In our latest article, we look at a common question surrounding mortgage applications. How do I apply for a mortgage with bad credit? When people think about getting a mortgage, many assume you need a perfect credit score and spotless financial record to be considered. But that’s simply not the case.
If you’ve had financial difficulties in the past such as missed payments, defaults, a County Court Judgement (CCJ), or even a debt management plan – you might feel discouraged, however applying for a mortgage with bad credit is still possible. The key is to know where to look, how to prepare, and who to speak to.
At HFA Mortgage & Protection, we regularly support clients with adverse credit. And the truth is, your story might be more common—and more solvable—than you think.
What Do Lenders Consider “Bad Credit”?
Let’s first be clear: bad credit doesn’t mean unworthy. Life happens. People lose jobs, suffer illness, go through divorce, or simply mismanage their finances when younger. Lenders understand that. What matters is context, recovery, and how things look now.
Here are some examples of what’s typically seen as adverse credit:
- Missed or late payments on loans or credit cards
- Defaults or CCJs (County Court Judgements)
- Payday loan usage
- Individual Voluntary Arrangements (IVAs) or Debt Management Plans (DMPs)
- Bankruptcy or repossession (especially within the last 6 years)
Each lender views these events differently. Some will decline outright, others will look more favourably if the issues are historic or satisfied. There are also specialist lenders who cater specifically for applicants with a poor credit history.
Real life case story
Take Mark and Louise, who came to us after being declined by a high street bank. Five years earlier, Mark had a CCJ due to a dispute with a mobile phone provider. It was resolved and paid, but it was still on his file.
They had a good deposit, stable jobs, and no other debts, but they were told “computer says no.”
We reviewed their credit reports, helped them gather the right documentation, and approached lenders who take a more human approach. Two weeks later, they had a mortgage offer in hand.
The key takeaway? It’s not always about the credit score. It’s about the full story.
Step 1: Understand Your Credit Report
Before applying, you need to understand what a lender sees. That means checking your credit file through the main agencies – Experian, Equifax, or TransUnion. Many people find surprising inaccuracies or forgotten debts listed there.
Look for:
- Accuracy of your personal details
- Current status of all credit accounts
- Any missed payments or defaults
- Financial associations (ex-partners, joint accounts)
- Any CCJs, IVAs or other court action
This is something we help with regularly at HFA Mortgage & Protection. We go through your report line-by-line, flag potential red flags, and assess which lenders are most suitable based on your history.
Step 2: Improve What You Can
Even small changes can make a big difference in how lenders view your application. You don’t need to wait years to apply, but taking a few proactive steps can improve your chances and the type of deal available.
Try to:
- Register on the electoral roll at your current address
- Clear or reduce any outstanding debts as much as possible
- Avoid new credit applications in the months leading up to your mortgage application
- Maintain stable employment and income
- Keep current accounts and bills paid on time without exception
One client we worked with, Emma, spent three months tidying up old accounts and getting herself registered on the electoral roll. When we re-submitted her application, she was approved for a better rate than she initially expected.
Step 3: Know Your Deposit Options
A larger deposit can help offset concerns about bad credit. While 5% deposits are technically available, they’re usually harder to access if you have adverse history. In most cases, a 10%–15% deposit can open up more opportunities.
Some lenders may also accept a gifted deposit from a close family member, but it’s essential that the gift is properly documented and not a loan in disguise.
Step 4: Speak to a Mortgage Broker Who Understands Bad Credit
This is where expert help makes a huge difference.
Specialist lenders who accept applicants with bad credit don’t usually deal with the public directly. Instead, they work with intermediaries – like HFA Mortgage & Protection – who understand how to package a case, explain the background, and advocate for the client.
At HFA Mortgage & Protection, we know which lenders take a instances like this into perspective. We’re able to present your case not just as a set of numbers, but as a complete story, including how you’ve recovered.
We’ve helped hundreds of people secure mortgages even after being declined elsewhere.
Step 5: Be Honest in Your Application
Don’t try to hide issues or hope a lender won’t notice. Mortgage underwriting is thorough, and everything from credit files to bank statements will be checked.
Being upfront allows us to match you with the right lender from the start. And many lenders will consider adverse credit more favourably if it’s declared and explained.
Timing Matters Too
If your credit issues are recent (within the last 12 months), you may need to wait or accept a higher interest rate initially. But that doesn’t mean you’ll be stuck forever.
Some clients in this scenario may use a “stepping stone” mortgage, a product from a specialist lender to buy the property now, with the aim of remortgaging to a better deal once their credit improves. This is always looked upon on a case by case basis and we only ever offer the right advice for your circumstances.
We help plan from the outset, so you’re not just getting a mortgage but a long-term financial strategy.
Let’s Explore Your Options
If you’re thinking about buying your first home or moving up the property ladder, the best thing you can do is start with a conversation. Getting expert mortgage advice early ensures you’re ready to act when the time comes.
At HFA Mortgage & Protection, we’re proud to offer personalised, jargon-free mortgage advice tailored to your unique goals and circumstances. Whether you’re months away from applying or ready to go now, we’re here to help you prepare, plan, and find the most suitable mortgage with confidence.
Let’s chat about what’s possible for you: https://hfassociates.uk
Important Notice:
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.
