Last updated:
If you’ve had financial struggles in the past—missed payments, defaults, CCJs, or even bankruptcy—you might assume getting a buy-to-let (BTL) mortgage is off the table. The good news? It’s not.
Many lenders now offer specialist mortgage options for people with adverse credit histories, especially in the buy-to-let space. Let’s break down what’s possible and how to improve your chances.
What is Adverse Credit?
Adverse credit includes:
- Missed or late payments on credit cards or loans
- Defaults
- County Court Judgments (CCJs)
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy
- Debt Management Plans (DMPs)
Each lender will view these differently, especially based on:
- When the issue occurred
- How much was involved
- Whether the issue has been resolved
Can You Still Get a Buy-to-Let Mortgage?
Yes — but mainstream lenders may not be suitable. Many high street banks have strict criteria, but specialist lenders understand that life happens, and they focus on your current situation more than your past.
Here’s what lenders typically look at:
✅ Your current income
✅ Rental potential of the property
✅ Type and age of credit issues
✅ Size of your deposit (usually 25%+ helps)
Tips to Boost Your Chances
- Work with a Mortgage Broker
A broker who specialises in adverse credit can match you with lenders who are more flexible. - Check Your Credit Report
Make sure everything is accurate — and if there are errors, dispute them early. - Save a Bigger Deposit
The more you can put down, the better your chances. 25-30% is ideal with adverse credit. - Consider a Limited Company BTL
Some lenders may be more flexible when the BTL is purchased through a company structure. - Explain Your Circumstances
Lenders are human. If your credit issues were due to a life event (illness, divorce, redundancy), provide context.
Will Rates Be Higher?
Possibly. Lenders offering BTL mortgages to applicants with adverse credit usually charge slightly higher interest rates and fees. But if the rental yield works and you’re building a long-term portfolio, it may still be a strong investment.
Final Thoughts
Having bad credit doesn’t mean your property investment dreams are over. With the right guidance, a solid application, and a bit of preparation, a buy-to-let mortgage is still within reach.
? Need help?
We work with a range of specialist lenders who understand complex credit situations.
Get in touch for a confidential, no-obligation chat — and let’s find a solution that works for you.