Can You Get a Mortgage with Bad Credit in 2025? Options for Borrowers

If you have bad credit, you might assume a mortgage is out of reach – but that’s not always the case. While it may be harder, there are options available in 2025.

What Is Considered Bad Credit for a Mortgage?

A credit score below 600 is generally seen as bad credit by lenders. Issues that impact your score include:
❌ Missed payments on loans or credit cards
❌ Defaults or County Court Judgments (CCJs)
❌ Bankruptcy or Individual Voluntary Arrangements (IVAs)

Can You Still Get a Mortgage?

YES! Many lenders offer bad credit mortgages, but you may need:
✔ A larger deposit (15-30% instead of 5-10%).
✔ A higher interest rate (rates may be 1-2% higher).
✔ A specialist lender (some high-street banks may refuse).

Bad Credit Mortgage Options in 2025

1️⃣ Specialist Lenders – Some lenders focus on bad credit borrowers.
2️⃣ Guarantor Mortgages – A family member co-signs the loan.
3️⃣ Higher Deposit Mortgages – The more you put down, the less risk for lenders.
4️⃣ Credit Repair & Wait – Improve your score and apply in 6-12 months.

💡 Tip: Speak to a bad credit mortgage broker – they can find lenders who are more flexible.