What is your credit score? It is what most of the lenders tend to ask a borrower when he is applying for the mortgage. Undoubtedly, your credit score is the most determining factors to get approval for a mortgage or not. If you have higher credit score, the less risky you are for the lenders. However, not everyone has the same joy to have a higher credit score and you may be one of those unfortunate ones. But we are here to help you.

In the UK, a number of individuals have been struggling with multiple debts and no clearance of those put them into the category of bad credit people. Thus, it should be no wondering why you are asking ‘Can I get a mortgage with bad credit'?

The journey to buy a mortgage would not be smooth for you but options are there to purchase a new home despite less-than-stellar credit history.


    Checking the credit history of the borrowers is the common practice for the mortgage lenders. They usually tend to consider many factors to determine the credit report of the borrowers. For instance:

    • Past Payment Record (35%)
    • Debt Accumulated through credit cards (30%)
    • Credit history’s length (15%)
    • Credit through different accounts (10%)
    • New Credit Record (10%)
    Note: The above figures may vary according to the lenders and their policies.

    The factors like County Court Judgement (CCJ) and Individual Voluntary Agreement (IVA) are also taken into consideration.


    Options are really less when it comes to the poor credit history but there are few lenders, who are allowing the mortgage for people with bad credit score. In general, they offer following types of mortgages:
    • Mortgage with lesser amount
    • Expensive mortgage
    • Mortgage with higher deposit
    In some point of time, these mortgages are also called as the adverse credit or some lenders put them into the category of subprime mortgages. Although, they are especially offered by the specialist bad credit mortgage lenders.


    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 arrange competitive APRs on the mortgage for poor credit borrowers.

What Counts as an Ideal Credit Score?

The credit score is usually a number that the lenders see to make the decision whether a particular borrower is capable to make the repayments on time when given a loan, mortgage or credit card. In fact, an individual's personal 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 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 a same formula used by all credit reporting agencies.
  • Custom Credit Score: This is determined by the individual lenders. They see not only the credit report but other details like the account history. Most of the mortgage providers use the custom credit score.
Here is the illustration of the Experian Credit Scores:
Credit Score Category Credit Score Range Comment
Excellent 961-999 You have every chance of getting the mortgage.
Good 881-960 You will get the mortgage but may not be on very best deal.
Fair 721-880 You can have a mortgage deal but on OK interest rates and on limited mortgage amount.
Poor 561-720 Lenders may accept you for a mortgage deal but on the higher interest rates.
Very Poor 0-560 You will get rejection in most of the times or can get mortgage but on very high interest rates and with maximum deposit.

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 few steps:

  • The best way to attract the 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 important 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 just 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.


Lenders often reluctant to offer mortgage those who have never borrowed money or not indulge in any sort of credit. It is because lenders cannot judge how a particular borrower repay a mortgage. Therefore, it would be better if you give some time to yourself, built some credit and then apply for the mortgage to fulfil your desire of purchasing a new home, moving home or remortgage.

How to Improve Your Credit Rating

We are not just the mortgage providers but also 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 rates on the mortgage with bad credit. Don’t hesitate, just go on to fill your query…