Building Society Mortgage for Bad Credit: What to Expect

UK Mortgage Guide · Adverse Credit · 2026

Can You Get a Building Society Mortgage With Bad Credit?

Having missed payments, defaults, a County Court Judgment (CCJ) or an older debt problem does not automatically rule out getting a mortgage from a UK building society. But it can reduce the lenders and products available to you, increase borrowing costs and make the application more complicated.

The key question is not simply whether you have a low credit score. A building society will look at what happened, how recently it happened, whether the debt is settled, your current finances and whether the mortgage is affordable.

This guide explains which credit problems matter most, what real building society lending criteria say, how deposits and mortgage rates may be affected and the steps worth taking before applying.

Mortgage and financial safety notice: Your home may be repossessed if you do not keep up repayments on your mortgage. Building-society.org is independent and cannot approve mortgages, check your credit history or act as your mortgage broker. Do not send personal credit reports, bank statements or identification documents to this website.

Editorial review: 16 October 2026. Lending policies, interest rates, deposit requirements and mortgage products may change. The lender examples in this guide are criteria illustrations, not mortgage offers or approval promises.

Building Society Mortgage With Bad Credit: Quick Answers

Can you get a mortgage? Possibly. Some building societies consider certain historic or settled credit problems, subject to their published lending criteria.
Minimum credit score There is no universal UK mortgage credit-score number that guarantees approval across building societies.
Missed payments Older isolated missed payments may be easier to explain than repeated recent arrears.
Defaults The lender may examine the amount, age, account type and whether the default has been satisfied.
County Court Judgments Some lenders may consider satisfied CCJs. Recent or unsatisfied judgments often create much stricter restrictions.
Bankruptcy or IVA Recent or ongoing insolvency can severely limit eligibility. Some lenders consider applications only after specified discharge or completion periods.
Deposit A larger deposit may improve options, but it cannot override a lender’s absolute adverse-credit restrictions.
Where to start Check your credit reports, establish accurate dates and balances, then speak to an appropriately authorised mortgage adviser before submitting full applications.
Fast answer: A settled £300 utility default from several years ago is a different lending risk from an unsatisfied CCJ or missed mortgage payment last month. Building societies may treat those situations very differently. The exact history matters more than a generic label such as “bad credit”.

What Counts as Bad Credit for a UK Mortgage?

Mortgage lenders usually refer to this as adverse credit or an impaired credit history. It can include relatively minor problems such as an isolated missed payment or more serious financial events involving court judgments and insolvency.

A credit problem is not assessed in isolation. The lender looks at the full application, including your recent payment conduct, borrowing commitments, income and proposed deposit.

Credit history
What the lender may examine
Practical next step
One late payment
How late it was, when it happened and whether the account is now up to date.
Check the recorded status and explain any unusual circumstances accurately.
Repeated missed payments
Number, frequency, account types and how recently payments were missed.
Bring accounts up to date where possible and review affordability.
Default
Date registered, original debt, outstanding amount and settlement status.
Obtain settlement evidence and check the information recorded by credit agencies.
CCJ
Amount, judgment date, payment status and the lender’s specific restrictions.
Confirm the court record and whether the judgment is satisfied or eligible for cancellation.
Debt Management Plan
Whether the plan is active, previous missed payments and current financial commitments.
Discuss the arrangement with a debt adviser and mortgage specialist before applying.
IVA or bankruptcy
Start and completion or discharge dates, current status and any later credit problems.
Prepare official evidence and establish whether the lender’s waiting period has been met.
Previous repossession
When repossession occurred, shortfall debt and current financial recovery.
Seek specialist advice because lender restrictions can be substantial.
UK terminology: CCJ generally refers to a County Court Judgment in England, Wales and Northern Ireland. Scotland uses different debt-enforcement procedures and court terminology, including decrees. Always give the lender the correct legal details of your circumstances.

What Is the Lowest Credit Score for a Building Society Mortgage?

There is no single minimum credit score that applies across UK building societies. Credit reference agencies use their own scoring systems, while mortgage lenders have separate underwriting and affordability policies.

A person with a relatively low consumer credit score but no serious adverse history might be assessed differently from someone whose displayed score appears reasonable but who has a recent default.

