Obtaining approval on a bad credit mortgage is always a matter of uncertainty. At the same time, it is not wise to lose hope because the new aged mortgage market has bad credit financing solutions to offer. Shine Mortgages can ensure your access to the lenders that offer mortgages with bad credit. Also, we offer you advice on the workable ways to improve your financial conditions and increase the chances of mortgage approval. 

How To Get A Mortgage With Bad Credit?

With no waste of time, better is to talk precisely about the workable ways of getting a mortgage with a poor credit score. We offer free advice to our customers to take them closer to their mortgage approval irrespective of credit score performance. Several changes in personal finances can bring a considerable difference and can bring the good news of ‘mortgage accepted’ in a short time. Read here about how you can get a mortgage on a low rating with the following suggestions. 

Apply for a suitable mortgage product

The financial solutions for the low credit score people come with certain conditions. You should apply for them only because asking for something that is not made for your purposes is a waste of time. Find out the bad credit mortgages available only for the applicants with less-than-stellar payment history. 

Earn a boost in credit score at least 6 months before the application

The lender should see some improvement in your credit score performance in the past few months when you apply for the mortgage. The best way of that is to pay the obligations on time and keep the payment record in good health. This suggestion is the most common that we give to the fund seekers because it shows immediate effect. 

Good income is ALWAYS a strength

It is always easier to get a mortgage with bad credit but good income. The importance of strong financial stability needs no justification. A good income can conveniently make way for your mortgage application to qualify on the affordability parameter set by the lender. More significant income figure gives more space to adjust a new instalment of property loan; this is what a mortgage company wants to see.  

Guarantor with healthy finances is a significant support

We all know the importance of a guarantor for a property buyer while availing funds. That importance is intense for a borrower with derailed credit history. You need to try that your guarantor has a good income, good credit score, and there is no burden of multiple obligations. The best thing is to bring a person with an excellent score. A guarantor can change the circumstances in favour and the result is an affordable loan offer. If you are ready to convince a financially strong person to back the loan application, we are ready to bring the amazing deals. 

Increase the share of the deposit

The rule of a minimum deposit of 5% to 10% is not applicable in the case of people with unhealthy credit history. That minimum limit extends to 15% to 25%, larger is the down payment, and brighter are the chances of approval. It reduces the gap from LTV and also shrinks the size of obligation.

With the above ways, you can get smoothly on the property ladder with a weaker payment record. For rest of the confusion or challenges, avoid risk and hire professional assistance and work in a better environment. Shine Mortgages is there to support this decision and handle the complete mortgage procedure, including the search of the relatable deals.

What is your credit score?

This is the first question that a lender asks from you. A credit score reflects the exact outcome of your financial behaviour in precise numbers. Excellent and good credit score denote responsible financial behaviour, whereas the fair and poor credit score cause concern to the lenders. A mortgage is a big size, the long-term loan which needs perfection or at least satisfactory condition on every aspect. It is always vital to know your credit score, which you quickly check for free on the website of Experian.

What Exactly A Bad Credit Score Is?

A bad credit score is a situation of degrading in credit rating that happens due to the following reasons.

  • Missed payments – When you fail to make the payment of bills or debts on time the finance company reports that to the credit reference agencies. This causes a drop in credit score.
  • Delayed payment – Delay in repayments is also a wrong habit, which invites a sharp fall in credit score performance. It represents you as an inefficiently committed person towards financial commitments.
  • The wrong type of credit mix (Domination of a particular kind of credit in personal finances)
  • Identity theft – Someone else using your identity to commit a financial fraud can bring a disaster for you. By informing to the agencies at the right time you can prevent a nightmare.
  • Filing Bankruptcy – It is a clear declaration of your inefficiency and gives a precise hint to the money world about your extremely poor financial condition.
Credit Score
  • Court judgments – When your creditors make an approach to the court to make you pay the debts, the judgment occurs. It proves your weak repayment capacity and this credit score degrades.

Here is a chart of credit rating with the particular performance that a score denotes. Have a look and see which category you belong to.

Credit score Related performance
961-999 Excellent
881 - 960 Good
721 – 880 Fair
561 - 720 Poor
0 – 560 Very Poor

Your chance of approval depends a lot on your credit score as the journey of applying for a mortgage starts from here only.

