Can You Still Get a Mortgage With Adverse Credit?
For some people who want to buy a home, bad credit may seem like an impossible barrier to getting a mortgage. The financial world is changing in 2026. More and more people are getting a mortgage with adverse credit if they can show they have a plan for getting back on track and are financially responsible. If you missed payments, defaulted on a loan, or even went bankrupt, your credit score may have gone down. However, you can still get a mortgage.
In this guide, we will explain how to secure a specialist bad credit mortgage, how to improve your chances of getting a mortgage, and how to rebuild your credit score after having money problems.
Worried your credit history will hold you back? Speak to a specialist before you apply.
Knowing About Adverse Credit
Adverse credit is a financial history that shows you have had trouble paying off your debts. It could involve bankruptcies, applying for credit too often, or even paying your credit cards late. It can also be affected by Individual Voluntary Arrangements (IVAs) or heavy credit use, alongside County Court Judgements (CCJs).
Start Credit Recovery Early
If you have had a history of bad credit, before you apply for an adverse credit mortgage, make sure you work on improving your credit score. Keep in mind that recovery does not happen overnight, but taking action every day could show that you can be trusted and raise your score.
Strategically Manage Debts
If you owe money, make sure you set up a plan to pay it back. Pay your high-interest debts on time and stay consistent. In some situations a second charge mortgage can help consolidate higher-interest borrowing into a single, more manageable payment. Your credit score will improve even if you only make small changes to how you pay things back.
Avoid Credit Applications
Each credit application leaves a footprint, and taking out too many of them in a short amount of time can suggest that you are desperate. Lenders look at your financial behaviour over the past 6 – 12 months to see if you qualify for a mortgage.
Check Your Credit Report
Use the free credit reports available from TransUnion and Equifax to check your records for any inaccurate debts and balances, and dispute them right away.
Use Credit Responsibly
Take out a small amount of credit and pay it back on time. Do not use more than 30% of your available credit limit. This shows lenders that you are in control of your finances, which is exactly what they want to see.
Improving Mortgage Eligibility Post-Adversity
Once you have started building up your credit for an adverse credit home loan application, contact an adverse credit mortgage broker who will advise on what you need to do to raise your mortgage eligibility.
Reduce Outgoings
Mortgage brokers also look at your debt-to-income ratio, which is the percentage of your income that goes toward paying off your debts. Aim to lower your personal loans or your credit card balances to make things more affordable.
Save for a Larger Deposit
A bigger deposit shows that you are more committed to the mortgage and lowers the risk for the adverse credit mortgage lenders. This makes a big difference, especially when you are buying with bad credit.
Build Financial Stability
Being consistent is the key to building financial stability. Mortgage lenders want to see that you have a steady job, predictable spending, and a steady income. If your income is non-standard, for example as a contractor, lenders will assess it differently, so it helps to know how your earnings will be treated before you apply.
Working with Specialist Lenders
Regular banks have strict rules about who they will lend to, but specialist lenders will also help people with bad credit. These adverse credit mortgage lenders understand that having money problems does not mean you cannot pay back the loan.
Not sure which lenders will look at your case? We can point you in the right direction.
Using an Adverse Credit Mortgage Broker
An adverse mortgage advisor who is experienced and knowledgeable about getting a mortgage with adverse credit is worth their weight in gold. They can connect you with specialist lenders who are not available directly to the public and may be able to find the best mortgage deals for your financial situation.
Deposit Requirements
You will usually need to save a deposit of around 15 – 25% as it lowers the lender’s risk. Having a larger deposit will help you secure better mortgage rates and increase your chances of getting approved.
How Lenders Assess Applications
Adverse mortgage lenders will always check that you have proof of income and a steady job. They also look at how hard you are working to pay off your debts, how much money you have in your account, your recent bank statements, and how you pay your bills and manage your credit overall. For a closer look at how underwriters work through a case, see our guide to the mortgage application process. Ultimately, they want to see that you are a responsible and reliable borrower.
