Can You Get a Mortgage with Bad Credit? A Guide for 2026

Worried that your credit history could stop you from getting a mortgage? Perhaps you’ve missed payments in the past, have a default or CCJ on your credit file, or have previously been turned down by a lender.

If this sounds familiar, you’re certainly not alone. And the good news is that having bad credit doesn’t automatically mean you can’t get a mortgage.

Mortgage lenders have different lending criteria, and while some may be unwilling to consider applications with previous credit problems, others specialise in helping people whose circumstances don’t fit the standard lending criteria.

The important thing is understanding your options, knowing what lenders are looking for and finding the right approach for your circumstances.

At Mallard Mortgages, we specialise in helping customers with adverse credit and more complex mortgage applications. In this guide, we’ll explain how bad credit can affect your chances of getting a mortgage in 2026 and what you can do to improve your position.

Can You Get a Mortgage with Bad Credit in 2026?

Yes, it may be possible to get a mortgage with bad credit, depending on your circumstances.

There isn’t one universal set of criteria that every mortgage lender follows. Each lender assesses applications differently, which means a rejection from one lender doesn’t necessarily mean another will reach the same decision.

When assessing an application, lenders may consider:

• The type of credit issue you’ve experienced
• How recently the problem occurred
• Whether the debt has been repaid or settled
• The amount involved
• Your current income and financial commitments
• The size of your deposit
• Your overall credit history
• Whether you can comfortably afford the mortgage repayments

For example, a missed payment from several years ago that has since been resolved may be viewed differently from a recent series of missed payments or an outstanding default.

This is why it’s important not to assume that your credit history automatically rules you out.

The right mortgage depends on the full picture, not just your credit score.

What Counts as Bad Credit?

When people talk about having bad credit, they usually mean that their credit report contains information that could make lenders more cautious about offering them finance.

There are several types of credit issue that could affect a mortgage application.

1. Missed payments

Missed payments on credit cards, personal loans, car finance and other credit agreements can affect your credit history.

Lenders will generally want to understand how recently the payments were missed, how many payments were affected and whether your accounts are now up to date.

An isolated missed payment may be treated differently from a repeated pattern of missed payments, although the outcome depends on the lender’s criteria.

2. Defaults

A default is usually recorded when a lender considers that an account has not been maintained in line with the credit agreement.

Defaults can make obtaining a mortgage more difficult, particularly if they are recent, substantial or remain unpaid.

However, some lenders may consider applicants with defaults, depending on the circumstances, the amount involved and how long ago the default occurred.

Whether the debt has been settled is also relevant, although settling a default does not automatically remove it from your credit report.

3. County Court Judgments (CCJs)

A County Court Judgment, commonly known as a CCJ, can be recorded when a court orders you to repay a debt.

CCJs can affect your mortgage options, but lenders may consider factors such as:

• The amount of the judgment
• When it was registered
• Whether it has been paid
• How your finances have been managed since

Some specialist lenders may consider applications involving CCJs, although their requirements can vary considerably.

If you have a CCJ, it’s worth understanding exactly how it appears on your credit file before applying for a mortgage.

4. Individual Voluntary Arrangements (IVAs)

An Individual Voluntary Arrangement is a formal agreement to repay creditors under agreed terms.

An IVA can significantly affect your mortgage options, both while it is active and after it has ended. Some lenders may be unwilling to consider applications involving an active IVA, while others may assess certain circumstances once the arrangement has been completed.

The timing, repayment history and wider financial position will all be relevant.

If you’ve previously had an IVA, specialist advice can help you understand whether applying for a mortgage now is realistic or whether waiting could improve your options.

5. Bankruptcy

Bankruptcy can also affect your ability to obtain a mortgage.

The options available will depend on your current circumstances, including whether you have been discharged from bankruptcy, how much time has passed and the lender’s individual requirements.

If bankruptcy forms part of your financial history, it’s particularly important to establish which lenders may consider your circumstances before submitting an application.

6. Payday loans and short-term borrowing

Using payday loans or other short-term borrowing can raise questions for some mortgage lenders.

The impact will depend on the lender, the timing and frequency of the borrowing, and your wider financial circumstances.

If you’ve used this type of borrowing in the past, don’t automatically assume that you cannot get a mortgage. However, it is important to understand how a lender may view it before applying.

How Long After Bad Credit Can You Get a Mortgage?

One of the most common questions we hear is how long you need to wait after experiencing credit problems before applying for a mortgage.

Unfortunately, there isn’t a single answer.

Some lenders may consider certain credit issues relatively soon after they occur, while others may require a longer period of time to have passed.

The type of issue matters, as does whether it has been resolved.

