Tier Two Visa Mortgage With Bad Credit

Podcast approved by The Openwork Partnership on 02/06/2025

How do I qualify for a mortgage with a Tier Two visa and bad credit?

Buying a property or remortgaging on a Tier Two visa is a challenge in its own right. When we’re adding bad credit to the mix, it can be even more difficult, unfortunately.

There are different things lenders look at to qualify you for a mortgage, including time in the UK, how much deposit you’ve got and the type of bad credit. Is it missed payments, a county court judgment (CCJ), or an Individual Voluntary Arrangement (IVA)?

A lot depends on what type it is and how long ago it was. Whether or not you can get a mortgage depends on many different factors, but that’s where we come in – to see if you do qualify and what options are available.

Can I get a mortgage with a Tier Two visa if I have a CCJ?

If you’re on a visa, you’re limited in the lenders you can approach compared with a British national or someone with settled status.

With a CCJ, most banks want them to have been satisfied – but with unsatisfied CCJs there are potentially still some options for you. It usually depends how much the CCJ was for and when it was registered.

If it’s satisfied, we need to know when. Most of the high street lenders would ideally not want to see any CCJs within the last three years. If you do have any in the last three years, they need to be satisfied or at quite low balances – around £100 or maybe up to £500.

More than £500 often rules out a lot of the options, especially if the CCJ is within the last three years. Some banks don’t want any CCJs in the last six years, which is how long your credit report goes back.

It also depends on the deposit you have. Generally, with bigger deposits, lenders can be more flexible. Your credit score is important to the lender, and they judge this based on different factors. Poor credit can limit you – it all depends on the details on your credit report.

Can I get a mortgage with a Tier Two visa if I have an IVA or default?

With defaults, lenders look at when they were first registered and how much they were for. Typically anything above £500 can again rule out a few lenders.

Defaults registered more than two years ago will give you a few more options. If they were registered very recently, it’s more of a challenge. With lenders that will consider you for a mortgage, you may need quite a large deposit of 25% or 30% or more.

IVA is a tough one. It is heavily weighted on the registration date and satisfied date. A lot of banks like them to be satisfied over six years ago. A few will accept IVAs satisfied three years ago, and a very few over 12 months ago. Note that this is not when you first registered the IVA, it’s when it is first satisfied.

Can self-employed individuals get a mortgage on a Tier Two visa if they have bad credit?

It depends. Some people might have a low credit score and think that’s because of a missed payment on file two and a half years ago. But it might not be a reflection of missed or late payments. It might just be that they have a limited credit history, or that they’re not on the voters’ roll.

It really depends on what you define as bad credit. Someone might have six defaults in the last two years – that’s certainly seen as bad credit. It would be really tough to find an option there.

We would have a discovery call with you around what you’re looking to do, to get a full understanding of your situation. We would ask you for a copy of your credit report and a few other documents to look for a suitable lender. You might meet some lending policies, but it’s ultimately down to your credit score.

You are more limited on a visa, depending on how severe that bad credit is. But a lot of people think their credit is worse than it really is. Don’t be put off – just have a chat with a broker to see what’s possible.

Will I need a larger deposit if I have a Tier Two visa and bad credit?

There are options available if you’ve had the odd blemish like a missed payment, or your score is low because you’ve not taken out much credit or not been in the UK for long. There may be some options to get a mortgage with 5% or 10%.

It becomes a little bit more difficult as credit issues get more severe. With defaults, CCJs and IVAs, generally lenders like to see a larger deposit of typically 15% or more.

If you do have a low score or you think you have bad credit, but perhaps you haven’t been in the UK long enough, there are some options available. Some lenders don’t have a minimum score and can still offer mortgages with a deposit of 5% and 10%.

How much can I borrow with a Tier Two visa and bad credit?

There’s a really wide range of borrowing capacity. It depends on your income, your outgoings, the deposit, other borrowing you might have, how many children you’ve got and childcare costs.

So many variables are taken into account when looking at how much you can borrow. That’s one of the real benefits of using someone like ourselves who specialises in helping people with visas. We can look at multiple lenders to see how much they can offer you.

What documents are required for a mortgage on a Tier Two visa with bad credit?

If you’re applying for a mortgage with a Tier Two visa and bad credit, most lenders will just want the standard documents. They will ask you for a copy of your ID via a passport or driving licence, and a copy of your visa. This may involve a share code to provide proof of your residency status and right to work in the UK.

You also need proof of income. If you’re employed, that’s usually the last three months payslips. If you’re self-employed, it’s tax calculations from HMRC – or company accounts if you’re a limited company director.

Bank statements are generally required from the last three months, to show your pay going in and to give a snapshot of your outgoings. We’d also usually email you a link to get a copy of your credit report.

This is a fully comprehensive report, showing us everything for the last six years. We can use that information to recommend a suitable lender. We then obtain an Agreement in Principle from them.

Banks, building societies may all request further documents as needed. If they’re unable to do certain checks, they might ask for additional documents. They might be struggling to prove your address history, for example, and need proof from further back in time.

They might request a P60 or other payslips to confirm additional income like annual bonuses. That should give you an idea of what to have prepared, ready to go.