Table of Contents

  1. What is Bad Credit Mortgage?
  2. Bad credit doesn’t mean ‘No’ Mortgage
  3. Why Choose Shine mortgages
  4. How Much Can I Borrow With Poor Credit Mortgage?
  5. Why is bad credit mortgage broker necessary?
  6. Our priority is of guaranteed approval
  7. Our lenders accept applications irrespective of the reasons of bad credit
  8. What is considered to be ‘bad credit’?
  9. How do you compare bad credit mortgages?
  10. How to get approved with bad credit
  11. What are the pros and cons of bad credit Mortgages?
  12. Do you have bad credit mortgages questions?

What Is Bad Credit Or Poor Credit Mortgage?

As the name suggests, the mortgage product is just similar. The property loan that is available to the applicants with a bad credit score is known as a bad credit mortgage or Poor Credit Mortgage.

The mortgage is applicable in all types of bad credit situations such as

  • Failure in commitment to the credit agreement
  • Bankruptcy
  • Individual voluntary agreement
  • Identity theft etc.

It is necessary to keep in mind the actual cause of bad credit while looking for the mortgage deal. With fee-free broking services, you can filter out only the relatable options.

Bad credit mortgages

Bad credit doesn’t mean ‘No’ Mortgage

If you have bad credit, Shine Mortgages can help you get home loan approval

Sick of No? Shine Mortgages says YES

We enable you to get rid of the anxiety of rejections despite poor payment history through assistance in the most practical way.

  • Our professionals suggest you workable ways to improve credit score
  • We give you the precise list of documents that our lenders may demand
  • Get the suggestion to enhance the debt-to-income ratio to get smoother approval
  • Stay away from the search footprint as our lenders facilitate soft credit check
  • We provide reliable property loan options that have better approval chances
  • We work as the bridge to convince the lenders on why you should get approval despite the bad credit
  • Our loan providers have fair lending policies which offer you a good borrowing experience
  • We bring the vast choice of interest rates offered by varied lenders to match your affordability.

We guide you through the process

Through a systematic approach, we take you from START to END without leaving you alone.

  • We are available online as well as for face-to-face meeting to discuss your financial situation in totality
  • In response to the latest conditions of your personal finances, we work on the exact solution to bring improvement
  • We try to find out the strong points in your personal finances to present them to the mortgage providers
  • Our experts search for suitable lenders and bring you the best possible options.
  • We take care of all the documentation part that is bulky due to the poor credit situation.
  • While our conversation with the lender, we try to bargain and get a lower interest rate for you.
  • Our efforts are always intense on the part of LTV, and we try to bring a deal with 85% LTV to lessen your burden on deposit part

How Much Can I Borrow With Poor Credit Mortgage?

Before going for a mortgage, it is vital to know on which factors you can decide the amount. Your income generally determines the amount that further should comprise job salary, benefits, pension, rent and other means of monthly income. Some of the lenders also consider your partner's income too before allowing a mortgage with poor credit rating. Therefore, it is suggested to make the proper use of bad credit mortgage calculator before starting the application procedure.

Why Is Bad Credit Mortgage Broker Necessary?

Before going to approach the bad credit mortgage lenders in the UK, you should know one thing that the interest rates will be on the higher side. Some people do worry about these things, and they tend to follow the 'brokers' advice. It may work because you are not so familiar with the market trends. As a specialist, we know lenders very well and will suggest the best name from them that can understand your concern.

Shine Mortgages releases you from that burden by searching customised deals on the mortgage for people with a poor credit score. Here are the crucial benefits that we give:

  • Safe and Secure Process to Quote Us
  • Quick Mortgage Assistance
  • No hidden charges and no surprises
  • Guidance to Improve Credit Scores
5 factors lenders consider for affordability assessment

Our Priority Is Of Guaranteed Approval

We indulge in only result-oriented actions. We are connected with a section of lenders, which have proved themselves in the past. They have a higher percentage of loan approval irrespective of borrowers' credit histories.

Help us know a few things about your finances, and we strive hard to bring the green signal of approval on the guaranteed mortgages for bad credit is sure to come to the UK.

Our Lenders Accept Applications Irrespective Of The Reasons Of Bad Credit

Many reasons can cause a poor credit situation:

  • Missed credit card payments
  • County Court Judgement (CCJ)
  • Bankruptcy

Our lenders are ready to allow your mortgage application in every situation and provide the best possible mortgage loan choice. Personalised pricing on loans gives the surety of affordable deals. Just pair your loan application with a good current income status and approval is destined to come.

