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Which Lenders Offer Bad Credit Mortgages for First-Time Buyers?

Sep 25, 2025

Bad Credit • First-Time Buyer

Not all lenders treat first-time buyers with bad credit the same. High street banks are strict, but specialist lenders can be far more flexible. Here’s what you need to know.

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

High Street Banks vs Specialist Lenders

  • High Street Banks: Rarely accept bad credit; prefer clean credit histories.
  • Specialist Lenders: Designed for adverse credit; more flexible with defaults, CCJs, IVAs, and DMPs.
  • Specialists focus more on affordability and deposit size than strict credit history.

How Credit Issues Affect Lender Choice

Credit IssueHigh Street BanksSpecialist Lenders
Missed PaymentsDecline if recentMany accept with 5–10% deposit
Defaults <2 yearsDeclineNeed 15–30% deposit
Defaults 2+ yearsUsually declineSome accept with 5–10% deposit
CCJs <2 yearsDeclineNeed 20–30% deposit
CCJs 2+ yearsDeclineSome accept with 5–10% deposit
IVA (settled)DeclineAccepted by some lenders, 25%+ deposit
DMP (active)DeclineAccepted if consistent payments, higher deposit
Bankruptcy <6 yearsDeclineAccepted by some after 3 years discharged, 25–30% deposit
Bankruptcy 6+ yearsRareMany accept with 5–10% deposit

Examples of Lender Approaches

  • Strict High Street Banks: Almost never accept bad credit first-time buyers.
  • Mainstream Specialist Lenders: May accept minor issues with a 5–10% deposit.
  • Niche Specialist Lenders: Consider serious historic issues but usually need 25–30% deposit.

Case Studies

Defaults 3 Years Old

Ella had two small defaults from 2021. High street banks said no, but with a 10% deposit, a specialist lender approved her in 2024.

Recent CCJ

Nathan had a CCJ in 2023. With a 25% deposit, a niche lender agreed to help him as a first-time buyer.

IVA Settled 4 Years Ago

Sophie completed her IVA in 2020. With a 20% deposit, a specialist lender approved her in 2024.

How to Boost Your Chances

  • Know your credit file — check all three agencies.
  • Save as much deposit as you can.
  • Keep your recent credit history clean.
  • Work with a broker — most adverse lenders are broker-only.
  • Get paperwork ready in advance (payslips, bank statements, ID).
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 – Lenders for First-Time Buyers with Bad Credit

Do high street banks accept bad credit first-time buyers?
Almost never — they usually want a clean file.
Can I get a mortgage with just 5% deposit?
Yes — if your issues are minor (like small defaults or late payments).
Which lenders accept CCJs or IVAs?
Only specialist lenders — high street banks will decline.
Do I need a broker?
Yes — most adverse lenders are broker-only.
Will my rates be higher?
Yes — but they can improve after a few years of clean credit.

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: High street banks are strict, but specialist lenders exist to help. With the right deposit and approach, a mortgage is still possible — even with past credit issues.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to find out which lenders will accept you?
Apply now and we’ll guide you to the right mortgage options.

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

Sep 25, 2025

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.

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.

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

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.

Related: Government Schemes for First‑Time Buyers with Bad Credit

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.

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: You don’t need luck — you need a plan. Keep your recent history clean, save as much deposit as possible, and apply to the right lender via a specialist broker.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to start your first-time buyer journey?
Apply now and we’ll check which lenders may accept you – even with bad credit.

Government Schemes for First-Time Buyers with Bad Credit (Shared Ownership, Right to Buy, First Homes)

Sep 25, 2025

Bad Credit • First-Time Buyer

Government schemes can help first-time buyers step onto the property ladder. But what if you’ve got bad credit? Here’s how Shared Ownership, Right to Buy, and First Homes stack up.

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

Shared Ownership

Shared Ownership lets you buy 25–75% of a property and pay rent on the rest.

  • Specialist lenders may accept defaults, CCJs, or historic IVAs.
  • Many lenders allow 0% deposit (100% of your share), even with bad credit.
  • Some housing associations still request 5% deposit, but not always.
  • More serious or recent issues may require 15–25%.

Related: Shared Ownership Mortgages with Bad Credit

Right to Buy

Right to Buy allows council and housing association tenants to buy their home at a discount.

