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Can I Get a 95% Mortgage with Bad Credit as a First-Time Buyer?

Sep 25, 2025

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 Issue95% Mortgage Possible?
Recent missed paymentsSometimes – if small and explained.
Small defaults (2+ years)Yes – some lenders accept.
Large defaults (<2 years)No – need 20–30% deposit.
CCJs <2 yearsNo – need larger deposit.
CCJs 2+ yearsYes – possible with certain lenders.
IVA/DMP (active/recent)No – usually 25–30% deposit.
Bankruptcy <6 yearsNo – lenders require more equity.
Bankruptcy 6+ yearsYes – 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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: A 95% mortgage with bad credit is possible – but only for minor or historic issues. For recent or serious problems, you’ll need a bigger deposit.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Want to see if you qualify for a 95% mortgage?
Apply now and Honest Mortgages will check the right lenders for you.

Can I Remortgage as a First-Time Buyer with Bad Credit in the Future?

Sep 25, 2025

Bad Credit • Remortgage

Getting your first mortgage with bad credit is a huge step – but what happens when your fixed rate ends? Remortgaging with bad credit is possible, but it depends on your equity, deposit size, and how your credit has improved since.

Shortcut: Explore our main guide → First-Time Buyer Mortgages with Bad Credit.

What Is a Remortgage?

A remortgage is when you switch your existing mortgage to a new lender. Common reasons include:

  • To get a lower interest rate.
  • To release equity.
  • To consolidate debt.
  • To switch from a bad credit lender to a mainstream one.

Can I Remortgage if I Still Have Bad Credit?

Yes – but your options depend on:

  • Type of bad credit (defaults, CCJs, IVA, DMP, bankruptcy).
  • How recent the issues are – older = more lender choice.
  • Equity in the property – usually 20–25% if bad credit is still present.
  • Whether you’ve kept your file clean since.
If your issues are minor or older, some lenders may remortgage you with as little as 5–10% equity.

How Lenders View Bad Credit Remortgages

Credit IssueRemortgage Options
Missed paymentsMany lenders overlook if small and historic.
Defaults (2+ years old)Possible with 5–10% equity.
Defaults (recent/large)Usually need 20–30% equity.
CCJs <2 yearsHarder – expect 25–30% equity.
CCJs 2+ yearsSome lenders accept with 10%+ equity.
IVA/DMPPossible once settled or with strong equity.
BankruptcyNeeds discharge – usually 3+ years, more options after 6.

Equity Requirements

  • Clean credit remortgage: as low as 5–10% equity.
  • Bad credit remortgage: usually 20–30% equity.
  • Older or minor issues: sometimes possible at 5–10% equity.

Case Studies

Defaults 3 Years Old

Amelia bought with defaults in 2021. By 2024, they were older, and with 15% equity, she switched to a better lender.

Recent CCJ

James had a CCJ in 2023. When remortgaging in 2024, he needed 25% equity to secure a new deal.

From Specialist to High Street

Sophie started with a bad credit lender in 2020. By 2025, her file was clean, and she moved to a high street bank with just 10% equity.

Practical Steps

  • Start early – check credit and equity 6 months before your deal ends.
  • Keep your recent history clean – avoid new missed payments.
  • Build equity – the lower your loan-to-value, the more options you’ll have.
  • Settle old defaults/CCJs if possible – improves lender choice.
  • Use a broker – to move from specialist to mainstream lenders.
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 – Remortgaging After Bad Credit

Can I remortgage if my bad credit is still showing?
Yes – but you’ll need more equity and a specialist lender.
Do I need to wait until the credit drops off my file?
Not always – some lenders accept settled or older issues.
Can I switch to a high street bank later?
Yes – once your file is clean, you can move away from bad credit lenders.
Do I need 25% equity to remortgage with bad credit?
Usually, but minor/older issues may qualify with less.
Will my rate improve over time?
Yes – as your credit history rebuilds, you’ll qualify for better rates.

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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: Remortgaging with bad credit is possible – and often the next step after starting with a specialist lender. Build equity, keep your file clean, and you’ll open doors to better deals.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Want to check your remortgage options?
Apply now and Honest Mortgages will compare lenders for you.