How to get a mortgage with bad credit but good income? You may have this question in your mind too, just as others have. Shine Mortgages gives the right answer to this by suggesting credible mortgage offers on good current income status and approval is destined to come.

What is considered to be ‘bad credit’?

Bad credit denotes to a status of payment record that contains the spots of delayed and missed repayments. Various credit reference agencies have different criteria on the credit score categories. The mortgage industry follows the scores decided by Experian with prevalence. A credit score between 560-720 is considered as poor credit score.

How do you compare bad credit mortgages?

Comparison is always a valuable tool to facilitate rational financial decisions. Below are some factors that you need to consider while making a comparison between the mortgage deals.

  • Flexibility
  • Interest Rates
  • Fees
  • Features


Flexibility can also be replaced by the word customised because a lender is naturally flexible if it thinks the individual financial situations of the applicant. Always compare mortgage providers on their capacity to match their loan deals with the repayment capacity of the fund seeker.

Interest Rates

The loan choices with the most affordable interest rate win the trust of the borrowers. As the prices have a direct impact on the repayments, select the lender that can facilitate the smallest instalment size. It is crucial to see the compatibility of the obligation with your monthly budget.


It is always a reason for anxiety for most of the borrowers. The fee policy is different in case of every lender, and you need to be very thorough in your study of fee and charges.

Compare the lenders on the following types of fee –

  • Arrangement fee
  • Valuation fee
  • Booking fee
  • Mortgage account fee
  • Repayment fee/charge (if it is applicable)
  • Closure fee


Varied lenders accompany their deals with several functions, and this is where you get the chance to decide your priority for a particular mortgage provider. Many factors give you reasons to accept the offer of a lender.

  • Instant approval decision
  • No hidden fee
  • Competitive rates
  • No/Soft credit check
  • Timely disbursement of funds

How to get approved with bad credit

The struggle to get approved with bad credit can be easy if you follow the desired manner as a mortgage applicant.

  • Work immediately to improve credit score – If the primary problem has occurred due to credit score issues, then you should first work on that aspect. Pay the bills on time, do not keep the debt payments pending, do not take a new loan it absorbs creditworthiness, and you need to qualify for a mortgage.
  • Show a good income or generate an additional source of income – In the case of poor credit score applicants, the main worry of the loan provider is on the part of the repayment capacity of the applicant. Stronger you look on the income side, smoother you get the approval.
  • Do not change job at least 2 years before you apply for the loan – For a good credit rating applicant, it is okay if he is in the current company from last one year. But for the bad credit person, it is vital to show job stability. For that, a minimum of two years in the same company are necessary. However, if the person has improved in credit score performance, the lender may show some flexibility on this side.
  • Find a guarantor with a strong financial background – If your guarantor has an excellent or good credit score and an excellent income with a perfect income-expense balance then, you are in the good books of the lender. If possible, arrange such back-up to your application and things will be smoother.
  • Bigger deposit is the last-minute saviour – With a big size deposit, you can change the game in your favour and can make the lender approve your application. It leaves a positive impression about your financial capacity.

What are the pros and cons of bad credit Mortgages?

Wise decisions always see the positive and negative aspects. Bad credit mortgages have both the sides, and it is better to know about both.


  • Access to funds to buy your dream home despite the bad credit
  • A big chance to improve credit score by making timely instalments of the mortgage
  • Improved credit report as qualifying for a big loan amount improves the image of a person in the money world


  • Higher interest rate and in turn bigger mortgage instalments
  • Big deposit size that goes up to 20%. Some lenders may demand 15% while some may go for 25%, choose the lender according to your financial capacity.
  • Less number of options in the market may make you compromise on the part of the total cost

Can I get bad credit mortgage with no deposit

Practically it is not possible to get a bad credit mortgage without deposit. The reason is apparent; it is a risky affair for the lender to offer a 100% mortgage to any applicant with already a derailed payment history. In reality, no lender offers such mortgage products. We suggest you to not to apply to any lender without knowing all the facts behind the commitments of 'no down payment required' as that can be unclear sometimes.

Currently, there are no mortgage companies that offer funds with zero deposit to the low credit score people. If you have no money to pay as the down payment, one option can be the savings account of the guarantor.

The one who backs your mortgage application can pledge his savings account with the deposit money to the lender. Until your mortgage ends, it remains locked, and no money can be withdrawn. The culture of the gifted deposit is also there in the UK to borrow funds without any down payment for property purchase.

You need to know the lending policies of the mortgage company. The concerned lending company may or may not allow the alternatives to the mortgage with deposit. Shine Mortgages can commit to arrange some options for you because we have such loan choices on our panel.

How much deposit is required for bad credit mortgage?

