If you have a bad credit rating, finding a mortgage deal can feel daunting. At JG Mortgages Services Limited, we specialise in helping clients with various credit ratings secure mortgages.
Bad credit shouldn’t stop you from pursuing home ownership. While obtaining a mortgage with bad credit may have challenges, our friendly and knowledgeable team at JG Mortgages Services Limited is here to help you navigate the process and find a mortgage that meets your needs.
Read this blog for insights on securing a mortgage with bad credit, what it means, what a bad credit mortgage entails, and more.
What Does ‘Bad Credit’ Actually Mean?
Bad credit refers to the fact that you have a low credit score or a poor credit report To break it down, the accumulation of a bad credit score is caused by the following factors:
- Missing payments – e.g. credit card payments, bills
- Defaulting on a loan
- Having large amounts of debts
- Declaring as insolvent – e.g. declaring bankruptcy
- If you have been refused a loan
If you suspect you have bad credit or are hesitant about finding a mortgage, consider using a free credit score checker like Experian, one of the UK’s top three credit reference agencies. Keep in mind that there are lenders who specialise in bad credit mortgages.
Can I Get a Mortgage With Bad Credit?
While your credit score and history are important to lenders, securing a mortgage with bad credit is possible. However, you may face higher interest rates or need a larger deposit to mitigate perceived risk.
Lenders aim to finance your property purchase but assess your credit history to determine your risk level. They want to gauge your likelihood of repaying the loan, making monthly payments, and managing your account effectively.
If you have bad credit, finding a mortgage may be more difficult. Outstanding debts or missed repayments will count against you, as lenders view this as a sign of financial mismanagement.
First Time Buyer Mortgage With Bad Credit
If you are a first-time buyer, we recommend that you use a specialist mortgage broker or lender to help you look for the most suitable deals and to improve your chances of success. These are the professionals that can make the process easier for you.
Whether you are a first-time buyer or not, to give yourself the very best chance of securing yourself a mortgage deal to enhance your credit score, you can consider doing the following:
- Showcase you are a reliable borrower – make sure you pay all bills, loans, credit card payments, overdrafts, and rent on time and in full
- Set a monthly budget and stick to it – reduce costs where you can and keep your spending consistent. You should aim to have money left over at the end of the month and not fall short
- Review your credit report regularly and make sure all of the details are correct
- Make a note of any explanation for poor credit – e.g. due to poor health or a job redundancy, and then you can note it to lenders to help them understand
- Register to vote
- Pay off any outstanding debts
- Cancel any unused credit cards or credit accounts
- Utilise credit builder credit cards – these are useful if you have a little credit history
Bad Credit Mortgages – How Do They Work?
Bad credit mortgage lenders exist specifically for those with low credit ratings. This is a unique service designed to help people out.
As discussed earlier, you may face high interest rates and be required to make a larger deposit, typically between 20-25% of the property’s value, rather than the standard 5-10%, due to increased risk. Additionally, your borrowing limit may be lower with a bad credit score.
These mortgages, often called ‘adverse’ or ‘poor credit mortgages,’ are accessible to individuals with poor credit histories. Our team at JG Mortgage Services Limited can connect you with the right lender willing to work with you.
Can I Remortgage My Home With a Bad Credit Score?
Yes, you can remortgage your home with a bad credit score! However, there are a few things to consider. The main thing you can do prior to this is ensure you are making your monthly mortgage payments on time and in full.
Over time, this will prove to your lender that you are a responsible borrower and therefore they will be able to trust you to help you with a remortgage deal so you can release equity successfully.
The Benefits of Being a First-Time Buyer
Even if you have bad credit as a first-time buyer, it’s not all bad – there are some benefits to being a first-time buyer seeking a first-time buyer mortgage.
Chain Free
As a first-time buyer, there is no property you need to sell first before you can purchase one. This puts you at an advantage over other buyers, as you can get your offer in first and speed up the process for your seller if they want a seamless and quick sale.
Stamp Duty Discount
As of September 23, 2022, the following rules apply:
- First-time buyers will not pay any Stamp Duty Land Tax (SDLT) on properties worth up to £425,000.
- For properties valued between £425,001 and £625,000, first-time buyers pay 5% SDLT on the portion above £425,000.
- If the property costs more than £625,000, first-time buyers are not eligible for the relief and must pay SDLT at the standard rates.
These new thresholds are set to remain in place until March 2025. After that, they are expected to revert to previous levels, but this may be subject to change.
This is a big plus when you are making probably the biggest financial purchase of your life, a saving like this is welcome when you will have many other expenses to account for.
Help to Buy Schemes
If you are a first time buyer, there are some helpful Help to Buy schemes available to help you get onto the property ladder for the first time and give you a helping hand in the challenging economic climate.
Get Help With Your First-Time Buyer Mortgage With a Bad Credit History
Contact us today at JG Mortgage Services Limited. We are independent and specialist mortgage brokers who have access to a wide variety of specialist mortgage lenders who can offer many different types of mortgages for many different people and their needs.
We have excelled at finding lots of clients the right mortgage deal for them, even in challenging circumstances with poor credit records. With our level of experience and knowledge, you are not alone, and we have a track record of helping many people throughout the UK.
Whether you are a first-time buyer, have a bad credit score, or both, we will stand by you and use all of our lender contacts to help secure you a mortgage deal. Contact us today on 01244 738422 or email info@jg-mortgage.com and a member of our team will be more than happy to help.

Joshua Griffith is the founder of JG Mortgage Services Ltd, established in 2021. With over a decade of experience in UK banking, he brings a client-focused approach to mortgages. Passionate about helping families achieve homeownership, Joshua combines industry expertise with personalised support.