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Author: Carl Shave-Director
Updated on January 30th, 2024

First-time Buyer Mortgages with Bad Credit

It’s an incredible feeling to finally get the keys to your own front door, especially for the first time. When it happens, it’s a cause for much excitement and celebration, and as a first-time buyer you’ll have had to work hard to obtain the mortgage to achieve it – saving up for a deposit, getting yourself in the position of having sufficient regular income to budget for monthly mortgage payments and also getting your finances organised so you can confidently approach a lender showing you are a reliable borrower.

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If you are trying to do all this while having a bad credit score, then the task will seem all the more challenging. Everything will depend on your exact circumstances – your income, outgoings, property value, the nature of the adverse credit, how much you need to borrow and how much you can afford for the monthly repayments. You might have had to deal with missed payments or a County Court Judgment, or you might have a poor credit score from simply having too little or no credit history.

The good news is, getting a mortgage in these circumstances is by no means impossible, and we have helped several first-time buyers with bad credit obtain the mortgage they need to get their feet onto the property ladder. As experienced unlimited mortgage brokers, we are able to offer personalised advice and guidance on the steps you need to take to improve your credit status, frame your application in the most positive light and get a lender to accept you for a mortgage. Read on to learn more.

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Can First-Time Buyers get a mortgage with Bad Credit?

You’ll be pleased to know that there are indeed mortgages available for first-time buyers with bad credit. While you might face difficulties obtaining the home loan you need from one of the mainstream lenders on the high street, you will, with the help of an experienced bad credit mortgage broker, be able to access suitable products and deals offered by the many specialist mortgage lenders in the UK market today. 

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Specialist Bad Credit mortgage lenders

After the credit crunch of 2008, banks and high street providers were subject to new rules and regulations to prevent sub-prime lending happening again and naturally became far more risk-averse than they had been previously. This led to a large number of potential borrowers and homeowners finding themselves shut out of the mortgages market, with no access to the finance they needed to buy their own homes. To fill this gap in the market, specialist mortgage lenders started catering to people who had experienced adverse credit, creating products that were geared to meet their needs.

Specialist lenders are far more flexible in their criteria for lending than their high street cousins, and take a lot more into account than the simple figures on a credit report or the instance of bad credit when assessing your mortgage application. They will make their decision on whether or not to offer a mortgage based mainly on the severity of the adverse credit event, the amounts involved in the debt and the level of equity or deposit that the applicant is able to supply, as well as placing more weight on your current financial circumstances.

You’ll need to work with an established unlimited mortgage broker to access a specialist lender, as they only consider applications made through trusted third parties. This cuts down on wasted time and ensures that lender and borrower will be a good fit for each other. One of our experienced advisers will guide you impartially through the whole process, getting an overview of your exact circumstances, letting you know what your options are and matching you with a lender who can meet your individual needs.

Fill out our quick and easy Bad Credit calculator below. We only require a few details to see how much you may be able to borrow.


Bad Credit mortgages for First-Time Buyers

Being a First-Time Buyer can be exciting and stressful in equal parts, even with a healthy credit record. A history of bad credit, or having very little or no credit history at all, can make life more difficult when you approach mortgage providers, especially those on the high street. Your chances of being approved will be reduced if your credit profile doesn’t fit with what a mainstream lender wants to see.

However, First-Time Buyers don’t have to feel disheartened. Specialist ‘Bad Credit Mortgage’ lenders routinely offer mortgages to people with a less-than-perfect financial past, and are being a first-time buyer does not disqualify you in any way. These specialist lenders will make their decision over whether to offer a mortgage based on an overall view of your situation – your financial history, your current situation in terms of income and outgoings, how you approach borrowing, and what you have done to take care of your credit score recently.

With extensive experience in the area of Bad Credit Mortgages, our advisers are able to give you the best possible advice and can recommend exactly which lender will be able to meet your needs.

Can a First-Time Buyer get a mortgage with a low credit score?

The short answer is yes, but let’s take a look into how it comes about. A Low Credit Score can be a result of many things, either some bad credit events that happened in the past, or you had some unexpected financial stress due to things outside of your control, or you may simply not have used any facilities at all.

Whatever the reasons for a low credit score, lenders will not see your First-Time Buyer status as being negative in itself. They will be concerned with all the other circumstances behind the score, and will use their own methods to assess an applicant’s suitability – some will have a specific process to determine your credit score, while others will take a more human approach, making manual credit checks and understanding circumstances.

Can a First-Time Buyer get a mortgage with a poor credit score?

Being a first-time buyer in itself is no reason to be worried about obtaining a mortgage. This fact has little or no bearing on a lender’s decision, as they will be concentrating on the details of your income and outgoings, what you can put down as a deposit and what you can realistically afford to pay each month for your instalments. If you are applying with a poor credit score, then it will still be possible for you to secure a mortgage, but a lot will depend on how your low credit rating came about.

