GUIDES
What Is A Bad Credit Score? GoMortgage®
and what it means for your mortgage application.
In the UK, your credit score is a quick-view rating of how you’ve handled credit and debt in the past, which lenders use to judge how much of a risk you are. Higher scores generally show you as a lower risk; lower scores indicate there’s been trouble (missed payments, defaults, credit issues).
Important to know: there is no universal “pass/fail” credit score that applies to all lenders and all mortgages. Each lender sets its own criteria — so what’s “bad” for one could be seen as acceptable for another.
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What counts as a “Bad Credit Score” in the UK - Rough Benchmarks
What “Bad Credit” Typically Means to Lenders
If your credit report is weak, lenders may:
- View you as higher risk – which might lead to higher interest rates, or being offered smaller amounts.
- Ask for a larger deposit or lower Loan-to-Value (LTV) — e.g. 15–25% instead of 5–10%.
- Require proof of strong income and affordability — more documentation, stricter checks.
- Limit choices – maybe only specialist or “adverse credit” mortgage products rather than standard high-street deals.
That said – bad credit doesn’t automatically shut the door. There are routes to getting a mortgage for people with lower scores.
Access Your Credit Report
Knowing exactly what lenders see is the first step. Checkmyfile lets you view your full credit picture across all three UK agencies in one place, helping you spot issues, track progress, and avoid surprises before you apply.
What Can Affect Your Credit Score & Lead to “Bad Credit”
Several behaviours or events tend to drive a score down, or prevent it being high — and these are the things lenders will look at closely:
- Missed or late payments, defaults, arrears, County Court Judgments (CCJs) or bankruptcy history.
- High levels of debt relative to income – credit cards, loans, overdrafts that remain open or maxed.
- Short credit history or lack of credit history – if you’ve never taken out credit or loans, lenders may have no track record to judge.
- Recent applications for credit — many hard searches over a short period can signal financial stress/risk.
Inconsistent address history or job instability — lenders like to see stability.
Can You Still Get a Mortgage With a Bad Credit Score? Yes - But It’s Not Guaranteed.
- There are specialist lenders and so-called “bad-credit mortgages” designed to help those with lower scores or adverse history.
- You’ll likely need to accept a higher deposit or downpayment, maybe a higher interest rate, possibly a higher monthly repayment commitment – but it’s often possible.
- A solid income, stable employment/self-employment, and low existing debt improve your chances even with a weaker score.
- In many cases a mortgage broker who knows the “adverse credit” market (like GoMortgage) can present your case more effectively – increasing the odds of acceptance.
What to Do If Your Credit Score is Low - Steps to Improve or Work Around It
If your credit history isn’t great, there are smart things you can do before applying:
- Check your credit reports with all major agencies (Experian, Equifax, TransUnion) – mistakes or outdated info can drag down your score.
- Pay all bills on time (utilities, credit cards, loans, etc.) — consistent on-time payment history helps rebuild trust.
- Reduce outstanding debts — the lower your debt-to-income ratio, the better you look to lenders.
- Save a larger deposit – a bigger deposit reduces lender risk and increases your chance of acceptance even with a lower score.
- Use a specialist broker – someone experienced in bad-credit cases can help pick suitable lenders and package your application properly.
Be honest and transparent – explain any past credit incidents (late payments, defaults, gaps, etc.) and show how your financial situation has improved – lenders often respond better to honesty than surprises
How GoMortgage Works With Bad Credit Clients - Our Approach
At GoMortgage, we believe bad credit doesn’t have to mean no mortgage. Here’s how we approach it:
- We look beyond the credit score – deposit size, income, affordability, source of income (employment, self-employed, retained profits), property type.
- We match you with lenders who are open to “non-standard” cases – those who specialise in adverse-credit or “near-prime” mortgages.
- We help you prepare the strongest possible application – clear income documentation, deposit/equity evidence, affordability stress-test, honest disclosure.
- We advise on how to rebuild credit if needed – small changes now can improve your standing by the time you apply.
We give realistic expectations – higher deposit, possibly higher rate – but often within reach for a determined borrower.
Final Thoughts - A “Bad” Credit Score Is Not the End - Just a Hurdle
If you want help checking your credit, improving your financial profile, or exploring mortgage options for “imperfect credit” – call GoMortgage on 01253 935050. We’re not here to judge – we’re here to help get you home.
Speak With A Mortgage Advisor today
Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
Author: Chris Days - Gomortgage
- 5 Mins
- Updated: Nov 17th 2025
Frequently Asked Questions
What types of properties can I buy with a commercial mortgage?
Commercial mortgages can be used to purchase or refinance offices, retail units, warehouses, industrial buildings, mixed-use properties, hospitality venues, and other business-focused premises.
Do I need to be an established business to apply?
Not always. Many lenders work with both established businesses and new ventures, but eligibility will depend on factors like credit history, financial projections, business performance, and the property’s potential income.
How much deposit do I need for a commercial mortgage?
Commercial mortgages typically require a deposit of 20–40% of the property value, depending on the lender, your financial strength, and the risk associated with the property.
What documents will I need when applying?
Most lenders require business accounts, proof of income, bank statements, identification, details of the property, and in some cases, a business plan or future revenue projections.
Are commercial mortgage rates higher than residential mortgages?
Yes, commercial rates are usually higher because lenders see commercial borrowing as higher risk. However, rates vary widely depending on your business finances, credit profile, deposit size, and property type.
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Speak With A Mortgage Advisor Today.
Contact our friendly mortgage advice team. Sound mortgage advice from the experts at GoMortgage.
