Can I get a shared ownership mortgage with bad credit?

Yes. Many specialist lenders consider applicants with CCJs, defaults, IVAs or a low credit score. While high street banks may decline, specialist shared ownership lenders look at affordability and recent financial conduct.

How much deposit do I need for shared ownership with bad credit?

Most shared ownership mortgages require a 5–10% deposit of your share. Some lenders even offer 100% shared ownership mortgages, though saving a deposit can increase your options and improve rates.

Will the housing association reject me for bad credit?

Housing associations typically follow the mortgage lender’s decision. If a lender approves your application, the housing association will usually accept you as well.

Can I remortgage a shared ownership property with bad credit?

Yes. Specialist lenders often accept remortgage applications for shared ownership properties even if you have a poor credit history, particularly if you have built up equity and demonstrated stable payments.

Shared Ownership with Bad Credit

Q: Does rent count in affordability?

Yes — lenders consider mortgage, rent, and service charges together.

Shared Ownership • Bad Credit

Shared ownership can lower the deposit hurdle — and yes, it can still work if you’ve had credit issues. Here’s how lenders assess bad credit cases and what to do to boost your chances.

Shortcut: New to this topic? Start with our overview → Shared Ownership: Everything You Need to Know.

Check your eligibility Shared ownership guide

What Is Shared Ownership?

You buy a share of a property (often 25%–75%) and pay rent on the remainder to the housing association. Over time you can “staircase” by purchasing more shares.

ℹ Official guidance: GOV.UK – Shared Ownership Scheme

Can You Get Shared Ownership with Bad Credit?

Yes — with the right lender. High street banks are strict; specialist lenders are more flexible.
Severity & recency matter: older, smaller issues are easier than recent major ones.
Affordability: lenders assess total cost (mortgage + rent + service charges).

Typical Eligibility (Quick Check)

Household income under £80k (outside London) or £90k (London).
First-time buyer or unable to buy on the open market.
Clean recent bank conduct and stable income.

Deposits & Bad Credit

Deposit is typically 5%–10% of the share you’re buying.
Some cases can be 100% of your share financed, subject to affordability and lender policy.
More deposit = wider lender choice and better rates.

What Lenders Look At

Credit Issue	How Lenders View It
Recent missed payments	Often acceptable if small and well-explained.
Defaults	Older/satisfied defaults may be accepted, especially if non-mortgage.
CCJs	Older/satisfied CCJs may be considered with a higher deposit.
DMP	Active DMPs can be accepted with strong payment history.
IVA/Bankruptcy	Usually need to be completed/discharged; more options as time passes.

Practical Steps to Boost Approval

Check all three credit files; correct errors and note dates.
Save the largest deposit you can for your share.
Keep the last 6–12 months squeaky clean (no new issues).
Use a broker — many flexible lenders are broker-only.

Check your credit across all agencies

See your data in one place. This won’t harm your score.

Get your credit report

FAQs – Shared Ownership with Bad Credit

Do I need a bigger deposit with bad credit?

Not always — but a larger deposit usually improves choice and rates.

Can I apply with an active DMP?

Sometimes yes — strong payment history is key.

Will high street banks accept me?

Rarely with adverse credit; use a specialist via a broker.

Does rent count in affordability?

Yes — lenders consider mortgage, rent and service charges together.

Need Help?

Shared Ownership with Bad Credit – Everything you need to know