--- title: "First Time Buyer Adverse Credit Mortgages — UK Guide | First Rung Now" description: "How UK first time buyers with adverse credit get on the ladder: specialist lenders, deposit thresholds, indicative rates and what to do before applying." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "logo": { "@type": "ImageObject", "url": "https://firstrungnow.com/logo-512.png", "width": 512, "height": 512 }, "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "First Time Buyer Adverse Credit Mortgages", "description": "How UK first time buyers with adverse credit get on the ladder: specialist lenders, deposit thresholds, indicative rates and what to do before applying.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/first-time-buyer-adverse-credit-mortgages", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Bad Credit Mortgages", "item": "https://firstrungnow.com/bad-credit-mortgages" }, { "@type": "ListItem", "position": 3, "name": "First Time Buyer Adverse Credit", "item": "https://firstrungnow.com/first-time-buyer-adverse-credit-mortgages" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Can a first time buyer get a mortgage with adverse credit?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. Specialist UK lenders such as Pepper Money, Kensington, Vida, Bluestone and Precise actively lend to first time buyers with CCJs, defaults, missed payments and discharged bankruptcies. High-street lenders rarely will, so a broker introduction is usually essential." } }, { "@type": "Question", "name": "What deposit do I need as a first time buyer with bad credit?", "acceptedAnswer": { "@type": "Answer", "text": "Most adverse-friendly specialist lenders want 10–15% deposit for near-prime profiles, 20–25% for moderate adverse, and 30–35% for heavy adverse such as recent bankruptcy or unsatisfied CCJs in the last 12 months." } }, { "@type": "Question", "name": "Will adverse credit affect my mortgage rate as a first time buyer?", "acceptedAnswer": { "@type": "Answer", "text": "Yes — typically by 1–3 percentage points above prime. A clean-credit first time buyer at 75% LTV might get 4.5%, where a near-prime borrower pays 5.5–6.5% and a heavier adverse profile pays 7–9%." } }, { "@type": "Question", "name": "How long after a CCJ or default can I buy my first home?", "acceptedAnswer": { "@type": "Answer", "text": "Some specialist lenders accept satisfied CCJs from day one with a higher deposit. Most price comfortably once items are 12–24 months old, and rates improve sharply once they age past 36 months." } }, { "@type": "Question", "name": "Should I clear my debts before applying?", "acceptedAnswer": { "@type": "Answer", "text": "Settle unsatisfied defaults and CCJs where you can — satisfied items price materially better. Don't drain your full deposit to do it. Keep credit utilisation below 30% on any active cards for 3–6 months before applying." } }, { "@type": "Question", "name": "Can I use Help to Buy ISA or Lifetime ISA bonuses with bad credit?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. Government bonuses sit in your deposit pot and are not affected by your credit profile. Lenders treat them like any other deposit." } } ] } ] --- [Skip to content](#main) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [![First Rung Now](/assets/logo-mark-CNo3p3DP.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Bad Credit Mortgages](/bad-credit-mortgages) 3. First Time Buyer Adverse Credit UK Mortgage Guide # First Time Buyer Adverse Credit Mortgages in the UK Buying your first home with CCJs, defaults or missed payments on file is harder than the high street suggests — but it's far from impossible. The UK has a small but capable specialist lending market built for exactly this profile, with criteria that focus more on the recency and pattern of your adverse credit than on a single credit score. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [Why first time buyers with adverse credit get auto-declined on the high street](#why-first-time-buyers-with-adverse-credit-get-auto-declined-on-the-high-street) 3. [How UK specialist lenders look at adverse credit](#how-uk-specialist-lenders-look-at-adverse-credit) 4. [Indicative rates and deposits](#indicative-rates-and-deposits) 5. [What the lender will want to see](#what-the-lender-will-want-to-see) 6. [Worked example](#worked-example) 7. [Can you still use first time buyer schemes?](#can-you-still-use-first-time-buyer-schemes) 8. [Lifetime ISA](#lifetime-isa) 9. [Shared ownership](#shared-ownership) 10. [Help to Buy equity loan](#help-to-buy-equity-loan) 11. [Pros](#pros) 12. [Cons](#cons) 13. [Speak with a vetted mortgage broker about first time buyer adverse credit mortgages](#speak-with-a-vetted-mortgage-broker-about-first-time-buyer-adverse-credit-mortgages) 14. [Steps to take before applying](#steps-to-take-before-applying) 15. [Frequently asked questions](#frequently-asked-questions) 16. [Can a first time buyer get a mortgage with adverse credit?](#can-a-first-time-buyer-get-a-mortgage-with-adverse-credit) 17. [What deposit do I need as a first time buyer with bad credit?](#what-deposit-do-i-need-as-a-first-time-buyer-with-bad-credit) 18. [Will adverse credit affect my mortgage rate as a first time buyer?](#will-adverse-credit-affect-my-mortgage-rate-as-a-first-time-buyer) 19. [How long after a CCJ or default can I buy my first home?](#how-long-after-a-ccj-or-default-can-i-buy-my-first-home) 20. [Should I clear my debts before applying?](#should-i-clear-my-debts-before-applying) 21. [Can I use Help to Buy ISA or Lifetime ISA bonuses with bad