For many first-time buyers, getting on the property ladder can feel challenging — and if you have bad credit, the process may seem even more daunting. However, having a poor credit history doesn’t automatically mean homeownership is out of reach for a First-time Buyer. With careful planning, the right guidance, and support from an experienced mortgage broker, you can improve your chances of securing a mortgage.
In this guide, we’ll explore how first-time buyers with bad credit can increase their chances of success and what steps you can take to turn your homeownership dream into reality.
Understanding How Bad Credit Affects Your Mortgage Options
Lenders use your credit history to assess your reliability as a borrower. If your credit report shows previous financial difficulties — such as missed payments, defaults, or CCJs — some lenders may see you as a higher risk.
However, lenders assess more than just your credit score. They also consider:
🔹 Your Income: Stable employment and consistent earnings can improve your chances.
🔹 Your Deposit: A larger deposit can reduce the lender’s risk.
🔹 Your Current Financial Situation: If your recent financial behaviour shows improvement, lenders may be more willing to offer you a mortgage.
🔹 Your Outgoings: Lenders will assess your monthly spending to ensure you can manage mortgage repayments.
While some high street lenders may reject applications from those with poor credit, there are specialist mortgage providers that cater to people with a less-than-perfect financial history.
Steps to Improve Your Chances of Getting a Mortgage with Bad Credit
If you’re a first-time buyer with a poor credit history, there are steps you can take to improve your mortgage prospects:
1. Check Your Credit Report
Start by reviewing your credit report from major agencies such as Experian, Equifax, or TransUnion. Carefully check for errors or outdated information — correcting these issues can help improve your score.
💡 Top Tip: Some lenders specialise in working with applicants with specific credit issues. A mortgage broker can help identify these lenders.
2. Improve Your Credit Score
Even small improvements can strengthen your mortgage application. Focus on:
✅ Paying bills and credit commitments on time
✅ Reducing outstanding debts
✅ Avoiding payday loans or new credit applications before applying for a mortgage
✅ Registering on the electoral roll to confirm your address
Improving your credit score can take time, so start this process as early as possible.
3. Save a Larger Deposit
While some lenders offer mortgages with a 5% deposit, first-time buyers with bad credit may need to provide at least 10–15% or more. The larger your deposit, the lower the lender’s risk may be, which could improve your chances of approval.
💡 Top Tip: Increasing your deposit can also help you access better mortgage rates.
4. Consider a Guarantor Mortgage
A guarantor mortgage allows a family member or friend to agree to cover your mortgage repayments if you’re unable to do so. This can reduce the lender’s risk and improve your chances of securing a mortgage.
However, both you and your guarantor should fully understand the financial commitment involved.
5. Demonstrate Financial Stability
Lenders will assess your financial habits in the months leading up to your mortgage application. To present yourself in the best possible light:
✅ Maintain steady employment
✅ Avoid large, unexplained transactions
✅ Reduce non-essential spending
Showing evidence of improved financial behaviour can reassure lenders that you can manage mortgage repayments.
6. Work with a Specialist Mortgage Broker
An experienced mortgage broker can:
✔️ Identify lenders who are willing to consider applicants with poor credit
✔️ Advise you on improving your credit score before applying
✔️ Present your application in the best possible way to improve your chances of approval
At Helen Ferneyhough Associates, we specialise in helping first-time buyers with bad credit find suitable mortgage solutions.
What Mortgage Options Are Available for First-Time Buyers with Bad Credit?
While traditional mortgage lenders may be less flexible, there are several mortgage options designed to help First-Time Buyers with bad credit:
🏡 Adverse Credit Mortgages: Tailored to applicants with credit issues such as CCJs, defaults, or missed payments.
🏡 Specialist Lender Mortgages: Some lenders focus specifically on applicants with complex credit histories.
🏡 Help to Buy & Shared Ownership: These government-backed schemes can make buying a home more affordable, even with a smaller deposit.
A mortgage broker can help you explore these options and recommend the most suitable solution based on your circumstances.
Why Choose Helen Ferneyhough Associates as a First-Time Buyer?
At Helen Ferneyhough Associates, we understand that bad credit doesn’t have to stand in the way of homeownership. Our expert advisors will:
✅ Assess your credit history and current financial situation
✅ Identify lenders willing to consider your circumstances
✅ Guide you through the mortgage application process
✅ Offer practical advice on improving your credit score
We have extensive experience helping first-time buyers with bad credit take their first steps onto the property ladder.
Take the Next Step
If you’re a first-time buyer concerned about your credit history, don’t lose hope — expert advice can make all the difference.
📞 Contact Helen Ferneyhough Associates today for personalised guidance and support with your mortgage journey.
Important Notices
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500, and this will be discussed and agreed with you at the earliest opportunity.
Your home may be repossessed if you do not keep up repayments on your mortgage.