Credit report The underlying record of borrowing accounts, repayments, defaults, searches, financial connections and relevant public information.
Consumer credit score An agency’s numerical assessment intended to help summarise elements of your credit profile.
Lender underwriting The mortgage provider’s own assessment of credit conduct, affordability, deposit, security and lending policy.
Do not rely on a headline score: a high score does not guarantee a mortgage, and a lower score does not automatically mean refusal. The full credit history and the individual building society’s lending rules matter.

Which Building Societies Consider Mortgages With Bad Credit?

Building societies have different approaches to adverse credit. Some consider particular historic problems under limited conditions. Others publish stricter rules and may reject applications with defaults or CCJs recorded within a specified period.

The following are real examples from published lender criteria. They are not rankings, general endorsements or claims that these lenders approve bad-credit mortgages for everyone.

What these examples show: Family Building Society can consider limited satisfied adverse-credit events within its criteria, while Accord’s normal criteria are stricter. Neither example means approval is guaranteed. A lender that cannot accept your specific history may still offer excellent products to people who meet its rules.

How Much Deposit Do You Need for a Bad Credit Mortgage?

For ordinary UK residential mortgages, some products are available with deposits as low as 5% to 10%, subject to eligibility. Borrowers with adverse credit may find that they need more equity or a larger deposit to access suitable lenders.

There is no nationwide rule requiring every borrower with bad credit to put down 15%, 20% or 25%. The deposit requirement depends on the lender, mortgage product, property and individual application.

Example: Buying a £240,000 Home

£240,000 Illustrative property price
£24,000 10% deposit
£36,000 15% deposit
£48,000 20% deposit
Deposit
Mortgage required
Loan-to-value
£24,000
£216,000
90% LTV
£36,000
£204,000
85% LTV
£48,000
£192,000
80% LTV

A larger deposit reduces the amount borrowed and may bring additional mortgage products into consideration. However, a lender that prohibits unsatisfied CCJs will not necessarily accept one simply because the borrower has a 20% deposit.

Do not borrow your deposit without disclosure. If deposit funds come from a family member, the lender may require evidence that the money is a genuine gift, or may assess the financial and legal implications of another arrangement. Taking an undisclosed personal loan for the deposit can create affordability and mortgage-fraud concerns.

Are Mortgage Rates Higher When You Have Bad Credit?

They can be. Applicants with significant adverse credit may have access to fewer mortgage products, higher rates, larger deposits or additional fees. Some applicants will not meet the criteria for a mortgage until their financial position improves.

The final price also depends on loan-to-value, mortgage term, property, lender pricing and whether the rate is fixed or variable.

Example: How a Higher Rate Changes Monthly Repayments

Consider an illustrative £180,000 repayment mortgage over 25 years. These rates are hypothetical and are not presented as current bad-credit mortgage offers.

Illustrative 5.00% mortgage

Approximately £1,052 per month

Assumes a constant rate and standard capital-and-interest repayments over 25 years.

Illustrative 6.50% mortgage

Approximately £1,215 per month

Uses the same mortgage balance and repayment term at a higher interest rate.

Monthly difference: approximately £163. This illustrates why even a modest change in mortgage pricing matters. Actual offers and their total costs depend on the product, fees, initial-rate period and follow-on terms.

Compare the Whole Mortgage Cost

Initial interest rate Check the rate you will pay during the introductory mortgage period.
Product fee A lower interest rate with a substantial arrangement fee may not be cheaper overall.
APRC Review the annual percentage rate of charge alongside the introductory rate and the intended time you expect to keep the product.
Early Repayment Charge Understand the cost of repaying early or changing products before the deal ends.
Avoid expensive promises: an advert offering “guaranteed mortgage approval” despite serious adverse credit should be treated cautiously. Genuine mortgage lending involves eligibility, affordability and property checks.

How to Check Your Credit Report Before Applying

Checking your own credit report is one of the most useful steps you can take before approaching a mortgage lender. It does not damage your credit score.

MoneyHelper identifies four UK credit reference agencies: Experian, Equifax, TransUnion and Crediva. Different agencies can hold different information, so checking more than one report can reveal issues you would otherwise miss.

