Help to Buy Mortgages with Bad Credit

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

STOP PRESS – 8th March 2023 – Help To Buy Wales extended to 31st March 2025.

If you have a poor credit history, I know of 4 lenders who would consider you for a mortgage under H2B Wales scheme.

A poor credit history does not mean you cannot get a Help to Buy mortgage and with as little as a 5% deposit owning your own home may be closer than you think.

What is the Help to Buy scheme?

The government’s Help to Buy scheme aims to help first time buyers to buy a new build property while only having to save up a 5% deposit. The scheme includes an equity loan of 20% of the property value (up 40% in London), which gives prospective home buyers a 25% or 45% deposit overall. 

How does it work?

If you’re looking to buy a new build property costing £250,000, the Help to Buy scheme would provide an equity loan of £50,000 (20%) and you would be expected to provide £12,500 (5%), giving you a total deposit of £62,500 (25%). You would then need to take out a Help to Buy mortgage for the remaining £187,500 (75%).

Who can get a Help to Buy mortgage?

Most people are eligible to apply for the Help to Buy mortgage scheme if they meet the following criteria:

  • You are a first-time buyer
  • You do not own any other properties
  • The home you want to buy is a new build
  • The purchase price is not higher than £600,000
  • You have a 5% deposit which can be a gift from your family

Can you get a Help to Buy mortgage with bad credit?

Yes you can. A few years ago, there were very few lenders who would consider offering a Help to Buy mortgage to someone with poor credit. Today, I work with 8 different specialist mortgage lenders who can provide Help to Buy mortgages for those with bad credit. 

  • Missed and late payments
  • Defaults and CCJs
  • Debt management plans
  • IVAs
  • Mortgage arrears
  • Bankruptcy

Before applying for a Help to Buy mortgage, it’s important that you check your credit file to understand whether you have any issues, such as missed payments, defaults or CCJ’s for example. You could look at one of the free reports from Equifax’s ‘Clearscore’ or TransUnion’s ‘Credit Karma’ or use Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three.

Can you get a Help to Buy mortgage with defaults?

I know of several lenders who can provide Help to Buy mortgages with defaults. I’ve helped many clients who did not think it would be possible to get a mortgage with defaults on their credit file. 

The particular circumstances of the defaults will determine how likely you are to be acceptable for a Help to Buy mortgage, such as how long ago the default was registered, how much it was worth and whether it has been repaid, but in most cases I am able to help.

Can you get a Help to Buy mortgage with a CCJ?

I’ve helped a lot of clients who happened to have a CCJ registered on their credit file to get a Help to Buy mortgage. I work with multiple specialist lenders who can provide Help to Buy mortgages with CCJs.

As with defaults, the details of the CCJ are important. If it was registered a month ago, you are extremely unlikely to be accepted. However for CCJs which are over 12 months old, I can certainly help.

Can you get a Help to Buy mortgage after bankruptcy?

Getting a Help to Buy mortgage after bankruptcy may seem like an impossible task, but I’ve helped clients do just that. I work with one particular adverse credit lender who can provide a Help to Buy mortgage for those who are discharged bankrupt.

The lender will need to understand how the bankruptcy came about and what the current status is before being able to consider you for a Help to Buy mortgage.

Can you get a Help to Buy mortgage with an IVA?

I know of a single adverse mortgage lender who is able to provide Help to Buy mortgages to those with an IVA. Help to Buy mortgages can be offered whether the IVA is completed or still active provided it is cleared before completion.

As with all credit problems, the mortgage lender will need to understand the reasons for the IVA and the current status.

Why you should use a broker for a Help to Buy mortgage with poor credit

Getting a Help to Buy mortgage with bad credit is not an easy task, due to the limited number of lenders available. It can be almost impossible to get a Help to Buy mortgage with poor credit from a high street lender.

With this in mind, it’s very important to get the application right first time. The best way to do that is to use a specialist bad credit mortgage broker for your Help to Buy mortgage, such as myself.

For more information on Help to Buy mortgages with bad credit, please call me 01494 526400 or complete my online enquiry form.

For first time buyers in Scotland, I can also help with First Home Fund mortgages with bad credit.

Help to Buy Mortgages with Bad Credit

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

STOP PRESS – 8th March 2023 – Help To Buy Wales extended to 31st March 2025.

If you have a poor credit history, I know of 4 lenders who would consider you for a mortgage under H2B Wales scheme.

A poor credit history does not mean you cannot get a Help to Buy mortgage and with as little as a 5% deposit owning your own home may be closer than you think.

What is the Help to Buy scheme?

The government’s Help to Buy scheme aims to help first time buyers to buy a new build property while only having to save up a 5% deposit. The scheme includes an equity loan of 20% of the property value (up 40% in London), which gives prospective home buyers a 25% or 45% deposit overall. 

How does it work?

