How Much Can I Borrow on a Bad Credit Mortgage?

If you have your sights set on a property but have bad credit, you may want to know how much you can borrow. We’re looking to answer exactly that in our guide.

How much you can borrow will be assessed on a case-by-case basis.

Lenders will do affordability checks. This means they will determine how much you can comfortably afford each month. They may also perform a stress test, which looks at whether you can afford to keep up on repayments even if your income were to be reduced or paused for a certain period of time.

How much can you borrow?

Bad credit mortgages often come with higher interest rates and larger deposits. The amount you can borrow may be smaller than if you had a ‘Good’ or ‘Excellent’ credit score. This is because you could be deemed more of a risk to lenders.

However, this doesn’t mean you can’t get a mortgage. You just might have limited options and a lower threshold for what lenders will be prepared to offer you.

That being said, it’s important to remember that a credit score is not the definitive benchmark that lenders work from. They will also look at your income, expenses, savings and the financial health of any mortgage partner.

There are also mortgages available that help make buying property more affordable. These include shared ownership and first-time buyer mortgages. It’s worth speaking to a specialist mortgage broker about your options if you have bad credit.

Ready to find out how much you can afford?

Speak to the bad credit mortgage brokers for advice. Before you apply, we will conduct an affordability check. As Whole of Market brokers who partner with specialist lenders, we can give you access to more flexible mortgages.