Compare our best bad credit mortgages

If you have a poor credit history or a black mark on your finances, you may still be able to get a mortgage. Banks and building societies have a range of deals that may be available to those with poor credit ratings. Explore our guide to learn more about bad credit mortgages and how to improve your credit history to increase your chances of mortgage approval.

Property price

£

Mortgage amount

£

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best bad credit mortgage rates

  • Darlington Building Society 3 Year Discount mortgage

    Initial rate 3.49%. APRC 5.1%. Set-up fees £1,119
  • Hanley Economic Building Society Discount mortgage

    Initial rate 3.59%. APRC 3.6%. Set-up fees £0
  • Penrith Building Society 3 Year Discount mortgage

    Initial rate 3.75%. APRC 4.7%. Set-up fees £1,298
  • Metro Bank 2 Year Fixed mortgage

    Initial rate 3.79%. APRC 3.7%. Set-up fees £999
  • Metro Bank 5 Year Fixed mortgage

    Initial rate 3.79%. APRC 3.7%. Set-up fees £999
  • We've found 23 mortgage deals

    Darlington Building Society

    3 Year Discount

    Initial rate

    3.49%

    until 31-08-2023

    APRC

    5.1%

    overall cost for comparison

    Set-up fees

    £1,119

    Monthly payment

    £700.12

    for 26 months

    Darlington Building Society

    3 Year Discount

    Initial rate

    3.49%

    until 31-08-2023

    APRC

    5.1%

    overall cost for comparison

    Set-up fees

    £1,119

    Monthly payment

    £700.12

    for 26 months

    Darlington Building Society

    3 Year Discount

    Initial rate

    3.49%

    until 31-08-2023

    APRC

    5.1%

    overall cost for comparison

    Set-up fees

    £1,119

    Monthly payment

    £700.12

    for 26 months

    Darlington Building Society

    3 Year Discount

    Initial rate

    3.49%

    until 31-08-2023

    APRC

    5.1%

    overall cost for comparison

    Set-up fees

    £1,119

    Monthly payment

    £700.12

    for 26 months

    Hanley Economic Building Society

    Discount

    Initial rate

    3.59%

    APRC

    3.6%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £707.65

    Penrith Building Society

    3 Year Discount

    Initial rate

    3.75%

    APRC

    4.7%

    overall cost for comparison

    Set-up fees

    £1,298

    Monthly payment

    £719.78

    for 36 months

    Metro Bank

    2 Year Fixed

    Initial rate

    3.79%

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £722.84

    for 24 months

    Metro Bank

    5 Year Fixed

    Initial rate

    3.79%

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £722.84

    for 60 months

    Metro Bank

    5 Year Fixed

    Initial rate

    3.79%

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £722.84

    for 60 months

    Metro Bank

    2 Year Fixed

    Initial rate

    3.79%

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £722.84

    for 24 months

    Not ready to get a mortgage?

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    Representative example:

    If you borrowed £200,000 payable over 25 years, with an initial fixed-rate for two years at 4.79%, your monthly payments would be £1,144.84 for 24 months. This would then revert to a standard variable rate (SVR) of 4.24% for the remaining 23 years, costing £1,086.24 per month for 276 months. Overall cost for comparison is 4.5% APRC representative. The total amount payable over the full term would be £328,272, including product fee of £995 and interest of £127,277.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

    Are mortgages for bad credit available in the UK?

    If you have a bad credit history, the good news is that this doesn’t automatically rule you out of the mortgage market, even if your record might put off many lenders.

    It may be tougher to get a mortgage if you have missed payments on your credit history, a debt management plan, county court judgement (CCJ) or have declared bankruptcy. You will usually need a larger deposit, the interest rate will be higher and there won't be as many mortgages to choose from - but it still may be possible to find a suitable mortgage.

    How to get a mortgage with bad credit

    Getting a mortgage with a bad credit ratingis possible but it is harder than usual to find a lender. Plus, there are a number of characteristics that you might find come as part of the package if you choose to take out a mortgage with bad credit.

    Higher interest rates

    Bad credit mortgages often have significantly higher interest rates. This means larger monthly repayments compared with a normal fixed or discount mortgage.

    Larger deposits

    You’ll probably need a larger deposit as well. A 5% or 10% deposit is usually enough for a fixed or discount mortgage. But bad-credit mortgages will usually want a deposit of 15% – which is an LTV of 85% – or more.

    LIBOR tracked mortgages

    Some bad credit mortgages use interest rates that track the LIBOR (London InterBank Offered Rate). This is the rate used by banks when they lend money to each other.

    If you get a LIBOR tracker mortgage, your interest rate will track the LIBOR for a set amount of time. Then, like other mortgages, it will revert to the lender’s standard variable rate (SVR). This is usually a couple of percentage points higher.

    How to find the best mortgage lenders for bad credit

    If you have bad or adverse credit, you may need the help of a mortgage broker to find a bad credit mortgage lender. Most bad credit mortgages are available only through mortgage brokers. A mortgage broker will assess your individual circumstances and try to find a suitable bad credit mortgage for you.

    What factors do bad credit mortgage lenders consider?

    Each mortgage lender has its own way of calculating your credit worthiness. They will consider a wide range of factors when deciding whether you're a reliable borrower or not, such as:

    • Your mortgage application form Taking into account your income and any other debt obligations
    • Existing information about you Any information a lender already has about you, such as if you have a bank account with them
    • Their lending policy Each lender has their own lending policy which can differ from lender to lender

    Alongside the lender’s own criteria, your credit scores with rating agencies such as Equifax, Experian or TransUnion also play an important role. These give a lender a view of your credit history and public record data (e.g. CCJs, IVAs).

    Why your credit score is important

    When you make an application for a mortgage, lenders will work out your credit score so they can decide if you're a reliable borrower or not. A poor credit score could affect your chances of securing a mortgage, or reduc