What to Look for on the Report

Correct name and address history.
Accounts you recognise.
Current balances and repayment statuses.
Dates of any missed payments.
Default registration dates.
Satisfied or outstanding default balances.
CCJs and other relevant court records.
IVA, insolvency or debt relief information.
Financial associations with other people.
Recent credit applications and searches.
Electoral register information.
Possible identity-fraud indicators.
Soft search versus hard search: checking your own file is a soft search. Some mortgage eligibility tools and Agreements in Principle use soft searches, while full applications can involve hard searches. Ask which type will be used before proceeding.

Can You Get a Building Society Mortgage With a CCJ or Default?

Possibly, but the answer depends on when the problem occurred and what the lender’s current policy allows.

Mortgage Applications With a Default

A default generally indicates that a credit account was not maintained as agreed and the creditor recorded a serious repayment failure.

According to MoneyHelper, a default typically remains on the credit file for six years from the date it was recorded. Settling the debt does not automatically remove the accurate default early.

A settled historic default

  • Some lenders may consider it.
  • The amount and original account type can matter.
  • Older events may have less impact than recent ones.
  • Evidence of settlement can be helpful.
  • Other adverse-credit events can change the assessment.

A recent unsatisfied default

  • Often restricts the range of lenders.
  • May indicate an ongoing financial problem.
  • Can affect affordability and underwriting.
  • May require debt advice before further borrowing.
  • Some building societies exclude it under published policy.

Mortgage Applications With a CCJ

A County Court Judgment is a more serious credit event. Lenders can consider its value, date, status and the circumstances behind it.

For England and Wales, GOV.UK explains that paying a judgment in full within one month can allow it to be removed from the Register of Judgments, Orders and Fines. Paying later normally allows it to be marked as satisfied, while the record remains for six years.

Paying a CCJ does not guarantee mortgage acceptance. A lender may still restrict applications involving satisfied judgments, particularly if they were registered recently or exceed its policy limits.

What About Bankruptcy, an IVA or Debt Relief Order?

These are generally more serious adverse-credit circumstances. Some lenders require several years to have passed after bankruptcy discharge or IVA completion and may refuse applications while an arrangement remains active.

For example, Accord’s published standard criteria require bankruptcy to have been discharged for at least six years. Its criteria also contain separate requirements for completed IVAs and Debt Management Plans.

Do not assume a single six-year rule applies to every kind of insolvency or every building society. The relevant start date, completion or discharge date, legal status and lender policy must all be checked.

How to Improve Your Chances of Getting a Mortgage

There is no legitimate way to erase accurate adverse-credit history simply by paying a company to “repair” your score. But there are practical steps that can improve your financial position and the information lenders assess.

Correct inaccurate information Dispute incorrect accounts, addresses, balances or statuses through the credit reference agency and relevant creditor.
Keep current payments up to date Recent stable payment conduct helps demonstrate that previous problems are no longer continuing.
Reduce outstanding commitments Lower debt repayments may improve affordability, although the cost and practicality of repaying debts must be considered.
Avoid unnecessary applications Multiple hard credit searches over a short period can make a mortgage application more difficult.
Register to vote if eligible The electoral register can help lenders verify identity and address details.
Build a realistic deposit More deposit or equity can reduce borrowing requirements and loan-to-value.
Document historic problems Keep factual records explaining redundancy, reduced income, illness or other events where relevant.
Get debt advice if needed If payments are still unaffordable, dealing with the underlying debt problem may be more urgent than obtaining a mortgage.
Important: improving eligibility does not always mean taking out new credit. Applying for a credit card or loan merely to boost a score can be counterproductive, particularly shortly before a mortgage application.

How to Apply for a Building Society Mortgage With Bad Credit

The most effective approach is usually to establish which lenders can consider your circumstances before submitting a full mortgage application.

  1. Check your credit reports. Obtain the relevant statutory reports and identify adverse-credit records accurately.
  2. Record what happened. Make a factual list of missed payments, defaults, judgments or insolvency events and their dates.
  3. Check settlement status. Confirm which debts are paid, which remain outstanding and whether the credit records are correct.
  4. Review current affordability. Work out income, essential expenditure, regular debt repayments and the amount you can realistically commit to a mortgage.
  5. Calculate your deposit. Determine the loan-to-value and leave enough money for purchasing costs and a sensible emergency reserve.
  6. Find appropriate lender criteria. Check whether the building society can consider your type of adverse credit before requesting a full credit search.
  7. Consider a specialist mortgage adviser. Choose someone appropriately authorised and experienced in adverse-credit applications.
  8. Prepare supporting documents. Gather income, deposit and credit-history evidence requested for your situation.
  9. Discuss the Agreement in Principle. Ask whether the lender uses a soft or hard credit search and what the result actually means.
  10. Submit an accurate application. Provide the requested information honestly and check the mortgage illustration and offer before committing.
Do not hide previous credit problems. The lender may obtain credit information independently and ask about circumstances not fully reflected in a consumer credit score. Providing misleading information can lead to refusal and may have more serious consequences.