Bankruptcy and First-Time Buyer Mortgages – How Long Do You Need to Wait?

Sep 25, 2025

Bad Credit • First-Time Buyer

Bankruptcy is one of the most serious credit issues, but it doesn’t close the door forever. With the right deposit, clean history, and lender, first-time buyers can still get a mortgage.

Shortcut: Full overview → First-Time Buyer Mortgages with Bad Credit.

What Is Bankruptcy?

  • A legal process for those unable to repay debts.
  • Usually lasts 12 months, after which you’re discharged.
  • Stays on your credit file for 6 years from the start date.
  • Some lenders still ask if you’ve ever been bankrupt.

Can First-Time Buyers Get a Mortgage After Bankruptcy?

  • Undischarged: No lenders accept.
  • Discharged <3 years: Very few options; often declined.
  • Discharged 3+ years: Some specialists consider, often with 25–30% deposit.
  • 6+ years since start: Drops off file; some lenders allow 5–10% deposit.
In rare cases, if over 2 years discharged and rebuilt credit, some lenders may accept with 5–10% deposit.

How Lenders View Bankruptcy

StatusApproval Chances
UndischargedImpossible — no lender will accept.
Discharged <3 yearsVery limited; high deposit needed.
Discharged 3–6 yearsSome specialists may accept with 25–30% deposit.
6+ years since startDrops off file; some accept with 5–10% deposit.

Deposit Requirements

  • Standard first-time buyer: 5–10% deposit.
  • 3–6 years discharged: 25–30% deposit usually needed.
  • 6+ years since start: 5–10% may be accepted if file is clean.

Related: How Much Deposit Do First-Time Buyers Need with Bad Credit?

Case Studies

3 Years Discharged

Sophie was discharged in 2021. By 2024, with 30% deposit and clean credit, she secured a mortgage with a specialist lender.

Over 6 Years

Tom went bankrupt in 2016 and discharged in 2017. By 2023, it had dropped off his file, and he got a 95% mortgage with 5% deposit.

Practical Steps

  • Check your credit file and note dates.
  • Save bigger deposit if within 6 years.
  • If 6+ years old, you may qualify with just 5–10%.
  • Keep recent history clean.
  • Use a broker — most lenders who accept bankruptcy cases 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 – First-Time Buyer Mortgages After Bankruptcy

Can I get a mortgage during bankruptcy?
No — lenders won’t accept until you’re discharged.
Do I need to wait 6 years after bankruptcy?
Not always — some lenders accept after 3 years, though more options open after 6 years.
Can I get a mortgage with just 5% deposit after bankruptcy?
Yes — usually only if it’s 6+ years old and file is clean.
Will high street banks accept me?
No — only specialist lenders will.
Do I need to prove discharge?
Yes — lenders often want your discharge certificate.

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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: Bankruptcy is serious, but it doesn’t end your first-time buyer journey. With clean credit since discharge and the right deposit, lenders may still approve you — sometimes even with just 5%.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Been bankrupt but want to buy your first home?
Apply now and we’ll check which lenders may accept your application.

First-Time Buyer Mortgages with Defaults – What Are Your Options?

Sep 25, 2025

Bad Credit • First-Time Buyer

Defaults don’t end your chances of homeownership. With the right deposit and lender, you can still get a mortgage as a first-time buyer — sometimes even with just 5% deposit.

Shortcut: Full guide here → First-Time Buyer Mortgages with Bad Credit.

What Is a Default?

  • When a credit account is closed by the lender due to missed payments.
  • Stays on your file for six years from the default date.
  • Some lenders may still ask if you’ve ever defaulted, even after it drops off.

Can You Get a Mortgage with Defaults?

  • When: Older defaults are easier to overcome.
  • Amount: Small defaults are less serious than large ones.
  • Type: Non‑mortgage defaults (like mobile bills) are treated more lightly.
  • Settlement: Not always essential, but helps.
  • Deposit: Bigger deposit = more lender flexibility.
Some lenders even accept defaults within the last 6–12 months, depending on size and type.

