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Bad Credit Mortgages

Can I get a bad credit mortgage?

Yes, you can, we can help you if..

  • You have at least 15% deposit
  • Your Defaults or County Court Judgements went on your file at least 36 months ago


  • Your Defaults and County Court Judgements in the past two years total less than £1,000

Help to Buy Bad Credit Mortgages

If you need a Bad Credit Mortgage for a Help to Buy Equity purchase, please visit our specialist page.

What if my credit history is worse than that?

We can help if..

  • You have at least 20% deposit
  • You have no more than 5 Defaults or 3 County Court Judgements on your file in the past 36 months

How much will I pay for a bad credit mortgage?

Bad credit mortgage rates are available from under 4%
Expect to pay between £500 and £600 per month per £100,000 borrowed*

(*25 year term – each case is assessed individually)

How long does it take to obtain a bad credit mortgage?

Our team can obtain a ‘yes’ from a suitable lender for you within 36 hours

Valuation of the property and full application to formal offer takes around four weeks on average

How much are your fees?

We ask for £99 to obtain your ‘yes’ from a suitable bad credit lender.

Our total fees will not exceed £797

You should call us without charge or obligation to establish if we can assist you.

Our full terms are available here

What if my credit history really bad?

If you have a history of mortgage arrears, Debt Management Plans, Dankruptcy, or multiple Defaults or County Court Judgements, there may still be some options for you.

You will need a larger deposit (or more equity in your home), perhaps 25% or 40%

I need to raise more cash from my home?

If you need to remortgage to raise extra cash but have a low cost mortgage that you do not want to lose, we can help.

We can raise extra funds for you whilst leaving your current deal untouched.

I dont know how bad my credit history is?

You need to obtain a copy of your credit report from each of the three main credit reference agencies.

Each report is available online at a cost of £2

Details of how to obtain and read your credit reports here.

I’ve been told ‘no’ elsewhere

Many lenders are not interested in bad credit.

Many brokers have little experience and knowledge with bad credit.

We deal with bad credit mortgages every day.

Bad credit history colour banding system guide for homemovers and remortgages

Blue – missed or late payments

You have a bad credit record with missed payments or have made late payments on credit within the past three years.

Likely Result

Mainstream Lenders will automatically decline to lend in nearly all cases.  Specialist channels can assist.  Higher loan to value mortgages may prove problematical.

If you have missed payments on your credit record,  a 10% deposit will not be enough to secure you a mortgage.  You should aim for a minimum 15% deposit.

Why you should apply through an independent mortgage broker

You will only be able to obtain access lenders that will consider your case via an experienced independent mortgage broker.

request a blue band mortgage

For advice before you apply please call us on 020 8979 9684

Orange – Defaults or CCJ’s

You have a bad credit record with defaults or CCJ’s on it.  These total under £1,000 and were incurred over three years ago.

Likely Result

Specialist Lenders will need to be used.  Mortgages not possible above 85% loan to value (80% for first time buyers) but rates offered are generally reasonable.

Why you should apply through an independent mortgage broker

You will only be able to obtain access to lenders that will consider your case an experienced independent mortgage broker.

request an orange band mortgage

For advice before you apply please call us on 020 8979 9684

Red – Larger or recent CCJ’s or Defaults and mortgage arrears

You have a bad credit record with defaults and CCJ’s totalling up to £5,000 within the last three years and/or have missed no more than one mortgage payment in the last twelve months,  and three in the last 36 months.

Likely Result

Specialist Lenders only and mortgages up to 70% loan to value.  Expect to pay close to 6% on mortgage rate.  We can often assist red band borrowers with buy to let lending as well as residential purchases,  remortgages,  and capital raising.

Why you should apply through an independent mortgage broker

You will need an experienced independent mortgage broker to handle your case as this is the only way you can access the specialist Lenders you need.

request a red band mortgage

For advice before you apply please call us on 020 8979 9684

Purple – Specialist Bad Credit Mortgage Case –Larger CCJ’s, Multiple Mortgage Arrears, Bankruptcy

You have been a Bankrupt,  had an IVA in place or have missed a number of mortgage payments or incurred CCJ’s totalling over £5,000.

Likely Result

There is very limited appetite for this type of lending in the market.

The lender will ask that the bankruptcy or IVA be settled for a minimum 36 months before application.  We can sometimes work with more recent bankruptcies or IVAs where the lending requirement is well under half the property value – an example would be if ‘downsizing’ to a less expensive property.

