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Bad credit mortgages in Northern Ireland

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 13, 2022

Across the UK, the range of lenders that accept ‘bad credit’ can vary depending on your location,the severity of your ‘bad credit’ and a number of other factors.

If you’re looking for a mortgage in Northern Ireland and you have ‘bad credit’, you may have found that there are fewer lenders to choose from and that interest rates being offered to you are high.

If this is indeed the case, try not to get disheartened. We know that in the right circumstances, it is completely possible to obtain a mortgage, even if you have previously been declined due to the adverse credit on your file

You can find our main page on bad credit mortgages, but if you’re looking for advice and want to speak to a specialist today, contact us and we’ll be happy to help.

Can I get a bad credit mortgage in Northern Ireland?

It can be difficult, but by no means impossible.

Although there will be far fewer mortgage providers to choose from compared to the mainland UK, the advisors we work with have access to specialist lenders who cover Northern Ireland and cater for borrowers who fall within the ‘adverse’ credit niche.

Some lenders view borrowers with ‘bad credit’ as people who are more likely to miss their mortgage payments which puts them at a higher risk of repossession. In order to make back the money they have loaned, lenders assess the probability that they can resell the property in the event of a repossession.

Can I get a bad credit mortgage anywhere in Northern Ireland?

The minority of lenders who do cover Northern Ireland usually have postcode restrictions in place and won’t offer mortgages for properties in certain locations.

For instance, the demand for properties in rural areas in Northern Ireland can be lower compared to the demand for properties in cities such as Belfast, which makes them a lot harder to resell.

To avoid the risk of potentially losing money, some lenders in Northern Ireland and the rest of the UK charge high interest rates or simply won’t lend for properties in rural areas, especially if the borrower has ‘bad credit’ and a history of mismanaging finances.

However, there are mortgages in Northern Ireland for ‘bad credit’ applicants and some of the providers offering them might well cover the area you’re looking at. The advisors we work with have access to every one of the adverse credit mortgage lenders in Northern Ireland so if there’s a mortgage you’re eligible for, they’ll find it. Talk to an advisor for more information.

Did you know… You could access 30% more of the mortgage market with a specialist Bad-Credit broker on your side – Get Started with an OMA-Expert to unlock more deals and increase your chance of mortgage approval.

Is bad credit assessed differently in Northern Ireland?

The simple truth is that ‘bad credit’ is subjective and every lender across the UK including Northern Ireland has a different appetite to lending to a borrower with a poor credit score.

One lender, for example, may decline your mortgage if you have a CCJ, while another may be happy to lend to you, as long as you have a larger deposit of 15%. There are also specialist lenders in Northern Ireland and other parts of the UK, who specifically lend to borrowers with ‘bad credit.’

What type of credit issues do bad credit lenders in Northern Ireland accept?

Any ‘bad credit’ you have on your file will be assessed based on the lender’s criteria – there are no set rules on how each individual country within the UK scores ‘bad credit’ to conclude whether or not you’ll be approved or rejected for a mortgage.

Therefore, there may be bad credit lenders in Northern Ireland that accept your ‘bad credit’ even in instances where it is severe such as bankruptcy.

  • Low credit score
  • Late payments
  • Missed mortgage payments
  • Defaults
  • CCJs
  • IVAs
  • Debt management schemes
  • Repossessions
  • Bankruptcy

Alternatively, make an enquiry and we’ll refer you to one of the experts for the right advice.

Can you afford to get a mortgage in Northern Ireland with bad credit?

Most lenders calculate your mortgage affordability by looking at your income versus your outgoings. If you are a ‘bad credit’ borrower, your outgoings may include repayments for debts, so lenders will want to ensure that after making these payments, you can still afford to pay your mortgage payments in full and on time.

How much could you borrow on a bad credit mortgage in Northern Ireland?

Typically lenders provide loans of 4 x an annual income. For someone earning £25,000, this could equate to a loan of £100,000.

