Bad Credit Mortgage Deposits — The Real Picture
The deposit required for a bad credit mortgage varies significantly depending on your specific credit history. It is not a single fixed figure. Lenders assess the type of credit issue its age and its severity to determine the minimum deposit they will accept.
As a general guide minor issues may only require 10% deposit with some specialist lenders. More severe issues typically require 15-25%. The good news is a larger deposit always improves your options.
Darryl Dhoffer — The Mortgage Geezer
20+ years in mortgages. Award-winning specialist. Featured in the Daily Express, FT Adviser, The Intermediary and Daily Mirror. I have helped hundreds of people across the UK who were told no by their bank — and I work with 65+ lenders including specialist adverse credit lenders you will not find on comparison sites.
When you contact me, you speak to me directly. No call centres. No being passed around. I personally review every case and respond within 2 hours.
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Frequently Asked Questions
How much deposit do I need with a CCJ? ›
Most specialist lenders require a minimum of 10-15% deposit for CCJ applications. With a larger deposit of 25% your options increase significantly. The age and amount of the CCJ also affects the minimum deposit. A small satisfied CCJ from 3 years ago may be accepted with a 10% deposit by some lenders; a large recent unsatisfied CCJ may require 25%+. Darryl will calculate exactly what you need.
How much deposit do I need with defaults? ›
For single small defaults some specialist lenders will consider 10% deposit. Multiple or large defaults typically require 15-25%. The age of the defaults is also important. Darryl will assess your specific default profile and advise on the minimum deposit needed.
Can I get a bad credit mortgage with a 5% deposit? ›
It is very difficult to get a mortgage with a 5% deposit and bad credit simultaneously. The two together significantly limit lender options. Some specialist lenders may consider it in very specific circumstances such as minor adverse credit from 3+ years ago with no CCJs or defaults. Darryl will give you an honest assessment.
Does a bigger deposit improve my bad credit mortgage options? ›
Yes significantly. A larger deposit reduces the lender risk and opens up more lenders and better rates. Going from 10% to 15% deposit can make a meaningful difference to available lenders. Going from 15% to 25% is often transformational bringing in lenders that would not consider you at a lower LTV.
Can I use gifted deposit money for a bad credit mortgage? ›
Yes. Many specialist lenders accept gifted deposits typically from a family member. The lender will require a signed gifted deposit letter confirming the money is a gift not a loan and will not need to be repaid. Darryl will advise on which lenders accept gifted deposits for your specific situation.
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The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the FCA No. 301173. Your home may be repossessed if you do not keep up repayments on a mortgage.
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Lender criteria, rates and deposit requirements quoted on this page are indicative and subject to change without notice. Individual circumstances vary. This page provides general information only and does not constitute regulated financial advice. Darryl Dhoffer is authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Access Financial Services Ltd, registered in England No. 04427489. Your home may be repossessed if you do not keep up repayments on your mortgage.
