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10 Ways to Improve Your Chances of a Mortgage with Bad Credit

Bad credit can make the idea of getting a mortgage feel daunting, but it doesn’t always mean a firm “no”. Often, it’s about knowing how to present your situation in the best possible light – and which lenders to approach.

Here are ten practical steps you can take to improve your chances of being approved for a mortgage, even if your credit history is less than perfect.

  1. Check All of Your Credit Reports

Don’t rely on just one credit reference agency. Different lenders use different agencies, so it’s important to check:

  • Experian
  • Equifax
  • TransUnion

Make sure your personal details are correct and that all accounts belong to you. If you spot errors, you can raise a dispute with the agency.

  1. Correct Mistakes and Outdated Information

If an account has been marked incorrectly – for example, showing as in arrears when it’s up to date – ask the lender and the credit agency to correct it.

If you’ve repaid a debt that still shows as outstanding, make sure it’s marked as settled. These updates can make a difference when a lender assesses your application.

  1. Keep on Top of All Current Payments

From now on, aim for a spotless track record wherever possible:

  • Set up direct debits for minimum payments
  • Keep an eye on due dates
  • Contact lenders quickly if you’re struggling

Lenders pay close attention to what’s happened most recently. A strong 12–24 month period of on-time payments can help offset older issues.

  1. Reduce Unsecured Debts Where You Can

High levels of unsecured debt – such as credit cards, overdrafts and personal loans – can impact both your credit score and affordability.

If possible:

  • Pay down balances, starting with the highest interest rates
  • Avoid maxing out your limits
  • Don’t take on new borrowing unless absolutely necessary

Showing that you’re reducing your debt can give lenders more confidence.

  1. Avoid New Credit Before Applying

Multiple new credit applications in the months before a mortgage can be a red flag. Try to:

  • Avoid applications for new cards, loans or store finance
  • Think carefully before using buy now, pay later schemes

If you do need to apply for credit, space applications out and only do so when necessary.

  1. Build Up a Realistic Deposit

The more deposit you have, the lower the lender’s risk – particularly when there’s bad credit in the background. A larger deposit can:

  • Increase the number of lenders willing to consider you
  • Potentially give access to more competitive deals

Even moving from a 5% to a 10% deposit can make a real difference. Consider:

  • Regular savings each month
  • Redirecting funds from non-essential spending
  • Gifts from close family (where acceptable to the lender)

  1. Show Stable Income and Employment

Lenders like consistency. If you can show:

  • A steady income
  • Time with the same employer
  • Predictable working hours or regular contracts

…it can help counterbalance adverse credit. If you’re self-employed, up-to-date accounts and tax returns are essential.

  1. Keep Your Bank Statements “Mortgage Ready”

Lenders may ask to see several months of bank statements. They’re looking at:

  • How you manage day-to-day money
  • Whether you regularly go over your overdraft limit
  • Signs of financial stress, such as frequent gambling transactions

In the months leading up to a mortgage application, try to:

  • Avoid unnecessary spending sprees
  • Keep gambling, if any, to a minimum – ideally separate from your main account
  • Show sensible, consistent money management

  1. Register on the Electoral Roll

Being on the electoral roll at your current address can help lenders verify your identity and stability. It’s a simple step that can support your application, even though it won’t fix bad credit on its own.

  1. Speak to a Specialist Mortgage Adviser

Perhaps the most important step is to talk to an adviser who understands bad credit and knows which lenders are willing to look beyond your score.

At Just Mortgages, our Adverse Credit Solutions Team works specifically with clients who have experienced things like missed payments, defaults, CCJs, IVAs and even bankruptcy. We use tools such as Experian data via Smartr to review your credit file and pinpoint lenders more likely to accept your case, helping to save time, stress and uncertainty.

Ready to Explore Your Options?

Bad credit doesn’t define you – and it doesn’t always define your future borrowing options either. With the right preparation and the right advice, you may still be able to find a mortgage that fits your circumstances.

If you’d like to talk through your situation, contact Just Mortgages to speak with one of our advisers today. We’ll explain your options clearly and support you every step of the way.

CONTACT JUST MORTGAGES

Your home may be repossessed if you do not keep up repayments on your mortgage.

Just Mortgages is a trading name of Just Mortgages Direct Ltd which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 9/12/2025.