Can you get a mortgage with bad credit?

It can be harder to a get a mortgage if you have a low credit score. This is because a lender will look at your credit file to understand your financial history.

If there’s lots of missed payments for bills or loans, it might suggest that you can’t afford a mortgage.

Getting a mortgage is a big decision and one that needs to be thought about carefully. Giving a mortgage to someone who cannot afford it isn’t good for the lender or the borrower. A home can be repossessed if a borrower can’t afford to repay their mortgage.

What is bad credit?

Bad credit means your credit file shows things that may put off lenders. This can include missed or late payments, or having lots of existing debt.

There is no one definition of a bad credit history. Different lenders have their own rules and elements they will look at.

How does bad credit affect applying for a mortgage?

If you have bad credit, lenders may think you will struggle to meet your mortgage payments. It shows in your past you had some money problems. This can put them off approving your mortgage application.

Some lenders might look in more detail as to why you have bad credit. Each credit rating agency (CRA) will determine your score differently. This can affect your application.

Often if the lender can see your finances have gotten better, this might help your application.

Improving your chances of getting a mortgage with bad credit

If you have a poor credit history, you can try a few things to boost your chances to get a mortgage.

The content on this page is for reference and does not constitute financial advice. For impartial financial advice, we recommend government bodies like MoneyHelper.