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Bad credit mortgages and the Help To Buy scheme

Got Bad Credit but need a Help to Buy Mortgage?

  • Missed credit card or loan payments? – we can help
  • No more than 5 Defaults? – we can help
  • No more than 3 CCJ’s? – we can help
  • No more than 3 missed Mortgage Payments? – we can help
  • Debt Management Plan? – we can help
  • Ex Bankrupt? – we can help (must be 6 years after discharge)

If you have been told your Bad Credit stops you getting a Help to Buy Mortgage, do not despair, we can put you in your new home
We will talk to our specialist lending panel about your position and get your lending secured

Current Bad Credit Mortgage rates for Help to Buy Equity Loan purchase available from 3.85%


£150,000 borrowed over 25 years = just £765 per month


  • Valuation fee refunded on completion
  • no high lenders product fees
  • your case agreed by our team within one working day for just £99 (engagement fee)

London Help to Buy and Bad Credit

We can arrange mortgage lending for Help to Buy Equity Loan purchases for borrowers with Bad Credit within a London Borough under the London Help to Buy Scheme.

In these cases minimum purchase price is £150,000.

We can arrange mortgages for London Help to Buy for borrowers who have up to 5 defaults or 3 County Court Judgements on their credit file.

We can also assist home movers going on to London Help to Buy who have a missed mortgage payment in the past 12 months (and no more than 3 missed mortgage payments in the past 36 months).

Complex Bad Credit Help to Buy Mortgage cases successfully placed by our team

Large default


Our Clients had a £54,000 default on the credit file from within the past 12 months which was unsatisfied.


We arranged £337,500 lending on a £450,000 Help to Buy purchase on a 4.94% rate.

Debt Management Plan


Our Client had an ongoing Debt Management Plan and a £12,000 unsettled default.


We arranged £228,500 lending on a London Help to Buy Purchase of a £532,000 property on a rate of 4.74%.

Recent late payments


Our Client had 11 missing credit card payments within the past 12 months.


We arrange £261,250 lending on a £475,000 London Help to Buy purchase on a rate of 3.95%.

Numerous defaults


Our Clients had 7 defaults on the credit file and a County Court Judgement. They also had 6 searches on the credit file before they came to us and a history of pay day loans.


We arranged £172,462 lending on a Help to Buy Purchase of £229,950 on a rate of 3.64%.

How much can I borrow?

Affordability for Help to Buy Mortgages

To obtain Help to Buy mortgage lending you need to meet affordability requirements using the Help to Buy affordability calculator provided by the Homes and Communities Agency.
You also need to meet affordability criteria for your nominated lender. If you have an adverse credit and need to use a specialist lending your credit score with that lender will affect your maximum affordability.

The Homes and Communities Agency provide an affordability calculator online by way of an excel spread sheet for both:

Help to Buy Affordability


London Help to Buy Affordability

You will see that these calculators are quite complex and are probably best left to your mortgage broker to manage.

As a quick guide to mortgage affordability for Help to Buy Equity loan cases, do not expect to borrow more than 4.5 times your pre tax income.

Getting a bad credit mortgage for a Help to Buy Equity Loan Purchase

To obtain a mortgage you will need:

  • Copies of your latest credit files from Experian , Equifax and Call Credit
  • Your last three months payslips and latest P60 if employed
  • Your last three years SA302s and Tax Year Overviews, if self employed
  • Your last six months personal bank statements
  • Proof of your 5% cash deposit
  • A debit or credit card to cover your £99 engagement fee
  • The help of our team

Need a Bad Credit Mortgage but not for the Help to Buy Scheme?

If you just need mortgage help for a standard bad credit mortgage without a Help to Buy arrangement, you should visit our bad credit mortgage section.

About the Help to Buy Equity Loan Scheme

The Help To Buy scheme, launched in 2013 is designed to assist homebuyers and home movers onto, or further up, the property ladder. There are mortgage lending options available for the Help To Buy Equity Loan Scheme for borrowers with Bad Credit histories.

Although the Equity Loan scheme specifically excludes ‘credit impaired customers’ as defined under the Financial Conduct Authority MCOB rules.
Those with less severe bad credit histories may be able to obtain a mortgage under the Help To Buy scheme.

A ‘credit impaired customer’ is someone who:

  • within the last 24 months has owed overdue payments, in an amount equivalent to 3 months payments, on a mortgage or other loan whether secured or unsecured
  • has been the subject of one or more County Court judgements, with a total value greater than £500, within the last three years, or
  • has been subject to an individual voluntary arrangement or bankruptcy order which was in force at any time within the last three years

The options for those that do not fall under the credit impaired customer definition but still have issues on their credit file are dictated by the mortgage products available in the market for the Help To Buy schemes and the criteria set by the lenders offering those mortgage products.

Help To Buy equity loan scheme and bad credit mortgages

There are now mortgage lenders in the market that would offer a Help To Buy equity loan mortgage to a borrower with historical credit issues.

In practice this could mean that a borrower who missed a loan or credit cards payments would be able to obtain lending, as would an individual with several defaults or county court judgements. Even missed mortgage payments can be accepted for home movers using the Home Buy Scheme.

Help To Buy Mortgage Guarantee Scheme and Bad Credit

Under the Help To Buy Mortgage Guarantee Scheme, which is aimed at offering mortgages at 80% loan to value and above, there were some lending options for those with bad credit history. The Help to Buy Guarantee Scheme ended on 31st December 2016.

The products offered will accepted some issues on the credit file, the focus was very much on the borrower who has had one or two problems rather than the habitual late payer.

For example if an applicant had no more than two late payments on any credit in the past 24 months, and no defaults within the last 36 months, they were a suitable subject for lending under a specialist Help To Buy mortgage guarantee product.