Purchase a property with Bad Credit

Are you looking to purchase a property with bad credit?

You may feel as if you’re out of options if your credit history is far from perfect. If you’ve struggled to find any deals because of your poor credit rating, we may be able to help you find a suitable mortgage.

When you talk with the brokers at Clever Mortgages, you’re talking to people with experience in finding competitive mortgages to suit your circumstances. So, even if you have bad credit and you think a mortgage offer could be impossible, talk to us. We might be able to find you the deal that opens the door to your new home.

What is the process to buying a house with bad credit?

Buying a house can seem daunting. It’s a major purchase – the largest you’ll probably ever make. A purchase with bad credit can feel even more daunting as you know your credit record might go against you when you’re hunting for a mortgage deal.

Fortunately, you’ve found your way to our website. We’re experienced in helping people just like you find a competitive mortgage deal, even when it doesn’t seem possible. We can also help demystify the process of buying a home – something we’ll do here.

Most people need a mortgage to be able to buy a home. This is a loan designed to be repaid over many years – maybe 25 years or longer. But how can you get a mortgage to start with? You need to approach a lender to see whether they would be prepared to offer you the mortgage you’re looking for.

Speak with one of our expert bad credit broker specialists

If you’ve had a mortgage declined, don’t worry – one of our expert brokers will be able to review your current situation and advise on the best way of moving forward. The initial advice is free, there is only a cost if you proceed with a mortgage. Call today on 0800 197 0504

0800 197 0504

Income and expenditure - finances

Before you do this, it’s worth knowing a bit about how the process works. For example, there are three main areas lenders are going to want to know more about:

  1. Your household income (this could be for two of you if you are both applying for the mortgage)
  2. Your credit history
  3. Your affordability status

When a lender is thinking about lending you enough money to buy a home, they need to be certain you can afford it. Your income and outgoings both have a role to play in this. Even if your income is high, your outgoings may take up a sizeable chunk of it. That could affect whether they accept your application or turn you down.

The lender will look at whether you could still make the monthly repayments on your mortgage if things changed for you financially. For instance, if interest rates rose, could you absorb that rise without running into trouble?

We’ve got a video that takes you through the application process step-by-step. Knowing how things work is a big step towards feeling more knowledgeable about the whole thing.

You may still feel nervous about your chances if you know your have a poor credit history. If you come to Clever Mortgages, you can get a clear idea of how much you might be able to borrow. This means you can start looking at properties. We could even get you a decision in principle, so you are more confident of getting the mortgage you want. It could be helpful if you’ve found a property and the seller asks whether you have a mortgage yet.

Watch our video on the mortgage application process

What is a mortgage decision in principle?

This is an indication from a lender of how much they may be willing to lend you for your mortgage. You could get this decision before looking for properties, so it’s useful to have. If you’re viewing properties and you’re interested in one, you can tell the seller you have a mortgage decision in principle. It puts you ahead of potential buyers who don’t have this assurance.

What is a property valuation?

Whilst an estate agent will value a property and agree with the seller a price to market it for, a mortgage lender will still require their own property valuation as part of the mortgage application process.

This is carried out by a property surveyor, who will use many elements to work out the likely value. The lender will request what is called a basic valuation for mortgage purposes, they are looking at the current value, recently sold prices and potential future value.  You can opt for more in-depth valuations such as a Homebuyers survey or a full structural survey, these would be an additional cost to you, but may give you peace of mind.

What is a mortgage offer?

This is what you’re looking for – official confirmation that a lender is happy to lend you the money you need for a mortgage to buy a home. They’ll only make an offer once you’ve sent your application, supporting documents and fulfilled all the criteria they look at before considering a loan. This includes a property valuation report. The mortgage offer is passed to your solicitor to complete the legal work on the purchase.

What does a solicitor do?

A solicitor takes care of the legal side of buying a home. They’ll deal with the contracts, council searches, Land Registry requirements, and many other elements of the homebuying process. You could choose a conveyancer instead if you wish (it could lead to cheaper fees), but they don’t handle complicated legal concerns if any should arise.

What happens when you buy a house?

