How to get a mortgage with bad credit but good income?

You know how two people can earn the same salary, yet one gets a “yes” and the other gets a “no” from the same mortgage lender? With bad credit mortgages, the difference is rarely just income. It’s the story your credit report tells, and how your deposit and paperwork back it up.

If you’ve got a good income but a messy credit record, you still have options. You just need to approach the application in a way that works with how UK lenders assess risk.

In this guide, I’ll show you how to check your credit record, improve your credit score without guesswork, build a deposit strategy that lenders actually like, and use mortgage brokers (including Revolution Finance Brokers) to access lenders you may not reach on your own.

Key Takeaways

• Lenders check your credit file, income, and savings. CCJs, defaults, IVAs, and bankruptcy can push you into higher mortgage rates and lower loan-to-value options.
• Strong, provable income helps affordability, but lenders still want stability: clean bank conduct, manageable debts, and clear evidence of savings.
• A bigger deposit can widen lender choice, especially for sub-prime mortgages and some buy-to-let mortgages where loan-to-value caps are common.
• Check Experian, Equifax, and TransUnion reports, correct errors, and get free debt help from StepChange or National Debtline before you apply.

Understanding bad credit and its impact on bad credit mortgages

“Bad credit” is really just shorthand for higher risk in your credit history. Lenders use your credit report and credit scoring to predict how likely you are to keep up repayments, especially if interest rates rise or your costs increase.

Your income matters, but your credit record and your recent conduct (the last few months) often make the difference between a smooth approval and a decline.

What counts as bad credit?

Lenders read your credit record like a scorecard. Each missed mark adds risk, and recent marks matter most.

Bad credit usually means your credit report includes missed payments, defaults, arrears, or court and insolvency markers such as CCJs, IVAs, or bankruptcy. A thin credit history (very little borrowing ever) can also cause problems because the lender has less evidence of how you handle credit.

Time matters as much as severity. A problem from years ago that’s been settled and followed by steady payments often lands very differently to a fresh issue from the last few months.

Most “big” negatives are visible for years, which is why timing your application is a real lever you can pull.

This “six-year” pattern is widely reflected across UK credit reporting guidance from organisations including Experian, TransUnion, and GOV.UK.

How does bad credit influence your chance of getting a mortgage?

Bad credit can reduce how much you can borrow and increase your interest rate. It can also change which products you qualify for, especially at higher loan-to-value.

In practice, lenders tend to tighten three things when they see risk on your credit report:

• Loan-to-value: they may require a larger deposit, or cap the LTV they will offer.
• Affordability: they stress test your repayments, including what happens if rates rise.
• Underwriting: they may want more paperwork, more explanation, and cleaner recent bank statements.

In the UK, lenders must consider the impact of likely future interest rate rises when assessing affordability, usually across at least the first five years of the mortgage, unless the initial rate is fixed for five years or longer (per Financial Conduct Authority guidance).

A guarantor can sometimes help, but it does not erase adverse credit. Underwriters still look at your credit record and whether the repayments work under stress testing.

Why does a good income help with mortgage approval?

A good income helps because it improves affordability and gives you room to absorb higher mortgage rates, stricter stress tests, and bigger deposits.

That said, lenders do not lend on income alone. They look at how your income behaves in real life, which means bank statements, spending, and debts.

Income strength lenders can actually use

• Employed: payslips, P60, and (often) three to six months of bank statements showing salary credits.
• Self-employed: SA302s and tax year overviews, or accounts and an accountant’s certificate, depending on the lender.
• Variable income: evidence of bonuses, overtime, or commission and how consistent it has been.
• Other income: pensions, benefits, or maintenance, where a lender’s policy allows it.

What “good income” can’t fix on its own

Even with a strong salary, you can still be declined if your recent conduct looks unstable. Common red flags include heavy overdraft use, returned direct debits, frequent gambling transactions, or taking out new credit right before applying.

If your goal is buy-to-let, you also need to show the deal works as an investment. Rental coverage, property type, and your wider finances can matter as much as your payslips.

Steps to get a mortgage with bad credit but good income

If you take one thing from this page, make it this: you improve results by controlling what you can control before you apply. That means your credit report accuracy, your debts, your deposit, and your documents.

Here’s a practical order that works well for most borrowers in the UK.

1. Pull all three credit reports: Experian, Equifax, and TransUnion can show different data.
2. Fix errors first: incorrect addresses, duplicated defaults, wrong balances, or accounts that should be marked satisfied.
3. Stabilise bank conduct: aim for clean statements in the months before you apply.
4. Reduce expensive debts: especially credit cards, overdrafts, and personal loans.
5. Build the right deposit story: show where the money came from and keep it traceable.
6. Use a broker early: ask them to sanity-check the lender fit before full applications.

How can saving a larger deposit improve mortgage chances?

A larger deposit lowers loan-to-value, and that reduces lender risk. With adverse credit, that risk reduction is often the easiest way to widen your lender shortlist.

It also gives you more room to negotiate on product choice. In many cases, you can move from “specialist only” to “near-prime” criteria just by reducing the LTV.

What can you do to improve your credit score?

You improve your credit score by improving the data behind it. Start by making sure your credit report is correct, then build a simple pattern of on-time payments and sensible credit use.