credit?](#can-i-use-help-to-buy-isa-or-lifetime-isa-bonuses-with-bad-credit) 22. [Related guides](#related-guides) 23. [Bad Credit Mortgages Hub](#bad-credit-mortgages-hub) 24. [Bad Credit Mortgage Checker](#bad-credit-mortgage-checker) 25. [Mortgage in Principle with Bad Credit](#mortgage-in-principle-with-bad-credit) ### Bad credit — related reads Specialist lenders for adverse-credit borrowers. - [Bad credit mortgage checker Place your situation on the lender severity scale and see what a specialist will accept. ](/bad-credit-mortgage-checker) - [Bad credit second mortgage Secured second charges as an alternative to remortgaging when credit has slipped. ](/bad-credit-second-mortgage) - [Bad credit with a large deposit How a 25%+ deposit unlocks rates adverse-credit borrowers thought were closed. ](/mortgage-with-bad-credit-but-large-deposit) - [Contractor mortgages with bad credit Day-rate and limited-company contractors: which specialist lenders will look at you. ](/mortgages-for-contractors-with-bad-credit) - [Poor credit mortgage lenders The specialist UK lenders most willing to price recent adverse credit. ](/poor-credit-mortgage-lenders) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - Specialist UK lenders fund first time buyers with CCJs, defaults, IVAs and discharged bankruptcies. - Deposit requirements scale with severity: 10–15% near-prime, 20–25% moderate, 30%+ heavy adverse. - Rates sit roughly 1–3% above prime, narrowing as adverse credit ages on your file. - High-street auto-declines mean broker access to intermediary-only lenders is essential. - Government schemes like Lifetime ISA and shared ownership still apply with adverse credit. ## Why first time buyers with adverse credit get auto-declined on the high street Want a vetted broker to help with Why first time buyers with adverse credit get auto-declined on the high street? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) High-street lenders run automated credit decisioning that scores entire applications in under a minute. Anything that flags recent unsatisfied defaults, CCJs, payment-arrangement markers or missed mortgage/rent payments usually trips the decline rule before a human ever sees the case. As a first time buyer you also can't lean on a track record of perfect mortgage conduct, which is the single biggest mitigating factor specialist lenders weigh later in the process. The result is that the cleanest, lowest-rate mortgages on a comparison site simply aren't available to you. Applying anyway leaves a hard credit footprint and, on multiple attempts, can actually worsen your profile. The first practical step is recognising that your route is via the specialist intermediary-only market — and that means working through a broker. ## How UK specialist lenders look at adverse credit Bad credit · keep reading - [Bad credit mortgage checker Place your situation on the lender severity scale and see what a specialist will accept. ](/bad-credit-mortgage-checker) - [Bad credit second mortgage Secured second charges as an alternative to remortgaging when credit has slipped. ](/bad-credit-second-mortgage) Browse the full hub: [Bad credit mortgages](/bad-credit-mortgages) Want a vetted broker to help with How UK specialist lenders look at adverse credit? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Rather than a single credit score, specialist lenders work to severity bands. Each lender publishes its own criteria, but the categorisation is broadly consistent: - **Near-prime** — one or two satisfied defaults over 12 months old, isolated late payments, no recent CCJs, no payment arrangement markers in the last 12 months. Priced 0.5–1.0% above prime. - **Moderate adverse** — unsatisfied defaults under 12 months, two or more CCJs in the last 24 months, payment arrangements still active. Priced 1.5–2.5% above prime. - **Heavy adverse** — discharged bankruptcy or IVA in the last 24 months, multiple unsatisfied CCJs in the last 12 months, repossession history. Priced 2.5–4% above prime, with deposit usually 30%+. ## Indicative rates and deposits Want a vetted broker to help with Indicative rates and deposits? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) As a first time buyer you'll typically see this kind of structure on a five-year fix in 2026: - Near-prime, 85% LTV: 5.5–6.2% - Moderate, 80% LTV: 6.5–7.5% - Heavy, 70% LTV: 7.8–9.4% Two-year fixes on specialist products usually sit 0.3–0.6% higher than five-year, the opposite of prime. Lenders prefer the longer commitment because they price for risk over a longer horizon. Arrangement fees range from £995 to 2% of the loan, and most lenders allow you to add them to the loan. ## What the lender will want to see Bad credit · keep reading - [Bad credit with a large deposit How a 25%+ deposit unlocks rates adverse-credit borrowers thought were closed. ](/mortgage-with-bad-credit-but-large-deposit) - [Contractor mortgages with bad credit Day-rate and limited-company contractors: which specialist lenders will look at you. ](/mortgages-for-contractors-with-bad-credit) Browse the full hub: [Bad credit mortgages](/bad-credit-mortgages) Want a vetted broker to help with What the lender will want to see? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) For first time buyer adverse-credit cases, underwriters look hardest at the recent 12-month picture rather than ancient history. Strong applications usually share these features: 1. Twelve months of perfect rent payments (statements, ideally via standing order — cash payments are a problem). 2. Twelve months of clean conduct on any active credit accounts. No payday loan use in the last 12–24 months. 