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 Type | Deposit Needed |
|---|---|
| Recent missed payments (<12 months) | 5–10% |
| Minor defaults/CCJs (small, 2+ years old) | 5–10% |
| Larger defaults/CCJs <2 years | 20–30% |
| IVA/DMP (active or recent) | 25–30% |
| Bankruptcy discharged 3–6 years | 25–30% |
| Bankruptcy 6+ years | 5–10% |
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
Ready to start your first-time buyer journey?
Apply now and we’ll check which lenders may accept you – even with bad credit.
