Request Callback
Author: Carl Shave-Director
Updated on February 19th, 2024

Can I get a Buy-to-Let mortgage with bad credit?

Getting a Buy-to-Let mortgage with a bad credit history can be a little more difficult. Don’t let this deter you, we have helped many people obtain a bad credit Buy-to-Let mortgage.

Get in touch for a free initial no-obligation discussion about your mortgage situation.

Do you qualify?

No credit checks & only takes minutes!

Buy-to-Let lenders have been historically averse to working with people with bad credit events on their files. Usually you needed to have had a clean credit history in order to become a landlord. However, times have changed. Mainstream lenders may still reject your application, but, you could still get a mortgage from a specialist lender.

Free initial advice
5 star reviews
Access to the whole market
Established over 25 years
Personal service
Exclusive rates

How do I get a Buy-to-Let mortgage with bad credit?

In recent years Buy-to-Let mortgages have become increasingly popular. This means that there are more applicants with bad credit. A range of specialist lenders have entered the sector offering products to those rejected by mainstream lenders. This makes it easier to obtain a bad credit Buy-to-Let mortgage in the current market.

The nature of the mortgage and your circumstances will mean that you will need to work with a mortgage broker. This is because many of these specialist lenders don’t advertise their services, so to access them you will need to use a broker.

A specialist broker will look at your circumstances, run affordability assessments that mirror lenders, and enquire for you. Then, when the time comes, they will help you frame your application in the best light so that it stands the greatest chance of success.

When applying for a Buy-to-Let mortgage, it’s very important to have prepared your anticipated budgets. This will need to be based on real figures for costs and income as much as possible and projections for the next few years. Furthermore, it should allow for times when the property may lie empty.

Read Our Buy-to-Let Guide

plant sprouting from some coins

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


I have bad credit – What deposit do I need for a Buy-to-Let property?

When applying for a standard Buy-to-Let, borrowers will be required to supply a larger-than-average deposit. This is usually a minimum of 15–25%.

However, if you have a bad credit record you will need to provide an even higher amount, at the very least at the upper end of the usual minimum – you could be looking in excess of a 25% deposit.

The exact amount of deposit that you need to provide will depend very much on several factors, such as:

  • Which lender you talk to.
  • The exact details of your circumstances.
  • The nature of your adverse credit.
  • How much money was involved.
  • How long it has been since it occurred.
  • Your more recent patterns of borrowing.

No matter what your situation, bear in mind that the larger deposit you can provide, the greater choice of lenders you can approach. You may also be able to access better mortgage products with more competitive rates.

If you want to get an idea of how much you could borrow, get in touch today. Our expert advisers will be able to assess your situation and recommend a selection of lenders.

What types of bad credit issues do lenders accept for a Buy-to-Let mortgage?

Over our many years of experience we have helped a range of people obtain Buy-to-Let mortgages with bad credit. Some of the most common bad credit events we have dealt with are:

Buy-to-Let mortgage with defaults

Having a default notice to your name will cause a lender to pause for thought when considering your application. Resolving the matter quickly and getting the entry on your credit record amended and have a positive effect, increasing you chances of being accepted.

If you have one or more defaults unresolved, or you’re still working through a payment plan, your options will be even more limited.

Not all defaults occur because of poor money management. You may have unexpectedly lost your job or become very ill and lost your income. Specialist lenders understand this and may take a wider view, assessing your induvial circumstances, rather than just seeing a default on your record and shying away.

Lenders will consider the number of defaults, the amount of time that has passed and the amount of money involved. A string of defaults in the last twelve months will have a lot more impact than a single case three years ago. This is especially true if you have kept a clean file since.

Buy-to-Let mortgage with CCJs

Having a CCJ on your credit record will have a strong negative impact on your chances of getting any kind of mortgage. Settling the debt and getting it removed is the best starting point before applying.

Having a CCJ still on your file will present a problem to many lenders, especially if it has not been settled. However, you may be able to obtain a mortgage from one of the many specialist mortgage lenders on the market. They will take a wider view of your circumstances and place more weight on your current financial situation.

