Yes — especially with bad credit, as lender choice is limited.

Improve Your Approval Chances as a First Time Buyer Bad Credit

Bad Credit • First-Time Buyer

Buying your first home with bad credit isn’t impossible. Use these practical, lender-friendly steps to present the strongest possible case.

Shortcut: See our full pillar → First-Time Buyer Mortgages with Bad Credit.

1) Check All Three Credit Reports

Lenders use Experian, Equifax, and TransUnion (you won’t know which one).
Fix errors — incorrect defaults or settled accounts can drag your score down.
Dispute mistakes before you apply.

Check all three credit files in one place

Use our partner link to view your data across agencies. This won’t harm your score.

Get your credit report

2) Keep the Last 12 Months Clean

Recent history matters most to lenders.
Avoid missed payments, unauthorised overdrafts, and payday loans.
Even with old issues, a clean year shows you’ve rebuilt trust.

3) Save as Much Deposit as You Can

Minor/older issues: 5–10% may work.
Serious/recent issues: Aim for 15–30%.
More deposit = more lenders and better pricing.

4) Settle or Reduce Debts Where Possible

Settling defaults/CCJs isn’t always essential, but it strengthens your case.
Paying down part of a debt can also help.
Prioritise recent and larger balances.

5) Get Documents Ready in Advance

3 months’ payslips or accounts (if self‑employed).
3 months’ bank statements.
ID and proof of address.
Proof of deposit (savings, gift letter, or Right to Buy discount).

6) Use Government Schemes to Your Advantage

Shared Ownership: Often allows 0% deposit even with bad credit.
Right to Buy: Discount can act as deposit.
First Homes: Stricter; limited lender participation.

7) Strengthen Affordability

Pay down expensive debts before applying.
Avoid taking new credit or finance agreements.
Keep statements tidy (no gambling, no bounced payments).

8) Don’t Apply Everywhere

Multiple hard searches damage your score.
High street banks usually decline when bad credit is on file.
Target lenders who specialise in your situation.

9) Work with a Specialist Broker

Most adverse‑credit lenders are broker‑only.
A broker matches your case to the right lender the first time.
They can frame your history correctly for underwriters.

Case Studies

Defaults but Clean Recent History

Jake had 3 defaults from 2020 but none since. With a 15% deposit, a specialist lender approved his mortgage in 2024.

CCJ Settled

Laura had a £1,200 CCJ in 2021. She settled it in 2023, added a 20% deposit, and was approved as a first‑time buyer.

Shared Ownership 0% Deposit

Sam had a small default in 2022 but used Shared Ownership. With 0% deposit, a lender covered 100% of his share.

FAQs – Improving Approval Chances

Does settling defaults help?

Yes — it shows responsibility and can open more lenders.

Can I get approved with 5% deposit and bad credit?

Yes — if your issues are minor or older than 2 years.

Do lenders check all 3 credit reports?

Not all, but you won’t know which — so check them all.

Is Shared Ownership better for bad credit?

Often — because some lenders allow 0% deposit.

Do I need a broker?

Yes — lender choice is limited and criteria vary.

Need Help?

Tips to Improve Your Chances of Approval as a First-Time Buyer with Bad Credit