Mortgage Application Documents to Prepare

Passport, driving licence or accepted identification.
Proof of current UK address.
Recent payslips or income evidence.
Self-employed tax and accounts information if applicable.
Recent bank statements.
Deposit and source-of-funds evidence.
Current outstanding loan and credit balances.
Relevant credit reports.
Letters confirming debt settlement where applicable.
CCJ satisfaction or cancellation evidence if relevant.
Insolvency discharge or completion evidence if relevant.
Property and mortgage application details.

The lender may request additional documents. Only upload sensitive information through an approved secure lender or adviser service.

Should You Use a Mortgage Broker for Bad Credit?

An appropriately authorised mortgage adviser can be useful when your circumstances do not fit the standard online application process. Some building society products are available through intermediaries, and a broker may be able to check lender criteria before submitting a full application.

However, not every broker has access to every mortgage provider, and an adviser cannot guarantee approval.

What an adviser may help with

  • Reviewing the precise type and age of adverse credit.
  • Identifying lenders whose criteria may fit.
  • Explaining documentation requirements.
  • Comparing available rates and mortgage fees.
  • Checking affordability before a formal application.
  • Understanding when waiting may provide better options.

Questions to ask before using one

  • Are you FCA-authorised or working under an authorised firm?
  • Do you have experience with my particular credit problem?
  • Which lenders can you access?
  • Do you charge an adviser fee?
  • When does that fee become payable?
  • Will you explain any hard credit searches before proceeding?
Broker-fee warning: ask for a written explanation of the fee, refund conditions and the service being supplied. Be cautious of large upfront payments to firms promising guaranteed approval or claiming they can remove accurate credit records.

What If Your Building Society Mortgage Application Is Declined?

A declined application does not necessarily mean that every lender will refuse you. The reason could involve the credit record, affordability, income type, deposit, property or a lender-specific policy.

However, immediately applying to several more lenders is rarely the best next step.

Find the likely issue Ask the lender or adviser what can be explained about the decision and which credit agency was used.
Review the credit report Check for errors, inaccurate financial associations or an unexpected recent adverse event.
Recheck affordability Consider existing commitments, income evidence and the proposed monthly payment.
Review the lender’s criteria A rejection may result from a rule another lender handles differently.
Consider waiting Additional time with stable payments may improve options where recent adverse credit is the main problem.
Avoid repeated hard searches Discuss the next lender with an adviser before submitting another full application.

Can You Remortgage With Bad Credit?

Yes, in some circumstances. But changing lender can be harder if adverse credit has appeared since your existing mortgage was approved.

If you already have a mortgage and are up to date with repayments, a product transfer with the existing lender may be simpler than applying to a new provider. Under FCA rules, certain eligible like-for-like switches can proceed without a fresh affordability assessment.

Question
Product transfer
Remortgage
Mortgage lender
Stay with current lender.
Move to a different provider.
Affordability
A new assessment is often unnecessary for an eligible like-for-like switch.
The new lender generally performs its own affordability assessment.
Adverse credit
Existing-customer terms and any arrears restrictions still matter.
The new lender applies its own credit criteria.
Main limitation
Choice may be limited to the existing lender’s product range.
May involve more checks, legal work and additional costs.
Existing borrower tip: if your current fixed deal is ending and your credit history has deteriorated, contact your lender about a product transfer before assuming you must remortgage elsewhere or move onto a higher Standard Variable Rate.
Not a guaranteed right: an existing lender may apply conditions to a product transfer, particularly where mortgage arrears, changes in the loan or other complex circumstances are involved.

