First-Time Buyer Mortgages with Bad Credit | Honest Mortgages
Clear Guidance for Defaults, CCJs, IVAs, DMPs and Low Credit Scores
Becoming a homeowner for the first time is stressful enough. If you’ve also got bad credit — like defaults, CCJs, IVAs or missed payments — it’s still possible. We work with specialist lenders who consider first‑time buyers with imperfect credit and we’ll make the process simple and transparent.
Buying your first home with bad credit — yes, it can be done
Defaults, CCJs, IVAs, DMPs, or a patchy payment history don’t have to end your homeownership plans. With the right lender, deposit, and preparation, first‑time buyers can still be approved. We explain how the market views different credit issues, realistic deposit ranges, and the steps to present a strong application.
Can first‑time buyers get a mortgage with bad credit?
Yes — but approval depends on a few levers:
- Type of issue: missed payments, defaults, CCJs, IVA/DMP, bankruptcy.
- How recent: lenders focus most on the last 12–24 months.
- Deposit size: larger deposits improve acceptance and pricing.
- Income & stability: consistent income helps first‑time buyers.
- Recent behaviour: a clean run lately goes a long way.
Fast wins before you apply
- Get your full multi‑agency credit reports and fix obvious errors.
- Keep the last 12 months squeaky clean where possible.
- Pause new credit applications and reduce revolving balances.
- Save a stronger deposit — aim for 15–30% if there are recent issues.
- Gather documents early (ID, payslips/accounts, bank statements).
How different issues are typically treated
Every lender is different. The right match depends on issue type, age, amount, and your deposit.
| Credit issue | Typical impact for first‑time buyers |
|---|---|
| Missed payments | Minor/unsecured blips sometimes ignored, especially if older and isolated. |
| Defaults | Often acceptable, even within 12 months with the right lender/deposit. |
| CCJs | Harder but possible — age/size matter; stronger deposits help. |
| DMP (Debt Management Plan) | Active DMPs possible with certain lenders if well‑maintained. |
| IVA | Usually acceptable once settled; some allow via mortgage proceeds. |
| Bankruptcy | Must be discharged; many lenders want 3+ years since discharge. |
Want the nuances for your file? We’ll map lender options against your exact history.
How much deposit will I need?
Standard first‑time buyer ranges can start around 5–10%, but with bad credit most lenders look for 15–30%. The more recent or severe the issue, the more deposit is usually required. Some lenders effectively ignore certain issues at 25%+ deposit.
Gifted deposit? No problem — we’ll help with the letter and proof of funds.
Who actually lends to bad‑credit first‑time buyers?
- High‑street banks: strict if issues are recent or active.
- Specialist lenders: far more flexible on defaults, CCJs, IVA/DMP and nuanced cases.
- Many specialists are broker‑only — you can’t apply direct.
We work across the market to match criteria to your situation.
Government schemes & bad credit
- Shared Ownership: possible with bad credit where deposit/income are strong.
- Right to Buy: discount can offset risk; lender rules vary.
- First Homes Scheme: fewer lenders; typically stricter on credit.
- 95% mortgages: rarely compatible with recent bad credit — bigger deposits usually needed.
How to improve your chances
- Target a stronger deposit and stable recent conduct.
- Get documentation lined up early (ID, payslips/accounts, bank statements).
- Consider settling smaller defaults/CCJs if affordable.
- Use a broker who can approach the right lenders first time.
Example scenarios
Default, strong deposit
£600 default in 2022; 20% deposit with a specialist lender — approved.
Older CCJ, clean since
CCJ in 2019; clean file since; 15% deposit — accepted by a flexible lender.
IVA settled
IVA settled in 2021; 25% deposit — approved via a post‑IVA specialist.
First‑time buyer with bad credit — FAQs
Can I get a mortgage with 5% deposit and bad credit?
Unlikely. Most lenders want 15–30% where there are recent or significant credit issues.
Do CCJs or defaults need to be settled?
Not always. Some lenders accept unsatisfied items depending on age, size, and overall profile.
Will government schemes accept bad credit?
Some do — but expect tighter criteria and higher deposit requirements.
How long after bankruptcy can I apply?
Many lenders look for 3+ years
