A bad credit mortgage is a home mortgage that you can get when you have poor credit. It can be a big problem getting a mortgage when you have bad credit. If you have had the misfortune of having a bad credit history, then you will be considered a credit risk. You will find it very difficult to get a mortgage since lenders do a credit check. When the credit check reveals that you have bad credit, you will be denied a mortgage.

If you have bad credit and are worried that you can never get your dream home, then it is time to stop worrying. You can look for a lender who offers a bad credit mortgage. This kind of mortgage is exclusively meant for people like you who have a poor credit history. If you had defaulted on a loan or had a few delayed credit card payments, then you will find yourself having bad credit. In such a situation, you can get in touch with a lender who offers bad credit mortgages.

Bad credit mortgages and how they work

When you apply for a bad credit mortgage, you are telling the lender that your credit is poor. There are many lenders who are willing to lend to people with poor credit. They would impose certain conditions before lending to safeguard their interests. This can include:

  • Asking you to deposit at least 20 or 25% of the property value instead of 5 to 10%, which is the usual norm.
  • They could impose a lower limit on the loan amount.
  • The interest rate they charge could be higher than normal interest rates.

A lender would take these measures since you are considered a credit risk. The better your credit score, the better would be the terms of the loan.

Getting a bad credit mortgage

If you are looking for a bad credit mortgage, then here are a few things to keep in mind:

  • The first thing you need to do is get a copy of your credit report. Check the report to see if there are any mistakes, so that you can get them rectified. There may be some pending bills or loans that are spoiling your credit history. Try and pay them off by borrowing from family/friends, so your credit score improves.
  • Try to improve your credit score by repaying as much past credit as possible. Be financially disciplined by reducing expenses.
  • Paying a higher deposit will help you get a bad credit mortgage on better terms.
  • If you have assets in your name, then the process of getting the mortgage is easier.
  • You should understand the fees involved and be prepared to pay them.
  • Understand the lender’s requirements so the process becomes easier.


It is possible to get a mortgage even when you have a poor credit history. Get in touch with a specialist lender who offers bad credit mortgages. They will help you get the mortgage easily and can give you the best solution for your problems.