Bad Credit • First-Time Buyer
A 95% mortgage means just a 5% deposit – a lifeline for first-time buyers. But what if you have bad credit? Here’s when it’s possible, and when you’ll need a bigger deposit.
Shortcut: See our full guide → First-Time Buyer Mortgages with Bad Credit.
What Is a 95% Mortgage?
- You borrow 95% of the property value and put down 5% deposit.
- Common with government-backed 95% mortgage guarantee schemes.
- Usually available to first-time buyers with a clean credit file.
Can You Get a 95% Mortgage with Bad Credit?
- Possible with minor issues only – e.g. late payments or small defaults.
- Defaults or CCJs usually need to be 2+ years old.
- No recent or serious issues (e.g. IVA, bankruptcy, new CCJs).
- Strong affordability and income evidence required.
If your credit issues are recent or serious, expect to need 15–30% deposit instead.
How Lenders View 95% Applications
| Credit Issue | 95% Mortgage Possible? |
|---|---|
| Recent missed payments | Sometimes – if small and explained. |
| Small defaults (2+ years) | Yes – some lenders accept. |
| Large defaults (<2 years) | No – need 20–30% deposit. |
| CCJs <2 years | No – need larger deposit. |
| CCJs 2+ years | Yes – possible with certain lenders. |
| IVA/DMP (active/recent) | No – usually 25–30% deposit. |
| Bankruptcy <6 years | No – lenders require more equity. |
| Bankruptcy 6+ years | Yes – possible with 5–10% deposit. |
Which Lenders Offer 95% Mortgages with Bad Credit?
- High Street Banks: Almost never accept bad credit at 95%.
- Specialist Lenders: A handful may accept small/older issues with 5% deposit.
- Most specialists prefer at least 10% deposit for adverse cases.
Case Studies
Small Default, 5% Deposit
Hannah had a £250 default from 2021. By 2024, it was over 2 years old, and she was approved with just 5% deposit.
Recent CCJ
Luke had a £1,500 CCJ in 2023. No 95% lenders accepted – he needed a 25% deposit.
Bankruptcy Over 6 Years Ago
John went bankrupt in 2016. By 2024, his file was clean, and he got a 95% mortgage with 5% deposit.
Practical Steps
- Check all three credit reports – confirm age/severity of issues.
- If issues are minor/older – explore 95% options with a broker.
- If serious/recent – save 15–30% deposit instead.
- Strengthen affordability – lenders are strict at 95%.
- Use a broker – most 95% adverse lenders are broker-only.
Check all three credit files in one place
Use our partner link to view your data across agencies. This won’t harm your score.
FAQs – 95% Mortgages with Bad Credit
Can I get a 95% mortgage with recent bad credit?
No – you’ll need a bigger deposit.
Do high street banks accept 95% with bad credit?
Almost never – they want a clean file.
Which bad credit issues are allowed at 95%?
Small defaults or CCJs over 2 years old.
Do I need perfect credit for 95%?
Not always – but anything serious will require more deposit.
Is 10% deposit safer than 5%?
Yes – far more lenders will consider you at 90% than 95%.
Further Reading on First-Time Buyers with Bad Credit
Getting a Mortgage as a First-Time Buyer Deposit Requirements for First-Time Buyers Government Schemes for First-Time Buyers Improve Your Chances of Approval Finding Lenders with Bad Credit Mortgages After IVA Mortgages with a DMP Mortgages with Defaults Mortgages After Bankruptcy Remortgaging with Bad Credit 95% Mortgage Options with Bad Credit