How Lenders View Defaults

Default AgeChance of Mortgage Approval
< 12 monthsTough, but some lenders may consider small defaults.
1–2 yearsLimited options unless deposit is large.
2+ yearsSome lenders may accept with 5–10% deposit.
3–6 yearsWider range of specialist lenders open.
6+ yearsNo longer shows on file.

Deposit Requirements with Defaults

  • Standard buyers: 5–10% deposit.
  • Defaults 2+ years old: Possible with 5% deposit.
  • Recent defaults: Usually 15–30% deposit required.

Related: How Much Deposit Do First-Time Buyers Need with Bad Credit?

Which Lenders Accept Defaults?

  • High Street Banks: Decline if defaults are visible.
  • Specialist Lenders: Flexible with larger deposits and clean recent history.
  • Some accept non‑mortgage defaults over 2 years old with as little as 5% deposit.

Case Studies

Recent Small Default

Chloe defaulted on a £300 phone bill in 2023. With a 20% deposit, she secured a mortgage from a specialist lender.

Older Defaults with 5% Deposit

Ryan had two defaults from 2020. By 2024, they were over 2 years old, and he secured a mortgage with only a 5% deposit.

Practical Steps

  • Get your credit report — check all defaults and dates.
  • Save bigger deposit if defaults are recent — 15–30% may be needed.
  • If defaults are 2+ years old — 5–10% may be enough.
  • Settle defaults if possible — it helps.
  • Use a broker — to access lenders who accept defaults.
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 – First-Time Buyers with Defaults

Do I need to settle my defaults before applying?
Not always — but it strengthens your application.
Can I get a mortgage with defaults less than a year old?
Yes — but only with certain specialist lenders and a large deposit.
Can I get a mortgage with just 5% deposit and defaults?
Yes — but only if defaults are 2+ years old and the rest of your case is strong.
Do high street banks accept defaults?
No — you’ll need a specialist lender.
Will defaults stop me forever?
No — they drop off after 6 years.

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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: Defaults don’t mean the end of your first-time buyer journey. With the right deposit and lender, you can still get approved — sometimes even with just 5% if the defaults are old enough.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Got defaults but want to buy your first home?
Apply now and we’ll check which lenders may accept you.

First-Time Buyer Mortgages with an Active DMP – Is It Possible?

Sep 25, 2025

Bad Credit • First-Time Buyer

Being in a Debt Management Plan (DMP) doesn’t mean homeownership is impossible. With the right deposit, track record, and specialist lender, you can still get approved.

Shortcut: Full breakdown → First-Time Buyer Mortgages with Bad Credit.

What Is a DMP?

  • An informal arrangement to repay debts in smaller, manageable instalments.
  • Shows on your credit report while active and for 6 years from the start date.
  • Not legally binding, but still highlights financial difficulty.

Can You Get a Mortgage with an Active DMP?

  • High Street Banks: Almost always decline.
  • Specialist Lenders: May accept if payments are consistent and affordable alongside the mortgage.
Some lenders may allow a mortgage with just 5% deposit if your DMP has been running smoothly for 2+ years.

How Lenders View DMPs

DMP StatusApproval Chances
Active <12 monthsVery limited, almost no options.
Active 12+ monthsSome specialist lenders may accept with larger deposit.
Active 2+ yearsBetter chances – some accept with 5–10% deposit.
SettledWider range of lenders, easier approvals.

Deposit Requirements

  • Standard first-time buyer: 5–10% deposit.
  • New DMP (<1 year): Often 25–30% deposit required.
  • Established DMP (1–2 years): 15–25% deposit.
  • DMP 2+ years with consistency: Some lenders may accept 5–10%.

Related: How Much Deposit Do First-Time Buyers Need with Bad Credit?

Case Studies

New DMP

Olivia started her DMP in 2023. With a 25% deposit, a niche lender considered her case.

2+ Years Active DMP

Sam had been in a DMP since 2021. With all payments on time and a 10% deposit, he was approved by a specialist lender.