However, some lenders view borrowers with poor credit as customers that are more likely to not repay their mortgages and so to reduce the risk posed to them, they offer smaller loans.

That being said, there are some lenders that approve loans for 4 x the annual income of a borrower, even when they have ‘bad credit.’ It may be the case that a bigger deposit between 10 – 40% of the property’s value could be required so that as the buyer, you own more equity.

There are also specialist bad credit lenders who might stretch to 5 x or even 6 x your salary, depending on a number of factors such as the age and severity of the credit problems, and how closely you meet the other requirements on their eligibility checklist.

It may also be possible to apply for a joint mortgage if one of the applicants has bad credit, their income will also be taken into consideration and may increase affordability.

For more information see our page on mortgage income multiples.

Calculate your affordability for a bad credit mortgage

It can be helpful to calculate how much you could borrow before you apply for a mortgage in Northern Ireland with poor credit as this can help you to avoid being rejected and affecting your credit report.

One of our advisors can help you with this and can also provide you with a free credit check on each of the leading credit reference agencies so you can prepare for what lenders can see when assessing your application.

For more information check out our main affordability hub.

You can access a free credit check through the links below, you can also read about the impact a mortgage credit check can have on your credit file in our guide.

Talk to an expert for more information on this or to calculate your affordability.

Get your credit rating

Are there other costs involved with moving?

If you’re thinking of getting a mortgage in Northern Ireland with ‘bad credit’, it can be helpful to calculate the costs that are involved to help avoid any unexpected charges.

These charges are no different than they would be anywhere else in the UK, but it can be especially helpful to be aware of them in advance, especially if you have a lower income or are being asked for a larger deposit because of your bad credit.

Here are some of the additional costs that you should factor in when moving:

  • Moving costs
  • Legal and survey fees
  • Insurances including life, building, income protection, content, critical illness
  • Stamp Duty

A mortgage advisor can help you to calculate all of the costs that are associated with moving and can also recommend companies with lower fees to help you save money. For more information on this, contact an advisor.

Did you know… You could access 30% more of the mortgage market with a specialist Bad-Credit broker on your side – Get Started with an OMA-Expert to unlock more deals and increase your chance of mortgage approval.

Stamp Duty in Northern Ireland

Stamp Duty is charged at the same rate in Northern Ireland, Wales and England. The only exception to this is Scotland where since April 2015, there has been no Stamp Duty charge. Instead, a Land and Building Transaction Tax (LBTT) was introduced so that the tax charged is more proportionate to the price of the property.

How much will I need to pay?

Buyers in England, Wales and Northern Ireland will have to pay the following…

  • 0% on properties between £0 and £125,000
  • 2% on properties between £125,000 and £250,000
  • 5% on properties between £250,000 and £925,000
  • 10% on properties between £925,000 and £1,500,000
  • 12% on properties over £1,500,000

As well as this, if you’re a first-time buyer in Northern Ireland, England or Wales, you will pay no Stamp Duty on properties worth up to £300,000, which could potentially save you up to £5,000.

As a ‘bad credit’ buyer who may be asked for a higher deposit, this can provide some relief and help you save the money needed to move quicker.

How do I get a bad credit mortgage in Northern Ireland?

To find the best ‘bad credit’ mortgage lenders in Northern Ireland, talk to a mortgage advisor. We have access to hundreds of bad credit mortgage brokers and will only recommend an expert to you that has specific experience with finding mortgages for customers with ‘bad credit.’

A good mortgage broker will take the time to understand exactly what you are looking for and find deals that are affordable and beneficial for you, based on your circumstances.

To do this, they’ll need to see your income and outgoings and know any information on any current or previous debts you have. From this, they can suggest lenders and manage any negotiations or paperwork on your behalf, saving you yet more time and hassle.

You can get the ball rolling on your application by making an enquiry with us.

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Contact an expert on bad credit mortgages in Northern Ireland

If you have questions about ‘bad credit’ mortgages in Northern Ireland and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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