A low credit score can be a result of many things. You may have unfortunately taken on more debt than you were able to manage at one point, resulting in late or missed payments leading to possible default notices and court action. Perhaps you experienced unexpected financial stress due to factors outside your control – for example from losing your job or suffering a serious illness, either of which would impact your income and make you unable to meet your commitments. Or maybe you simply have not made much use of any lines of credit for loans or purchases, meaning there is too little information in your credit history for reference agencies or lenders to rate your creditworthiness.

However, you may be happy to know that many mortgage lenders, especially those in the specialist sector, will be concerned with the various circumstances behind your score, and will use their own methods to assess an applicant’s suitability rather than relying on the numbers generated by credit reference agencies. Some lenders will have a specific process or algorithm to determine your credit score, while others will take a more human approach, making manual credit checks and taking time to understand whatever it was that has affected your credit rating.

You’ll only be able to approach these specialist lenders through an established intermediary, like an expert mortgage broker such as one of our team at The Mortgage Centres. Contact us today to find out your options.

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First-Time mortgages with Adverse Credit

Finding the right mortgage to suit a first-time buyer with bad credit can be quite a specialist area, entailing a deep knowledge of the mortgage market landscape – which lenders are most conducive to applicants with bad credit and what products are currently being offered in these circumstances – and an acute understanding of all the new borrower’s concerns. With our huge amount of experience in helping large numbers of people with adverse credit, many of them first-time buyers, find the most suitable mortgage for their individual circumstances, we’re confident we’ll be able to find the right home loan for you.

Our ‘unlimited’ status means we are not tied to certain providers, groups or a specific portfolio of products, and our advisers and brokers are able to give you expert, informed and (most importantly) impartial advice about the most competitive bad credit mortgages available to you at the time of application. Getting your own personal adviser to guide you throughout the process of finding and applying for your first mortgage can be of great value to your situation, whatever the state of your credit history. Many first-time buyers have told us how relieved and happy they were to have benefitted from our insights, which in a large number of cases saved them a lot of time as well as money.

If you are applying for a mortgage as a first-time buyer with bad credit items to your name, we can also share top tips on how you can repair, improve and maintain your credit score using tried and tested methods to build a healthy credit history. There are a variety of actions you can take that will increase your chances of being accepted for a mortgage, whether through a mainstream or specialist lender, most of which are fairly straightforward without requiring a lot of stress.

Get in touch today to arrange a free initial conversation, where an adviser will go over your circumstances, let you know which mortgages could meet your particular needs and provide you with a no-obligation quote. You’ll walk away with solid options on how to go forward and achieve the home of your dreams.

How do First-Time Buyers get a mortgage with Poor Credit?

With mainstream providers taking an extremely cautious approach to people applying for a mortgage – whether for the first time or not – you may find you face more challenges than other potential borrowers when looking for a mortgage as a first-time buyer with a bad credit record. Whether your poor credit rating is caused by adverse credit events in your past, or by you having little or no history of credit to your name, the effect will be the same – banks and high street lenders may be inclined to turn down your application if you do not fit their ideal client profile.

The good news is that your search for a mortgage has not necessarily reached a dead end. There are a number of specialist mortgage lenders in the market catering to applicants with poor credit records who are likely to consider your case. Rising to fill the gap in the market left by the mainstream providers, these specialist lenders routinely help people who have experienced credit issues in the past and your case will not be any further complicated because of being a first-time buyer.

Specialist lenders adopt far more flexible criteria when assessing prospective borrowers, taking a broad view of your credit history and placing more importance on the current state of your finances rather than how they might have stood in the past. They will make a thorough assessment of your income and outgoings, your ongoing commitments and money you have saved, as well as all the details of the adverse credit on your file. They’ll consider the exact nature of the issue, how much money was involved, how long ago it occurred and what you have done since that time to maintain a positive credit record.

In order for a first-time buyer to get a mortgage with bad credit, they will need to discuss their plans, goals and financial situation with an expert mortgage broker, such as ourselves here at The Mortgage Centres. An adviser will be able to go through your entire circumstances, identify all the key issues, suggest ways to improve your score and make informed recommendations as to which lenders and products will be most suited to meet your needs. If you want your mortgage application to have the best chance of success, get in touch with our team today. We’ll be happy to help.

First-Time Mortgages with Bad Credit

Our ‘unlimited’ status means our advisers and brokers are able to give you the best, impartial advice about the most competitive bad credit mortgages. You’ll get your own personal adviser throughout the process of finding and applying for your first mortgage, whatever the state of your credit history. Many First-Time Buyers have told us how useful they have found this.

We can also share top tips on how First-Time Buyers can repair and improve their credit scores, using tried and tested methods to build a healthy credit history, and increasing their chances of being accepted for a mortgage, whether through a mainstream or specialist lender.

Get in touch today to arrange a free initial conversation, where an adviser will go over your circumstances and let you know which mortgages could meet your particular needs, and obtain a no-obligation quote.

How do I check if I have Bad Credit?

If you feel uncertain that your credit score will stand up to scrutiny, then there are now a number of methods to check it. In fact, it’s never been easier to check your credit score – in recent years, several companies offering simple ways to check your credit rating using mobile apps or websites have taken out advertising on radio and TV. These can be attractive options, as their services are free, but be careful not to feel pressured into taking up a paid subscription that you will not really use.