For better chances to get a mortgage despite bad credit, one needs to work on the accurate cause of poor credit situation.

Can I get a Mortgage with a bad credit score?

To be direct and precise, yes, you can get a mortgage with bad credit but good income is always a condition for that. After all, lenders need to have a surety that you can pay the loan instalments on time. For that, your income needs to come into the picture to make sure that you can pay the monthly instalments.

Following factors can help you get a mortgage with imperfect credit history -

  • Good income with satisfactory debt-to-income ratio. The minimum acceptable level is 60% income and 40% debts
  • Make a more significant down payment that is more than 5%. It usually goes up to 20%
  • Keep a good saving, as this makes the lender realise your determination to embrace discipline in finances.

With all the efforts in the personal finances, you need to find the right platform where you can quickly get a bad credit mortgage deal. Exploring the market with small or no knowledge about the industry may only waste time. Besides, you do not know which exactly the mortgage company is that offers reliable property loan options to bad credit score people. In such situations, it is better to take assistance and hire a broker to find you a loan option much faster than you could do it. Shine Mortgages solves this purpose through its extensive panel of 90+ lenders.

How much time it takes to get a mortgage after bad credit?

To be factual, the length of poor credit situation is a significant factor behind the rejection and approval of your mortgage approval. There are some facts that you should know in this concern.

A long and consistent bad credit situation is not much favourable for mortgage applicants.


A person with a poor credit situation from the last 5 years is more prone to denial than the one with a bad credit record from previous 6 months only.

It is not entirely impossible to get a property loan even after 5 years of bad credit situation. However, in that case, the lenders have countless doubts on your repayment capacity, and that is obvious. They have all the reasons to think that a person could not improve his financial situation in 5 long years. How will he be able to make the mortgage repayments on time? It shows that the applicant has issues in his habits and is not financially disciplined. Make sure that you are not in this situation.

If your poor payment history is just a few months old then certainly the lender can consider it a bumpy road situation that came in your personal life. That is common to happen with so many borrowers. In fact, in such circumstances, you can even expect to get guaranteed mortgages with bad credit with a fair condition of good income. A hint of improved recent financial behaviour should also be there.

What information is used to calculate my credit score?

First of all, you should know that credit reference agencies generate your credit score. They take several types of financial information from the varied source. Have a look –

  • Electoral roll to check your presence as a responsible native – Every accountable citizen should have his/her name in the electoral roll. It confirms the current address of a person and also the people live with him. Finance companies need to have this information to get the exact residential details of an applicant. To perform the facilities of physical verification in case of big loans like mortgage, lenders check the name of the person in the electoral roll. It is the most reliable place for a finance company as it is a government document. Not having the name registered here affects the stability of credit score performance.
  • Fraud data to know the authenticity of a person in financial life – This data is a collection of financial frauds committed by the people in varied ways. Also, it collects the information of the victims of identity theft. A credit reference agency has to check this data to confirm that there is no issue in the personal finances of a person. However, you should know that the victim of frauds like identity theft do not get a harsh response from the lenders, as it is a crime done by someone else. The concerned person has nothing to do with that. An intentionally committed fraud is undoubtedly the reason for a mortgage provider to give denial on the loan request.
  • Several enquiries on credit file to know how needy you are – Less number of enquiries on a credit profile shows that the person is not credited hungry. On the other hand, many queries of finance companies on the credit profile denote multiple applications made by a person. Simple conclusion that arises from various applications is that the concerned person perhaps has a weaker financial situation. It is the reason that lenders and brokers always advice to the fund seekers to not to apply to many lenders or finance companies at the same time.
  • Court Judgements to check that there is no severe issue of pending debts – The credit score agencies need to check if there is any court judgement issued on your name. A court order putting you in the obligation to make a pending payment is never good news for your credit report. It gets severely affected by such things. However, not having your name there is a great thing, and it also means that you maintain a healthy practice in day-to-day life. It makes the agencies give a definite mark of a good score in your report and having a good credit score for a mortgage, or any other loan is always a promising thing.