Buy-to-Let mortgage with a Debt Management Plan

While having a DMP shows lenders you’re willing to take responsibility for your debts, it will still have a negative effect.

Having a DMP against your name can cause a problem with many Buy-to-Let mortgage providers, reducing the number of lending options open to you. However, there are a number of specialist lenders who will be willing to help you.

You may need to pay a higher deposit, but you should be able to get a loan if the DMP was served at least three to six years ago. Keeping a clean record since the DMP will also improve your chances.

If you are currently in a DMP, then this could be a major issue for your chances of being accepted. This is not only because it affects your credit history, but it can also make saving up for a deposit difficult.

Buy-to-Let Mortgage after an IVA

Having an IVA on your file will certainly affect a lender’s view of your application, although it will not preclude it altogether.

If you have settled your IVA and have no other credit issues, there’s no reason why you shouldn’t apply.

An IVA’s  presence on your credit record will pose a problem for high street lenders, but, there are a number of specialist lenders who will consider you. These lenders have far more flexible assessment criteria for mortgage applicants and will take your wider circumstances into consideration. As ever, if you have kept a clean record since then your chances of success will have improved.

Google Logo
4.99 Stars icon
142 Reviews

Buy-to-Let mortgage rates if I have bad credit

Buy-to-Let mortgage rates typically can be higher than those for a conventional residential mortgage. So what if you’re applying for a Buy-to-Let mortgage with a bad credit rating? Well, you can unfortunately expect the rate to be a little higher still.

As a perceived higher lending risk, a mortgage provider will compensate for this by imposing a higher interest rate. Your best bet for the most competitive interest rates will probably be from a specialist lender.

While it’s true that mortgage rates from specialist lenders will be higher than those from their mainstream counterparts, they will at least give you the opportunity to obtain the mortgage and start earning revenue from renting out your Buy-to-Let property.

At a future date, when bad credit has slipped off your credit report, you can look at remortgaging to a different lender. This will allow you to access more favourable deals, cutting down your repayment costs.

Another way to get access to a lower interest rate is to provide a larger than average deposit. This shows the lender you are committed to the mortgage and acts as greater security to the lender. This will obviously depend on your resources, which may have been limited if you recently experienced financial issues.

Bad credit Buy-to-Let mortgage lenders

As we’ve seen, typically if you have a bad credit history a specialist lender will be your best bet. Their criteria is far more flexible when it comes to considering applications from borrowers with a bad credit history.

Instead of simply focusing on a negative event or a low numerical score, they consider your entire circumstances, placing more emphasis on your current financial status and see your past problems in context.

However, they do not advertise their services publicly, so you will not find them on the high street nor mentioned in any online ‘best buy’ lists. Due to the more complex nature of their process, they will only consider applications made through a trusted third party. These third parties are typically established unlimited mortgage brokers such as us.

Before applying, your brokerage will make sure you are the right fit for the lender you are applying to. At The Mortgage Centres we are able to undertake a thorough review of your past and current circumstances, helping you frame your application in the most positive light to ensure you have the best chance of success.

Frequently Asked Questions

  • Can I remortgage my Buy-to-Let property if I have poor credit?
  • Why should I remortgage my Buy-to-Let property if I have bad credit?

It is indeed possible to remortgage a Buy-to-Let with bad credit.

However, you may need to jump through a few more hoops than most and go the extra mile to prove your creditworthiness. For more on Buy-to-Let remortgages, read our in-depth guide.

Whatever the nature of your bad credit issue, you may wish to remortgage for a number of reasons:

  • Your property is now free from any remaining mortgage debt,  or any other loans secured by it. By  remortgaging it you will raise capital to fund an additional property purchase.
  • Your mortgage deal is ending soon and the rate will go up to the standard basic rate. You want to remortgage to find a similar product with a more favourable rate.
  • You are reaching the end of your current deal as above and the interest rate is about to increase, so you are looking to free up some equity in the property.

The level of equity you have in the property will have a great influence over a lender’s decision, so the more investment you can show, the greater the level of security will be to the lender.

We'll call you…

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Contact Details
0330 0945876 local rate
Proudly working with
… and many more!

Thanks for getting in touch, a member of the team will be in contact shortly.