Scottish Bad Credit Mortgages Explained

Are there mortgage lenders in Scotland that approve bad credit applicants – and why do mortgage approval conditions vary between the different UK regions?

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Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Scottish Bad Credit Mortgages Explained

Mortgages in Scotland can work a little differently, and it's important to know what sort of options you have if you are looking to buy a property with bad credit issues.

Here we'll explain how the assessment process works and what factors a Scottish lender will consider when reviewing your credit report.

For more help with bad credit Scottish mortgages, give the Revolution team a call on 0330 304 3040, or drop us a message to

How Do I Know if I Have Bad Credit Before Applying for a Mortgage?

Bad credit is a catch-all term that refers to anything in the below list:

  • No credit history
  • Having a low credit score
  • History of late payments or mortgage defaults
  • CCJs
  • IVAs and Debt Management Plans
  • Repossessions
  • Bankruptcy
  • Multiple credit issues

Any mortgage lender anywhere in the UK will need to run a credit report and see if any of these issues exist on your file. If they do, you may need a specialist lender and will almost certainly require an independent broker to negotiate your mortgage terms on your behalf.

The best thing to do is request a copy of your credit file before applying for a mortgage. You can review your score, make sure there aren't any errors, and be prepared for the mortgage application process to avoid applying to a lender who won't be able to help.

Are There Bad Credit Mortgages in Scotland?

There are indeed. The right mortgage lender depends very much on:

  • What credit issues you have had.
  • When they happened.
  • If you have now repaid your debts.
  • What sort of values were involved.

It's also dependent on the property's location since some Scottish mortgage providers cannot lend within specific postcodes or regions.

Let's consider some of the most common credit issues and what they mean for your chances of a mortgage approval:

  • Defaults - some lenders require applicants to have zero defaults within six months and up to four in the last two years with a maximum value of £5,000. Others have low caps and will accept a varying number of defaults within a specific timeframe.
  • CCJs - this depends on whether you have now satisfied the CCJ and how long ago it was registered. Some lenders will accept one CCJ provided the value was no greater than £500, whereas others will reject any mortgage applicant with a CCJ in the last three years.
  • Arrears can be acceptable, with a typical condition that you cannot have missed more than three back to back payments in the last two or three years and have no arrears within the previous three months. Lenders also put caps on the maximum value of arrears they will accept.
  • If you are in a Debt Management Plan, you may have rules around what borrowing you can take out. Most mainstream Scottish lenders won't offer a mortgage to anybody in a DMP or with one recently satisfied, although specialist bad credit lenders are more flexible.
  • Bankruptcy - if you have a discharged bankruptcy over five or six years ago, you can usually find a bad credit mortgage.
  • IVAs - in some cases, you can get a mortgage even in an IVA, provided you can show a history of keeping up with the repayments. Some lenders require this to have been registered over six years ago or cap the mortgage value at 75%.

How Difficult is it to Get a Bad Credit Mortgage in Scotland?

In some cases, much easier than in other parts of the UK. Some Scottish regions have extremely low property prices, and therefore you will need a smaller mortgage that is easier to qualify for.

However, if the property is very rural, it might work against you since a non-standard property that would be difficult to sell in repossession is a riskier bet for the lender.

How Do I Get a Scottish Bad Credit Mortgage?

There are fewer mortgage lenders in Scotland than in England, although several nationwide mortgage providers will consider applications within this region.

Every lender has different policies and criteria. Therefore, it is vital to consult a whole-of-market broker to assess your borrowing needs and identify the lenders who will be in the best position to approve your application.

Can I Get a Joint Mortgage in Scotland if I Have Bad Credit?

Possibly, yes, you can. It all depends on how severe the credit issues are. Lenders will assess both applicants, and again if the problems are relatively challenging, a bad credit lender might be your best bet.

Is the Scottish Mortgage Process Different than in England?

Not significantly, no, although there are differences between the two markets:

  • There is no Stamp Duty in Scotland, but you pay a Land and Buildings Transaction Tax instead. This can be cheaper than Stamp Duty, so you might be able to contribute more towards a deposit and get a better bad credit deal.
  • Property surveys in Scotland are arranged by the seller rather than by you or your mortgage provider. As a buyer, that makes it cheaper since you won't need to pay for an independent valuation.

Specialist Advice on Scottish Bad Credit Mortgages

Bad credit lending is a vast sector, and it is essential to review all of the products and options before making an application.

Give Revolution Finance Brokers a call on 0330 304 3040, or drop us a message at to discuss your mortgage requirements in Scotland and get your application started.

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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