  • The discount is often treated as your deposit.
  • Defaults/CCJs are often accepted if minor or over 2 years old.
  • For recent/serious issues, a cash deposit may still be required.

Related: Right to Buy Bad Credit Mortgages

First Homes Scheme

The First Homes scheme offers 30–50% discounts on new-builds for local first-time buyers.

  • Very limited lender participation.
  • Most lenders prefer clean credit files.
  • Unlikely if you’ve had recent serious issues (CCJs, IVA, bankruptcy).

Scheme Comparison

SchemeBad Credit Accepted?Deposit Needed
Shared OwnershipYes, with specialist lenders0–25% of share (often 0%)
Right to BuyYes, with specialist lendersDiscount + 5–20%
First HomesRarely (only minor issues)5–10%

Case Studies

Case A — Shared Ownership with Defaults

Megan had two small defaults from 2020. She secured Shared Ownership with 0% deposit.

Case B — Right to Buy with CCJ

Paul had a CCJ in 2019. His discount covered the deposit and a specialist lender approved his mortgage.

Case C — First Homes, Declined

Sarah had a settled IVA in 2021. In 2023 she was declined under First Homes, as criteria are stricter.

Practical Steps

  • Check scheme eligibility — location, income, property rules apply.
  • Match scheme to lender — not all support every scheme.
  • Specialist lenders open more doors with Shared Ownership and Right to Buy.
  • Be cautious with First Homes — lenders are strict.
  • Use a broker to align your credit history with the right scheme.
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 – Government Schemes & Bad Credit

Can I use Shared Ownership with bad credit?
Yes – many specialist lenders accept defaults and CCJs, often with 0% deposit.
Does the Right to Buy discount count as deposit?
Yes – it can replace some or all of your deposit.
Can I use the First Homes scheme with bad credit?
Unlikely – most lenders in this scheme want a clean file.
Do I need a bigger deposit with bad credit?
Not always – Shared Ownership and Right to Buy often reduce or remove the need.
Is a broker required?
Yes – especially for Shared Ownership and Right to Buy.

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: Shared Ownership is the most flexible with bad credit (often 0% deposit). Right to Buy can work if your discount covers the deposit. First Homes is far stricter. With the right lender and scheme, your path to ownership is still possible.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to start your first-time buyer journey?
Apply now and we’ll check which lenders may accept you – even with bad credit.

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

Sep 25, 2025

Bad Credit • First‑Time Buyer

Wondering how much deposit you’ll need as a first‑time buyer with bad credit? It depends on the type, age, and severity of your credit history.

Shortcut: For the full breakdown see → First‑Time Buyer Mortgages with Bad Credit.

Standard Deposit Requirements

  • Clean credit: 5–10% deposit.
  • Bad credit (minor issues): Still possible with 5–10%.
  • Serious/recent issues: Expect 15–30% deposit.

How Deposit Size Links to Bad Credit

Bad Credit TypeDeposit Needed
Recent missed payments (<12 months)5–10%
Minor defaults/CCJs (small, 2+ years old)5–10%
Larger defaults/CCJs <2 years20–30%
IVA/DMP (active or recent)25–30%
Bankruptcy discharged 3–6 years25–30%
Bankruptcy 6+ years5–10%

Can I Get a Mortgage with Just 5% and Bad Credit?

Yes — in some cases:

  • Minor issues like missed payments or a small default.
  • Defaults/CCJs that are over 2 years old.
  • A strong affordability profile overall.

Why Deposit Matters More with Bad Credit

  • Protects the lender: A bigger deposit reduces risk.
  • Shows commitment: Saving proves financial stability.
  • Improves choice: Every extra % opens more lenders and better rates.

Which Lenders Accept 5–10% with Bad Credit?

  • Specialist lenders: Sometimes accept minor/historic bad credit.
  • High street banks: Almost never at 5–10% if bad credit is visible.

Case Studies

Case A — Missed Payments, 5% Deposit

Ella had missed credit card payments in 2023. With 5% deposit, she secured approval in 2024 from a specialist lender.

Case B — Larger CCJ, Recent

Nathan had a £2,000 CCJ in 2023. He needed a 25% deposit before any lender would consider him.

Practical Steps

  • Check your full credit reports and confirm dates/types of issues.
  • If minor/recent missed payments — you may qualify with 5–10%.
  • If major issues (big defaults, IVA, bankruptcy) — aim for 20–30%.
  • Use a broker — many low‑deposit lenders are broker‑only.

