{"id":26921,"date":"2022-12-20T11:30:47","date_gmt":"2022-12-20T10:30:47","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26921"},"modified":"2022-12-20T11:41:59","modified_gmt":"2022-12-20T10:41:59","slug":"bad-credit-mortgages","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/","title":{"rendered":"Learn About Bad Credit Mortgages &#8211; Read Our Guide"},"content":{"rendered":"\n<p>It&#8217;s no secret that having bad credit can make life more difficult. And if you have bad credit, you may think that you can&#8217;t get a mortgage. But you can! You may not have as many lenders to choose from, but there are mortgages available for people with bad credit.<\/p>\n\n\n\n<p>In this blog post, we\u2019ll discuss everything you need to know about <strong>bad credit mortgages.<\/strong> We\u2019ll cover how bad credit mortgages work, what you can do to get one, and more.<\/p>\n\n\n\n<p><strong>If you\u2019ve got bad credit don&#8217;t give up hope, there\u2019s still a chance you can buy your own home.<\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f294c1dbfc3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f294c1dbfc3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#what_is_a_bad_credit_mortgage\" >What is a Bad Credit Mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#can_i_get_a_mortgage_with_bad_credit\" >Can I get a mortgage with bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#how_do_bad_credit_mortgages_work\" >How do bad credit mortgages work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#what_should_i_do_to_get_a_bad_credit_mortgage\" >What should I do to get a bad credit mortgage?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#1_work_out_what_you_need\" >1.&nbsp;Work out what you need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#2_check_your_credit_report\" >2.&nbsp;Check your credit report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#3_improve_your_credit_score\" >3.&nbsp;Improve your credit score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#4_save_as_big_a_deposit_as_you_can\" >4.&nbsp;Save as big a deposit as you can<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#5_include_your_rent_on_your_credit_file\" >5.&nbsp;Include your rent on your credit file<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#how_can_i_apply_for_a_bad_credit_mortgage\" >How can I apply for a bad credit mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#how_much_can_i_borrow_on_a_poor_credit_mortgage\" >How much can I borrow on a poor credit mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#what_is_the_loan_to_value_rate_for_a_bad_credit_mortgage\" >What is the loan to value rate for a bad credit mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#can_i_get_a_mortgage_if_i_have_bad_credit_and_no_deposit\" >Can I get a mortgage if I have bad credit and no deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#can_i_still_buy_a_house_with_a_small_deposit_if_i_have_bad_credit\" >Can I still buy a house with a small deposit if I have bad credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#1_shared_ownership_scheme\" >1.&nbsp;Shared ownership scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#2_guarantor_mortgages\" >2.&nbsp;Guarantor mortgages<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#3_help_to_buy_mortgages\" >3.&nbsp;Help to buy mortgages<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#will_having_bad_credit_make_my_mortgage_more_expensive\" >Will having bad credit make my mortgage more expensive?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#which_lenders_offer_mortgages_for_bad_credit\" >Which lenders offer mortgages for bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#faqs_%e2%80%93_bad_credit_mortgages\" >FAQs \u2013 Bad Credit Mortgages<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#what_is_the_lowest_credit_score_i_need_to_get_a_bad_credit_mortgage\" >What is the lowest credit score I need to get a bad credit mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#how_many_years_of_credit_history_does_mortgage_lenders_look_at\" >How many years of credit history does mortgage lenders look at?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-mortgages\/#can_i_remortgage_with_bad_credit\" >Can I remortgage with bad credit?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what-is-a-bad-credit-mortgage\"><span class=\"ez-toc-section\" id=\"what_is_a_bad_credit_mortgage\"><\/span><strong>What is a Bad Credit Mortgage?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>A bad credit mortgage is like a standard mortgage in that it\u2019s a type of loan that\u2019s secured against a property.<\/strong> As properties cost a lot of money, most people can\u2019t afford to buy one outright. So, taking out a mortgage lets you buy your own home.<\/p>\n\n\n\n<p><strong>Bad credit mortgages are offered to people who have a poor credit history<\/strong>. Your credit score might be low if you\u2019ve had trouble repaying your debts in the past. And this makes it harder to borrow money. But that doesn\u2019t mean you can\u2019t get a mortgage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-get-a-mortgage-with-bad-credit\"><span class=\"ez-toc-section\" id=\"can_i_get_a_mortgage_with_bad_credit\"><\/span><strong>Can I get a mortgage with bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, you can get a mortgage with bad credit. Despite people with low credit scores being considered high-risk borrowers, it\u2019s a secured loan. <strong>Put simply, because the property is an asset, lenders can sell it to recover their money if you can\u2019t pay<\/strong>. It gives them some security, meaning you\u2019re more likely to be accepted.