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Written by: Ruth Stevenson, Director/Solicitor at Ives & Co Solicitors
Ives & Co are experts in property transactions – whether you’re buying your first buy-to-let or expanding your portfolio, our conveyancing solicitors guide you through every legal step. And if credit concerns are holding you back, don’t worry – we’ve seen it all and helped clients through it.
1 – Can You Get a Buy-to-Let Mortgage with Bad Credit?
Yes – even in 2025, lenders are still open to borrowers with bad credit histories. But:
- You’ll likely need a larger deposit (25% or more)
- Expect higher interest rates from specialist lenders
- The type of debt matters – missed mobile payments aren’t viewed the same as defaults or IVAs
Lenders assess risk, not just your score. If your rental income covers the mortgage comfortably, that can work in your favour.
2 – What Do Lenders Look for?
Lenders in 2025 are using more real-time data and open banking insights, which means:
- Your recent financial behaviour matters more than ever
- Consistency is key – a stable income, clean rent history, and a strong rental yield projection can outweigh old credit blips
- Having a co-applicant with a strong profile can help
3 – Tips to Improve Your Chances:
Here’s what you can do today if you’re hoping to get a buy-to-let mortgage despite credit issues:
✅ Check your credit report – correct errors and settle small debts
✅ Work with a broker – especially one experienced with adverse credit
✅ Get legal advice early – especially if you’ve had past CCJs, IVAs, or are self-employed
✅ Consider a limited company setup – it might be easier to borrow this way depending on your situation
4 – Don’t Forget Legal Due Diligence
Whether or not you’re borrowing with bad credit, your solicitor’s role is vital. At Ives & Co, we help with:
🔹 Reviewing mortgage terms and lender conditions
🔹 Ensuring your investment meets all legal requirements
🔹 Advising on limited company property purchases
🔹 Helping you understand personal liability risks
Even where suitable finance is available, early conveyancing advice can help investors understand lender conditions, ownership structures and the legal risks connected with a property purchase.
If you are purchasing or investing in property in England or Wales, please contact one of our offices, email quotes@ivesandco.com or call us to discuss how our conveyancing team can assist.