Options are less when it comes to poor credit history. There are a few lenders, who are allowing the mortgage for people with a bad credit score. In general, they offer the following types of mortgages:

  • A mortgage with a lesser amount
  • Expensive mortgage
  • A mortgage with a higher deposit

Sometimes, these mortgages are also called as the adverse credit, or some lenders put them into the category of subprime mortgages. Although, they are specially offered by the specialist bad credit mortgage lenders that we present in front of you.


Yes is the answer. Your less credit score means you have to pay more while buying a mortgage. The lenders tend to charge more due to the risk involved in terms of missing the repayments. It means you have to pay:

  • Higher interest rates
  • Higher mortgage fees

Shine Mortgages does its level best to find out only that mortgage offers where there is no extra burden on your pocket. It would be better if you compare better and we will help during the entire process.


The credit score is usually a number that the lenders see to decide whether a particular borrower is capable of making the repayments on time when given a loan, mortgage or credit card.

An individual's credit score is generated on the past credit mistake. A perfect credit score is the guarantee of your financial opportunities because you are no more a risky borrower. According to the Experian credit reference agency, there are two kinds of credit scores:

  • Generic Credit Score: It is used by the loan providers and other financial institutions to decide a common credit risk of the borrower. It is formed through the same formula used by all credit reporting agencies.
  • Custom Credit Score: Individual lenders determine this. They see not only the credit report but other details like the account history. Most of the mortgage providers use the custom credit score.

How to Get a Bad Credit Mortgage

Your past credit history may have the blot of missed debt repayments, but you have an equal opportunity to impress the lenders to apply for a mortgage. Here are some of the tips that our financial experts have shared here:

  • The best way to attract lenders is by paying the bills and other debt dues on time. You have a bad credit score because of your history, but if you are sincere at present, they may have no issue of allowing a mortgage to you.
  • Another meaningful way is to initiate the efforts to make your credit score stronger. You can do this by inserting your name into the electoral roll, limited credit applications for a mortgage and keeping the borrowing amount under 20% of the entire amount.
  • Being a bad credit borrower, you make sure that you pledge a big mortgage deposit that means lenders have to pay a limited amount with less risk of missing the repayments by you.
  • If you have a good income, but with a bad credit score issue, then lenders may not hesitate to offer you the desired mortgage. The lenders are convinced that you can make the repayments from your monthly income.

If any difficulty arises, our financial experts will discuss with the lenders on your behalf. They will try to convince them to offer the mortgage on the acceptable terms.

Shine Mortgages owns the efficiency to back-up your mortgage with exclusive features that are rare in the market. We serve the salaried as well as the people with self-employment tag. Our lucrative deals on the mortgage for self-employed are available, irrespective of credit score status. With a flawless account of the last two years and functional repayment capacity, you can win approval. The lenders on our panel have liberal policies towards the poor credit self-employed applicants.

We make sure to bargain on your behalf and get a better LTV percentage of up to 85%. It is higher than the 80% available in the mortgage industry to the applicants with derailed payment history. We suggest you the best ways to bring practical improvements in your credit score, once you do that, we indulge in desperate efforts to bring you the uncompromised deals.


Having no credit history is a risky affair if you want to get a mortgage. The lender needs a credit history to get an idea of your payment capacity. Its absence makes the mortgage companies unable to check and know the creditworthiness of the applicant.

With nothing to show in the name of past financial efficiency, you need to work on the following strategy to make the lender consider your application.

  • Your income should be in a prominent figure of Pounds
  • There should be a precise proof of employment stability through salary slips, confirmation letter from your company and bank statements.
  • Your guarantor should have a good credit score and a good income to back your loan application
  • An additional source of income will help more to convince the lender about your repayment capacity
  • The expenses should not be in a condition to dominate the income part

How to Improve Your Credit Rating

We are capable enough to guide you on how to improve your credit score before you go ahead to shop for a mortgage loan:

  • Make all the repayments on time
  • Never cross your credit limit or particularly the overdraft limit
  • Do not apply for too much credit
  • Your name and address details should be accurate

Shine Mortgages does offer you the best mortgage guide that will work for you despite bad credit score. Don’t hesitate; go on to fill your query.

Does making payments on time improve credit score?