FAQs – Deposit for First‑Time Buyers with Bad Credit

Can I get a mortgage with 5% deposit and recent missed payments?
Yes — some lenders will accept this if the rest of your profile is strong.
Do I need 20–30% deposit with defaults or CCJs?
Only if they’re recent or large. Older/smaller ones may qualify at 5–10%.
Do high street banks offer 5–10% mortgages with bad credit?
No — only specialist lenders.
Will a bigger deposit improve my chances?
Yes — always. More deposit = more lenders + 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: Deposit size plays a huge role in bad credit mortgages. With minor problems, you may still qualify with 5–10%. For serious/recent issues, plan for 20–30%.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to start your first-time buyer journey?
Apply now and we’ll check which lenders may accept you – even with bad credit.

Getting a Mortgage as a First-Time Buyer After a CCJ

Sep 25, 2025

Bad Credit • First‑Time Buyer

A clear, practical guide to your options — including when a 5% deposit can still work, how lenders view CCJs over time, and smart steps to improve approval odds.

Shortcut: Prefer a deep dive? See our pillar guide → First‑Time Buyer Mortgages with Bad Credit.

What is a CCJ?

A County Court Judgment (CCJ) is issued by the courts when a debt isn’t repaid. It usually stays on your credit file for six years from the judgment date. Even when marked as satisfied, some lenders may still treat it as higher risk.

Can First‑Time Buyers Get a Mortgage with a CCJ?

Yes — but your chances depend on a few key factors:

  • Age of the CCJ: Older is always better.
  • Satisfied or not: Not always required, but helps.
  • Size of the CCJ: Smaller amounts are treated more lightly.
  • Deposit size: Bigger deposits give more lender options.
Good news: Some lenders may accept CCJs over 2 years old with just a 5% deposit if the rest of your case is strong.

How Lenders View CCJs Over Time

CCJ AgeTypical Outcome
< 12 monthsVery limited options; usually need a large deposit.
1–2 yearsSome options; often a 15–30% deposit required.
2+ yearsWider choice; some lenders allow 5–10% deposit.
3–6 yearsMost specialist lenders are open to lending.
6+ yearsCCJ typically drops off your credit file.

Deposit Requirements

  • Standard first‑time buyer: 5–10% deposit.
  • With a CCJ < 2 years old: Often 15–30% deposit.
  • With a CCJ 2+ years old: Some lenders accept just 5%.

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

Which Lenders Accept CCJs?

  • High street banks: Usually decline cases where CCJs are visible.
  • Specialist lenders: More flexible — especially when the CCJ is older and the deposit is stronger. Some will effectively ignore CCJs over ~2–3 years old.

Real‑World Examples

Case A — Recent CCJ

Liam had a £1,500 CCJ in 2023. With a 25% deposit, a specialist lender agreed to a mortgage.

Case B — Older CCJ with 5% Deposit

Amelia had a CCJ in 2020. By 2024 (over two years old), she secured a mortgage with just a 5% deposit.

Practical Next Steps

  • Check your full credit report and confirm the CCJ date/status.
  • If recent, focus on saving a larger deposit (15–30%).
  • If 2+ years old, you may qualify from 5–10%.
  • Settle the CCJ if possible — not essential, but strengthens the case.
  • Use a whole‑of‑market broker (some 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 CCJs

Do I need to settle my CCJ before applying?
Not always, but it improves your chances.
Can I get a mortgage with a CCJ less than 12 months old?
Yes, but you’ll usually need a bigger deposit (around 15–30%).
Can I get a mortgage with a CCJ and 5% deposit?
Yes — if the CCJ is over two years old and the rest of your profile is strong.
Do high street banks accept CCJs?
Typically no — you’ll likely need a specialist lender.
Will CCJs stop me forever?
No — they usually drop off your credit file after six years.
Need tailored advice? Our team has placed many first‑time buyers with historic CCJs. Start your application and we’ll map the best route for you.

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 CCJ doesn’t end your home‑buying plans. With the right lender, deposit, and preparation, you can still step onto the property ladder — and in some cases even with a 5% deposit when the CCJ is older.

This article is general guidance and not financial advice. Lender criteria change regularly; speak to a broker for personalised recommendations.
Ready to start your first-time buyer journey?
Apply now and we’ll check which lenders may accept you – even with bad credit.