If you’re looking to buy a new build property costing £250,000, the Help to Buy scheme would provide an equity loan of £50,000 (20%) and you would be expected to provide £12,500 (5%), giving you a total deposit of £62,500 (25%). You would then need to take out a Help to Buy mortgage for the remaining £187,500 (75%).

Who can get a Help to Buy mortgage?

Most people are eligible to apply for the Help to Buy mortgage scheme if they meet the following criteria:

  • You are a first-time buyer
  • You do not own any other properties
  • The home you want to buy is a new build
  • The purchase price is not higher than £600,000
  • You have a 5% deposit which can be a gift from your family

Can you get a Help to Buy mortgage with bad credit?

Yes you can. A few years ago, there were very few lenders who would consider offering a Help to Buy mortgage to someone with poor credit. Today, I work with 8 different specialist mortgage lenders who can provide Help to Buy mortgages for those with bad credit. 

  • Missed and late payments
  • Defaults and CCJs
  • Debt management plans
  • IVAs
  • Mortgage arrears
  • Bankruptcy

Before applying for a Help to Buy mortgage, it’s important that you check your credit file to understand whether you have any issues, such as missed payments, defaults or CCJ’s for example. You could look at one of the free reports from Equifax’s ‘Clearscore’ or TransUnion’s ‘Credit Karma’ or use Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three.

Can you get a Help to Buy mortgage with defaults?

I know of several lenders who can provide Help to Buy mortgages with defaults. I’ve helped many clients who did not think it would be possible to get a mortgage with defaults on their credit file. 

The particular circumstances of the defaults will determine how likely you are to be acceptable for a Help to Buy mortgage, such as how long ago the default was registered, how much it was worth and whether it has been repaid, but in most cases I am able to help.

Can you get a Help to Buy mortgage with a CCJ?

I’ve helped a lot of clients who happened to have a CCJ registered on their credit file to get a Help to Buy mortgage. I work with multiple specialist lenders who can provide Help to Buy mortgages with CCJs.

As with defaults, the details of the CCJ are important. If it was registered a month ago, you are extremely unlikely to be accepted. However for CCJs which are over 12 months old, I can certainly help.

Can you get a Help to Buy mortgage after bankruptcy?

Getting a Help to Buy mortgage after bankruptcy may seem like an impossible task, but I’ve helped clients do just that. I work with one particular adverse credit lender who can provide a Help to Buy mortgage for those who are discharged bankrupt.

The lender will need to understand how the bankruptcy came about and what the current status is before being able to consider you for a Help to Buy mortgage.

Can you get a Help to Buy mortgage with an IVA?

I know of a single adverse mortgage lender who is able to provide Help to Buy mortgages to those with an IVA. Help to Buy mortgages can be offered whether the IVA is completed or still active provided it is cleared before completion.

As with all credit problems, the mortgage lender will need to understand the reasons for the IVA and the current status.

Why you should use a broker for a Help to Buy mortgage with poor credit

Getting a Help to Buy mortgage with bad credit is not an easy task, due to the limited number of lenders available. It can be almost impossible to get a Help to Buy mortgage with poor credit from a high street lender.

With this in mind, it’s very important to get the application right first time. The best way to do that is to use a specialist bad credit mortgage broker for your Help to Buy mortgage, such as myself.

For more information on Help to Buy mortgages with bad credit, please call me 01494 526400 or complete my online enquiry form.

For first time buyers in Scotland, I can also help with First Home Fund mortgages with bad credit.

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Hentschel – 29th May 2024

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Anon – 4th March 2024

Steven and Sue have been absolutely wonderful throughout the whole mortgage application process. Even when we were unsuccessful with our first application which left us panicking, Steven remained calm and professional, informed us there were plenty of other options and worked quickly on a new application suited to our needs. Steven would answer his phone efficiently and if he missed us, he would call back immediately, something which can be quite rare these days. We would recommend Steven and Sue to anyone that maybe struggling with the whole mortgage process, especially the self employed, they took all the stress from us and deserved every single penny we payed them. We will absolutely be returning to Steven and Sue in the future and only wish we had found them sooner. We found them to be invaluable and an absolute pleasure to deal with, they are the reason we can finally sleep well at night! Thank you both again.

Oldham – 22nd February 2024

Helpful and helped us in finding mortgage with suitable interest rates given our adverse credit at the time

Kunda – 15th February 2024

I have used Steve twice now and both times he has been professional and has always listened to me, which was very reassuring when I was considering not buying anymore and giving up on the process.

Anonymous – 6th February 2024

Steve and Sue have been fantastic, they worked hard to get our application pushed through before Christmas and were on hand and very responsive to any questions that we had regarding our mortgage application. I would highly recommend.

Martin – 2nd January 2024

I have felt very well looked after throughout this process, and advocated for, to meet my individual financial needs. The communication between Steven, Sue and I has been of the highest standard, and I could not have asked for more. I was treated without prejudice, and with understanding, and I am so happy that I have been able to buy a home which my daughter and I can now settle into, and start a new chapter. Thank you so much Steven and Sue!

Hentschell – 21 November 2023

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