Practical Steps

  • Get proof of DMP payments (statements or creditor letters).
  • Keep payments consistent — ideally 12–24 months without missed instalments.
  • Save as much deposit as possible.
  • If DMP is 2+ years old — you may qualify with just 5–10%.
  • Use a broker — most DMP‑friendly 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 – First-Time Buyer Mortgages with a DMP

Can I get a mortgage with an active DMP?
Yes, but only with specialist lenders.
Do I need to settle my DMP first?
Not always — some lenders allow active plans.
Can I get a mortgage with just 5% deposit and a DMP?
Yes — but only if your DMP has been active for 2+ years with consistent payments.
Will high street banks accept me?
No — you’ll need a specialist lender.
Do I need to show proof of my DMP?
Yes — lenders will want evidence of payments.

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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: An active DMP doesn’t stop you buying your first home. With consistency, the right deposit, and a specialist lender, approval is still possible — sometimes even with just 5% deposit if your DMP has been running smoothly for years.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
In a DMP but ready to buy your first home?
Apply now and we’ll check which lenders may accept you.

Can First-Time Buyers Get a Mortgage After an IVA?

Sep 25, 2025

Bad Credit • First-Time Buyer

An IVA is one of the most serious forms of bad credit, but it doesn’t close the door on owning your first home. With the right lender and deposit, a mortgage is still possible.

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

What Is an IVA?

  • A legally binding agreement to repay debts over 5–6 years.
  • Stays on your credit report for six years from the start date.
  • Lenders may still ask if you’ve ever had one, even after it drops off.

Can First-Time Buyers Get a Mortgage After an IVA?

Yes — but it depends on:

  • Whether the IVA is active or settled.
  • How long ago it was settled.
  • The size of your deposit.
  • Your credit history since the IVA.
Some lenders accept applications immediately after settlement, while others prefer at least 3 years clear.

How Lenders View IVAs

IVA StatusChance of Approval
Active IVAVery limited — a handful of lenders may consider, usually with 30–40% deposit.
Recently SettledPossible with certain specialist lenders and 25–30% deposit.
3+ Years SettledMore lenders available; competitive rates possible.
6+ Years Since StartDrops off file — some lenders may treat as clean.

Deposit Requirements After an IVA

  • Active IVA: Very difficult; 30–40% deposit may be needed.
  • Settled under 3 years: Usually 25–30% deposit.
  • Settled 3+ years: Some lenders may accept 5–10% deposit.

Related: How Much Deposit Do First-Time Buyers Need with Bad Credit?

Which Lenders Accept IVAs?

  • High Street Banks: Will not accept while an IVA is active or recent.
  • Specialist Lenders: More flexible; may allow settlement via mortgage proceeds, or mortgages immediately after settlement.
  • Most flexible if 3+ years have passed since settlement.

Case Studies

Active IVA

James was still in an IVA but had a 40% deposit from family. A niche lender considered his case, though at higher rates.

Recently Settled IVA

Laura settled her IVA in 2022. With a 25% deposit, Honest Mortgages placed her with a specialist lender.

Old IVA with 5% Deposit

Ben’s IVA started in 2017 and ended in 2022. By 2024, lenders ignored it, and he got a 95% mortgage with just 5% deposit.

Practical Steps

  • Get IVA documents — settlement certificates are often required.
  • Save a larger deposit — aim for 25–30% if recently settled.
  • If older — you may qualify with just 5–10% deposit.
  • Keep the last 12 months clean — no new issues.
  • Use a broker — most lenders who accept IVA cases 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 – First-Time Buyers After IVA

Can I get a mortgage with an active IVA?
It’s very difficult, but possible with a very large deposit.
Do I need to wait 6 years after my IVA?
Not always — some lenders accept immediately after settlement.
Can I get a mortgage with just 5% deposit after an IVA?
Yes — if the IVA is old enough (usually 3+ years) and the rest of your case is strong.
Do high street banks accept IVAs?
No — only specialist lenders will.
Will rates be higher?
Yes, until more time has passed since settlement.

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

Further Reading – Government Schemes

First Homes Scheme Shared Ownership Scheme Rent to Buy Right to Buy Right to Acquire

Final thoughts: An IVA doesn’t stop you buying your first home. With the right lender and deposit, you can still get approved — sometimes immediately after settlement, and often with as little as 5% if enough time has passed.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to find out if you qualify after an IVA?
Apply now and we’ll check which lenders may accept your application.