What Are Your Options?
For many aspiring homeowners, shared ownership offers a realistic route onto the property ladder.
But what happens if your credit history is less than perfect?
Can you still qualify for a shared ownership mortgage with bad credit in 2025?
The answer is yes – but it requires preparation, patience, and often the right specialist advice.
What Is a Shared Ownership Mortgage?
Shared ownership allows buyers to purchase a portion (usually 25–75%) of a property and pay rent on the remaining share to a housing association.
Over time, you can buy more shares – a process known as staircasing – until you eventually own the home outright.
Because you’re only borrowing for part of the property, deposits are smaller, making it an attractive option for first-time buyers with limited savings.
How Bad Credit Affects Your Application
Lenders use credit reports to assess reliability.
Missed payments, defaults, or CCJs can make it harder to secure a mortgage – but not impossible.
Many mainstream lenders may decline such cases, but specialist lenders cater to borrowers with imperfect credit, focusing more on recent financial stability and affordability than on past mistakes.
“Lenders today look at patterns,” said Philip Bransgrove of Bransgroves Mortgage Brokers. “If your issues are old or one-off, there’s still a good chance you’ll qualify.”
Steps to Improve Your Chances
- Check your credit file: Use free services like Experian or ClearScore to identify errors or outdated data.
- Reduce existing debts: Lower credit utilisation can quickly improve your score.
- Save a higher deposit: Even 10% instead of 5% can strengthen your application.
- Show stability: Staying in the same job and residence for 12+ months helps build lender confidence.
Specialist Lenders and Brokers
Not all lenders offer shared ownership mortgages, and fewer still accept applicants with bad credit.
That’s where a mortgage broker can help.
Brokers maintain relationships with niche lenders – including those who manually assess applications instead of relying solely on credit scores.
This flexibility can make all the difference.
Case Study: Turning Rejection into Approval
A young buyer from Newport with previous credit card defaults was declined by her bank but approved for a shared ownership mortgage through a specialist building society.
The key was demonstrating a year of on-time rent and utility payments, showing financial recovery.
Her broker matched her with a lender comfortable with her history – highlighting how expertise can transform an outcome.
Final Word
Getting a shared ownership mortgage with bad credit isn’t easy, but it’s far from impossible.
With preparation, transparency, and the right guidance, many buyers can still secure a foothold on the property ladder in 2025.
Local mortgage brokers play a crucial role – especially for applicants whose stories can’t be summed up by a credit score
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Bransgroves Mortgage Brokers is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 2/12/2025
