Securing a mortgage with bad credit may present challenges, but it's not an insurmountable task. If you're wondering whether it's possible to obtain a mortgage despite having poor credit, the answer is yes. However, it's important to note that the process may be more arduous, and your options might be somewhat limited.

When you submit a mortgage application, lenders typically conduct credit checks on all applicants. Any adverse marks on your credit history will be taken into account. The impact of these marks will vary depending on their severity and recency.

While traditional banks may decline your mortgage application due to a poor credit history, alternative solutions exist. Building societies and specialised "bad-credit mortgage lenders" often demonstrate more flexibility and consideration toward individuals who have experienced significant life events, such as serious illness or divorce.

These specialised lenders are more open to reviewing mortgage applications from individuals with bad credit. However, it's important to note that they may offer interest rates that are higher than the average and require larger deposits.

Now, let's explore specific steps you can take to improve your chances of obtaining mortgage approval:

Evaluate your partner's financial situation

If you plan to purchase a property with a partner, their credit score will also come under scrutiny. It's crucial to have open and honest discussions about each other's debts and financial standing before proceeding.

Focus on enhancing your credit

Demonstrating a track record of punctual payments and responsible financial behaviour can elevate your credit score and assure lenders of your reliability as a borrower.

Exercise patience

Over time, the adverse impact of past financial issues on your credit history will diminish, especially if you've since improved your financial situation. Be patient and continue to make positive financial decisions.

Maintain transparency with lenders

Attempting to conceal any financial difficulties from mortgage lenders is not advisable. Lenders have methods to uncover information, and it's essential to maintain honesty and transparency throughout the process. Dishonesty will only harm your chances of securing a mortgage.

Provide explanations for past financial challenges

Lenders often seek to understand why you encountered financial difficulties and, more importantly, what steps you have taken to rectify the situation. Offering a clear explanation and evidence of positive changes can enhance your prospects of mortgage approval.


By following these steps, you can present a detailed and comprehensive picture of your financial situation to mortgage lenders, increasing your chances of obtaining a mortgage even with bad credit. Remember, each individual's circumstances differ, so it's crucial to tailor your approach and remain persistent in your pursuit of homeownership.