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How Do You Explain That Bad Credit Doesn’t Rule Out a Mortgage in London?
For many first-time buyers in London, the phrase “bad credit” feels like the end of the road. If you’ve had late payments, defaults, or even a CCJ, you may think it’s impossible to get a mortgage. But here’s the truth: bad credit doesn’t always mean no mortgage.
With the right preparation and support, there are still options available. In this article, created in collaboration with Step by Step Financial Solutions and Polish Business Link, we’ll explain why bad credit doesn’t shut the door, what lenders look at, and how you can improve your chances.
What Does Bad Credit Mean?
“Bad credit” can cover a wide range of issues, including:
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Missed or late payments on loans or credit cards
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High credit card balances
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Defaults or County Court Judgments (CCJs)
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Being close to your credit limit
Lenders see these as signals of risk, but risk can be managed — and not all lenders treat bad credit the same way.
Why a Mortgage Can Still Be Possible
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Specialist lenders exist who focus on buyers with imperfect credit histories.
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Time matters: older issues (e.g., a late payment from 3+ years ago) carry less weight than recent problems.
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Stronger deposits help: the bigger your deposit, the less risk for the lender.
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Overall financial health counts: stable income, good affordability, and recent on-time payments can balance out older mistakes.
“Bad credit doesn’t mean no mortgage. Lenders look at the full picture — income, deposit, and how recent the issues are. With the right advice, options are available.”
— Kasia Makarewicz, Senior Mortgage & Protection Adviser, Step by Step Financial Solutions
Steps to Improve Your Chances
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Check your credit report – Know what’s on your file and fix errors.
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Show stability – Pay bills on time, avoid new debt, and keep balances low.
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Save a bigger deposit – Aim for 15–20% if possible, especially if your credit history is patchy.
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Work with a mortgage adviser – An adviser can find lenders who are open to buyers with less-than-perfect credit.
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Don’t lose hope – Every case is different. What matters most is preparation and the right guidance.
Why London Buyers Shouldn’t Give Up
London is one of the toughest markets, with high prices and strong competition. But lenders also know that buyers in the capital often have complex financial stories. By being transparent, prepared, and supported by the right professionals, you can still secure a mortgage and step onto the property ladder.
Final Thoughts
Bad credit may feel like a big barrier, but it doesn’t close the door on homeownership. With the right planning — and by working with experienced advisers — you can still get a mortgage in London.
This content is part of our video series “Buying a Home in London”, created with the support of AI and in collaboration with PBLINK Partner Step by Step Financial Solutions. The goal: to help our members take their first steps toward homeownership in London.