<\/p>\n\n\n\n<p>That\u2019s why you can still find mortgage providers who are willing to lend to you even with bad credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-bad-credit-mortgages-work\"><span class=\"ez-toc-section\" id=\"how_do_bad_credit_mortgages_work\"><\/span><strong>How do bad credit mortgages work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bad credit mortgages work in a similar way to regular mortgages. But as bad credit mortgages are designed for people with a poor credit history, their terms are different.<\/p>\n\n\n\n<p><strong>The main differences are listed below.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Mortgages for bad credit will have higher interest rates than standard mortgages<\/strong>. But you can still get a fixed or variable interest rate mortgage.<ul><li>A fixed rate means you pay the same amount each month for a set period.<\/li><\/ul><ul><li>A variable rate mortgage means the amount you pay will go up or down. It\u2019ll change in line with the lender\u2019s mortgage interest rate. And that changes in line with the UK\u2019s Bank of England base rate.<\/li><\/ul><\/li><li>You\u2019ll need to put down a higher deposit with a bad credit mortgage.<\/li><li>You\u2019ll have a smaller selection of mortgage providers to choose from.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-should-i-do-to-get-a-bad-credit-mortgage\"><span class=\"ez-toc-section\" id=\"what_should_i_do_to_get_a_bad_credit_mortgage\"><\/span><strong>What should I do to get a bad credit mortgage?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To get a bad credit mortgage you\u2019ll need to do what you can to improve your chances of being approved. You can do this by following these simple steps.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-work-out-what-you-need\"><span class=\"ez-toc-section\" id=\"1_work_out_what_you_need\"><\/span><strong>1.&nbsp;Work out what you need<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are two aspects to this, what size home you want to buy and how much money you\u2019ve got. By being realistic about what you can afford, you can get to work on your finances.<\/p>\n\n\n\n<p>Getting yourself into a strong financial position will help you when you come to apply for the mortgage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-check-your-credit-report\"><span class=\"ez-toc-section\" id=\"2_check_your_credit_report\"><\/span><strong>2.&nbsp;Check your credit report<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you apply for your mortgage, the lender will do a hard credit check. They\u2019ll look at information on your credit history to help them with their decision. Before they look at your credit report, check it yourself. You can do this by going to the three top Credit Reference Agencies (CRAs) in the UK. They are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/www.experian.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Experian<\/a><\/strong><\/li><li><strong><a href=\"https:\/\/www.equifax.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Equifax<\/a><\/strong><\/li><li><strong><a href=\"https:\/\/www.transunion.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">TransUnion<\/a> (formerly Callcredit).<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Make sure there are no errors on your credit file<\/strong>. Simple things like an incorrect address could stop you from being approved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-improve-your-credit-score\"><span class=\"ez-toc-section\" id=\"3_improve_your_credit_score\"><\/span><strong>3.&nbsp;Improve your credit score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even if you\u2019ve got a poor credit rating, there are things you can do to improve it. Here are some tips to get you started.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>If you\u2019re not on the electoral roll, get registered on it<\/strong>. This can quickly give your credit score a boost.<\/li><li>If you\u2019ve missed any payments in the past, spend a few months making your payments on time. Do this before you apply for a mortgage as it\u2019ll show the lender that you can be reliable.<\/li><li>Don\u2019t apply for any other credit in the lead up to you applying for a mortgage. Loan applications reduce your credit score.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-save-as-big-a-deposit-as-you-can\"><span class=\"ez-toc-section\" id=\"4_save_as_big_a_deposit_as_you_can\"><\/span><strong>4.&nbsp;Save as big a deposit as you can<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>The more you can put down as a deposit, the more it\u2019ll help you when you apply for a mortgage<\/strong>. Here are a couple of tips to help you save.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If you\u2019re aged between 18 and 39, save your deposit in a <a href=\"https:\/\/www.gov.uk\/lifetime-isa\" target=\"_blank\" rel=\"noopener\"><strong>LISA account<\/strong><\/a>. You can save up to \u00a34,000 a year in it. When you do, the government will top it up by 25%, up to a maximum of \u00a31,000.