A joint mortgage lets you combine two incomes, which could help you borrow more. Bad credit does not always stop you from applying together.
In many cases, you can still get a bad credit joint mortgage. Lenders consider both applicants, your finances and the type of credit issue before deciding whether to approve your application.
Knowing what lenders look at can help you prepare before you apply.
Before applying with bad credit
CREDIT REPORTS
Check both credit reports
Review your credit reports before you apply and correct any inaccurate information.
RECENT CREDIT
See what lenders will find
Recent defaults, CCJs or missed payments may have more impact than older credit issues.
LENDER CRITERIA
Compare lender criteria
Some lenders take a more flexible approach to adverse credit than others.
APPLICATION
Strengthen your application
A larger deposit, lower debts and a stronger recent credit record could improve your options.
How much could you borrow together?
Use our affordability calculator for a quick estimate.
Can you get a joint mortgage if one applicant has bad credit?
When applying for a joint mortgage, bad credit held by either applicant can affect the lenders and deals available. However, approval may still be possible depending on your finances and the type of credit issue involved.
Lenders assess the application as a whole. They look at your income, deposit, monthly commitments and credit histories.
An older missed payment may have less impact than a recent default or County Court Judgment (CCJ). Lenders also look at whether you have repaid outstanding debts and managed your finances responsibly since then.
Mortgage criteria vary, and some lenders take a more flexible approach than others. A mortgage broker can help you find lenders that may suit your circumstances.
How do lenders assess a joint mortgage application?
Lenders review both applicants’ finances when assessing a joint mortgage application. They look at each person individually before considering the application as a whole.
Combined income
Lenders consider both applicants’ incomes when assessing how much you may be able to borrow.
Monthly commitments
Loans, credit cards, childcare and household spending can reduce the income available for mortgage repayments.
Deposit
A larger deposit can reduce your loan-to-value and may give you access to a wider range of mortgage options.
Income stability
Lenders consider how reliable each applicant’s income is and may assess different types of employment differently.
Property and borrowing amount
The property value and size of the mortgage also form part of the lender’s overall assessment.
How bad credit affects a joint mortgage
Not all credit issues affect a mortgage application in the same way. The type of issue, how recent it is and how you have managed your finances since can all affect the outcome.
Missed or late payments
A small number of older missed payments may have less impact than recent or repeated ones.
Defaults
Defaults can make it harder to get a mortgage, especially if they are recent or remain unpaid.
County Court Judgments (CCJs)
A joint mortgage may still be available if you have a CCJ. Your options will depend on its value, age and whether you have satisfied it.
Individual Voluntary Arrangements (IVAs)
An active IVA can significantly limit your mortgage options. It may continue to affect them for some time after it ends.
Debt Management Plans (DMPs)
Some lenders consider applicants with a current or previous debt management plan. However, they look closely at the circumstances of each case.
Resolved credit issues often have less impact than recent ones. Managing your credit responsibly since the issue may also strengthen your application.
Is there a minimum credit score for a joint mortgage?
No single minimum credit score applies to every joint mortgage. Each lender sets its own rules, so one may accept a score that another rejects.
Your credit score is one of several factors lenders consider. Lenders also consider your income, deposit, monthly costs and any adverse credit history.
Some specialist mortgage lenders offer adverse credit mortgages. They may use manual underwriting to review your application in more detail.
As lender rules vary, comparing your options before you apply may help you find a suitable deal.
Worth knowing
There is no single minimum credit score used by every mortgage lender.
How can you improve your chances of approval?
No lender can guarantee approval. However, a few steps could improve your chances.
01
Check both credit reports
Check both credit reports for errors or old information. Correcting mistakes before you apply could strengthen your application.
02
Save a larger deposit
A larger deposit lowers your loan-to-value (LTV). A lower LTV could give you access to more mortgage options and better rates.
03
Reduce existing debts
Reducing loans, credit cards or overdrafts could improve your affordability.
04
Avoid applying for new credit
New borrowing could affect your credit score and affordability. Try to avoid applying for credit before your mortgage completes.
How Muttuo Mortgages can help
Bad credit does not always rule out a joint mortgage. We can help you understand how lenders may assess your circumstances.
Review both applicants’ finances and credit history
Compare criteria from more than 100 lenders
Understand how adverse credit may affect your options
Talk through your options
Explore joint mortgage options and understand how lenders may assess your combined circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
