Yes. While a lower credit score might mean you have fewer deals to choose from, it’s rarely a "no" across the board. The mortgage market is huge, and there are many different types of lenders out there.
How lenders look at you
When you apply, lenders look for things like missed phone bills, credit card defaults, or more serious marks like CCJs (County Court Judgments). However, they don't just look at the what, they also look at the when.
- Older is better: If your credit issues happened several years ago, lenders are much more likely to be flexible than if you missed a payment last month.
- The "specialist" route: While big high-street banks might have stricter rules, there are "specialist lenders" who specifically help people with bad credit. They look at your whole story, not just a computer-generated score.
What you might need
To help your application along, you might find that:
- You need a bit more "equity": Lenders feel safer if you own a larger chunk of your home (usually 15-25% or more).
- Interest rates might be slightly higher: Because the lender is taking a bigger risk, they may charge a bit more than the "market leading" rates.
- Extra paperwork: Be ready to show extra bank statements or explain your past financial situation.
Top tip: use a broker
This is the best time to speak to a mortgage adviser. A broker knows which lenders are "credit-friendly" and which ones will likely decline your application. They can save you from applying to the wrong places, which helps protect your credit score from even more marks!
