Bad Credit Buy to Let Mortgages

Podcast approved by The Openwork Partnership on 11/04/2025

Can I get a Buy to Let mortgage with bad credit?

Yes, but it depends on the severity of your credit issues and how recent they were. Some lenders specialise in working with applicants who’ve had financial difficulties in the past – but they come with higher interest rates.

It is more difficult to get a mortgage with bad credit if you’re looking to let a property out, but it’s possible.

What credit issues affect a Buy to Let mortgage application?

The main ones are missed payments, defaults, CCJs, IVAs, bankruptcies, debt management plans, payday loans and low credit scores. These can cause certain issues. But it’s not necessarily a barrier to a mortgage if you have all or any of them.

What’s the difference between credit score and credit history?

Many people get confused between the two. Your credit score is a numerical representation of your credit profile. It’s based on factors like your payment history, debt levels and how long you’ve had certain credit agreements open.

Your credit history is the actual report that shows your repayments and missed payments, defaults or CCJs. There is a difference between the two. People often just look at the score on a certain report, but it may be completely different with another credit agency.

Sometimes lenders file an issue with one agency but not another. If you’re just checking one, you may not see the full picture of what lenders may see when you come to apply for a mortgage.

What credit score or credit history do you need for a Buy to Let mortgage?

There’s no specific minimum score you would need – because some lenders don’t even credit score. They just have a look at your payment history and see if you fit their criteria.
But obviously the higher the score, the more chance you’ve got to be accepted.

Are there specific lenders who specialise in Buy to Let mortgages with bad credit?

Yes, but they’re not typically high street banks. They’re specialist lenders that focus on Buy to Let applicants with adverse credit histories. These lenders assess things on a case-by-case basis rather than use automated credit scoring.

This is where a mortgage broker can obviously really help, because they’ll have access to lenders who don’t advertise publicly. You may not find those lenders if you’re searching yourself.

What types of Buy to Let mortgages for bad credit are there?

You can get a fixed rate mortgage with bad credit, or interest only mortgages and tracker mortgages – where your monthly payments will go up and down. There are a few different options in terms of mortgage types and they are all available with bad credit.

How much deposit is required for a Buy to Let mortgage with bad credit?

With most lenders for Buy to Let mortgages, the golden number is a 25% deposit. But depending on the severity of your bad credit, it may be as high as 30% or even 40% to reduce the lender’s risk.

What are the affordability criteria for a Buy to Let mortgage with bad credit?

Unlike residential mortgages, where you need to earn a certain amount to borrow perhaps four or five times your income, a Buy to Let mortgage is calculated differently.

The size of the mortgage is based on the rental income you’re expecting to achieve, or the property’s already achieving. Lenders will want the rental income to cover at least 125% or 145% of the mortgage payment. Some lenders also set a minimum sole or joint income to qualify, as well.

There are a few different factors, but it’s more based on rental income than your personal income for a Buy to Let mortgage.

How will bad credit affect a joint Buy to Let mortgage application?

It just depends. If one applicant’s got good credit and a strong income, that can improve your chances. Some lenders will just focus on the stronger applicant, while others will consider the lowest score – it just depends, case by case. Again, it’s down to your broker to find the right deal for your circumstance

How can a mortgage broker help? Have you got anything else to add?

The biggest thing with Buy to Let mortgages is that they’re not advertised on the high street. Mortgage brokers can find specialist lenders who don’t advertise the rates.

We can match you with the right lenders for your credit profile and help you prepare an application to improve your chances of approval. Mortgage brokers are here to help you put in the right application.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

Approved by The Openwork Partnership on 11/04/2025