Bad credit mortgage lenders

illustration of Bad credit mortgage lenders

Even if you do have a low credit score, or some kind of credit issues, you still have options. It’s a myth that if you have bad credit, it’s impossible to get a mortgage. Some lenders won’t approve your application if you have a low credit score, but there are plenty of specialist lenders who are more flexible. 

We’ve made a list of the best mortgage lenders for people with past credit issues, or who have a low credit score. A lot of the bad credit mortgage lenders in this list are our partners. Our mortgage brokers work with these lenders every day to get mortgages for people who don’t fit the traditional mould. If you need a specialist bad credit mortgage broker who can help you with a mortgage application, get in touch.

What is a specialist mortgage lender?

Specialist lenders don’t have such strict lending criteria, and specialise in offering more bespoke mortgages, often underwritten especially for you and your specific situation. 

Specialist lenders consider people on a case-by-case basis. They have in-depth knowledge of getting mortgages for people in certain financial circumstances, for example, who have credit issues or are self-employed. 

Quite often, specialist lenders aren’t the big names you know like the mainstream highstreet banks. And sometimes, they’re not available directly to a borrower, they’re only available through specialist mortgage brokers, or an intermediary, like us! 

This is because their businesses just aren’t set up the same as the big banks. So they can’t deal with the volume of customers in the same way. But it means they can be more specialised, and offer a more tailored mortgage product for your unique situation. 

Here’s our list of the best UK mortgage lenders who offer a more specialised mortgage service for people who have bad credit. These lenders are likely to be able to help you if you have a fair, poor or very poor credit rating. 

What mortgage lenders are available if I have a low credit score?

If you have a low credit score, you’ll probably need a specialist mortgage lender. Many specialist lenders are only available through ‘intermediaries’, which means they’re not available to you directly as a borrower. They’re only available through specialist mortgage brokers or our platform. 

If you have a low credit score, these lenders are often the only lenders who’ll be willing to offer you a mortgage.

When you use our platform, you will see specialist mortgages from specialist lenders like these. 

1. Pepper Money

Pepper Money is a flexible lender that offers specialist mortgages to suit your situation. Their lending criteria is ‘designed to suit people in interesting situations’. They’re open to considering applicants who have faced financial problems and who are self-employed and have a complex income. 

Pepper Money will accept people who have a history of CCJs, defaults, IVAs and bankruptcy under certain circumstances. They’re more lenient than other lenders because they’ll consider your mortgage application even if your CCJs and defaults were in the last six months. Most lenders have a policy to reject anyone’s application if this is the case. 

Mortgages by Pepper Money are only available through specialist brokers – otherwise known as  an intermediary. An intermediary acts as a link between the lender and you. Pepper Money is one of our specialist lender partners. 

By using our platform, you could be shown mortgages from Pepper Money if they’re an appropriate choice for your unique situation, for example, you have adverse credit. Pepper Money is often a great option for people with poor credit, because as long as you can prove your otherwise trustworthy and meet their criteria, they’re sympathetic to adverse credit situations.

2. Bluestone Mortgages

Bluestone Mortgages is a specialist lender who rejects the automated robo-advisor ‘computer says no’ approach to mortgages. Instead of using automation, they consider applications on a case-by-case basis. They want to help more people own their own home. So they’ve designed a specialised range of mortgages for people that don't fit the traditional profile that high street banks want. They treat customers as individuals and make decisions based on their circumstances and not their credit score. For example, Bluestone will consider your application even if you have recent CCJs or defaults, as long as they are under £300.

Bluestone is one of our partners. They’re one of the best UK mortgage lenders for people with bad credit because they’re flexible with their lending criteria and don’t judge you off your credit score alone.

3. Vida Homeloans 

Vida Homeloans is a specialist mortgage lender who understands that life is never a straight line. And that now more than ever, people need a mortgage lender that can react and respond to the financial complexity that we all face. They believe in second chances. And don’t judge people by their credit scores.

Working exclusively with expert intermediary partners, they use behavioural data and cutting-edge technology to simplify complexity in order to process applications. 

Vida Homeloans accept applicants with adverse credit. They’ll consider your application if you have a CCJ, but have a limit of a maximum of 4 CCJs in total. They’ll also accept you if you have an unsatisfied CCJ, but their maximum amount is £5,000. Vida are also flexible with defaults as long as you don’t have more than 4 in the last 24 months. 

Vida Homeloans is one of our specialist mortgage lender partners, because they’re a flexible lender, and along with the others in this list, they’re one of the best UK adverse mortgage credit lenders.

