Trusted mortgage advisors for first-time buyers with bad credit.

First-time buyer with bad credit mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Being a first-time buyer can be scary, especially when you have bad credit. Our specialist mortgage advisors are here to show you the way and help you get a first-time buyer mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Finding The Best First Time Buyer With Bad Credit Mortgage Deal For Your Circumstances

Does the mortgage process have you feeling down? If you're a first-time buyer with bad credit, your application isn't doomed. There is a range of bad credit mortgage options out there, and specialist lenders will consider your situation, even if you have a low credit score. When the Bank Says No is committed to helping those with complicated credit reports achieve mortgage approval against the odds. We'll take the time to understand your past and present financial history, and your home-owning dreams, providing helpful guidance to help you get there.

From perfecting your mortgage application to identifying suitable mortgage deals, we're here to make the process much more straightforward. It will be move-in day in no time at all!

Can a first-time buyer get a mortgage with bad credit?

First-time buyers with bad credit can definitely still have their mortgage applications accepted. Lenders will assess the amount of bad credit you have to determine the overall risk you pose and whether you will realistically be able to keep up the monthly repayments. Whilst for some mainstream lenders, who have been more risk-averse since the 2008 credit crunch, this may mean you fall outside of their lending criteria, yet there are still options available. Some lenders specialise in helping people who are bad credit first-time buyers and will consider an application even with a poor credit history.

If you’re worried about the impact of your credit report on your application, talk to one of our specialist mortgage advisors at the earliest opportunity. We’ll take the time to understand your credit file and provide helpful information and guidance to increase your chances of mortgage approval in the future.

What credit score is needed for first time buyers?

Whilst in the UK there is no set credit score required to get a mortgage, a higher credit rating is always going to aid your chances of getting a mortgage. For first-time buyers, amassing a large enough deposit can be tricky. When applying for a mortgage with a smaller deposit, the risk to the lender goes up. That’s why a good credit rating can come in handy for a first-time buyer.

However, it’s not the end of the story if your credit history is less than perfect. There are lenders out there who will consider first-time buyers for a mortgage even if they have a bad credit score.

Get Started with a Bad Credit as First Time Buyer Mortgage Broker

Maximise your chance of approval with specialist advice from an expert in Bad Credit as First Time Buyer Mortgages

I am a first time buyer with bad credit. What deposit will I need?

Typically, adverse credit history can impact the size of the deposit required. This is because a larger deposit can help mitigate some of the risk posed by a low credit score. However, it is possible for first-time buyers with imperfect credit reports to get accepted for mortgages with higher Loan to Value (LTV) ratios.

If you have a few late payments many years ago and have kept up to date with accounts since then, it’s entirely possible that a lender will accept you with a 5% deposit. More recent missed payments or other incidents can make things trickier, perhaps pushing your deposit up to 10% or even 15% if you have County court judgements (CCJs), but there are specialist mortgage lenders out there who will consider your application even so.

What can I do to improve my credit score?

There are various things first-time buyers can do to boost their credit score. Registering on the electoral roll with your current address is a great start, improving your chances of passing your credit check. If you’ve only just done this, keep hold of the email confirmation because it takes a few months to update. Other strategies could be getting a credit card and spending and clearing the balance each month. This demonstrates to lenders that you are proficient when it comes to managing your money. You should also keep your bank account address up to date to improve your overall profile and update your address and contact information with your credit reference provider.

Although it is still important, don't get too hung up on credit score as mortgage lenders want to be convinced that you have good affordability when it comes to meeting the mortgage payments. If your income more than covers your outgoings, and you are not having to dip into an overdraft facility each month, this is a great sign to the lender and the affordability factor will work in your favour, despite previous poor credit.

Bad credit & first time buyer FAQs.

Here’s an overview of the process with When the Bank Says No. Once you have completed our enquiry process, one of our expert mortgage advisors will go on a fact find and provide you with accurate insights into what you can borrow and how much it will cost you.

We will take the time to review and understand your credit file and then begin speaking to lenders to find the right mortgage for your circumstances. Deal found, it’s time to apply. We’ll guide you through the application process, ensuring you have the best chances of success.

It’s a good idea to be prepared and start compiling the necessary ID and income documents now. Once you have a mortgage in principle in place, you can start your property search.

A larger deposit means a lower risk to the lender, so this is certainly going to improve your chances of success. The higher your deposit, the more options and deals are available to you – even if you have bad credit. That’s why it’s worth considering ways to boost your deposit.

A gifted deposit is an avenue many first-time buyers go down. This is when someone close to the individual in question gifts some or all of the deposit, with written confirmation that they will not request this amount back in the future.

Help to Buy loans, which were designed to help first-time buyers with small deposits get on the property ladder by lending up to 20% of the purchase price, are not currently available (the government scheme ceased in March 2023).

A criticism of the Help to Buy scheme was that it was artificially pushing up house prices, with developers charging more for new properties knowing that buyers would be getting the additional cash from the scheme.

The end of the scheme, and effective Help to Buy mortgages in general, does not mean that you should despair in your quest to find a mortgage, even if you have a small deposit and bad credit. Working with an experienced low-credit-score mortgage advisor will enable you to access lenders who specialise in your situation, and equip you with the information you need to succeed.

A declined mortgage does not get registered on your credit score in itself. However, every time your credit report is hard searched, this will get recorded.

A hard search generally occurs when a lender conducts a detailed check of your credit history. Many hard searches close together can ring alarm bells for future lenders.

When the Bank Says No works with a number of lenders who only record enquiries on your file as ‘soft footprints’ or soft searches. This type of search helps mortgage lenders make a decision without harming your score. If you’ve previously been declined, speak to your specialist mortgage advisor about targeting these types of lenders to prevent further damage to your credit score.

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Bad Credit as First Time Buyer Mortgage Calculator

Dedicated mortgage advisors for first time buyers with bad credit.

First-time buyers with bad credit don't need to fear the mortgage process. Our dedicated low credit score advisors are here to provide you with all the insights, advice, and expert guidance you need to maximise your chances of success.

The journey to owning your first home can seem full of obstacles, complications, and pitfalls, but the right mortgage for you is within reach. As unrestricted, whole-of-market mortgage brokers, we can help you realise the options available to you, and connect you to specialist lenders who are experts in bad credit mortgage applications like yours. Together, we can identify lenders, finetune your mortgage application, and get you the right deal right on time.

Guiding you through the process.

It can be stressful looking into mortgages as a first-time buyer, and particularly daunting when bad credit is involved. You've probably read plenty of information about how a bad credit history can impact your chances but don't worry, we can help.

Our friendly, approachable advisors have years of experience helping those with imperfect credit histories find mortgage deals that suit their circumstances. When it looks like the bank is going to turn you down due to a poor credit rating, we're here to show you what's possible with bad credit mortgages.

Let's get the ball rolling.

We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

Check your credit file.

In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.