First Time Buyer Mortgage with Bad Credit

Securing mortgage for a Foreign National First Time Buyer with bad credit and a 15% deposit is possible by leveraging the right lenders for the scenario.

3/4/20242 min read

The Client:

Our client is a First Time Buyer. They are seeking a residential mortgage to purchase a house for themselves to live in. They have a good income and are employed, but they have some bad credit including defaults and CCJs that were registered over 3 years ago, but have not been satisfied. They are also a Foreign National, but have indefinite leave to remain in the UK. The client has a 15% deposit.

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There are some difficulties with this situation. The fact they have CCJs and defaults have impacted their credit report in quite a negative way. The other issue here is the fact they are not “satisfied” i.e been paid off, so remain outstanding which a lot of lenders do not like to see. The final thing to consider here is that the client is a foreign national, but has indefinite leave to remain.

The Solution:

Being a whole-of-market Broker, we have the knowledge to know that some lenders are more lenient when it comes to previous bad / “adverse” credit and also the bad credit is still outstanding and hasn’t been satisfied.

There are a few lenders that will manually make a decision on the viability of an application, rather than let a computer make the decision. The lender we went to for this client has a tiered rate system that gets better the longer ago the CCJ’s or defaults were registered. Most importantly they do not need to be satisfied. The fact they are a foreign national doesn’t matter as they have indefinite leave to remain, they are treated as a UK citizen for the purposes of the mortgage. The deposit is 15% is the minimum for this scenario.


It is possible to get First Time Buyer Mortgages in extremely complicated scenarios, and situations that would usually seen as undesirable to most lenders.

Key things to consider for First-time Buyers:

  • Some lenders will allow historic bad credit.

  • Some lenders will allow bad credit that was registered years ago, but still not satisfied

  • Indefinite leave to remain allows the client to get treated as a citizen for the purpose of a mortgage

  • Some lenders will lend up to 85% with bad credit

If you have any questions relating to Residential mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 0113 8730 740. Alternatively, please complete this short online form and one of our Advisors will call you right back.