Can You Get a Mortgage with Bad Credit? Yes — and Here’s How

If you’ve had money troubles in the past — missed payments, defaults, or even a County Court Judgment (CCJ) — it’s easy to assume your dream of buying a home is over.

But here’s the truth: bad credit doesn’t mean no mortgage.

With the right guidance and lender, many people with imperfect histories get approved every single day.

At Mortgage Knight, we work with specialist lenders who understand that credit issues can happen for all sorts of reasons — and they look at your situation, not just your score.

What “Bad Credit” Really Means to Lenders

Lenders don’t use a single universal score — they each have their own criteria.

Typical issues include:

Missed or late payments
Defaults or arrears
CCJs
Debt Management Plans (DMPs)
Bankruptcy or IVAs

Some high-street banks will say no — but specialist lenders assess how long ago the issues happened, how serious they were, and whether your finances have improved since.

How Long Credit Issues Stay on Your File

Most negative marks stay visible for six years, but their impact lessens over time.

For example:

A single missed payment two years ago may not matter much.
A settled default from four years ago could still qualify for competitive rates.
Even past bankruptcies can be accepted after full discharge.

Mortgage Knight helps you match your circumstances to the lenders most likely to say yes.

How to Improve Your Chances of Approval

You don’t need to wait years to rebuild credit — a few practical steps can help right now:

Register to vote and update your address history.
Pay everything on time from now on — even small bills.
Keep credit use low (ideally under 30%).
Avoid too many applications in a short period.
Explain your story — lenders appreciate context when issues were temporary.

A well-presented application can turn a “maybe” into a “yes.”

Deposit Size Matters

With bad credit, the bigger your deposit, the better your chances.

While some lenders accept 5–10%, those with credit issues may need 15–25%.

This lowers the lender’s risk and can unlock better rates.

Tip: Even gifted deposits from family are acceptable for many specialist lenders.

Self-Employed and Bad Credit? Still Possible

Self-employed borrowers often assume they have no chance — but many lenders now offer flexible underwriting.

As long as you can show consistent income via SA302s or accounts, and your recent credit behaviour is solid, you could still qualify.

How Mortgage Knight Helps

We know which lenders to approach — and which to avoid — based on your credit file.

We’ll:

Review your full credit report and highlight key improvements.
Recommend realistic lender options.
Manage your application to avoid unnecessary credit checks.
With access to over 90 lenders, we regularly help clients move from rejection to approval.

Case Studies

Case Study 1: James – Two Missed Payments

James missed two mobile bills in 2021 and was declined by his bank. Mortgage Knight found a specialist lender who approved him at 90% LTV with only a small rate premium.

Case Study 2: Rachel – CCJ from Four Years Ago

Rachel had a satisfied CCJ from 2019. We helped her secure a mortgage through Precise Mortgages with a 15% deposit and a competitive 2-year fixed rate.

Case Study 3: Martin – Debt Management Plan (DMP)

Martin completed a DMP last year. Mortgage Knight sourced a lender that accepted recent settlements and offered a 5-year fix, allowing him to buy again after renting for five years.