Getting a mortgage with a poor credit history

Poor credit doesn’t automatically mean “no”

A poor credit history can make the mortgage process feel uncertain, especially if you’ve had missed payments, defaults, CCJs or an IVA in the past. However, it’s important to know that mortgage decisions are not based on a single score.

Lenders typically look at the details behind the credit issue, how long ago it happened, how you’ve managed your finances since, and whether your overall application meets affordability and risk requirements.

This guide explains what “poor credit” usually means in mortgage terms and the steps you can take to put yourself in the strongest position.

What counts as poor or adverse credit?

In mortgage applications, “poor credit” commonly refers to adverse markers on your credit file. The most typical examples include:

• Defaults – an account was not brought up to date and was marked as defaulted.
• CCJs (County Court Judgments) – a court judgment was recorded against you for an unpaid debt.
• IVAs (Individual Voluntary Arrangements) – a formal agreement to repay debts under an insolvency arrangement.
• Missed payments and arrears – repeated late payments or periods where payments were not made as agreed.

It’s also worth noting that credit files can show other issues (for example, high utilisation on credit cards, frequent short-term borrowing, or multiple recent applications). These may not be as severe as a CCJ, but they can still affect how an application is assessed.

Can you still get a mortgage with poor credit?

Yes—many borrowers with adverse credit can still obtain a mortgage. The challenge is usually about finding the right lender and product type for your specific circumstances.

What tends to matter most is not only that an adverse event exists, but also:

• Recency: how recently the issue occurred.
• Severity: the size of the debt and the nature of the marker.
• Status: whether the matter has been settled, satisfied, or is still active.
• Your current conduct: whether you’ve maintained stable payments since the issue.
• Your overall affordability: income, outgoings, and how much you can realistically borrow.

Some lenders may be more flexible than others depending on the type of credit issue and the time that has passed.

How lenders typically assess adverse credit

While each lender has its own criteria, mortgage underwriting commonly focuses on risk and affordability. For borrowers with poor credit, that often means the application is judged on a combination of:

1) The timeline

A credit issue that is older and has been resolved is often viewed more favourably than a recent or ongoing problem.

2) The circumstances behind the marker

Underwriters may consider whether the issue appears to be a one-off event or part of a pattern.

3) Evidence of stability since the issue

Consistent payments on current commitments can help demonstrate that the earlier difficulties are behind you.

4) Deposit and affordability

A larger deposit can reduce the lender’s risk. Affordability still has to be met, so your mortgage payment must fit comfortably within your budget.

5) Mortgage type and property factors

Some product types and property situations may be more straightforward to place than others when adverse credit is involved.

Defaults, CCJs and IVAs: what changes in your application?

Different adverse markers can affect applications in different ways.

Defaults

Defaults can range from small, isolated incidents to more significant issues. Lenders often look at how long ago the default occurred, whether it has been settled, and whether you’ve kept up with payments since.

CCJs

CCJs are generally treated as more serious. How they’re handled can depend on whether the CCJ has been satisfied and the time since it was recorded.

IVAs

An IVA is a formal arrangement and may require additional scrutiny. Lenders may look closely at whether the IVA is completed, how it was managed, and what your financial position looks like now.

Because the details matter, it’s usually not helpful to assume the same outcome for every borrower with the same label on their credit file.

First-time buyers: improving your chances

If you’re buying your first home and have adverse credit, the goal is to present a clear, credible picture of your current financial situation.

Practical steps that can strengthen an application include:

• Check your credit file for accuracy and correct any errors.
• Keep up with all current payments (including utilities and any existing credit agreements).
• Reduce unnecessary credit activity—avoid taking on new borrowing close to applying.
• Build a deposit where possible—even a modest increase can help affordability and lender confidence.

It’s also helpful to be realistic about what you can borrow based on your income and outgoings, rather than focusing only on the property price.

Home movers: what to consider before you apply

If you already have a mortgage or are moving home, poor credit can still affect your ability to borrow or the options available.

Key considerations include:

• Whether you’re applying for a new mortgage or changing terms
• How your current mortgage payments have been managed
• Whether you’re dealing with adverse credit that is still active or has been resolved

If you’ve had recent changes in income or spending, those can also influence affordability assessments.

Remortgaging with poor credit

For borrowers remortgaging, adverse credit may impact the range of products available and the underwriting approach.

In many cases, lenders will still focus on:

• how your credit file looks now,
• whether the adverse marker is older or more recent,
• and whether your current payment record demonstrates stability.

If you’re considering remortgaging to consolidate debts or change your monthly payments, it’s important to ensure the new mortgage fits your budget and doesn’t extend financial strain.

Steps to take before applying

A poor credit history can’t always be “fixed” overnight, but you can take meaningful steps to improve your position.

1) Review your credit report

Look for:

• incorrect defaults or balances,
• duplicate entries,
• accounts marked in a way that doesn’t match your records.

2) Stabilise your finances

Lenders typically prefer to see that you can manage payments reliably.

3) Avoid multiple applications in a short period

Frequent applications can create additional searches on your file and may not help your case.

4) Prepare your mortgage application clearly

Being able to explain the situation (for example, what led to the adverse marker and what has changed since) can be important.

5) Consider the deposit and affordability balance

A mortgage isn’t only about approval—it’s about being able to keep up repayments.

Why a mortgage broker can make a difference

A broker’s role is to help match your circumstances to lenders and products that may be more suitable for your credit profile. With adverse credit, the “best” option is often the one that fits your specific situation—not the one that seems most popular.

A broker can also help you understand what information lenders are likely to focus on, so you can avoid wasting time with applications that are unlikely to progress.

Summary

Getting a mortgage with a poor credit history is possible, but it usually requires a careful approach. Lenders typically assess the type of adverse credit, how long ago it happened, whether it’s been resolved, and how you’ve managed your finances since.

By reviewing your credit file, stabilising your finances, and taking a structured approach to affordability and application timing, you can improve your chances of finding a mortgage solution that fits.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.