Bad Credit Mortgage Lenders – Finding the Right Mortgage

The mortgage market when bad credit is present, can feel daunting. Whether you’ve had financial difficulties in the past, such as missed payments, a County Court Judgment (CCJ), or even bankruptcy, securing a mortgage might seem like an impossible task ahead.

The good news is that there are lenders that specialise in providing mortgages to individuals with poor credit histories.

These are often referred to as bad credit mortgages or adverse credit mortgages, and while they may come with higher interest rates, they can be a lifeline for those struggling to secure financing through traditional means. You should however always explore the whole market rather than assume you need a lender like this and that is a reason to instruct a mortgage adviser that can do this for you.

At Kerr & Watson, we help clients with less-than-perfect credit find the right mortgage solutions.

Our expert team is here to guide you through the process and provide tailored advice for your situation to see what your options may be.

What is a Bad Credit Mortgage?

Contrary to popular belief, there is no specific product called a “bad credit mortgage.”

Instead, these are standard mortgages that can be offered to individuals with poor or adverse credit histories subject to meeting lender criteria.

The difference lies in the lending criteria and terms, which are often more flexible but come with higher interest rates and stricter deposit requirements.

Common Reasons for Bad Credit:

These credit issues can make mainstream mortgage lenders hesitant to approve applications.

However, specialist lenders may be more willing to take on this risk by offering bespoke solutions for individuals with poor credit.

Kerr & Watson works with a network of these specialist lenders to find the best possible mortgage solution for your unique situation. Our advisers would work out whether these lenders would be suitable for you or not, looking at your unique situation.

How Do Bad Credit Mortgages Work?

The primary difference between a bad credit mortgage and a conventional mortgage is the interest rate and deposit requirements.

Lenders see borrowers with adverse credit as higher risk, which is why they charge more interest to compensate for that risk.

Higher Interest Rates

You may pay a higher interest rate than someone with a flawless credit record. This means your monthly mortgage repayments will likely be higher if this is the case.

Larger Deposits

While conventional mortgages might require a deposit of 5-10%, bad credit mortgages typically ask for a larger deposit, ranging from 20-25%. This helps the lender offset the risk of default. This differs per lender so speak with a mortgage adviser that can guide you on this.

At Kerr & Watson, we’ll help you explore options that could lead to refinancing in the future once your credit has improved. Over time, as you make timely repayments, your credit score can recover, potentially allowing you to remortgage at a lower interest rate.

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How Kerr & Watson Can Help You

At Kerr & Watson, we understand that every client’s situation is unique. We work closely with our clients to understand their financial circumstances and guide them through the mortgage application process. Here’s how Kerr & Watson may be able to help:

Access to Specialist Lenders: In addition to high street lenders, we have strong relationships with a variety of specialist lenders who may be willing to approve bad credit mortgages.
Tailored Advice: We provide personalised advice based on your credit history, financial situation, and mortgage goals. We look at the whole market, only when we fully understand the background.
Remortgaging Options: Once you’ve repaired your credit, we can help you explore remortgaging options to potentially secure a more suitable deal in the future.

By working with a knowledgeable mortgage broker like Kerr & Watson, you can explore all of your available options and find a solution that works for you. Our expert team is here to help you every step of the way.

Conclusion

Securing a mortgage with bad credit might feel challenging, but it is by no means impossible depending on your situation.

With the right advice and access to specialist lenders in addition to the high street, you may still be able to find a mortgage that fits your financial situation.

At Kerr & Watson, we’re dedicated to helping our clients navigate the mortgage market taking into account their full background.

If you have concerns about your credit history and are unsure of your options, don’t hesitate to reach out.

Our team is here to guide you through the process and provide you with tailored advice to help you look for the best mortgage solution.

Contact Kerr & Watson today for a free consultation.

Written by Daniel Watson, CeMAP, DipMAP
Published: 1 September 2024 | Last updated: 18 August 2026

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should speak with a qualified advisor.

