Can I get a buy to let mortgage with bad credit?

Yes, you can get a buy to let mortgage with bad credit. While mainstream lenders may decline you, specialist adverse credit BTL lenders consider applications with CCJs, defaults, missed payments, and even IVAs or bankruptcies. Expect higher deposits (25-40%) and higher rates than clean credit landlords.

What credit issues do BTL lenders accept?

Different lenders have different tolerances. Many accept: satisfied CCJs over 2 years old, defaults over 12 months, late payments, and low credit scores. Fewer will consider recent CCJs, active defaults, current DMP/IVA, or bankruptcy discharged within 3 years. Specialist lenders cast the widest net.

How much deposit do I need for adverse credit BTL?

Typically 25-40% deposit, compared to 15-25% for standard BTL. The worse your credit history, the higher deposit required. Some lenders with severe adverse criteria may need 35-40% to offset their risk. A larger deposit also helps secure better rates.

Are rates much higher with bad credit?

Yes, expect rates 1-3% higher than mainstream BTL rates. For example, if standard BTL rates are 5%, adverse credit rates might be 6-8% depending on the severity of credit issues. However, rates have become more competitive as more specialist lenders enter the market.

Can I use a limited company for adverse credit BTL?

Yes, and it can sometimes help. Some lenders are more flexible with limited company BTL applications because they assess the company (new entity, clean credit) alongside personal credit. However, personal guarantees are typically required, so your credit history is still relevant.

Adverse Credit Buy to Let Mortgages

Get a BTL mortgage with CCJs, defaults, or poor credit history - specialist lenders for landlords with adverse credit

Can you get a buy to let mortgage with adverse credit?

Yes, you can get a buy to let mortgage with adverse credit. Specialist lenders consider landlords with CCJs, defaults, missed payments, IVAs, and even bankruptcies. You'll typically need a larger deposit (25-40% vs 15-25% standard) and pay higher interest rates (1-3% above market). The rental income must cover mortgage payments by 125-145% at a stress-tested rate. Many landlords with credit issues successfully finance rental properties through specialist adverse credit BTL lenders.

Specialist Lenders

Dedicated adverse credit BTL lenders who assess each case individually rather than auto-declining

25-40% Deposit

Higher deposits offset lender risk - the better your deposit, the better rates available

Rental Coverage

Rent must cover 125-145% of mortgage payment - strong rental yield can offset credit issues

Credit Issues and BTL Approval Likelihood

Credit Issue	Timing	Approval Likelihood	Typical Deposit
Missed payments	12+ months ago	Good	25%+
Satisfied defaults	12+ months ago	Good	25-30%
Satisfied CCJs	24+ months ago	Good	25-30%
Recent CCJs	Under 12 months	Possible	35%+
DMP (current)	Active	Limited	35-40%
IVA (discharged)	3+ years ago	Possible	35-40%
Bankruptcy	3+ years discharged	Limited	40%+

Note: Every lender has different criteria. Some accept issues others won't - specialist broker advice is essential.

Key Factors for Adverse Credit BTL

Time Since Issues

Older credit issues are viewed more favourably:

6+ years: Most issues don't appear on credit file
3+ years: Many lenders will consider
1-2 years: Specialist lenders only
Under 12 months: Limited options

Value and Satisfaction

Size and status of credit issues matter:

Satisfied/paid defaults viewed better
Small value CCJs (under £500) less serious
Active/unsatisfied issues more problematic
Multiple recent issues compound difficulty

Adverse Credit BTL Options

Personal Name BTL

Traditional buy to let in your own name. Lenders check your personal credit history directly. Good for single properties and simpler tax situations.

Best for: 1-3 properties, straightforward adverse credit

Limited Company BTL (SPV)

Buy through a Special Purpose Vehicle company. The company has its own clean credit history, though personal guarantees mean your credit is still checked. Can offer more flexibility with some lenders.

Best for: Portfolio landlords, higher-rate taxpayers, longer-term strategy

Learn more about limited company BTL →

HMO / Multi-Unit BTL

Houses in Multiple Occupation often generate higher yields, which can help meet rental coverage requirements despite higher rates. Some specialist lenders focus on HMOs.

Best for: Experienced landlords, high-yield strategy

Improving Your Chances

Larger Deposit

More equity = lower LTV = lower risk. 35-40% deposit opens more doors than 25%.

Strong Rental Yield

Properties with high rental coverage (150%+) offset credit risk in lender's eyes.

Landlord Experience

Existing portfolio demonstrates competence. First-time landlords with adverse credit face more scrutiny.

Clear Recent Credit

12-24 months of clean credit since last issue shows improved financial management.

Satisfy Outstanding Issues

Paying off outstanding CCJs/defaults before applying improves options significantly.

Specialist Broker

Adverse credit BTL is complex - a specialist broker knows which lenders will consider your specific situation.

Common Questions About Adverse Credit BTL

Will it affect my residential mortgage?

BTL mortgages are assessed separately, though lenders see your overall debt. Having a residential mortgage you pay reliably can actually help demonstrate creditworthiness.

Can I remortgage an existing BTL with adverse credit?

Yes, remortgaging is often easier than new purchases if you have equity built up and a good payment history on the current mortgage.

Do lenders check both applicants' credit?

Yes, for joint applications both applicants' credit histories are checked. Sometimes applying in the name of the partner with better credit can help.