Yes certainly. Delayed payments are one of the biggest causes of degrading in credit rating. If you make the payments of bills and debts at the right time and on the correct date, you are sure to see the improvement in credit score. After all, your score is the exact reflection of your financial habits. Everything gets recorded on your credit report, which decides the possibilities of exploiting the opportunities in the future. You may not know, by showing an improvement in your credit score, you can even apply for a mortgage without a deposit. The actual strength is in the way you tackle your finances. Keep things in your control, and you can always win the smooth approvals.

Options Of Getting A Mortgage With No Deposit

Due to weaker financial situation, many bad credit borrowers try to explore the possibilities of a mortgage with no deposit. Is that really possible? If it is, then what are the advisable methods?

With acceptance to the ultimate truth that final decision depends on the lender only, here are some ways you can try for a no deposit mortgage. 

A gifted deposit is an effective method – Family is always big support in big financial decisions. It is not new to hear that the parents or grandparents help their children with a gifted deposit. It is the amount that the borrower can present to the lender to compensate for the absence of deposit. 

Additional collateral – Additional collateral is another robust way to borrow money with no deposit. A property that you got in a legacy or have purchased in the past can be presented as the security. You can see a sudden change in the response of the lender; however; this does not give to act carelessly in finances. 

Some sort of compensation is necessary to get a poor credit mortgage without deposit. The reason is, the deposit money is vital to start the mortgage procedure, even those with excellent credit score need to offer down payment. 

Bad Credit Mortgages After Corona Pandemic

The conditions have changed a lot after covid-19, and with low credit score, the struggle is tough now. The approval can be difficult because the lenders have no intension to compromise on the part of income assessment. If you can manage to win a situation of financial stability and also prove it to the lender, you can expect the mortgage journey with less hassle.

For the employed as well as self-employed mortgage applicants with bad credit, the current government schemes can act as a big support. The coronavirus job retention scheme for the employed and the self-employment income support scheme for the self-employed are there to get financial relief.

Through government help or a source of regular income, prove the repaying capacity. If the lender gets convinced, getting a mortgage with bad credit is not difficult. Shine Mortgages helps you explain the financial conditions to the lender and back them with rational reasons.

Effect of corona on new mortgage applicants

Several effects of the prevalent covid-19 are visible on the mortgage market of the UK, and the new applicants should know about them – 

  • Mortgage approval rate has improved, but for poor credit people, it is still volatile. 
  • Lenders have tightened the criteria. They are on toes on income assessment and deposit part. 
  • Less number of options are available due to the uncertainty of the market. 
  • Interest rates have dropped, which is good news, but still, it is vital to play safely in bad credit condition. 

If you have any doubt on how to get a mortgage with bad credit after corona pandemic, look at the above information. Get on the property ladder safely with the above concerns in mind. The circumstances are harsh, certainly but not impossible. The UK market has all the efforts in the plan to gain back the normalcy. A bit attention on making the harmony between the industry and your finances can change things for good. In case of any issue on the qualifying parameter, you can also consider shared ownership mortgages with bad credit. Shine Mortgages has lenders on the panel that offer these mortgages on flexible lending policies. 

Features Of Bad Credit Mortgages

What a poor credit person gets in a mortgage deal is always different from other mortgages offered to the excellent or good credit score people. This difference can give you the idea on how to present as the strong applicant and avoid all the chances of rejection.

Higher deposit

The deposit money for bad credit mortgages is 20% to 25%. 

Considerable instalment size

You cannot expect a small instalment size in poor credit situation. 

Longer employment stability  required

With a low score, you need to sound more stable in a career than a good or excellent credit score person.

Longer mortgage process

The lender has many doubts due to a low credit rating, which makes it do the scrutiny of the lender for a longer time.

If you think that obtaining funds on a bit higher rate is not manageable and cost-effective, we even suggest you wait for some time. We are never eager to make people take a mortgage just because they have come to us, and we cannot let them go. Our prime concern is the financial well-being of the borrower, and for that haste is never a good choice.

Obtain A Mortgage Agreement In Principle To Get Certainty

We always suggest our customers obtain a mortgage agreement in principle. It gives a feel of certainty and also confidence that you have chances to get funds despite the bad credit. However, an AIP is never a surety of mortgage approval because for that scrutiny of finances is necessary at the later stage. An agreement in principle brings the following perks for an applicant of mortgage for low credit score.