4. Kensington Mortgages

Kensington Mortgages is a specialist mortgage lender that’s experienced in all kinds of complex situations. They’ll consider your mortgage application even if you have CCJs and defaults as long as they’re older than 36 months. Kensington uses experienced underwriters to make sure your mortgage is completely tailored to you and your unique situation.

Kensington are very highly recommended and won the What Mortgage Awards 2020 for ‘Best Specialist Lender’. They’re one of our trusted specialist lender partners, and we work with them daily to get mortgages for even the most complex situations. 

5. MBS Lending

MBS Lending is a specialist mortgage lender who considers a wide range of applicants and is open to lending to people with a low credit score, whatever the reason. MBS will consider your application if you have a history of missed payments, CCJs, IVAs, bankruptcy and repossession. MBS Lending also doesn't have a minimum income requirement for applicants to meet. 

6. Buckingham Building Society 

Buckingham Building Society  is a specialist mortgage lender suitable for people who have had financial difficulties in the past. They’re open to discussing specific issues and personal circumstances and always aim to make the application process as simple as possible. 

Buckingham Building Society offers some highly specialised mortgage products for people with ‘non-standard credit’ or ‘impaired credit’ which are open to applicants who have had CCJs, bankruptcy, defaults, late payments, individual voluntary arrangements (IVAs) and other issues. Buckingham Building Society is a good choice if you’ve had financial problems in the past and you have a low credit score.

7. Aldermore

Aldermore is a retail bank with headquarters in Reading. Unlike most high street banks, Aldermore will lend to those with bad credit. Aldermore offers fixed rates up to 5 years, which means your payments will stay the same rate even while you rebuild your credit. They will also consider applications if you’re on a debt management plan.

Aldermore’s set fixed rates and willingness to accept applications from those on a debt management plan make them one of the best adverse mortgage credit lenders.

8. Kent Reliance

Kent Reliance is a banking services provider who’ll consider mortgage applications from people with adverse credit. For example, they’ll accept one CCJ that’s up to £300 in the last six months. 

They’ll also consider your mortgage application if you have IVAs, as long as it was paid off more than three years ago. If you’ve been bankrupt, they’ll consider your application (unlike a lot of other lenders) as long as you were discharged from bankruptcy at least three years ago.

9. Darlington Building Society

Darlington Building Society is a UK-based building society  who are open to mortgage applications from people with all kinds of adverse credit or a low credit score. For example, they’ll consider you if you have a CCJ up to the amount of £500. 

Darlington Building Society will also accept you if you have IVAs as long as they've been paid off more than three years. Darlington might also accept you if you’ve been bankrupt as long as you were discharged at least three years ago.

If you have a less than perfect credit score then Darlington Building Society could be a good option for you. As Darlington is open to applicants who have been bankrupt and had CCJs and IVAs, they’re a lender to consider if you have poor credit.

10. Foundation Home Loans

Foundation Home Loans is a specialist mortgage lender who really understands different financial situations. They believe that just because you have had financial issues in the past, doesn’t mean you’ll have them in the future, so they'll be willing to help if you’ve struggled with credit issues and get a mortgage. 

They will accept CCJs that are up to £2000 and a maximum of two in the least two years. They will also accept you if you have been bankrupt as long as you were discharged at least three years ago.

The best mortgage lenders for bad credit

There you have it! We hope this list has shown you that even if you have adverse credit or a low credit score, there’s still hope for owning your own home. 

Bad credit doesn’t have to be a barrier to homeownership. Read our Bad Credit Mortgage Guide for more info about how having adverse credit can affect your mortgage application. 

Or, if you want to figure how much you can borrow with a low credit rating, use our Bad Credit Calculator.

We make mortgages possible

50% of mortgages for people who’re self-employed or have bad credit aren’t available directly to you. They’re only available through specialist brokers. So we make specialist brokers available to you.

The brokers we work with cover the whole of the market. That means they’re not loyal to a lender, they’re loyal to you. They’ll know the right lender for you and know each lender's specific lending criteria. So they won't waste your time by trying to get you a mortgage with the wrong lender.

useful links

Our guides

Applying for a mortgage or understanding your options shouldn't be confusing, yet there are just so many myths doing the rounds and it's not easy to know where to turn to get the right advice.

Our Calculators

Our calculators give you an idea of what you might be able to borrow, what's affordable and a rough estimate of the kind of property prices you can start to look at.

Talk to our Mortgage Experts to find out your options

Haven't we met before?