Other Circumstances That Can Affect a Bad Credit Mortgage

Self-Employed Borrowers

Self-employed applicants can obtain mortgages, but lenders generally require reliable income evidence. Recent adverse credit alongside fluctuating income can make the underwriting more difficult.

Prepare the tax and accounting information requested by the lender and avoid assuming that business turnover is the same as qualifying personal income.

Joint Mortgage Applications

A joint application is assessed using the financial position of the applicants. One person’s strong credit history does not automatically cancel out another person’s recent default, CCJ or insolvency.

A joint mortgage also creates financial obligations for the borrowers. Discuss the legal and credit consequences before using a second applicant merely to improve the application.

Shared Ownership

Shared Ownership can reduce the amount of property being purchased initially, but the mortgage lender still checks the applicant’s credit and affordability.

The budget must include mortgage payments, rent on the unsold share, service charges and other housing costs. A smaller mortgage does not automatically make someone with adverse credit eligible.

Family Assistance With a Deposit

A family member may be able to provide a gifted deposit or participate in an eligible family-assisted mortgage. However, lending conditions still apply, and the arrangement may put family savings or property security at risk.

Do not confuse financial help from family with automatic acceptance of an adverse-credit application.

Payday Loans and Recent Short-Term Borrowing

Some mortgage lenders examine the history of payday loans and other high-cost short-term credit. Accord, for example, publishes separate payday-loan rules, including conditions relating to settlement dates and defaults.

The presence of a historic payday loan does not create one uniform outcome across all building societies.

When It May Be Better to Delay Your Mortgage Application

Applying immediately is not always the strongest financial decision. Waiting can be worthwhile if you are close to a relevant lender-criteria deadline, need to correct your credit records or cannot currently afford the repayments comfortably.

Reasons to consider waiting

  • Recent repeated missed payments.
  • Unresolved or inaccurate credit records.
  • Active serious arrears.
  • An unsatisfied CCJ that restricts lender options.
  • Insufficient emergency savings.
  • Unstable income or unaffordable existing debt repayments.
  • Current insolvency restrictions.

Signs preparation is improving

  • Current accounts are being maintained as agreed.
  • Credit-report errors have been corrected.
  • Historic defaults are accurately marked satisfied.
  • Affordability has improved.
  • A realistic deposit has been accumulated.
  • Required insolvency documents are available.
  • An adviser has identified potentially suitable lending criteria.
Waiting is not automatically better: property prices, mortgage rates, personal circumstances and lending rules may change. Compare the costs and potential benefits of delaying with the realistic options available today.

Free Debt Advice If You Are Still Struggling With Payments

If you are currently falling behind on essential bills, mortgage payments or other debts, dealing with the financial pressure should take priority over trying to obtain another large credit commitment.

Free and confidential support is available through established UK debt-advice services.

If you already have a mortgage and expect to miss a payment: contact your lender directly as early as possible. Do not cancel the Direct Debit or agree to a reduced payment without discussing an appropriate arrangement.

Common Mistakes When Looking for a Bad Credit Mortgage

Searching for guaranteed approval Legitimate mortgage lenders assess credit, affordability and the property before deciding.
Applying to many lenders immediately Repeated hard credit searches can make an already difficult application more complicated.
Using only one credit score A lender may examine reports and information that are not captured by the score you see.
Assuming paid defaults disappear Accurate default records normally remain for six years from registration, even after settlement.
Ignoring court-record status An incorrect or outdated CCJ status should be checked before applying.
Overstating income Lenders verify earnings and financial commitments. Accurate information is essential.
Paying for unnecessary credit repair Credit-report corrections and statutory reports can be obtained through official routes without paying a credit-repair business.
Choosing only by monthly payment Compare mortgage fees, total interest, term, Early Repayment Charges and repayment affordability.

Checklist Before Contacting a Building Society or Mortgage Broker

Credit reports requested.
Personal details checked for errors.
Recent missed-payment history identified.
Defaults and dates recorded.
CCJs and settlement status checked.
Insolvency details established if relevant.
Current unsecured debts reviewed.
Income evidence prepared.
Household budget calculated.
Deposit and source of funds confirmed.
Loan-to-value calculated.
Property purchase or remortgage goal defined.
Potential lenders’ criteria checked.
Broker authorisation verified.
Adviser fees explained in writing.
Credit-search type confirmed before applying.
Mortgage illustration understood.
Repayment affordability tested.