3. A stable employment picture — at least 6 months in current role for employed applicants, two full years of accounts for self-employed. 4. Settled rather than unsatisfied defaults and CCJs wherever affordable. 5. A clear, documented explanation of what caused the adverse credit (job loss, relationship breakdown, illness) and what's changed since. ## Worked example Want a vetted broker to help with Worked example? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) > Aisha and Tom want to buy a £215,000 house in Leeds with a £32,000 deposit (85% LTV). Tom has two satisfied defaults from 16 months ago totalling £1,400. High-street lenders auto-decline. A specialist 5-year fix at 6.19% is approved through an intermediary lender. Monthly payment on a 30-year repayment basis is roughly £1,120 — about £140 a month more than a clean-credit borrower would pay at the same LTV. The couple plans to remortgage once the defaults pass the 36-month mark, at which point near-prime pricing should be within reach. ## Can you still use first time buyer schemes? Bad credit · keep reading - [Poor credit mortgage lenders The specialist UK lenders most willing to price recent adverse credit. ](/poor-credit-mortgage-lenders) - [MIP with bad credit Getting a credible MIP when your file shows defaults, CCJs or missed payments. ](/mortgage-in-principle-bad-credit) Browse the full hub: [Bad credit mortgages](/bad-credit-mortgages) Want a vetted broker to help with Can you still use first time buyer schemes?? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) ### Lifetime ISA Yes — the 25% government bonus applies regardless of your credit profile. As long as the property is under £450,000 and you complete with a residential mortgage, the bonus releases to your solicitor. ### Shared ownership Some specialist lenders fund shared ownership for adverse-credit first time buyers, but the panel is narrower. Expect tighter LTV caps on the share you're buying — typically 90% rather than the 95% available to clean-credit applicants. ### Help to Buy equity loan The original England scheme closed in 2023; regional equivalents in Wales remain. Adverse-credit eligibility within those schemes follows the participating lender's criteria. ### Pros - Genuine route onto the ladder despite imperfect credit. - Specialist lenders compete actively for first-time buyer adverse-credit cases. - Government schemes (Lifetime ISA, shared ownership) still apply. - Once you complete and build mortgage history, remortgaging onto prime rates becomes realistic. - Defaults and CCJs lose pricing weight as they age past 24 and 36 months. ### Cons - Rates are materially higher — expect 1–3% above clean-credit pricing. - Larger deposit usually required, especially for heavier adverse. - Most specialist lenders are intermediary-only; broker fees can apply. - Direct applications to high-street lenders waste credit footprints. - Heavy adverse can take 12–24 months of credit rebuilding before pricing improves. Vetted UK Broker Match ### Speak with a vetted mortgage broker about first time buyer adverse credit mortgages Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## Steps to take before applying Want a vetted broker to help with Steps to take before applying? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) 1. Pull your statutory credit reports from Experian, Equifax and TransUnion. Lenders use different bureaux. 2. Dispute any inaccurate entries — wrongly recorded defaults or duplicates aren't rare and removal can move you a severity band. 3. Settle what you can. Satisfied items price better than unsatisfied. Keep enough for deposit, costs and a buffer. 4. Build a 12-month track record of perfect rent and credit conduct. Standing-order rent payments are evidence; cash isn't. 5. Speak to a specialist broker before any application. The first lender you go to should be the right lender, not the cheapest comparison-site result. ## Frequently asked questions ### Can a first time buyer get a mortgage with adverse credit? ### What deposit do I need as a first time buyer with bad credit? ### Will adverse credit affect my mortgage rate as a first time buyer? ### How long after a CCJ or default can I buy my first home? ### Should I clear my debts before applying? ### Can I use Help to Buy ISA or Lifetime ISA bonuses with bad credit? ## Related guides [ ### Bad Credit Mortgages Hub How UK specialist lending works. Read guide ](/bad-credit-mortgages)[ ### Bad Credit Mortgage Checker Place yourself on the severity scale lenders use. Read guide ](/bad-credit-mortgage-checker)[ ### Mortgage in Principle with Bad Credit How a specialist MIP differs from a high-street one. Read guide ](/mortgage-in-principle-bad-credit) First-Time Buyer Match ### Get matched with a first-time buyer mortgage specialist Free, no-obligation introduction to an FCA-regulated broker who works with first-time buyers every day — whatever your stage, deposit or credit profile. - FCA-regulated brokers only - Typical reply in 1 working day - No upfront fees — your data goes to one broker only Full name Email Phone Postcode Where are you in your journey? Select your stage… Just researching Saving my deposit Ready to get a mortgage in principle Have an MIP, viewing properties Had an offer accepted Anything else? (optional) Match me with a broker By submitting you agree to be contacted by First Rung Now and one matched FCA-regulated broker. Your home may be repossessed if you do not keep up repayments on your mortgage. 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