Getting a buy-to-let mortgage with bad credit can feel challenging, but it’s far from impossible. Specialist lenders across the UK understand that financial setbacks happen and are willing to look beyond your credit score. Instead, they focus on factors like rental income, property value, and your overall financial situation.
Here are five of the top lenders to consider if you’re looking to secure a buy-to-let mortgage with a less-than-perfect credit history.
1. Mercantile Trust
Mercantile Trust takes the top spot thanks to its strong reputation as a specialist lender in the bad credit space. Rather than relying solely on automated credit scoring, they use a manual underwriting approach that allows them to assess each case individually.
This makes them particularly suitable for borrowers with CCJs, defaults, or missed payments. They understand that every financial journey is different and aim to provide realistic lending solutions based on current affordability rather than past mistakes.
Speed is another major advantage. Mercantile Trust is known for offering quick decisions, which can be essential when you’re trying to secure an investment property in a competitive market. With flexible criteria and a practical approach, they are a standout choice for landlords with adverse credit.
2. Kent Reliance (OSB Group)
Kent Reliance, part of OSB Group, caters to landlords with complex financial profiles, offering buy-to-let mortgage products. Their services include lending for standard property purchases, remortgaging, and portfolio financing.
They also provide mortgage options for both individual and limited company structures, including special-purpose vehicles commonly used in property investment. Their criteria allow for consideration of applicants with historic or less severe credit issues. Kent Reliance also supports borrowers with non-standard income sources, such as self-employment or multiple income streams, and offers a range of fixed and variable rate mortgage products.
3. Paragon Bank
Paragon Bank provides buy-to-let mortgage products primarily aimed at landlords, including those with minor or historic credit issues. Their services include financing for single property purchases, remortgaging, and portfolio lending. While they are not as flexible as some niche lenders, they do consider applicants with minor credit issues, meaning if your credit problems are relatively small or historic, you can still get competitive rates.
Their structured mortgage products are designed for both individual investors and limited companies, while their lending criteria focus on rental income coverage and property type, with defined affordability assessments.
Paragon also provides mortgage options tailored to portfolio landlords, including products that support the management and expansion of multiple properties under a single lending framework.
4. Shawbrook Bank
Shawbrook Bank offers buy-to-let mortgage services that cover a wide range of borrower circumstances, including those with adverse credit. Their products include loans for property acquisition, refinancing, and portfolio growth. Whether you consider yourself a standard case or a more complex one, such as houses in multiple occupation and mixed-use properties, they provide funding for all. Their services are even available to individual landlords and corporate structures. Shawbrook also offers lending for larger portfolios and higher-value properties, with mortgage structures designed to reflect rental income and investment strategy.
5. Together Money
Together Money rounds out this list by offering buy-to-let mortgage solutions for borrowers with a variety of credit backgrounds, including recent or more significant credit issues. They often accept applications from borrowers who may have been declined elsewhere due to credit issues, offering services including property purchase loans, remortgaging, and capital raising against existing assets. They even offer products for first-time landlords as well as experienced investors, with lending available for both residential and mixed-use properties. Their criteria allow for consideration of multiple income sources when assessing affordability.
What to Look for in a Bad Credit Buy-to-Let Mortgage
When choosing a lender, it’s important to understand that the criteria can vary significantly. Most lenders will assess your deposit, which is typically at least 25%, as well as the expected rental income from the property.
They will also review the type and timing of any credit issues. Older or smaller problems are usually easier to work around, while more recent or severe issues may limit your options or increase interest rates.
Working with a lender that takes a flexible, case-by-case approach can make a significant difference in your chances of approval.
Final Thoughts
A poor credit history doesn’t have to stop you from investing in property. With the right lender, you can still secure a buy-to-let mortgage and build a successful portfolio.
Mercantile Trust leads the way with its tailored and flexible approach, while Kent Reliance, Paragon Bank, Shawbrook Bank, and Together Money each offer valuable alternatives depending on your situation. By understanding your options and choosing carefully, property investment can remain well within reach.
