How To Get A UK Mortgage With A Low Credit Score

How To Get A UK Mortgage With A Low Credit Score Getting a mortgage in the UK can feel challenging if you have a low credit score. Lenders use your credit history to assess your ability to repay, and a poor score can make it harder to secure a mortgage, or increase the interest rate you’re offered.

However, it’s not impossible. With the right approach, planning, and understanding of your options, you can still get on the property ladder.

What Is Considered a Low Credit Score in the UK?

How To Get A UK Mortgage With A Low Credit Score Credit scores in the UK typically range from 0–999, depending on the credit reference agency (Experian, Equifax, TransUnion).

• Good score: 881–960

• Fair score: 721–880

• Low/poor score: 560–720

• Very poor score: below 560

A low credit score doesn’t mean you cannot get a mortgage, but lenders may:

• Charge higher interest rates

• Require a larger deposit

• Limit the type of mortgage products available

Why Your Credit Score Matters

Your credit score reflects your financial reliability. Lenders look at:

• Past repayment history

• Outstanding debts

• Defaults, CCJs, or bankruptcies

• Length of credit history

A low score signals higher risk, so lenders may be cautious or offer less favourable terms.

Steps to Get a UK Mortgage with a Low Credit Score

1. Check Your Credit Report

Before applying, review your credit report with Experian, Equifax, or TransUnion. Look for:

• Errors or outdated information

• Missed payments that can be corrected

• Accounts you no longer use

Tip: Dispute any inaccuracies to improve your score before applying.

2. Save a Larger Deposit

How To Get A UK Mortgage With A Low Credit Score Lenders prefer borrowers who can put down a bigger deposit. While standard deposits start at 5%, with a low credit score, aim for:

• 15–25% of property value

Benefits of a bigger deposit:

• Shows financial responsibility

• Lowers lender risk

• Can help secure a mortgage despite poor credit

3. Consider a Guarantor Mortgage

A guarantor mortgage involves someone (often a parent) agreeing to cover your mortgage if you cannot.

Advantages:

• Compensates for low credit history

• Can help secure a higher loan amount

• May reduce interest rates

Note: The guarantor must have a strong credit score and stable income.

4. Use a Specialist Lender

Not all lenders offer mortgages to people with poor credit. Specialist lenders or subprime mortgage providers focus on:

• Borrowers with past credit issues

• Flexible lending criteria

• Smaller, tailored mortgages

Tip: Use a mortgage broker experienced in bad credit cases to find suitable deals.

5. Improve Your Credit Score

How To Get A UK Mortgage With A Low Credit Score Even a small improvement can increase your chances. Steps include:

• Pay off small debts and outstanding balances

• Avoid missing payments

• Keep credit card balances low

• Register on the electoral roll

Timeframe: Improving credit can take 3–12 months, depending on your situation.

6. Keep Your Financial Documents Ready

Lenders want evidence of income and affordability:

• Payslips (last 3–6 months)

• Bank statements (3–6 months)

• Tax returns if self-employed

• Proof of savings for deposit

Being organised increases your credibility as a borrower.

7. Avoid Applying to Multiple Lenders at Once

How To Get A UK Mortgage With A Low Credit Score Every mortgage application leaves a hard inquiry on your credit report. Too many applications in a short time can:

• Lower your credit score further

• Signal financial distress to lenders

Tip: Get a Mortgage Agreement in Principle (AIP) from one lender first, or speak to a broker before applying.

Alternative Options for Low Credit Borrowers

• Shared Ownership: Buy a portion of a home and pay rent on the rest

• Help to Buy Equity Loan: Government helps with a loan on new-build homes

• Rent-to-Buy Schemes: Rent first, then purchase the property later

These schemes can reduce the upfront deposit and make mortgages more accessible.

Common Mistakes to Avoid

❌ Ignoring your credit report errors
❌ Trying to hide poor credit instead of explaining it
❌ Overstretching your budget for a high loan amount
❌ Applying to multiple lenders simultaneously
❌ Relying solely on online calculators

FAQs:

1. Can I get a mortgage with a very poor credit score?
Yes, but it’s likely through a specialist lender, a guarantor, or with a higher deposit.

2. Will I pay higher interest?
Yes, lenders charge more for risk, so expect higher rates than standard borrowers.

3. How long should I wait after a bankruptcy to apply?
Typically 4–6 years, depending on your lender and how your finances have improved.

4. Can a mortgage broker help?
Absolutely. Brokers have access to lenders who specialise in low credit scores.

5. Is it better to improve credit first or apply immediately?
If possible, improve your score first. Even small changes can save thousands in interest.

Conclusion

How To Get A UK Mortgage With A Low Credit Score Getting a UK mortgage with a low credit score is challenging but achievable. By:

• Checking your credit report

• Saving a larger deposit

• Considering guarantors or specialist lenders

• Improving your credit over time

…you can increase your chances of approval and secure a mortgage that works for your budget.

Planning carefully, being organised, and exploring government schemes or alternative options can make homeownership possible, even if your credit history isn’t perfect.

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