Can you still get a mortgage with bad credit?

Some people might think that having a bad credit score can dash any hopes of getting onto the property ladder. In reality, it’s a complete myth and getting a mortgage is entirely possible.

Related topics:  Finance
Property Reporter
4th May 2022

The team at have outlined how you can still get a mortgage with a lower credit score so that your dreams of owning a home can stay very much alive.

Understand exactly what bad credit is

If you want to avoid a bad credit score, having a basic understanding of what it looks like is the first step. A credit score is a calculation of how likely you are to use credit responsibly, meaning that high amounts of debt, declaring bankruptcy and defaulting on or missing payments can leave a nasty mark on your file. Contrary to popular belief, your education, income and job title have no effect on your credit score. Bad credit can make it difficult to secure a mortgage as lenders might fear that you’ll struggle to pay the money back.

Get a credit report from multiple agencies

There’s no denying that having a lower credit score is a disadvantage when it comes to getting a mortgage. As such, you need to make sure that your credit report is as accurate and up-to-date as possible. Different credit reference agencies will offer different things on their credit reports, such as past loans, credit card payments, overdrafts and utility bills and the lender will choose which credit reports to use in their assessment. Therefore, it’s important to check all of your reports and be aware of what’s on each of them. meaning you can pick a credit report that best reflects you when applying for a mortgage.

Optimise your credit file as much as possible

Before applying for a mortgage, it’s in your best interest to optimise your credit rating as much as possible. Fixing your credit report might seem like a lost cause, but improvements like making sure names, addresses and payment histories are correct, registering to vote, making your monthly payments on time, staying out of your overdraft, and settling any debts all go a long way. You should also request to have outdated or inaccurate information removed.

Avoid repeated credit searches

There are mixed opinions about whether or not multiple credit searches impact credit scores. Some argue yes, others argue no. In any case, you want to make yourself look as good as possible and avoid setting off any alarm bells for lenders. Rightly or wrongly, multiple credit searches might just do that.

Don’t take a bad deal out of desperation

If you’re offered a bad deal with spiked interest rates and a much lower limit on how much money you can borrow, don’t accept it out of desperation. Working towards getting a mortgage is still possible with a lower credit score or bad credit, and you shouldn’t leap at the first opportunity if it’s not the right fit for you.

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