You know that conditions for a low credit score applicant are always different as compared to a good credit score person. With imperfect credit record, one has less flexibility on the interest rates and the monthly instalments cannot be too small. A similar situation is applicable in the case of deposit.

Usually, 5% to 10% deposit is required for a mortgage, but in the case of mortgage for bad credit, 20% to 25% down payment is necessary. Last decision depends on the mortgage provider, and we also try to attain flexibility on this part. We are sure that we can find out some options with a 15% deposit demand. Also, if you improve a bit in credit score, there are better chances of getting the best deals on poor credit mortgage with lower rates.

Can I qualify for a right-to-buy mortgage with bad credit?

Yes, you can qualify for the right-to-buy mortgage because this is what this government scheme aims to. The people with lower affordability and living in council houses can buy the same home on a significant discount. Shine Mortgages contains several mortgage providers that deal in right-to-buy mortgage with bad credit and other government housing schemes. You can contact us or send an enquiry on our website to get a quote within a few minutes.

Accepted credit issues for bad credit mortgages

Before you apply for the mortgage for poor credit, have a look at the credit issues that are usually accepted by the lenders.

  • Low credit score
  • Late payments
  • Missed payments
  • CCJs
  • Defaults
  • IVAs
  • Debt management schemes
  • Bankruptcy
  • Repossession

The last two are severe and restrict the number of options you can explore. In the rest of the above, your personal financial management to calm down the conditions plays an important role. If you have the right plans to pay off the debts, the lenders consider your mortgage application seriously; otherwise, they have more reasons to reject the fund request.

Two factors that affect your eligibility in mortgage for bad credit

When it comes to poor credit situation, every small factor affects your chances of approval for the mortgage. Two factors play a decisive role, and you should be aware of them.

  • Level of severity – The type of flaw decides the severity level. Missed bill payments are considered less severe than the bankruptcy issues.
  • Recency of the issues – If recent financial behaviour of the person is flawless, a lender can give easy approval. If he still makes mistakes, harsh realities may appear.

These two aspects can change the game either in your favour or against. Before applying for the mortgage, it is wise to work on them. We give fee-free advice to our customers on how they can improve their finances and can avoid financial mistakes.

Revive your credit score performance for approval on low credit mortgage

Lenders always want to see an enhancement in your credit score performance. You may not be able to earn a good credit rating, that is fine because mortgages for poor credit are there, but a bit improvement can bring a smooth approval.

Use one account for income and outgoing

In place of paying through various bank accounts, it is better to do the transactions from one account. It inspires a better and faster improvement in the credit rating. This simple trick is not known to most of the borrowers, but a simple change can make a lot of difference.

Get on the electoral roll with the latest address

Two things are essential in this concern.

  • Get your name registered on the electoral roll.
  • If you are registered then update the latest address, in case, you have moved to a new house.

Maybe you are not aware, if your latest address is not updated on the electoral roll, the threat of identity theft is always there. You move to a new place to live, and in the documents, the residential address is one of the old place. The hackers and the fraud people and companies may use that to do the financial crime or fraud, and the culprit will be YOU.

Act smart in the debt management

It is very important to show to the mortgage companies that you are now serious about the debts. There are practical plans to pay them off. But how can you do that?? Well, it is simple with an organized approach towards the pending obligations.

  • Pay off the expensive debts first
  • Do not apply for new loans
  • Do not max out credit cards
  • Pay the instalments on time

These are the easy but effective ways to accept if you apply in the right manner without any failure. Efforts in the right direction always give due results.

Some solutions to the applicants with severe credit score issues

A little drop in the credit score can be handled quickly, but the actual support is necessary to those with severe credit score issues. A timely solution to these situations may help you get on the property ladder through a mortgage with less chaos.

  • County Court Judgement (CCJ) – Very few people know that CCJ can be removed from financial records if one can pay off the debts within one month of the CCJ.
  • Bankruptcy – For bankruptcy, some people use equity release. They encash the value of an existing property and pay off the debts to avoid bankruptcy.

If you belong to any of the two conditions, then working on their related remedies is vital. Shine Mortgages helps you explain your debt management efforts to the lenders and convince them to design an affordable deal.

Tips to make your mortgage journey smoother with bad credit after covid-19

At a time, when even the good credit score people have to struggle a lot to get a mortgage, it is not unpredictable that why the low credit score people are in a fix. However, as always Shine Mortgages suggests workable options to help its customers prepare their finances according to the situation.

Following are several tips to attain funds with less mess despite poor credit.

