After 6 years they automatically drop off. An IVA stays for 6 years; bankruptcy for 6 years. FCA credit file guidance ↗
Strongly recommended. Specialist bad credit lenders often only deal through brokers, and applying to the wrong lender wastes a credit check. A whole-of-market broker will know exactly which lenders are most likely to approve your specific situation.
Key takeaways
  • Loan-to-value bands (95/90/85/80/75%) drive pricing — a small extra deposit can cross a cheaper band
  • Start remortgage shopping 6 months before your fix ends — you can lock now and switch if rates fall
  • Compare total cost over the fixed period — rate plus fees, not headline rate alone

Read This Before You Apply

New-build purchases carry extra moving parts: developer deadlines (typically a 28-day exchange requirement), incentives that lenders may deduct from the valuation, and longer mortgage-offer validity requirements. Tell your broker it's new-build on day one.

The remortgage window is a free option too few people use. Most lenders let you secure a new rate up to 6 months before your current deal ends — if rates rise you're protected, and if they fall you can usually re-lock lower before completion.

Nothing moves your rate more than loan-to-value. Lenders price in bands — 95%, 90%, 85%, 80%, 75% — and crossing a band boundary can cut your rate by 0.3–0.6 percentage points. Before applying, check whether a small top-up to your deposit crosses a threshold: on a £200,000 loan that's £2,000–£5,000 over a fix.

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