Related Building Society Mortgage Guides

These published Building-Society.org resources can help you understand individual providers and other mortgage structures. They are not recommendations of lenders that will accept your particular credit history.

Comparison reminder: a building society’s general mortgage guide tells you about its products and services. For adverse credit, you must also check the specific underwriting criteria that apply to your application.

Official Sources and Research References

These sources provide guidance on credit reports, court judgments, mortgage refusals and the differing policies of individual lenders.

Important 2026 Regulatory Context

In June 2026, the FCA consulted on targeted mortgage rule changes intended to improve access for creditworthy consumers, including some people with past credit difficulties. The consultation closed in July 2026.

A consultation proposal should not be treated as a live entitlement to mortgage approval. Borrowers must still meet the requirements actually in force and the relevant lender’s lending policy.

Last editorial review: 16 October 2026. Criteria examples were checked against published lender information. Credit and lending policies can be revised or withdrawn, and actual decisions depend on individual circumstances.

Independent Mortgage, Financial and Privacy Notice

Building-society.org is an independent informational website. It is not a mortgage lender, building society, financial adviser, credit reference agency, debt charity or regulator.

This guide does not provide personalised mortgage advice, evaluate your creditworthiness, guarantee a mortgage or arrange a credit application. Examples of published lending criteria do not constitute recommendations to apply with the named lenders.

Use an appropriately FCA-authorised mortgage adviser when you need help choosing a mortgage. If you are experiencing debt problems, free debt advice may be more appropriate than taking on additional borrowing.

Final mortgage warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Borrowing at a higher interest rate can increase monthly costs and total interest. Only commit to a mortgage you can realistically afford, including if your circumstances or interest rates change.

Building Society Mortgage With Bad Credit FAQs

1. Can I get a building society mortgage with bad credit?

Possibly. Some UK building societies consider certain historic or settled credit problems, but acceptance depends on the specific lender’s criteria, current credit history, income, affordability, deposit and property. Approval is not guaranteed.

2. Which building societies consider bad credit?

Family Building Society publishes residential criteria allowing consideration of certain satisfied CCJs and limited settled utility or communications defaults. Accord Mortgages, part of the Yorkshire Building Society Group, has stricter standard adverse-credit requirements but may discuss some cases outside policy. Neither lender guarantees approval.

3. What is the minimum credit score for a building society mortgage?

There is no universal minimum credit score. Building societies use their own lending policies and assess credit conduct, affordability, deposit, income and other factors. The score shown by a credit reference agency does not guarantee acceptance or refusal.

4. Can I get a mortgage with missed payments?

Some lenders may consider isolated or older missed payments. Recent repeated missed payments, particularly mortgage arrears, can create more serious restrictions. The number, age, account type and current repayment status all matter.

5. Can I get a building society mortgage with a CCJ?

It may be possible with certain satisfied CCJs, depending on the lender’s criteria. Unsatisfied or recent judgments often make approval more difficult. Check the judgment date, amount and satisfaction status before applying.

6. How long does a default stay on my credit report?

A default normally remains on a UK credit report for six years from the date it was registered. Settling the debt does not automatically remove an accurate default early, although its status should be updated to show settlement.

7. How much deposit do I need for a bad credit mortgage?

There is no universal deposit requirement for bad-credit mortgages. Some ordinary UK products require deposits from 5% to 10%, but adverse credit may restrict eligible products or require greater equity. A larger deposit does not override absolute lending exclusions.

8. Can I get a mortgage after bankruptcy or an IVA?

Possibly, after meeting the relevant lender’s completion or discharge conditions. For example, Accord’s standard criteria require bankruptcy to have been discharged for at least six years and specify separate requirements for completed IVAs. Current or recent insolvency can significantly restrict eligibility.

9. Should I use a mortgage broker if I have bad credit?

An appropriately authorised adviser with experience in adverse-credit mortgages may help identify relevant lending criteria and avoid unsuitable applications. Verify the firm’s FCA status, lender access and fees before using its services.

10. What should I do if my mortgage application is declined?

Find out what you can about the reason, review your credit reports and affordability, and avoid immediately submitting multiple new applications. Correct inaccurate information and consider appropriate mortgage or debt advice before deciding whether to apply elsewhere or wait.

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