21 July 2025 | Written by Mercantile Trust
Buy to Let Mortgages for poor or bad credit in the UK
If you're looking for a Buy to Let Mortgage but have bad credit, you may still qualify. Many UK landlords—even first-time buyers—successfully secure Buy to Let Mortgages with adverse credit by applying through specialist lenders rather than high street banks.
This guide explains what bad credit Buy to Let Mortgages are, who can apply, how they work, and where to get help—based on UK lending rules and lender criteria.
What Is a Buy to Let Mortgage?
A Buy to Let (BTL) Mortgage is a loan used to purchase property that you intend to rent out to tenants. In the UK, Buy to Let Mortgages are interest-only or repayment-based and are assessed on both the applicant and the rental income of the property.
Can You Get a Buy to Let Mortgage with Bad Credit?
Yes – Buy to Let Mortgages are available to applicants with bad credit in the UK. This includes those with:
- Missed or late credit payments
- Defaults or County Court Judgments (CCJs)
- Debt management plans (DMPs)
- Low credit scores
- Bankruptcy or IVA (discharged)
While high street lenders may reject these applications, specialist lenders like Mercantile Trust can assess each case on individual merit.
Who Can Apply?
You may be eligible for a bad credit buy to let mortgage if you are:
- A first-time buyer or first-time landlord
- A self-employed borrower
- In an employment probationary period
- An experienced landlord looking to expand
- Able to provide a 25%+ deposit
Minimum deposit required: 25%
Typical maximum loan-to-value (LTV): 75%
Lending is subject to criteria and rental income assessment
How Do Lenders Assess a Bad Credit Application?
1. Credit History Review
Lenders check the nature and severity of bad credit. Minor issues (e.g., phone bill defaults) may have less impact than recent mortgage arrears.
2. Deposit Size
The larger the deposit, the better your chances. A 30–40% deposit can help offset credit issues.
3. Rental Income
The expected rental income must usually cover 125–145% of the mortgage interest payments (known as Interest Coverage Ratio).
4. Experience as a Landlord
If you’ve managed properties before, this can work in your favour. However, many lenders also consider first-time landlords.
Tips to Improve Your Chances of Approval
- Check your credit report with Equifax, Experian, or TransUnion
- Provide full disclosure of your credit history
- Save a larger deposit if possible
- Use a specialist lender with experience in adverse credit
- Prepare accurate information on expected rental income
Why Choose Mercantile Trust?
Since 2015, Mercantile Trust has been helping people secure buy to let mortgages with poor credit. We take a common-sense approach to lending, based on people—not just credit scores.
What sets us apart:
- Direct lender – no broker fees
- Fast decisions – often within one phone call
- Lending decisions made by people, not computers
How Quickly Can You Get a Mortgage Decision?
With Mercantile Trust, you could get an initial lending decision in just one call. Once approved, we work quickly—funds could be available in a matter of days.
Ready to Apply?
Enquiring is easy – and it only takes less than 1 min.
Call us on 0800 032 3737
Enquire online – fast, secure and obligation-free
Final Thoughts
Bad credit doesn’t mean you can’t invest in property. With the right lender and guidance, a buy to let mortgage is still within reach.
If you're ready to explore your options, talk to the experts who specialise in saying yes—even when others say no.
Frequently Asked Questions (FAQs)
- Can I get a buy to let mortgage with CCJs or defaults?
Yes, depending on how recent they are and how much deposit you can provide. - Do I need to be a homeowner?
Not necessarily. Some lenders accept first-time buyers if other criteria are met. - How much deposit do I need?
The minimum is typically 25%, but more may be required with severe credit issues. - Can I apply if I’m self-employed?
Yes. You'll need to provide evidence of income, usually 1–2 years of trading history.
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