&nbsp;<\/li><li>Would your family be willing to gift you some money? If they can afford it and they don\u2019t need you to pay it back, it can help you secure the mortgage. Of course, you could always pay them back in future if your finances improve.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-include-your-rent-on-your-credit-file\"><span class=\"ez-toc-section\" id=\"5_include_your_rent_on_your_credit_file\"><\/span><strong>5.&nbsp;Include your rent on your credit file<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019re renting and you pay your rent on time, you could get this reported on your credit file. You can do this by signing up to a service that will record your rent payments with the CRAs. Here are a couple of services that you can do this with.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/www.canopy.rent\/canopygrow\" target=\"_blank\" rel=\"noreferrer noopener\">Canopy<\/a><\/strong><\/li><li><strong><a href=\"https:\/\/www.creditladder.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Ladder<\/a><\/strong><\/li><\/ul>\n\n\n\n<p>Showing that you can pay your rent on time can help your mortgage application as well as help your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-apply-for-a-bad-credit-mortgage\"><span class=\"ez-toc-section\" id=\"how_can_i_apply_for_a_bad_credit_mortgage\"><\/span><strong>How can I apply for a bad credit mortgage?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;re looking for a bad credit mortgage in the UK, it\u2019s a good idea to approach a mortgage broker. These brokers can help find mortgages for people with poor credit ratings. And they can help find you the best deal possible.<\/p>\n\n\n\n<p><strong>The application process for a bad credit mortgage can be more complex than it is for a regular mortgage.<\/strong> That\u2019s because the lender will want to be sure you can afford it. So, be prepared to do the following.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Provide detailed information about your financial history. You may want to explain what happened in your past which caused your low credit score. Be honest, and show the lender that you\u2019re in a better place now financially.<\/li><li>Provide details of your employment and income. Lenders may want to see extra payslips and bank statements if you\u2019ve got a bad credit history.<\/li><li>Provide information on your outgoings as well as your income.<\/li><li>Be willing to have a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\"><strong>hard credit check<\/strong><\/a> completed, but this won\u2019t stay on your credit file for more than 12 months.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-can-i-borrow-on-a-poor-credit-mortgage\"><span class=\"ez-toc-section\" id=\"how_much_can_i_borrow_on_a_poor_credit_mortgage\"><\/span><strong>How much can I borrow on a poor credit mortgage?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re looking for a mortgage but have poor credit, you may be wondering how much you can borrow. <strong>Lenders will only let you borrow what you can afford<\/strong>. They\u2019re likely to use your income to help them decide how much that might be. For example, some lenders will only let you borrow 4 times your annual income.<\/p>\n\n\n\n<p>Other factors may influence the amount you\u2019ll be able to borrow. These might include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The value of the property you want to buy<\/li><li>Your age<\/li><li>Your employment status<\/li><li>Your income and outgoings<\/li><li>Your credit history<\/li><\/ul>\n\n\n\n<p>Your mortgage broker will know how much the lenders are likely to offer based on your situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-the-loan-to-value-rate-for-a-bad-credit-mortgage\"><span class=\"ez-toc-section\" id=\"what_is_the_loan_to_value_rate_for_a_bad_credit_mortgage\"><\/span><strong>What is the loan to value rate for a bad credit mortgage?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The loan to value is the amount the lender is willing to lend to you against the value of the property. You can calculate how much this is by following the steps in our example below.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li>Let\u2019s say you want to buy a property for \u00a3150,000.&nbsp; Then you find out the loan to value is 70%.<\/li><li>The amount you\u2019ll be able to borrow is 70% of \u00a3150,000. <strong>You work this out by using the following equation:<\/strong><br><strong>\u00a3150,000 x 0.7<br>The answer to this is \u00a3105,000.<\/strong>&nbsp;<\/li><li>If you take \u00a3105,000 away from \u00a3150,000, you\u2019re left with \u00a345,000. This would be the deposit you\u2019d need to save to buy the house. The \u00a3105,000 would be on your mortgage.<\/li><\/ol>\n\n\n\n<p><strong>Bad credit mortgage providers are unlikely to lend you more than 75% of the value of the property<\/strong>. Depending on your credit score, this may be less. This means you\u2019ll have to find at least 25% to put down as a deposit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-get-a-mortgage-if-i-have-bad-credit-and-no-deposit\"><span class=\"ez-toc-section\" id=\"can_i_get_a_mortgage_if_i_have_bad_credit_and_no_deposit\"><\/span><strong>Can I get a mortgage if I have bad credit and no deposit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\u2019ll struggle to find any lenders in the UK who\u2019ll give you a mortgage without you putting down a deposit. <strong>A mortgage with no deposit is known as a 100% mortgage<\/strong>. They used to be available in the past but they\u2019re not generally available.