Traditionally, you were able to check your credit report yourself by applying to the three main UK credit agencies for copies of your reports. TransUnion, Equifax and Experian all compile data from various sources to generate a review of your credit history, which comes with a numerical score – each of these agencies operates their own way of scoring, so it’s advisable to check all three to get the whole picture and spot any inconsistencies. In the past, they charged a small £2 fee and sent material by post, but since GDPR legislation came into place in 2018, allowing people to access data held about them by third parties, this service is now free and entirely online.

To save time, you could use a service called CheckMyFile to request reports from all three agencies at once. It’s available on a free trial initially, so remember to cancel your subscription promptly to avoid shifting onto their paid service after running the checks you need.

Your credit report should contain your personal information, whether you are on the electoral register, details about any financial links to other individuals, a list of your credit accounts with information regarding any adverse events (missed or late payments, defaults, etc.) and any searches made against you in the last twelve months. If you do spot any errors on your credit reports, you should immediately contact the agency in writing to request for it to be amended, providing documentation to support your case.

It’s worth remembering that while a lender running a credit check on you will get recorded on your credit file (and potentially act as a red flag to other lenders, if you apply to more than one in a short space of time), checking your own credit records will have no impact on your score at all. Once done, you should be armed with all the information you need to take the next steps to repair any bad credit issues and maintain a positive credit history going forward.

Which Lenders are good for First-Time Buyers with Bad Credit?

If you were looking for your first mortgage to buy your home in routine circumstances, then the majority of providers on the high street would be available to you to choose from. Being a first-time buyer in itself is not a problem to lenders – they tend to focus on your documented income and outgoings, how much you can afford to pay each month and the level of deposit you can supply. However, if you have bad credit on your files as a first-time buyer then many lenders will hesitate to offer you a mortgage, with some simply turning you down flat.

With your options seeming to be far more limited – you may struggle to identify more than one or two lenders willing to look at your case under your own steam – you are probably wondering where you might find other lenders who provide a good service to first-time buyers with bad credit, and which ones would be the most suitable for you.

The answer is likely to lie away from the high street, among the increasing number of specialist lenders who cater specifically to the needs of potential borrowers who do not fit into the mainstream lenders’ narrow criteria for clients. If you have unfortunately experienced blemishes in your credit history, and suffered from a poor credit score as a result, specialist lenders will take a broader view, putting your problems in context and allowing for a healthy pattern of borrowing or use of credit since they occurred. Their approach is far more personal, with the lender’s process for credit checks and underwriting done manually.

Which one of these lenders will be most suitable for you will depend entirely on your personal circumstances. Each specialist lender will have their own criteria for accepting mortgage applications from customers with bad credit, and where you stand on a number of factors will affect how each will make a decision to lend. As well as your current financial status, they will be influenced by the value of the property, the exact details of the bad credit (what the dent was for, why it happened, how much money was involved and how long ago it occurred) and perhaps most of all by the amount of deposit you can put down. The higher the deposit, the less risk they will perceive.

Specialist lenders only accept mortgage applications made via a reliable middle-man, usually an established mortgage broker such as one of our team at The Mortgage Centres. To find out all your options as a first-time buyer with bad credit, get in touch today to book a free initial consultation.

Mortgage Advice for First-Time Buyers with Bad Credit

Navigating the mortgage market and trying to weigh up all the possible options and permutations by yourself can take up a huge amount of time, energy and stress, even when you have a clean credit history. If you introduce an element of bad credit into the mix, then the task is made all the more complex because so many of the traditional routes to a mortgage via the high street banks or mainstream lenders will no longer be open to you. It can seem like being lost in a maze and continually finding yourself at dead ends.

This is where expert advice from an experienced mortgage adviser offering a positive outside perspective can really help you out. As unlimited brokers with access to lenders across the whole spectrum of the UK market, we will be able to suggest and connect you with lenders operating in the specialist bad credit sector of the market who cater specifically to people who fall outside of the mainstream criteria. These lenders don’t advertise publicly and you won’t be able to find or approach them online yourself.

As ever with any significant borrowing secured against your home, it’s vital you understand exactly what you are getting into and what the implications will be for your finances in the short and long term. Once we have a complete overview of your particular circumstances (as no two borrowers are exactly alike), we’ll be able to quickly identify the lenders and products that will meet your needs and make informed recommendations as to which options will be the most favourable to you according to your plans and priorities.

The good news is that the more time that has passed since the bad credit occurred, the less weight it will carry, especially if you can show a pattern of healthy borrowing and money management in more recent years. Credit histories cover the most recent six years, so any adverse credit items will naturally fall out of their scope after this time, relieving you of the effects of all but the most severe issues. Prior to this, if your problem was relatively minor, or even caused by a lack of credit history due to not using borrowing facilities previously, we can give you guidance on actions you can take to improve your credit rating and keep you in a stronger position.

To get honest, knowledgeable, professional advice right now as a first-time buyer with bad credit, call our office today to arrange a free, no-obligation first discussion on your options.

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