If an applicant can prove that all credit problems happened within a short space of time for a valid reason (such as redundancy, divorce, sickness, bereavement) we do have access to a lending source that might consider an extreme case.

We can often assist clients who are in debt management plans and require low loan to value mortgages cases (60% and below).

Why you should apply through an independent mortgage broker

You will only be able to obtain access lenders that will consider your case an experienced independent mortgage broker.

request a purple band mortgage

For advice before you apply please call us on 020 8979 9684

Our bandings above are intended merely as a guide.
Each individual’s situation will be assessed by the respective Lender and following this mortgage terms may or may not be offered.

Explanations of credit terms

About your credit file

Your credit file carries six years of your credit history and is the primary tool used by a Mortgage Lender to make a decision on whether you are a good lending risk.If you are not sure what your credit file contains,  you can obtain a copy from companies such as Experian or Equifax.More details about your credit file and how it works are set out below at the bottom of this page.

Get debt free

If you are struggling to handle your debt,  and would like to know how you can get everything in order and ease your worries visit our get debt free page.

On this page we refer to different bad credit issues such as missed payments,  Defaults,  County Court Judgements,  Debt Management programmes, and Bankruptcy.  If you are not familiar with these terms and need to understand which category you fit into,  we have provided some background information at the bottom of the page to assist you.

Missed Credit Payments

Have you missed payments or made late payments on credit?

If you have,  this may show on your credit record.   A credit file is held on you by companies such as Equifax or Experian,  and each time you take or repay credit, that information is logged on your file by the credit provider.

Your credit file contains details of when you applied for credit and to whom – how much you have borrowed – from whom,  and what the regular repayments are.

Most importantly,  from a prospective lender’s point of view,  your credit file shows details of when payments were made and when they were missed.

A missed payment will reduce your chances of obtaining credit.  Several missed payments will cause a larger problem.

Two tips to avoid missed credit payments showing on your credit file:

1. Use Direct Debit Mandates where possible.

2. Make your payments early in the month so that if there is a problem you can make the payment up in the same month before your lender registers a missed payment on your credit file.

3. In our experience,  the most common cause of late or missed payments are mobile phone bills.  To avoid this risk,  use pay as you go contracts.


A default is formal notification from your Creditor that payments are not being paid on time.  You will not automatically get a default if you miss a payment on your credit as they are usually issued when you are in arrears by three to six months.

Your default notice will outline all relevant information on the debt and why you are in default.

Default notices should not be ignored as they are the first sign that legal steps may be taken to recover your debt.  They are therefore the stage before a CCJ.

County Court Judgements

Do you have, or have you had, a County Court Judgement against you?
You are not alone.   Around two thousand County Court Judgements (CCJ’s) are issued every day.

A County Court Judgement (CCJ) is issued by a County Court if you fail to pay money that you owe.

If you have an outstanding debt that is not being paid,  your Creditor can apply to the Court for a County Court Judgement.  The Court assesses if there really is a debt to pay,  if they decide there is,  they will issue a CCJ and decide how the debt should be repaid.  The average CCJ size is around £3,300.

You know this process is happening as you will be sent a CCJ Claim form prior to the judgement being made.  This gives you the opportunity to state your side of the case.
When the Court date arrives you do not need to attend if you are not disputing the claim.

What if I don’t pay a CCJ?

Contact A Mortgage Now

If you do not pay the CCJ inside the terms decided by the Court,  your Creditors may ask the Court to enforce the order.  If they do,  this legal cost will be added to your debt.

Action then may include:

1. A warrant of execution where a Court appointed bailiff takes your goods in order to sell them to help pay the debt.

2. An attachment of earnings allowing the debt to be repaid direct from your salary by your employer.  This can obviously result in a difficult situation with your employer knowing about your debt issues.

3. A charging order – where a charge is placed against your property to deduct your debt from sale proceeds.  This will make it difficult for you to mortgage or remortgage your property.

4. A third party debt order that freezes your bank account until you pay the debt due.

Mortgage Arrears

Mortgage arrears are a serious problem and may lead to you losing your home.  However,  no Mortgage Lender likes to repossess and they will take steps to assist you through difficult financial periods and get you back on track.

The worst thing you can do if you do not have the funds to make your mortgage payment,  is not to inform the Lender.  The sooner the Lender knows,  the sooner they can help you.