<\/p>\n\n\n\n<p>The only way it might be possible to get a mortgage without a deposit is if you have a guarantor. But the guarantor would have to put up some sort of security, such as savings or their own property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-still-buy-a-house-with-a-small-deposit-if-i-have-bad-credit\"><span class=\"ez-toc-section\" id=\"can_i_still_buy_a_house_with_a_small_deposit_if_i_have_bad_credit\"><\/span><strong>Can I still buy a house with a small deposit if I have bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You may think that if you only have a small deposit and you\u2019ve got bad credit, you won\u2019t be able to buy a home. But you\u2019d be wrong. There are other ways to buy a home.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-shared-ownership-scheme\"><span class=\"ez-toc-section\" id=\"1_shared_ownership_scheme\"><\/span><strong>1.&nbsp;Shared ownership scheme<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Buying a home through a <a href=\"https:\/\/www.gov.uk\/shared-ownership-scheme\/who-can-apply\" target=\"_blank\" rel=\"noreferrer noopener\">shared ownership scheme<\/a> means you don\u2019t own the whole property, you just buy a share of it<\/strong>. You then pay rent to the landlord who owns the rest of the property. The landlord is usually a housing association.<\/p>\n\n\n\n<p>These schemes are designed for people who can\u2019t afford to buy a whole property themselves. They\u2019re also good for people who can\u2019t raise enough deposit.<\/p>\n\n\n\n<p><strong>The table below shows the main advantages and disadvantages of shared ownership schemes.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Advantages of the shared ownership scheme<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Disadvantages of the shared ownership scheme<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The deposit is lower. It only has to be portion of your share of the property.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Not all lenders are willing to give you a mortgage on a shared ownership scheme.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can buy extra shares in the property over time, so you could end up owning it outright.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t fully own the property.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can sell your share any time you want.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ll have to give the housing association first refusal if you want to sell your share.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The housing association who you buy it with tend to take care of any maintenance for up to 10 years.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You won\u2019t be able to make any alterations without the housing association\u2019s consent. And they may not let you do what you want.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-guarantor-mortgages\"><span class=\"ez-toc-section\" id=\"2_guarantor_mortgages\"><\/span><strong>2.&nbsp;Guarantor mortgages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A guarantor mortgage is one that you take out with someone else. The other person is usually a family member or close friend. They guarantee that they\u2019ll pay the mortgage if you can\u2019t.<\/p>\n\n\n\n<p>The table below lists the main advantages and disadvantages of guarantor mortgages.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Advantages of guarantor mortgages<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Disadvantages of guarantor mortgages<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The deposit is lower. You may even get 100% mortgage if the guarantor has a home of their own that they could include as security.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Your guarantor\u2019s property could be at risk if they include it as security against your mortgage and you can\u2019t pay.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You may be able to borrow more than you would otherwise would.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The interest rate is still likely to be higher than with a standard mortgage.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You get to buy a home even though you\u2019ve got a poor credit score.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Your guarantor can\u2019t be used if they have a bad credit score.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">By keeping on top of your repayments you could boost your credit score.<\/td><td class=\"has-text-align-center\" data-align=\"center\">By borrowing more, you might fall behind in your repayments which would affect your credit score.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-help-to-buy-mortgages\"><span class=\"ez-toc-section\" id=\"3_help_to_buy_mortgages\"><\/span><strong>3.