Can I get a mortgage with a 5% deposit and bad credit?

It's very difficult to get a mortgage with only 5% deposit and bad credit. Most adverse credit lenders require at least 15% deposit, with 20-25% being more common for serious credit issues like CCJs or defaults.

Do specialist lenders accept gifted deposits with bad credit?

Yes, most specialist bad credit lenders accept gifted deposits from immediate family members. You'll need a gift letter confirming no repayment is expected, plus proof of where the funds came from.

How long should I save before applying with bad credit?

Ideally, save for 12-24 months to build both your deposit and let credit issues age. Each year that passes makes adverse credit less impactful on your mortgage options.

Will a larger deposit get me better rates with bad credit?

Yes, a larger deposit significantly improves your interest rates even with bad credit. Moving from 15% to 25% deposit can reduce your rate by 0.5-1% or more.

Quick Answer

What Deposit Do I Need for a Mortgage with Bad Credit?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

You typically need a 15-25% deposit for a mortgage with bad credit, though this varies based on the severity of credit issues.

The deposit required depends on your specific credit situation. Minor credit issues (old satisfied defaults, a few late payments) may only need 10-15%. More serious issues like recent CCJs, IVAs, or bankruptcy typically require 20-25% or more. A larger deposit reduces lender risk and can help secure better rates even with adverse credit.

Your home may be repossessed if you do not keep up repayments on your mortgage. Your Home Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA 989177).

Key Points

1Minor credit issues: 10-15% deposit may be sufficient
2Moderate issues (satisfied CCJs, old defaults): 15-20% typical
3Serious issues (recent CCJs, active IVA): 20-25% usually required
4Very adverse credit (recent bankruptcy): 25-30% may be needed
5Larger deposits unlock better interest rates
6Some specialist lenders accept 15% with most credit issues

Eligibility Criteria

Minimum 10% deposit for minor credit issues
15% deposit opens more lender options
20%+ deposit provides best rates with adverse credit
Deposit must be from acceptable source (savings, gift, equity)
Proof of deposit funds required
No borrowed deposits without disclosure

Typical Timeframe

Saving a larger deposit while improving credit can significantly expand your options. Each 5% increase in deposit typically unlocks better rates and more lenders. Building your deposit over 12-24 months while credit issues age is often the best strategy.

Next Steps

1Calculate what deposit you can realistically save
2Consider family gifts to boost deposit (must be genuine gift)
3Review your credit to understand what deposit level you need
4Look into Help to Buy or shared ownership for lower deposits
5Speak to a broker to get realistic deposit requirements for your situation

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What Deposit Do I Need for a Mortgage with Bad Credit?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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