Stipend Mortgages with Bad Credit

Stipend Mortgages with Bad Credit

As with all mortgage applications, you are more likely to be accepted the better the credit that you have. If you do have bad credit it is still possible to be accepted using stipend as income, even with just a 5% deposit.

You can read more about required deposit sized for stipend mortgages here.

Last updated: 5th February 2022

Bad Credit Stipend Mortgages

Can you get a stipend mortgage with bad credit?

Yes, it can be possible.

An agreement in principle allows the bank to check out your credit history and give an indication as to if they are likely to lend to you. I used stipend friendly lenders that perform a soft search on your credit profile which does not affect your credit score.

Whether you get accepted or not, and what deposit size is required, will come down to your overall credit profile and exactly what you are applying for. It is impossible to say if you will qualify without approaching a lender for an agreement in principle.

Below are some examples of bad credit situations that the best bad credit stipend lender can consider.

Stipend Mortgages with Bad Credit

Arrears and stipend mortgages

Arrears are late payments on money that you have borrowed. This could be on a personal loan, mortgage payments, or credit card debt that was due.

You can still be considered if you have arrears of up to 2 months in the last 2 years. It’s not impossible if you’ve had late payments last longer than this, especially if you have a large deposit, but you’re less likely to be accepted.

CCJs and stipend mortgages

CCJ stands for County Court Judgement. This is a decision by a court that has formally decided that you owe money to the claimant.

You can still be considered for a stipend mortgage if you have had CCJs so long as:

  • The CCJs were registered over 3 years ago (even if they are not satisfied now)
  • A satisfied or unsatisfied CCJ in the last 3 years so long as the total value is not greater than £500


In theory you may still qualify even if you don’t meet the above but it is unlikely.

IVAs and stipend mortgages

IVA stands for Individual Voluntary Agreement. This is an arrangement with creditors to repay your debts made via an insolvency practitioner.

You may still qualify for a stipend mortgage so long as you have not bee subject to an IVA within the last 3 years.

Bankruptcy and stipend mortgages

In theory a discharged bankrupt may be able to get a stipend mortgage after being discharged for 3  years.

Repossession and stipend mortgages

If you’ve had a property repossessed it may be possible to get a stipend mortgage so long as the repossession was not within the last 6 years.