&nbsp;Help to buy mortgages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The help to buy scheme is one offered by the government. The way it works is that the government would provide an equity loan of up to 20% of the house value. You\u2019d have to put down 5% deposit. The equity loan would be interest free for the first 5 years and was only available to first time buyers.<\/p>\n\n\n\n<p>We haven\u2019t gone into detail here as applications for this is closed now. The way they work is also quite complex. So, if you\u2019ve applied for some help to buy mortgage, make sure you understand the rules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"will-having-bad-credit-make-my-mortgage-more-expensive\"><span class=\"ez-toc-section\" id=\"will_having_bad_credit_make_my_mortgage_more_expensive\"><\/span><strong>Will having bad credit make my mortgage more expensive?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The interest rate on a mortgage for someone with bad credit will be higher than for someone with good credit. This\u2019ll make it more expensive.<\/p>\n\n\n\n<p><strong>The terms of the mortgage may be less favourable for someone with bad credit too<\/strong>. The following requirements may be a condition of your borrowing on a bad credit mortgage.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You could be asked to put down a bigger deposit.<\/li><li>You may have to pay large up-front fees.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"which-lenders-offer-mortgages-for-bad-credit\"><span class=\"ez-toc-section\" id=\"which_lenders_offer_mortgages_for_bad_credit\"><\/span><strong>Which lenders offer mortgages for bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The lenders who offer mortgages for bad credit are usually specialist lenders. But there are some high street lenders who may consider offering you a mortgage. It depends on what\u2019s caused your poor credit rating.<\/p>\n\n\n\n<p><strong>Going through a <\/strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/\"><strong>mortgage broker<\/strong><\/a><strong> can be helpful<\/strong>. They\u2019ll be able to source the lender who\u2019s most likely to consider giving you a mortgage with your credit history.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faqs-bad-credit-mortgages\"><span class=\"ez-toc-section\" id=\"faqs_%e2%80%93_bad_credit_mortgages\"><\/span>FAQs \u2013 Bad Credit Mortgages<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1671452407498\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what_is_the_lowest_credit_score_i_need_to_get_a_bad_credit_mortgage\"><\/span>What is the lowest credit score I need to get a bad credit mortgage?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There\u2019s no single credit score that all lenders use when assessing your mortgage application. They each use their own scoring criteria. The best thing you can do is to try your best to <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/improve-your-credit-score\/\"><strong>improve your score<\/strong><\/a> before you apply. <strong>The higher your credit score, the better your chances are of being approved.<\/strong><\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671452429908\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how_many_years_of_credit_history_does_mortgage_lenders_look_at\"><\/span>How many years of credit history does mortgage lenders look at?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Mortgage lenders will look at the last 6 years of your credit history. This means they\u2019ll be able to see any defaults or other mishaps that have occurred during that time. They\u2019ll also be able to see how long you\u2019ve lived at your current address.<br \/>This information helps them decide whether to lend to you, so it\u2019s worth making sure it\u2019s correct.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671452441006\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_remortgage_with_bad_credit\"><\/span>Can I remortgage with bad credit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you can still remortgage if you\u2019ve got bad credit. You\u2019ll have the same terms as anyone else who\u2019s trying to get a mortgage with bad credit. This means you\u2019re likely to have to pay higher interest rates. But find out from your existing lender if they\u2019re willing to let you move on to a new deal.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> We are not providing financial advice. These are just tips for informational purposes. Also, we are not affiliated to any of the external parties linked, they are provided for reference only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s no secret that having bad credit can make life more difficult. And if you have bad credit, you may think that you can&#8217;t get a mortgage. But you can! You may not have as many lenders to choose from, but there are mortgages available for people with bad credit. In this blog post, we\u2019ll [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26921"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26921"}],"version-history":[{"count":2,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26921\/revisions"}],"predecessor-version":[{"id":26924,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26921\/revisions\/26924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26923"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}