If you’ve already got an idea of how much you can borrow and have a mortgage in principle, you can start looking for a property. You can look before having this in place, but many sellers won’t seriously consider an offer unless you can prove you’re able to get a mortgage. Therefore, it can put you in a better position to negotiate and secure the property.

When you find the property that you’d like to buy, you’ll need to put in an offer (a figure that you would like to buy it for). Estate agents handle this aspect of the market, so you’ll contact them and they’ll act as a go-between for buyers and sellers.

If you’ve not spoken to a mortgage adviser at this point, now is the time to do so, to ensure you can raise the money to buy and that it will be affordable in the long term.

How long does a mortgage application take?

This can depend on various factors, including the lenders workload, your ability to supply required documents and booking the property valuation with the seller.  It is often faster to go via a broker as they can help you find a suitable deal while making sure all the paperwork is handled and nothing is missed. That’s something the expert brokers at Clever Mortgages can help you with.

How a mortgage advisor can help

The mortgage adviser can help you with a solicitor or you can choose your own to help you with the purchase.

Once your mortgage offer is in place, the solicitors on either side will handle the paperwork. In England, either party can withdraw before the contracts are signed. It can and does happen, but if it all goes well, you’ll sign and arrange the moving date. You should also get buildings insurance for the new property at this point.

There are so many things to think about when you buy a house. It helps to create a list of things to do and remember, so you can tick them off once complete. For example, you’ll need to set up council tax, all your utilities (water, gas, and electric), and television and internet services. You’ll then have everything ready and in place for moving day.

Your lender will tell you when your first mortgage payment is due. You’ll typically pay more than you normally would, as the lender includes interest from moving day up until the end of the month. From then on, your payments will continue at the regular monthly amount.

How much mortgage can I get?

You can’t begin looking for properties until you have a reasonable idea of how much you could borrow. Bad credit mortgages bring up even more questions – questions we’ll answer for you below.

It could be easier than you think to get a rough idea of how much you could reasonably borrow. The quick way to find out is to use our free calculator. It takes just a couple of minutes to learn more, so you have an idea of the properties you could afford.

Quick calculator

Input your salary for a quick overview of what you could potentially borrow

How much can I borrow?

You might have never had a mortgage before, or your financial circumstances might have recently changed. In either case, you might be unsure how much you can borrow for a mortgage. Our tool can help work this out based on your salary, combining your partner’s salary if it’s a joint mortgage.

How much can I borrow for the mortgage?

Number of applicants


Applicant 1 Applicant 2
Annual Income
Other Income

Your Mortgage results

Based on your entered income and subject to lenders criteria and credit scoring,
you could be eligible to lend between £{{ mortgageResult.min | currency }} to £{{ mortgageResult.max | currency }}.

A mortgage of £{{ mortgageResult.max | currency }} at 5.8% over 25 years would cost you approximately £{{ monthlyPayments | currency }} per month.

Please complete annual income for both applicants.

How much mortgage can I afford?

Sounds like the previous question, doesn’t it? Yet this is about affordability. Your income helps determine how much you could borrow. However, you need to remember that you already have current outgoings and with a purchase are about to get more household expenses such as utilities and council tax. You may have existing loans to pay off, and you’ll almost certainly have other bills to pay. You should consider all these outgoings before trying to work out how much you could afford to borrow – and how much a lender might consider loaning you.

If you’re worrying about figures, Clever Mortgages can make life easier for you. Use our free calculator today to give an idea of your affordability for a bad credit mortgage. And remember that our brokers are always ready to assist with advice and support.

How much is a mortgage?

When you’re looking at a mortgage, you need to think about more than just the amount you could borrow. There are two other important figures to note:

  • The interest rate
  • The mortgage period in years

The lower the interest rate, the cheaper the repayments. However, this can be offset by the length of the mortgage. For example, you’ll pay far less overall if you pay it back over 20 years instead of 25.

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Speak with one of our experts about the Purchase a property with Bad Credit

If you’ve had a mortgage declined, don’t worry – one of our expert brokers will be able to review your current situation and advise on the best way of moving forward. The initial advice is free, there is only a cost if you proceed with a mortgage. Call today on 0800 197 0504

0800 197 0504