For example, the criteria for an old, settled default may be very different from those for a recent, unpaid CCJ.

Many adverse credit markers can remain on your credit report for six years, although the way lenders assess them can change as they get older.

You don’t necessarily have to wait until every adverse marker disappears before exploring your mortgage options.

A specialist mortgage adviser can help you understand whether any lenders may consider your application now, or whether taking some time to improve your financial position could give you access to more suitable options.

Will Bad Credit Mean You Pay a Higher Mortgage Rate?

It can do, although this depends on the lender and the details of your application.

Applicants with adverse credit may have access to fewer mortgage products, and some specialist mortgages carry higher interest rates or fees than comparable mainstream deals.

You may also need a larger deposit, depending on the lender’s criteria.

However, there is no single rate or deposit requirement that applies to everyone with bad credit.

A borrower with an older, settled credit issue may have different options from someone with several recent defaults or an active debt arrangement.

It’s also important to consider the overall cost of a mortgage rather than focusing solely on the headline interest rate.

When comparing products, you should look at:

• The interest rate
• The product or arrangement fee
• The monthly repayments
• The initial rate period
• Any early repayment charges
• The total cost over the period you’re considering

The aim should be to find a mortgage that suits your circumstances and remains affordable, rather than simply choosing the lowest advertised rate.

How Much Deposit Do You Need for a Bad Credit Mortgage?

The deposit you’ll need depends on the lender, the property and your individual circumstances.

Some borrowers with adverse credit may be able to obtain a mortgage with a relatively modest deposit. Others may need a larger deposit to access suitable products.

A larger deposit can reduce the amount you need to borrow and your loan-to-value ratio, potentially opening up more options.

However, it doesn’t guarantee acceptance, and lenders will still assess your credit history, income and affordability.

If you’re saving for a deposit and have experienced credit problems, it can be helpful to speak to a mortgage adviser before deciding how much you need to save.

Understanding the likely requirements early on can help you set a realistic target and avoid applying for mortgages that aren’t suitable.

How Can You Improve Your Chances of Getting a Mortgage with Bad Credit?

Although you can’t change your financial history overnight, there are steps you can take to put yourself in a stronger position.

Check your credit reports

Start by checking your credit reports with the main UK credit reference agencies.

Look for any incorrect information, unfamiliar accounts or outdated details. If you find an error, contact the relevant credit reference agency and lender to request an investigation.

It’s worth checking the full report rather than relying on the credit score alone.

Keep up with your current payments

Where possible, make sure your current credit commitments and household bills are paid on time.

Demonstrating consistent payment behaviour can help build a more positive recent history.

If you’re struggling to keep up with payments, consider seeking appropriate debt advice rather than taking on additional borrowing to cover existing commitments.

Review your spending and existing debts

Mortgage lenders assess affordability as well as credit history.

Reducing unnecessary expenditure and managing existing debts may help demonstrate that you can comfortably afford the proposed mortgage repayments.

Avoid taking on new credit without considering how it could affect your finances and mortgage application.

Build up your deposit

If you can increase your deposit, you may be able to access a wider range of mortgage options.

That said, it’s important to keep enough money available for other costs associated with buying a home, such as legal fees, surveys and moving expenses.

Be prepared to explain what happened

If you experienced financial difficulties because of redundancy, illness, a relationship breakdown or another change in circumstances, be prepared to explain this honestly.

Lenders will make their own decisions, but understanding what happened and how your circumstances have changed may help them assess your application.

Speak to a specialist mortgage broker before applying

This is particularly important if you have defaults, CCJs, an IVA, bankruptcy or a history of mortgage arrears.

Different lenders have different criteria, and applying to an unsuitable lender can lead to an unnecessary rejection.

A specialist broker can review your circumstances and help identify potentially suitable lenders before a formal application is submitted.

Can You Get a Mortgage with Bad Credit and a Small Deposit?

Potentially, yes, although this combination can make finding a suitable mortgage more challenging.

A small deposit means you’ll need to borrow a higher proportion of the property’s value. If you also have adverse credit, some lenders may consider the overall application too risky.

However, the outcome will depend on the nature of the credit problems, the deposit available, your income and the lender’s criteria.

If you’re a first-time buyer, it can be tempting to assume that you need to improve your credit score completely before you can buy a property.

That isn’t necessarily the case.

The most useful first step is to understand what mortgage options may be available to you now, rather than making assumptions based on your credit score alone.

You can also read our guide to [how much deposit you really need for a mortgage] for more information on deposit sizes and mortgage options.

Can You Get a Mortgage If You’re Self-Employed and Have Bad Credit?

Yes, it may be possible, but your application will need to meet the lender’s requirements for both income assessment and credit history.

