Can I Get a Mortgage With Bad Credit? A Practical UK Guide for 2026

If your credit file has a missed payment, a default, a CCJ, or even something more serious like a previous bankruptcy, the first assumption is usually that a mortgage is off the table. It isn’t.

Every month, UK lenders approve thousands of mortgages for people with adverse credit — they just rarely come from the high street, and they’re almost never priced like a standard deal. This guide walks through what “bad credit” actually means to a lender in 2026, which issues are deal-breakers and which aren’t, how rates and deposits compare, and the approach that gives you the strongest chance of approval.

What you want to know	The short answer
Can I get a mortgage at all?	Almost always, yes — the question is at what rate and deposit
Do I need to wait years?	Usually no. Most lenders care about the last 24–36 months
Will my bank lend to me?	Often no — specialist lenders sit behind most adverse approvals
Will I be stuck on a bad rate?	No. After 2 years of clean conduct you can remortgage to prime pricing

What Actually Counts as “Bad Credit”?

Lenders don’t look at a single credit score. They look at the detail on your file — what the issue was, how much it was for, when it happened, and whether it’s settled. The same person can be a clear decline at one lender and a straightforward approval at another.

Light adverse (most lenders will consider):

• A couple of missed payments on a credit card or phone contract more than 12 months ago
• A small default (under £300) that’s now settled and over two years old
• A high credit utilisation that’s since come down
• A thin credit file — not enough history to score well, but nothing negative

Moderate adverse (specialist or near-prime territory):

• A default between £300 and a few thousand, settled within the last 12–36 months
• A CCJ (County Court Judgment), particularly if unsatisfied or recent
• Multiple missed payments clustered in the same period
• A previous mortgage arrears status that’s now resolved

Heavy adverse (specialist lenders only):

• A recent CCJ or default (under 12 months old)
• A discharged bankruptcy or IVA
• A debt management plan (DMP) that’s still active
• A repossession in your history

The single most important variable isn’t the type of issue — it’s how long ago it happened. A CCJ from four years ago is a very different conversation to one from four months ago.

Can I Actually Get Approved?

In almost every realistic adverse credit case, yes — the question is at what rate, with what deposit, and from which lender. The UK mortgage market has a well-established specialist tier that exists specifically for people the high street won’t approve.

Lenders like Kensington, Pepper Money, Bluestone, Precise, Vida, and Together sit behind most adverse credit approvals. They don’t advertise on TV. You won’t find them by walking into a branch. And you almost always access them through an intermediary — which is why a broker isn’t optional in this part of the market, it’s how the market works.

The three things lenders actually want to see:

• Clear distance from the adverse event — ideally the most recent issue is at least 12 months behind you, with clean conduct since
• A deposit that reflects the risk — typically 10–25% depending on severity
• Affordability that’s genuinely comfortable — specialist lenders stress-test like everyone else

Not sure where your credit file sits? Before you apply anywhere, pull all three credit reports (Experian, Equifax, TransUnion). Lenders use different agencies — and the detail that matters to them often isn’t visible on a single score. Book a free call to walk through your file with an adviser.

How Much Deposit Do You Need With Adverse Credit?

Deposit is the single biggest lever you have. The cleaner the deposit, the more lenders open up, and the closer the rate gets to a standard deal.

Credit profile	Typical minimum deposit	Rate premium vs prime
Light adverse	5–10%	0–0.5%
Moderate adverse	10–15%	0.5–1.5%
Heavy adverse (recent CCJ / default)	15–25%	1.5–3%+
Discharged bankruptcy (12–36 months)	15–25%	2–3%+
Active DMP	20–30%	Specialist pricing

These are guide ranges, not rules. A borrower with a single historic default and a 20% deposit can sometimes get mainstream pricing. A borrower with fresh missed payments and 5% deposit will struggle to be placed anywhere.

What Will an Adverse Credit Mortgage Actually Cost?

The honest answer: more than a standard mortgage, but probably less than you fear. In 2026, a moderate adverse case with 15% deposit is typically landing in the 5.5–6.5% range — not the 8–10% figures you’ll see quoted on alarmist comparison sites.