• Register on the electoral roll: it helps lenders verify your identity and address.
• Pay on time, every time: set up direct debits for bills and minimum payments.
• Keep credit card balances controlled: high utilisation can hurt credit scoring, even if you pay on time.
• Stop rapid-fire applications: repeated credit checks can make you look desperate for lending money.
• Add an explanation note only when it helps: keep it factual (for example, a one-off redundancy period) and focus on what’s changed.

As of late 2025, Equifax lists a 30-day free trial for its Credit Report & Score product, then a monthly fee of £14.95 if you continue.

How does reducing existing debts affect mortgage eligibility?

Paying down debts improves your affordability because it reduces monthly outgoings. It can also lift your credit scores, especially if you reduce revolving balances like credit cards or overdrafts.

Focus on changes that underwriters can see clearly in bank statements and credit reports:

• Clear arrears and missed payments first, then reduce balances.
• Lower credit card balances, even if you keep the card open for credit history.
• Avoid taking new car finance or personal loans right before a mortgage application.
• If you’re considering debt consolidation, check the total cost and whether it creates a fresh hard search on your file.

Specialist mortgage options for bad credit borrowers

Specialist lending exists because a large number of people sit just outside high-street criteria, often due to life events rather than reckless borrowing.

In the Pepper Money Specialist Lending Study 2025/26, Pepper reports an estimated 9.26 million UK adults have experienced adverse credit in the last three years, based on population projections.

Prime mortgages vs near-prime vs sub-prime mortgages

These labels vary by lender, but the core difference is how the lender prices and underwrites risk.

What are Near Prime mortgages?

Near Prime mortgages sit between prime and subprime mortgages. They are built for people who fall just outside mainstream credit scoring, but can still show strong affordability and improving credit history.

For a concrete example of how near-prime criteria can work, Atom Bank’s near-prime range is listed up to 90% LTV, and it publishes adverse limits such as caps for unsatisfied defaults and CCJs.

Which lenders offer subprime mortgages?

In the UK, subprime mortgages are usually offered by specialist lenders and often accessed through mortgage brokers. Many high-street mortgage lenders will decline cases with recent CCJs, IVAs, or insolvency markers, even where the income is strong.

When you speak to a broker, ask them to explain the lender’s policy in plain English, then check the fit against your credit record:

• How recent is the issue? A problem in the last 6 to 12 months is treated very differently to an older one.
• Is it satisfied? Settled defaults and satisfied CCJs can help, even if the record remains visible.
• How many issues? Multiple problems often push you into manual underwriting.
• What LTV is realistic? Specialist lenders may cap LTV depending on the issue and its age.

Buy-to-let mortgages with adverse credit: what changes

Buy to let mortgages are underwritten differently to residential. Rental income and interest coverage tests matter, and adverse credit can tighten LTV limits.

The Bank of England has described common buy-to-let affordability approaches such as minimum interest coverage ratios around 125%, and that higher-rate taxpayers are often assessed on higher coverage, with lenders commonly testing around 145% in practice.

If you’re aiming for buy-to-let with bad credit, bring your broker:

• Evidence of expected rent (agent estimate or similar).
• A realistic view on LTV (many adverse buy-to-let products sit below top-end LTVs).
• Your wider debt position, because “top slicing” from personal income can be part of the assessment.

How can a mortgage broker help you get a mortgage with bad credit?

A good mortgage broker does more than shop rates. They translate lender criteria into a plan you can actually follow, then position your application so underwriters can say “yes” with confidence.

This is where specialist access matters. Many specialist products are built for intermediaries, and mortgage brokers can filter lenders based on your exact credit history, your income type, and your loan-to-value.

• They reduce wasted credit checks: you avoid applying blindly, which protects your credit scoring.
• They package your case properly: clean documents, consistent figures, and a clear explanation when it’s needed.
• They match lender to borrower: near-prime, sub-prime mortgages, or a refinance strategy, depending on what’s realistic.

If you’re speaking with Revolution Finance Brokers, ask for a lender-fit plan before you apply: what to fix first, which documents to gather, and what LTV and repayments look sensible for your budget.

Conclusion

You can still get bad credit mortgages in the UK if your income is strong, but you need to control the details lenders rely on.

Check your credit report across Experian, Equifax, and TransUnion, then correct any errors and stabilise your recent credit record. Build the biggest deposit you can, reduce debts to strengthen affordability, and keep bank statements clean in the run-up to your application.

If you need specialist help, use mortgage brokers (including Revolution Finance Brokers) to access near-prime and sub-prime mortgages, and to present your case clearly. Pair that with free debt advice where needed, and you give yourself the best chance of approval on workable repayments.

FAQs

1. Can I get a mortgage with bad credit but good income?

Yes, many lenders will consider steady, good income even with bad credit, but you may face higher interest rates and stricter checks.

2. What do lenders check besides income?

Lenders check your credit score, current debts, and deposit size, they also review proof of steady pay and spending history.

3. What steps improve my chances?

Check and correct your credit file, save a bigger deposit, and reduce existing debts; use a specialist mortgage broker who knows lenders that accept applicants with poor credit.

4. Are guarantors or specialist lenders a good option?

Yes, a guarantor or a specialist lender can help, but expect higher costs or stricter terms; read offers carefully and compare total interest and fees.