Can I get a mortgage with bad credit?
Getting a mortgage with bad credit is possible, but it can be harder. Lenders will look at the credit score of people who apply for a mortgage. They use your credit historyas an indication of how likely you are to make repayments and how well you'll manage your account.
If you have a bad or low credit rating, you might find it harder to get a mortgage for this reason. For example, if you have had a loan, but not been able to afford to pay it back each month, this might show that you can’t afford to take out a mortgage.
Having bad credit does not mean you cannot get a mortgage. It could vary depending on your credit rating – as there can be a fine line between ‘fair’ and ‘bad’ credit scores.
Some lenders offer mortgages designed for people with bad credit. But these can include higher interest rates and fees.
If you have mortgage applications denied due to poor credit, it can be better to build up your credit score before reapplying. This should improve your chances of getting a mortgage, whether you are a first time buyer, moving house or looking to remortgage.