Worked example: £275,000 property, 15% deposit, moderate adverse credit

• Property value: £275,000
• Deposit (15%): £41,250
• Loan required: £233,750
• Indicative specialist rate: ~6.1% fixed 2-year
• Monthly payment (25-year term): ~£1,520
• Vs. prime rate at same LTV (~4.8%): ~£1,340

The premium works out at roughly £180 per month. After two years of clean conduct, most borrowers re-broke back toward prime pricing — the adverse premium is almost never permanent.

What to Do Before You Apply

The worst thing you can do with adverse credit is submit multiple applications and hope. Every declined application leaves a footprint — and multiple footprints in a short window actively damage your chances with the next lender.

Six steps that genuinely move the needle:

• Pull all three credit reports. Check for errors (surprisingly common) and dispute anything inaccurate before you apply.
• Settle anything you can. A settled default is a materially better look than an unsatisfied one, even if it’s the same value.
• Don’t apply for new credit in the six months before your mortgage application — no new cards, car finance, or buy-now-pay-later.
• Register on the electoral roll at your current address. This is trivial to fix and meaningfully affects scoring.
• Build up deposit where you can. Every 5% more deposit opens up a wider pool of lenders.
• Work with a broker before you apply anywhere. A soft-footprint decision in principle with the right lender tells you what’s achievable without burning applications.

Why a Broker Matters More Here Than Anywhere Else

With adverse credit, placing the case with the right lender first time is the whole game. A broker with specialist lender relationships knows which lenders will accept which types of adverse, at what deposit, and at what rate — so your first application is the one that gets approved, not the third.

Based in Marlow, we work with clients across Berkshire, Buckinghamshire, and the wider UK on adverse credit cases. Book a free call — we’ll review your file, run soft-footprint decisions in principle, and only submit an application when we know it will go through.

Common Misconceptions to Clear Up

“I need to wait six years for things to fall off my file.” Adverse entries stay on your credit file for six years, but most lenders care about the last 24–36 months, not the full six. You almost never need to wait for items to disappear — you just need a clean recent track record and the right lender.

“My bank said no, so no one will lend to me.” Your bank typically uses one scoring model and offers products from one lender — itself. A rejection from one high-street lender tells you almost nothing about what the specialist market will do.

“Checking my score will hurt it.” Looking at your own credit file is a soft search. It has no effect. Hard searches from applications are what accumulate.

“I’ll get a better rate if I apply to ten lenders.” The opposite. Multiple hard searches in a short window are a red flag to every subsequent lender. One well-placed application beats ten speculative ones.

Frequently Asked Questions

How long after a default can I get a mortgage? Light adverse: often immediately if it’s small, old, and settled. Moderate adverse: typically 12 months after the event for the widest lender pool. Heavy adverse (recent CCJs, bankruptcy, repossession): usually 12–36 months, depending on severity and deposit.

Will a mortgage application show on my credit file? A decision in principle can be run as a soft search with most lenders — no footprint. A full application is a hard search. A good broker runs soft-footprint DIPs first to avoid unnecessary hard searches.

Do I need a bigger deposit because of bad credit? Usually yes, but it depends on severity. 5–10% is possible for light adverse. Moderate adverse typically needs 10–15%. Heavy adverse often needs 15–25%.

What’s the difference between a specialist and a sub-prime lender? Increasingly, nothing. “Sub-prime” has largely fallen out of use; the modern market calls these lenders “specialist” or “near-prime”. They’re fully regulated by the FCA and the products are standard residential mortgages — just with criteria designed for adverse credit.

Can I get a mortgage while in a DMP? Sometimes, yes — but the pool of lenders is narrow and the deposit requirement is usually 20%+. It’s often better to clear the DMP first if you have the option.

Will I be stuck on a high rate forever? No. The whole point of an adverse credit mortgage is to get you on the ladder with a clean record going forward. After two years of clean conduct, most borrowers can remortgage to mainstream pricing. It’s a bridge, not a destination.

Speak to a Specialist Adverse Credit Adviser

Adverse credit cases need placing with the right lender first time. We’re a whole-of-market, independent brokerage based in Marlow, advising clients across Berkshire, Buckinghamshire, and the wider UK — with direct access to the specialist lender panel.

Ready to see what’s possible? Book a free consultation — no obligation, no hard search on your file, and an honest read on what you can realistically get.