How Much Can I Borrow With Bad Credit?

With bad credit, you can typically borrow 3.5-4.5 times your annual income. Minor credit issues allow up to 4.5x income with 15% deposit. Moderate issues (satisfied CCJs, older defaults) typically allow 4x income with 20% deposit. Severe issues may limit borrowing to 3.5x income with 25%+ deposit. Interest rates are typically 1-3% higher than prime rates.

Learn more about bad credit mortgages in our detailed guide.

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How much can I borrow?

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How much can I borrow with bad credit?

Typically 3.5-4.5x your annual income, depending on credit severity. Minor issues may allow up to 4.5x income. Moderate issues (satisfied CCJs, older defaults) typically 4x. Severe issues (recent bankruptcy, multiple CCJs) may limit you to 3.5x or less.

What deposit do I need for a bad credit mortgage?

Minimum 15% for minor credit issues, 20% for moderate issues, and 25% or more for severe issues. The larger your deposit, the better rates you'll access and the more lenders will consider your application.

What interest rate will I pay with bad credit?

Typically 1-3% higher than the best rates. Minor issues might see rates around 5-6%, moderate issues 6-7%, and severe issues 7-8% or higher. Rates improve as your credit recovers and you can remortgage after 2-3 years.

Can I use a bad credit mortgage calculator to get approved?

Calculators give estimates only. Actual approval depends on your specific credit issues, when they occurred, your current circumstances, the property, and individual lender criteria. A specialist broker can give a more accurate assessment.

Does the type of credit issue affect how much I can borrow?

Yes, significantly. Missed payments are viewed less seriously than CCJs. Satisfied CCJs are better than unsatisfied. Older issues (3+ years) are viewed more favourably. Mortgage arrears are particularly serious. The combination and recency of issues matters most.

Will my bad credit mortgage payment be higher?

Yes, higher interest rates mean higher monthly payments. A 1% rate increase on £200,000 over 25 years adds approximately £100-120 per month. However, as your credit improves, you can remortgage to lower rates and reduce payments.

Quick Answer

How Much Mortgage Can I Get With Bad Credit?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Typically 3.5-4.5x your income with a 15-25% deposit. Use our calculator to estimate your borrowing power based on your credit situation.

Bad credit mortgages work similarly to standard mortgages but with adjusted criteria. Lenders typically offer lower income multiples (3.5-4.5x instead of 4.5-5x) and require larger deposits to offset the additional risk. The severity of your credit issues directly impacts what you can borrow and the rates you'll pay. Minor issues like a few missed payments in the past may have little impact, while recent CCJs, IVAs, or bankruptcy significantly reduce borrowing power. Our calculator gives you an estimate based on your income and credit severity.

Your home may be repossessed if you do not keep up repayments on your mortgage. This calculator provides estimates only - speak to a broker for accurate figures.

Key Points

1Income multiples: 3.5-4.5x depending on credit severity
2Minimum deposits: 15-25% based on credit issues
3Interest rates: 1-3% higher than prime rates
4Type and age of credit issues matters
5Can remortgage to better rates as credit improves
6Calculator gives estimates - broker gives accurate figures

Eligibility Criteria

Stable income that meets affordability requirements
Deposit of at least 15% (more for severe issues)
Credit issues that specialist lenders will accept
Property that meets lender criteria
No current bankruptcy or debt relief order

Typical Timeframe

Bad credit mortgage applications typically take 4-8 weeks. Getting a decision in principle takes 24-48 hours with most lenders. As you make payments and credit improves, you can typically remortgage to better rates after 2-3 years.

Next Steps

1Use the calculator below for an estimate
2Check your credit reports for accuracy
3Identify and document your credit issues
4Speak to a specialist adverse credit broker
5Get a formal decision in principle

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How Much Mortgage Can I Get With Bad Credit?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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