  • It describes an amount that you qualified for after the initial financial assessment. You can continue your property search with a budget in mind.
  • It becomes easy to predict the deposit amount that you need to acquire to make the approval easy on the application.
  • The lender that provides AIP describes the loopholes he notices in your finances. By the time you finalise a property, you can improve conditions.

Most of the customers visit us as what do I need to get a mortgage, and without any second thought, we ask them to get an AIP on priority. It is a strong tool for borrowers to attain funds with a better confidence level. 

Shine Mortgages has hopes to offer its customers in the form of varied mortgage products irrespective of credit score. With a whole-of-market approach, we pick the best deals that satisfy the concerns of the borrowers cent percent. Before you apply for a bad credit mortgage we make a plan to improve your finances and play safer on the property ladder. With enhanced conditions of personal finances, it is always easier to borrow a bigger amount.


How long does it take to rebuild credit?

It depends on the efforts you invest. If you are working on all the required aspects, the credit score may rise within two months. However, doing a mistake again may bring the rating low.

Work on the following to Get A Rise In The Minimum Time Of Two Months –

  • Pay the bills and debts on time
  • Close the unused credit cards, store cards, bank accounts etc.
  • Consolidate debts if you have scattered obligations, it will be easier to pay the debts

How much does credit repair cost?

It costs nothing but for sure demands unshakable discipline in financial behaviour that every mature person should have. A balance of income and expenses, timely payments of debt are the two main pillars to attain the credit repair.

Can I get a mortgage with bad credit if my partner has good credit?

Yes, you can get a mortgage despite your bad credit and good credit of your partner. However, for that, you need to apply for a joint mortgage because then only the finances of your partner will come under consideration.

Do not forget that credit score is not the only criterion to get approval. A satisfying debt-to-income ratio should be there to justify responsible and collective spending habits. The lender will also scrutinise the individual debts of your partner and the mutual ones to have an overall look of the financial condition that you both have.

Can you get a joint mortgage if one of you has bad credit?

Yes, you can have a joint mortgage even if anyone of you has a bad credit score. In a joint mortgage, the financial capacity of both the partners comes under consideration. Both of you are equally responsible for the mortgage repayments. If the low credit rating of one can cause difficulty, the good credit score performance of the other one can compensate for the weakness. However, make sure that none of you takes any new loan. For the poor credit score person, it is not advisable to bear the burden of a further obligation due to already weaker creditworthiness. Similarly, for or a good credit score person, it is necessary to stay away from the new loans or credits to help the partner qualify for the mortgage.

Can I buy a house with my credit and husband's income?

Yes, you can do it, but your husband needs to be your co-applicant. Without that, it is not possible to buy a house individually on your credit. After all, the repayment capacity of the applicant is the most crucial factor that makes the lender decides on the approval. If the repayment capacity will be shown through the income of your husband, then how is it possible to not to include him as the applicant? It is the practical rule and unavoidable according to the lending rules of the mortgage industry in the UK, and there is no escape from this reality.

Can I buy a house with a 520 credit score?

Practically 520 credit score is not a number that brings approval on a mortgage or makes your big purchase possible. However, there are additional conditions that can make things possible. Either you bring a guarantor with a good credit score, secure income status and perfect debt-to-income ratio. If not this, then you need to bring a joint mortgage application that can share the responsibility of monthly mortgage payments with you. Besides this, it is also advisable if you keep working on the ways that can improve your credit score performance. Your credit score performance is the prime thing that comes under notice.

How can I raise my credit score 100 points fast?

Through several common but beneficial ways, you can increase your credit score performance by 100 points.

Work on the following to Get A Rise In The Minimum Time Of Two Months –

  • Pay off all your high interest debts and do not avail any new one; for example payday loans they always hurt your credit score performance drastically.
  • Keep your debt-to-income ratio to the idol level of 80:20
  • Get registered on the electoral roll with your current address
  • Availing a secured loan can also improve your rating because qualifying for a big loan improves your credit worthiness and thus the credit rating
  • Make timely payments of your monthly bills