Published 29 July 2016 · Older article
Bad credit mortgages with a 10% deposit
Having had missed payments, CCJs or defaults does not automatically rule out a mortgage with a 10% deposit, but the choice of lenders is narrower than with a larger deposit and depends heavily on the detail of your credit history.
What lenders look at
Each lender sets its own rules, and those rules change often, so there is no single answer that applies to everyone. The points that usually decide whether a 90% loan to value mortgage is possible are:
- What is on your file – missed payments, defaults, CCJs, mortgage arrears or a debt management plan are each treated differently.
- How recent it is – older problems that have been followed by a clean record usually matter less than recent ones.
- Whether it has been settled – satisfied CCJs and defaults are generally viewed more favourably.
- The amounts involved – a small, one-off issue is treated differently from repeated or larger ones.
- Your deposit – a larger deposit usually widens the number of lenders who will consider you.
The best starting point is an up-to-date copy of your credit report, so we can check which lenders are realistic before an application is made. For an overview, see our main bad credit mortgage guide.