Rebuilding Confidence Alongside Credit
Securing a mortgage after having bad credit is more about your attitude than your numbers. After being turned down once, many borrowers lose faith, but it is important to know that they can get back on track with the right planning and time.
Seek Guidance
Free credit counselling services such as StepChange can also help you make a plan to get ready for a mortgage. Getting help from an expert will help you avoid mistakes and move forward faster.
Set Realistic Goals
You can start small and plan for a shared ownership scheme and a smaller property. You can also get improved deals on your mortgage as your credit score and financial stability improve.
Frequently Asked Questions
Can I get a mortgage with adverse credit in 2026?
Yes. Missed payments, defaults, CCJs, IVAs and even bankruptcy do not automatically prevent you from getting a mortgage in 2026. Specialist lenders assess applications based on your current financial behaviour, income stability and affordability rather than your credit score alone. The further in the past the adverse credit event and the cleaner your recent history, the more lenders and products become available to you.
How do lenders assess a mortgage application with bad credit?
Specialist adverse credit lenders look at what happened, when it happened, and what has changed since. A CCJ that was satisfied three years ago is viewed very differently to one that is recent and unpaid. Lenders assess your income, your spending over the past six to twelve months, your deposit size, and whether your current financial behaviour demonstrates stability. The overall picture matters more than any single entry on your credit file.
Can I get a mortgage after a CCJ or default?
Yes – though the options depend on how recent the CCJ or default is, whether it has been satisfied, and the size of the amount involved. Many specialist lenders will consider applications with historic CCJs or defaults, particularly where the issue has been resolved and recent credit behaviour has been clean. A larger deposit also improves the range of lenders available and the terms on offer.
How can I improve my chances of getting an adverse credit mortgage?
The most effective steps are paying down existing debts, maintaining consistent payments on all current obligations for at least six to twelve months, avoiding multiple credit applications in a short period, saving the largest deposit you can, and checking your credit report for errors before applying. Working with a specialist adverse credit mortgage broker ensures your application goes to the right lender first time, avoiding further hard searches that can make your position worse.
How large a deposit do I need for an adverse credit mortgage?
Most specialist lenders look for a deposit of around 15 to 25 percent for adverse credit cases, compared with the smaller deposits available to borrowers with a clean file. A larger deposit lowers the risk the lender is taking on, which widens the pool of lenders willing to consider you and usually improves the rate you are offered. The exact figure depends on how recent and how serious the credit issue is.
Should I use a specialist broker for a bad credit mortgage?
A specialist broker is strongly recommended for adverse credit cases. Many of the lenders active in this part of the market do not deal directly with the public, and applying to the wrong lender leaves a hard search on your file that can make your position worse. A broker who understands adverse credit matches your circumstances to lenders whose criteria fit before any application is submitted, which protects your credit file and improves your chances of approval.
Final Thoughts
In 2026, the UK mortgage market is more open than it once was. Instead of judging borrowers, lenders are now looking for signs of financial responsibility and growth. If you have had money problems, use them as a chance to learn and work on getting your credit back to where it was. Keep up good financial habits and rebuild trust over time.
Commercial Finance Network is a whole-of-market FCA authorised broker working with property investors, developers, and businesses across the UK and internationally. We work across the full specialist adverse credit mortgage panel and will tell you which lenders will engage with your deal, what LTV and rate to expect, and how to structure the application before anything is submitted. We are directly authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call us on 01494 622 111 or email info@cfnuk.com to speak to a specialist directly.
Related Pages
- How Commercial Mortgage Lenders Assess Risk – the factors underwriters weigh up when deciding how much to lend and at what rate.
- Commercial Mortgage Calculator – estimate monthly repayments before you approach a lender.
- Second Charge Mortgage Calculator – work out what you could raise against a property you already own.
- Commercial Mortgage Rates UK – current rate ranges by LTV band, property type and borrower profile.