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 2 June 2026
 
 
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  Brad was quick with getting me the right mortgage insurance prior to a move abroad. Polite and professional. Also liked that he would call to remind me take any actions if I hadn't responded to emails
  
 
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 1 May 2026
 
 
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 14 April 2026
 
 
  The team at Kerr & Watson were brilliant end to end. Daniel explained everything clearly, was always available to answer questions and helped us secure a great mortgage rate. The mortgage broking service they offer is worth every penny and I'd not hesitate to use them again. Thank you!
  
 
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Adverse Credit Mortgages, Knowledge, Mortgages, Residential Mortgages

Adverse Credit

Frequently Asked Questions

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Is it better to use a mortgage broker or go directly to a bank?

Using a mortgage broker gives you access to multiple lenders rather than just one bank’s products. An independent, whole-of-market mortgage broker can compare options across high street and specialist lenders, helping you apply for the most suitable mortgage first time.

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What does a mortgage broker do?

A mortgage broker assesses your income, outgoings, credit history and deposit to recommend the most suitable mortgage for your circumstances. They compare lenders across the market, submit your application, liaise with underwriters and work alongside your conveyancer until your purchase or remortgage completes.

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Can a mortgage broker access better deals?

An independent mortgage broker can compare products across a wide range of lenders, including some intermediary-only deals. While rates are set by lenders, a broker helps ensure you apply for the most suitable and competitive option available.

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What does whole-of-market mean?

Whole-of-market means a mortgage broker can access products from a broad range of lenders rather than being restricted to one bank or a limited panel. This gives you more flexibility and potentially better-suited mortgage options.

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How much does a mortgage broker cost?

Mortgage adviser fees vary depending on the complexity of your case. Some advisers charge a flat fee, while others are paid via lender commission. At Kerr & Watson, our fees are explained clearly upfront so you understand exactly what you’re paying and why.

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How much can I borrow for a mortgage?

Most lenders offer between 4 and 4.5 times your annual income, subject to affordability checks. The exact amount depends on your income, monthly commitments, credit history and deposit size. A mortgage broker can provide a personalised estimate based on your full financial situation.

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How quickly can I get an Agreement in Principle?

An Agreement in Principle can often be arranged within 24 hours once your key financial details have been reviewed. This provides an indication of how much you may be able to borrow and can strengthen your position when making an offer on a property.

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How long does it take to get a mortgage offer?

A mortgage offer is typically issued within two to six weeks after submitting a full application. Timescales vary depending on the lender, valuation process and complexity of your case. Providing accurate documents from the outset can help speed up the process.

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What documents do I need to apply for a mortgage?

Most lenders require proof of identity, proof of address, recent payslips or tax calculations, bank statements and details of your deposit. Self-employed applicants may also need accounts or SA302s. Your mortgage adviser will confirm exactly what is required before applying.

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Do I need a deposit to get a mortgage?

Yes, most mortgages require a minimum deposit of 5% of the property value. A larger deposit can improve the range of lenders available to you and may secure a more competitive interest rate.

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Can I get a mortgage if I’m self-employed?

Yes, many lenders offer mortgages to self-employed applicants. You will usually need at least one to two years of accounts or tax returns. A specialist mortgage broker can help match you with lenders who understand variable or complex income structures.

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Can I get a mortgage with bad credit?

It may still be possible to get a mortgage with adverse credit, depending on the severity and how recent the issues were. Specialist lenders consider applicants who may have been declined elsewhere. An independent mortgage broker can review your options carefully before applying.

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What happens if I’ve been declined for a mortgage?

A mortgage decline does not necessarily mean you cannot secure a mortgage. Different lenders have different criteria. A mortgage broker can identify why you were declined and approach lenders whose criteria better fit your situation.

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Can I arrange my mortgage remotely?

Yes. Our mortgage advice process can be completed remotely via telephone, email and video call, allowing us to support our customers wherever you are located.

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Do I need a mortgage broker if I’ve already found a property?

No. You do not have to use a mortgage broker simply because you have found a property. However, a broker can still compare suitable lenders, check criteria, arrange an Agreement in Principle or mortgage application and help manage the process through to completion.