If you ignore mortgage arrears and do not contact your Lender they will have to assume the worst and act accordingly.

If you have had mortgage arrears in the past,  you will be aware that the normal route is for the Lender to arrange a slightly higher monthly payment with you once things have settled down to repay the arrears.

Of course,  mortgage arrears on your record are not attractive to prospective mortgage lenders when you seek to remortgage or purchase a new property.

1 in 12, 0 in 3

When dealing with mortgage arrears,  you may hear terms like 1 in 12 and 0 in 3.  This simply means the lender is looking for a maximum of one missed payment in the last 12 months and none in the last three months.  The more recent your missed mortgage payments,  the more difficult it will be to arrange a mortgage.

Payday Loans

Contact A Mortgage NowPayday loans are short term cash loans arranged by a number of providers in the UK.  Since 2008,  payday loans have started to become big business and the companies operating in this area have the financial resources for major sponsorship of football teams and a number of TV advertising campaigns.  Why can they do this? –  because the business is so profitable for them,  interest rates on these loans can run into the 000’s% range.

Payday loans and Mortgages

The current position is that bad credit lenders do not have defined criteria for applicants with pay day loans on their record.  As a result,  we cannot predict how a lender will react to pay day loans on your credit report.  The pattern appears to be that one or two recent pay day loans can be tolerated,  as can historical pay day loans.  Applicants with numerous recent pay day loans are likely to be declined by mortgage lenders.

Debt Management Programmes

Contact A Mortgage NowUnder a debt management programme,  a third party becomes involved in your situation.  This person negotiates with your creditors to reduce your monthly payments to a level you can afford within your income,  or perhaps even to write off some of your debt.

Under a debt management programme,  you will set out your essential monthly outgoings such as food,  mortgage or rent,  rates,  bills,  travel,  etc,  and a calculation will be made as to how much you can afford to repay your creditors.

A debt management programme can be advantageous as it will stop your creditors chasing you by phone and post,  taking much of the stress away.

There are a number of private companies offering debt management services but you should be aware that they will charge a fee to assist you.

There are Government and Charitable bodies who will assist you for free.

A good starting point is to visit your local Citizens Advice Bureau.

Mortgage lenders are not keen on debt management plans and your chances of arranging a mortgage or re-mortgage if you have one in place are slim.


Contact A Mortgage NowBankruptcy is the final step if you cannot pay your debts.  It gives you the opportunity to wipe the slate clean and start again.  It does however, seriously affect your chances of obtaining future credit and will impact on your lifestyle in the short term.

A Bankruptcy order may be requested by yourself or by your creditors (provided you owe the petitioning creditor as least £750).  Under the order,  your assets are turned to cash and your creditors paid as much as possible from the proceeds.

After a Bankruptcy order,  you need to stop using your bank account(s). You also need to declare you are bankrupt if applying for any credit above £500.

A trustee will be appointed to handle your bankruptcy and the repayment of your debt.

Bankruptcy and your home

Contact A Mortgage NowIf you own your home with or without a mortgage,  your interest in the home will form part of your estate which will be dealt with by your trustee.  The home may have to be sold to go towards paying your debts.

If your husband,  wife or children are living with you,  it may be possible for the sale of the property to be put off until after the end of the first year of your bankruptcy.

Your husband,  wife,  partner,  a relative or friend may be able to buy your interest in your home from the trustee.  Such a purchase would prevent a sale of the property by the trustee at a future date.

Your spouse or any other interested party should take legal advice about the home as soon as possible

Bankruptcy and the Self Employed

If you are made bankrupt,  your business is shut down and your staff dismissed.  There is no restriction on a bankrupt being self- employed so you may start trading again.

How long will you be bankrupt?

The bankruptcy period lasts for up to 12 months (it can finish earlier).  The impact of the bankruptcy on your financial situation can last much longer.

Alternatives to Bankruptcy

You can consider an Individual Voluntary Arrangement (IVA).   This gives you more say as to how you pay your creditors and it may be easier to keep your home than under bankruptcy.  You will avoid the restrictions of bankruptcy and the overall costs to you may be less.

Individual Voluntary Arrangement

An IVA is a type of debt relief order and in order to arrange one you will need to appoint an insolvency practitioner to handle your case – or appoint the official receiver.

Under an IVA,  agreed payments are made with your Creditors over a set period of time in order to your avoiding bankruptcy.  Whilst you are in an IVA,  your options for further financial arrangements are severely limited.