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 Issue | High Street Banks | Specialist Lenders |
|---|---|---|
| Missed Payments | Decline if recent | Many accept with 5–10% deposit |
| Defaults <2 years | Decline | Need 15–30% deposit |
| Defaults 2+ years | Usually decline | Some accept with 5–10% deposit |
| CCJs <2 years | Decline | Need 20–30% deposit |
| CCJs 2+ years | Decline | Some accept with 5–10% deposit |
| IVA (settled) | Decline | Accepted by some lenders, 25%+ deposit |
| DMP (active) | Decline | Accepted if consistent payments, higher deposit |
| Bankruptcy <6 years | Decline | Accepted by some after 3 years discharged, 25–30% deposit |
| Bankruptcy 6+ years | Rare | Many 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
