If you’ve been worrying that bad credit means you can’t get a mortgage, you’re not alone.
At Oak Mortgages and Clever Mortgages, we speak to people every day who think they’ve got “no chance” because of missed payments, defaults, CCJs, payday loans, debt management plans, or financial struggles from the past.
The truth is, bad credit does not automatically mean no mortgage.
Many people are still able to buy their first home, move house, remortgage, or even consolidate debts with the right advice and the right lender.
And most importantly? We understand that life happens.
What Is Bad Credit?
“Bad credit” usually means there’s something on your credit report that lenders may see as a risk.
This could include:
- Missed or late payments
- Defaults
- County Court Judgments (CCJs)
- Debt Management Plans (DMPs)
- Individual Voluntary Arrangements (IVAs)
- Payday loans
- Mortgage arrears
- Bankruptcy
- High credit card balances
- Lots of credit applications in a short period
- Low or limited credit history
Sometimes clients come to us embarrassed or worried about discussing their finances, but honestly we’ve seen almost every situation imaginable.
Relationship breakdowns, redundancy, maternity leave, illness, rising living costs, mental health struggles, business downturns, or simply trying to survive difficult periods financially can all impact your credit profile.
That doesn’t make you irresponsible. It makes you human.
Can You Still Get a Mortgage With Bad Credit?
Potentially, yes.
There are lenders who specialise in helping people with previous credit issues, and many applications are assessed on far more than just a credit score.
Lenders may look at:
- How old the credit issues are
- Whether debts have been repaid
- Your income and affordability
- Your deposit size
- Your recent financial conduct
- Your employment type
- The overall story behind the credit issues
We regularly help clients who:
- Have been declined by their own bank
- Thought they’d need years before applying
- Have historic defaults or CCJs
- Are currently in a Debt Management Plan
- Have completed an IVA
- Are self-employed with complex income
- Have used payday loans in the past
- Are worried about gambling transactions or overdraft usage
The key is speaking to a broker who understands specialist lending and knows which lenders may suit your situation.
Been Declined for a Mortgage?
Please don’t panic.
A decline from one lender does not mean every lender will say no.
Different lenders have completely different criteria, and one of the biggest mistakes people make is applying to multiple lenders without proper advice. This can result in unnecessary hard credit searches and make things even more stressful.
At Oak and Clever Mortgages, we take time to understand your circumstances properly before recommending a lender.
Sometimes it’s simply about:
- choosing the right lender
- waiting a little longer
- improving affordability
- cleaning up bank statements
- increasing the deposit
- explaining historic issues correctly
Many clients are surprised at the options available once they speak to a specialist broker.
How Much Deposit Do You Need?
This depends on the severity and age of the credit issues.
As a rough guide:
- Smaller or older credit blips may allow deposits from 5%
- More recent or serious adverse credit may require 10–20%
- Larger deposits can improve lender choice and rates
Even if your situation feels complicated, it’s always worth exploring your options before assuming you can’t move forward.
Mortgage With Defaults or CCJs
Yes, some lenders will still consider applications with:
- Satisfied defaults
- Unsatisfied defaults
- Historic CCJs
- Multiple defaults
- Low-value defaults
Generally, the older the adverse credit is, the better.
Some lenders are far more understanding than others, especially if you’ve shown improved financial conduct since the issues occurred.
Mortgage After an IVA or Debt Management Plan
This is one of the most common enquiries we receive.
While some high street lenders may be stricter, there are specialist lenders who may consider applications from clients who:
- have completed an IVA
- are currently in a DMP
- have historic debt solutions
- are rebuilding their credit
Every case is different, which is why tailored advice matters so much.
Self-Employed and Worried About Bad Credit?
You’re definitely not alone.
Being self-employed can already feel more complicated when applying for a mortgage adding bad credit into the mix can make people feel completely stuck.
But there are lenders who understand:
- sole traders
- limited company directors
- contractors
- CIS workers
- newly self-employed applicants
Some lenders can assess:
- salary and dividends
- salary and net profit
- retained profits in certain circumstances
The key is presenting the case correctly and using lenders who genuinely understand self-employed applicants.
Shared Ownership Could Help You Get on the Property Ladder
If affordability is a concern, shared ownership can sometimes help first-time buyers get onto the property ladder sooner.
Because you are purchasing a smaller share of the property, the mortgage amount is lower, which may improve affordability in some cases.
This won’t suit everyone, but it can be a great stepping stone for buyers who feel priced out of the market.
How to Improve Your Chances of Getting Approved
There are some simple steps that may help strengthen your application:
Check Your Credit Report
Make sure there are no errors or outdated information showing incorrectly.
Avoid Missing Payments
Recent missed payments can have a bigger impact than older issues.
Reduce Credit Usage
High balances on credit cards can affect affordability and credit scoring.
Keep Bank Statements Clean
Lenders will review spending habits carefully, especially in the months leading up to application.
Avoid Multiple Applications
Too many hard credit searches can reduce your score further.
Speak to a Specialist Broker Early
Getting advice before applying can save time, stress, and unnecessary declines.
Why Clients Choose Oak and Clever Mortgages
At Oak Mortgages and Clever Mortgages, we know that many people just need someone to look at the bigger picture.
We don’t believe one difficult period should define your future.
Our team specialises in:
- adverse credit mortgages
- first-time buyers
- remortgages
- debt consolidation
- self-employed mortgages
- specialist lending
- buy-to-let mortgages
- complex income cases
Most importantly, we speak to clients like real people not credit scores.
Many of our clients come to us feeling defeated after being told no elsewhere. Seeing them finally get the keys to their home or reduce financial pressure through a remortgage is exactly why we do what we do.
Speak to Oak Mortgages Today
If you’re worried about your credit history, don’t assume you can’t get a mortgage.
There may be more options available than you think.
Whether you’ve had missed payments, defaults, CCJs, payday loans, an IVA, or you’ve simply been declined elsewhere, our team is here to help you explore your options in a friendly, supportive, and completely judgement-free way.
Get in touch with Oak Mortgages or Clever Mortgages today and let’s see what may be possible for you.
Important Information
Your home may be repossessed if you do not keep up repayments on your mortgage.
Think carefully before securing debts against your home.
Oak Mortgages Limited are authorised and regulated by the Financial Conduct Authority.