Joint Mortgage Bad Credit

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

Can you get a joint mortgage if both or one applicant has bad credit?

You can, but it depends on the severity and when the event was recorded. It’s possible, but there can be a few different variations of how and when you will get accepted.

Lenders assess both applicants’ credit histories. Some will focus on the stronger applicant, while many others base the decision based on the worst applicant in terms of credit.

So, if only one person has bad credit and you’re applying jointly, it can improve your chances, especially if the other person has a stronger profile.

What types of bad credit affect a joint mortgage application?

Not all bad credit is treated equally. Some issues have a bigger impact than others. Lenders will consider County Court Judgements (CCJs) although small, settled CCJs may get overlooked. Larger, more recent ones may be more of a problem.

With Individual Voluntary Arrangements (IVAs), some lenders want these to have been finished for three to six years.

Some smaller defaults may not be an issue with lenders, but more recent ones, again, can affect your chances. If you’re currently in a debt management plan, there may be options, but they could be limited, as many high street lenders wouldn’t accept you.

There’s also bankruptcy and repossessions, which are more severe, but some lenders will consider them. With missed payments, one or two might not be an issue, but more frequent missed payments can indicate a trend and lenders may see this as a problem.

Lenders don’t really like Payday Loans, especially recent ones. So quite a few different factors could cause an issue. But the older they are, and if they’re settled, the better your chances of being accepted.

Are there specific lenders that deal with joint mortgages with bad credit?

Yes, but while high street banks may be more strict than specialist bad credit lenders, it could be that you still fit within a high street bank. Speaking to a mortgage broker and discussing your individual case will be advantageous in getting you accepted.

Does being married make a difference when applying for a joint mortgage with bad credit?

Legally, no. Mortgage applications are based on financial profiles and your marital status. However, some lenders prefer married couples because they assume there’s more financial stability. If you’re unmarried, but financially stable, though, it won’t negatively affect your chances.

Can I still get a joint mortgage if I’ve had previous bankruptcy or repossession?

Yes. Most lenders would need a minimum waiting period of three to six years after bankruptcy or repossession before considering your application. If you’ve taken steps to rebuild your credit, speaking to a broker that can access specialist lenders will help.

What if I’ve been declined for a mortgage with bad credit previously? What happens next?

Being declined isn’t definitely the end of the road, but you don’t want to repeatedly apply and get rejected. You need to find out why you’ve been declined – there’s often something on your credit file that’s causing it.

Look at your credit report and speak to a broker or specialist for feedback on why they think you’re getting declined. We can then look at how to fix it, to improve your score and your mortgage chances.

You can definitely reapply, but we wouldn’t encourage you to do multiple applications as that can affect your score.

What if I’m a First Time Buyer and have bad credit? Will this affect me getting a joint mortgage?

First Time Buyers with bad credit can still get a joint mortgage, but the options may be more limited. Some lenders prefer applicants with previous mortgage experience, but specialist lenders will consider First Time Buyers.

Having a larger deposit, showing stable income and applying with a partner who’s got good credit can all help.

Do we need a larger deposit for a joint mortgage with bad credit?

It just depends what the events were. Most lenders would require between 3% and 10% deposit for a standard mortgage. There is only one lender at the moment (in March 2025) offering a 3% deposit. Mostly you will need 5% to 10%.

But with bad credit, you may need 15% to 30% to reduce the lender’s risk, although we’ve had clients with bad credit who have still been agreed with a 5% deposit. Speaking to a broker will help you with that.

What is the minimum credit score required for a joint mortgage with bad credit?

We’re asked this question many, many times by clients. It’s not an easy answer. Some lenders will accept scores as low as 200, but that’s going to come with a larger deposit of 20% or 30%.

Others require scores of over 500 or 600. Lenders never tell us what their internal score limits are. It’s more about what’s on your file and when it happened that will influence a mortgage decision. But again, speak to a broker for advice on your specific situation.

Can we use a guarantor for a joint mortgage if we have bad credit?

A guarantor mortgage allows a family member to back the loan and improve your chances of approval. They would cover your payments if you can’t make them – although hopefully you wouldn’t ever be in that position.

A guarantor’s savings could also be used as security on the property. Some lenders require the guarantor to have good credit as well. It is definitely an option if you’re not able to get anything else.

How long do I have to wait after improving my credit score before applying for a joint mortgage?

I’d say ideally, you’re looking at probably six to 12 months for it to improve. This allows for changes to happen on your file. If there was an error and you’re getting items removed, it can take a few months for that to happen.

It might be that there’s an event that is due to drop off soon, which will dramatically improve your chances. It just depends what’s on your file and when that event is due to disappear – or reach a certain period of time.

Some lenders, for example, won’t accept any defaults or CCJs within the past three years. If that’s just a few months off, it may be worth waiting to potentially go with a high street lender.

How can a mortgage broker help here? What else do we need to know?

Bad credit is such a big topic, and all the lenders have different criteria around it – so it’s really complex. If you’re trying to have a look at it yourself, you’ll probably just get lost.

Speaking to a broker is the way to find the right deal at the right time. It can even be worth speaking to a few brokers and getting different opinions on how they can help.

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

Approved by The Openwork Partnership on 11/04/2025.