Self-employed applicants can have more complex income arrangements than employed borrowers. For example, you may receive a combination of salary and dividends, operate through a limited company or work as a sole trader.

Lenders differ in how they assess this income, and they also have different policies on adverse credit.

Finding a lender that understands both your business income and your credit history can therefore be particularly important.

At Mallard Mortgages, we understand that not every applicant fits a standard lending profile. We can help you explore potential options based on your circumstances and the way your income is structured.

For more information, read our guide to [getting a mortgage when you’re self-employed]

What If You’ve Already Been Declined for a Mortgage?

Being turned down for a mortgage can be disappointing, particularly if you’ve already found a property you want to buy.

However, a rejection from one lender doesn’t automatically mean that every lender will decline your application.

Before applying elsewhere, it’s important to understand why the application was unsuccessful.

The reason could relate to your credit history, affordability, income, deposit or a specific lending criterion that you didn’t meet.

Avoid making several applications in quick succession without understanding the issue first. Multiple hard credit searches can affect how your credit profile appears to lenders, and repeated rejections can make the process more difficult.

A specialist mortgage broker can review the reasons for the decline, assess your circumstances and help you determine the most appropriate next step.

If you’ve already been turned down, our guide to [what to do after a mortgage application is declined] explains more.

Why Choose Mallard Mortgages for Bad Credit Mortgage Advice?

At Mallard Mortgages, we know that financial difficulties don’t always tell the full story.

Life can change unexpectedly. Redundancy, illness, relationship breakdowns and periods of financial pressure can affect anyone, and previous credit problems don’t necessarily reflect your current ability to manage a mortgage.

Our team specialises in helping people with adverse credit and more complex mortgage circumstances.

We take the time to understand your situation, look at the factors that may affect your application and explore potential options with lenders whose criteria may be appropriate for you.

We can help you understand:

• Which aspects of your credit history could affect your application
• Whether your circumstances may fit a lender’s criteria
• How your deposit and income could influence your options
• Whether applying now or waiting could be more appropriate
• What steps you could take before making a formal application

We can’t guarantee that a lender will approve your mortgage, but we can help you understand your options and make informed decisions about your next steps.

Whether you’re a first-time buyer, moving home, remortgaging or looking to understand your options after a previous rejection, our team is here to help.

Ready to Explore Your Mortgage Options?

If you’re worried that bad credit could prevent you from getting a mortgage, don’t assume that homeownership is out of reach.

The right approach starts with understanding your circumstances and finding out which lenders may be willing to consider your application.

Contact Mallard Mortgages today to discuss your situation and find out how our specialist mortgage advice could help you take the next step.

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Frequently Asked Questions About Bad Credit Mortgages

Can I get a mortgage with bad credit in 2026?

Yes, it may be possible. Some lenders specialise in considering applicants with adverse credit, although acceptance depends on factors such as the type and age of the credit issue, your deposit, income and affordability.

What is the worst credit score to get a mortgage?

There isn’t one universal minimum credit score for a UK mortgage. Credit reference agencies use different scoring systems, and lenders have their own assessment criteria. Your full credit history and financial circumstances matter more than a single number.

Can I get a mortgage with a CCJ?

Potentially. Some lenders may consider applicants with a CCJ, depending on when it was registered, the amount involved, whether it has been paid and the lender’s criteria.

Can I get a mortgage with defaults on my credit file?

Yes, it may be possible. Some lenders will consider applications with defaults, but their requirements can vary depending on the age, amount and status of the default and your wider financial circumstances.

Do I need a bigger deposit if I have bad credit?

Not always, but some lenders may require a larger deposit from applicants with adverse credit. The deposit needed will depend on your credit history, the property, affordability and the lender’s requirements.

Will applying for a mortgage damage my credit score?

A formal mortgage application usually involves a hard credit search, which can affect your credit report. An agreement in principle may involve a soft or hard search depending on the lender. Check how the lender will search your file before proceeding, and avoid making multiple applications without first establishing which lenders may be suitable.

Should I wait until my bad credit disappears before applying?

Not necessarily. Some lenders may consider certain credit issues before they disappear from your report. However, waiting can sometimes improve your options, depending on the type of issue and how much time has passed. A specialist broker can help you understand whether applying now or waiting is more appropriate.

Can a mortgage broker guarantee me a bad credit mortgage?

No reputable broker can guarantee mortgage approval. A specialist broker can assess your circumstances, explain the options that may be available and help you approach potentially suitable lenders, but the final decision rests with the lender.

The information in this article is for general guidance only and does not constitute personalised mortgage or financial advice. Mortgage eligibility, rates and lending criteria vary by lender and individual circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.

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