4,3,2,1: Moving Home with Bad Credit
Intro:
Bad credit doesn’t have to mean bad news. Whether it’s an old missed payment, a default, or a blip that’s still haunting your credit file - there are ways to move home and secure a mortgage with confidence.
Here’s how to do it right, without wasted time or false promises.
4 Do’s
1. Know what’s actually on your credit report.
Before any lender checks it, you should. Download your full credit report from CheckmyFile. Or login to our portal to retrieve it. if you don’t have your login detail or are a new client. contact us below.
2. Work with a our brokers who understands specialist lending.
High street lenders might say “no,” but that doesn’t mean “never.”
Specialist lenders assess your case based on recent stability - not just old history. We know these lenders and can position your application in the right light.
3. Strengthen the rest of your profile.
A lender may accept minor credit issues if the rest of your profile shines.
That means steady income, a low debt-to-income ratio, a clear three-month bank statement trail, and a good deposit. Show responsibility in all other areas - it balances out the risk.
4. Get your deposit and paperwork in order.
The bigger the deposit, the lower the perceived risk. Aim for 15–25% if you can - it widens your lender options. And make sure your documents (ID, payslips, proof of address) are up to date - delays and errors frustrate underwriters more than credit history.
3 Don’ts
1. Don’t hide past issues.
Lenders find everything through credit searches and fraud prevention systems.
It’s far better to be upfront - brokers can pre-empt and justify issues if we know about them early.
2. Don’t apply with multiple lenders.
Each hard credit check leaves a footprint. Too many in a short time can make things worse.
Let your broker handle lender selection - it’s about strategy, not luck.
3. Don’t assume a decline means you’re stuck.
Many clients come to us after a rejection elsewhere. One lender’s “no” can be another’s “yes” - it’s all about criteria, timing, and presentation.
2 Common Questions Clients Ask
Q1. How long after a missed payment or default can I get a mortgage?
Depending on what the miss payment is on, some lenders will completely ignore missed payments. defaults and CCJ can be ignored if they’re below a certain figure. But, it varies from lender to lender.
Q2. Will I pay higher interest rates?
Initially, yes - but not always significantly.
Rates depend on severity and recency of issues. Many clients refinance to mainstream rates within 2–3 years once their credit improves.
1 Action to Take Today
Download your full credit report and send it to us securely. We’ll review it, identify which lenders are open to your circumstances, and map out your clearest route to moving home - even with credit challenges.
Manchester Independent Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA 431647).
The information above is for guidance only and does not constitute personal advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.