  • Keep the documents ready and leave no mistake – Preparation always prevents last-minute chaos and ultimately rejection. Keep all your records ready. We provide a detailed list of the necessary details. You can provide them to us, and we take care to keep them organized. Applying with incomplete papers and details invite an easy rejection, but with a little caution, one can avoid this easily.
  • Get a proof of job continuity if on furloughed income – The income assessment rules after covid-19 are stricter and we want you to stay ready with every arrangement one should make before applying for a mortgage with a low credit score. The lenders nowadays want the furloughed applicants to provide the proof that their company will retain them. Most of the UK job market has come out from the lockdown period. People are getting back to their workplace, but it is not the case with the companies. Those who are still working from home have to present the proof that their companies will take them back.
  • Obtain an agreement in principle to play safe - The best thing that an agreement in principle provides to a bad credit applicant is CERTAINTY. With an AIP in your hand, the property selection and budget planning become comfortable and predictable. The final decision comes at the end after detailed scrutiny of your finances, but at least, there is a positive vibe to carry with you. Meanwhile, you can keep working on the credit score improvement to make the agreement in principle a reality.
  • Keep a big nest egg for deposit – This is something, which you already know. Keep a significant nest egg for a down payment because that is always a strong back up in the struggle of a mortgage. Bigger is the down payment; smaller is the mortgage amount and closer is the gap between the LTV and the property value. The actual strength of a low credit score person is in personal finances.

Myths on mortgages for bad credit – We show you the other side of the coin

We never let you become the prey to destructive myths because you have a low credit score. Our efforts are always focused on keeping you informed and educated about what is right and what is wrong. Here are some myths about the low credit mortgages that you should know and also the reality behind them.

You cannot get a mortgage if you are self-employed with bad credit

If someone is saying so, he is ignorant. A self-employed can always get funds for a big purchase. If the applicant has organized accounts of a minimum of 3 years, managed by a registered accountant, he can get bad credit mortgages for self-employed.

A first-time buyer cannot get a mortgage in the poor credit situation

Again a myth that we want to debunk to deliver you a tremendous amount of relief. It is a prevalent wrong perception that for the first time buyers, it is not possible to get funds with low credit rating. You can always get the mortgage, but make sure that the payment history issues are not recent.

It is not possible to get a lower rate with a poor credit

No, that is no true. Even a poor credit mortgage seeker can borrow money on a lower rate. It is mainly about how you do debt management to improve credit score performance. If that effort is visible, one can quickly obtain lower rates. Shine Mortgages have arranged many deals for the borrowers with lower rates.

Bad credit mortgage calculator for rational decision

One cannot underestimate the importance of the logic when it comes to mortgages. The low credit score borrowers need to be careful because the conditions are a bit critical in their case. Shine Mortgages uses advanced bad credit mortgage calculator to facilitate correct decisions. We guide you on the use of the calculator and help figure out the desired solution. You can visit our website and can use the calculator to predict the total cost of a mortgage you want to obtain.

Shine Mortgages follows its pledge of providing uncompromised and best mortgage broker services in the UK. We endeavour to create a better financial atmosphere for mortgage seekers. It drives us towards making the customer-centric strategies. You can always leave your trust on us because our team of experts always finds the maximum number of options, and they are always suitable.

Why Choose Shine mortgages

We want you to stay clear about everything. You should get precise reasons to choose us, and here they are –

approval rate


All of our lenders have high approval rates.

vast direct lenders panel


We have 90+ lenders to serve applicants with varied financial conditions


We have banks as well as private lenders but we never take an off on a bank holiday


For you we are completely free. Our fee and charges come from the lenders.

whole of market


We have reached to best and affordable deals of the industry.


We are not tied to any single lender and suggest the only useful options

Do you have bad credit mortgages questions?

We understand how annoying is bad credit situation for you and with that issue taking a mortgage causes many doubts. For that, we answer the questions that generally annoy you.

Do mortgage brokers do a credit check?

The credit check by a broker depends on the preference of their customer. They avoid the process if the fund seeker expresses concern. In that case, the broker will check the income status and bank details to know the repayment capacity. However, the brokers are equipped with advanced methods such as soft credit check, which leaves no search footprint on the credit record of the applicant.

What is the minimum credit score for a mortgage?

While seeing at the UK marketplace, we can see that deals are available on the mortgage for bad credit people. In such a scenario, we can assume that the minimum credit score for a mortgage would be 561. Getting a mortgage in the UK below 561 would be very difficult.

How can I fix my credit quickly to buy a house?

At first, you need to up your financial performance by clearing all the pending debts within the due date. Whether it is of credit card bill or utility bill payments or any loan repayment, repay on time and improve credit score. Please don't apply for a mortgage in a hurry, take five to six months to improve the credit scores and then go for it.