Getting a Shared Ownership Mortgage With Bad Credit
Yes, you probably can! Many lenders offer mortgages for bad credit, including shared ownership, but the key is finding the right lender for both. Over the last 10 years, we’ve helped over 11,000 customers secure shared ownership with bad credit, with 4 experts dedicated to this area. We guarantee to get your mortgage approved and find you the best deal. If we can’t and someone else does, we’ll give you £100!*
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Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Criteria Brain
https://mortgagebrain.com/products/criteria-brain/You can get a shared ownership mortgage with bad credit - but it’s not always straightforward
Bad credit is not a barrier to accessing shared ownership mortgages. However, it does make things more complicated. If you already have bad credit, the number of lenders you can access is reduced (depending on the severity).
Shared ownership can narrow your options even further, since fewer lenders offer these mortgages to begin with. On top of that, housing associations need to approve you, too, and some are more cautious about applicants with bad credit than others.
The good news: There are still plenty of good deals out there – even if your credit history includes CCJs, defaults, missed payments, or something more serious like a bankruptcy. Shared Ownership can reduce the total mortgage amount needed, improving your chances further.
That said, approval isn’t guaranteed. Even if your credit issues and shared ownership are both accepted in isolation, combining them, along with your deposit, income, and other details, makes things less predictable.
It’s rarely black and white, and the real picture only becomes clear through experience: knowing how lenders actually respond in practice when these applications are submitted.
Need a quick refresher on shared ownership?
This article focuses on how bad credit affects your options - so it assumes you already understand the basics of shared ownership. If you’re not quite there yet, you can read our guide for a clear, jargon-free explainer. 👉 Read our shared ownership guide.
Pete Mugleston
Founder and MD
How lenders judge your credit history
Not all bad credit is viewed the same; lenders will look far more kindly on some borrowers than others.
It all depends on the following:
The type of issue and what it was for
Things like late or missed payments for phone bills and utilities are considered far less severe than things like bankruptcies and IVAs. So, whilst a very old default or CCJ might exclude only a handful of lenders, a recent bankruptcy might leave you with only a handful to choose from.
👉 You can read more about bad credit mortgages in our guide here.
How old the issues are
The older the issue, the less concerned lenders will be, and more options will be available.
How many there are
As a rule of thumb, the more issues you’ve had, the fewer options are open to you.
Whether they were paid off (settled)
If they are still outstanding, this will be more of a problem, and lenders may require you to settle your accounts first. However, every lender is different, and some will not mind.
How much it was for
The smaller the amount, the less of an issue it will be. Again, every lender is different. Some have a total combined limit, whilst others have individual limits.
However complex your issues, there’s usually a suitable lender out there.
Sometimes the backstory can make a lot of difference
Some lenders are more open to hearing the story behind your credit report than others.
While many will say no on paper, I know from experience which ones are more likely to consider the human context, and what kinds of explanations they’re typically more open-minded or flexible about.
If the situation can be explained (and ideally supported with proof) as a one-off—due to temporary financial hardship or unforeseen circumstances—and not part of an ongoing pattern of poor financial management, some lenders will look beyond what your credit report states.
In addition to this
Lenders will also assess your overall circumstances, and their requirements in other areas may be stricter as a result of your bad credit.
Below are the two biggest factors:
The deposit you have available
Whilst 100% shared ownership mortgages are still possible with bad credit, they become much harder to get. Usually, a 5-10% deposit towards your share is required (again, this is dependent on the severity).
Your ability to afford the mortgage as well as the rent
Lenders will want to be sure you can afford both your rent and the mortgage. Having adverse credit can make them more risk-averse.
A co-applicant can help increase your perceived ability to afford the mortgage. An expert to help you understand the benefits (if any) of adding an additional applicant to help you determine if it’s in your best interest.
Local housing associations also have their own rules and often require applicants to demonstrate a good credit history. They may require no bad debts to remain outstanding and for you not to be in arrears with your current mortgage or rental payments.
In addition, they also apply their own assessment of your ability to afford the mortgage, which can determine the total share of the property you’re able to purchase.
Local housing associations differ, so it’s worth checking with them directly.
It’s a lot to take in – if you’re feeling overwhelmed, we’ve got you covered
Bad credit mortgages are complicated enough on their own, as are Shared Ownership mortgages.
If you’ve got both, it can feel like you’re being asked to navigate an invisible system with moving goalposts. Especially when the stakes are high, and all you want is a clear way forward.
However, there are lenders that consider all types of situations. And there are a few experienced advisors in the country that deal with exactly these types of situations on a daily basis.
Because they know the lenders policies inside-out, they’ll be able to identify very quickly the best lenders that will consider you. Great deals are available far more often than people expect.
This is exactly why we exist
We don’t expect you to figure this out all on your own – and you shouldn’t have to!
Every person is unique, as are all of the lenders, and the mortgage industry doesn’t vet itself for experience in unique situations. You need somebody who has expertise in both.
Over the years, we’ve helped thousands of people with bad credit who are looking for a shared ownership mortgage.
We’ll put you in touch with a hand-selected expert at Online Mortgage Advisor who has regular experience helping people in your shoes.
When things aren’t black and white, experience matters. That’s what we’re here for.
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I couldn't speak more highly of Sheridan
I could speak more highly of the service we had with Sheridan at OMA. We were applying for our first mortgage on a shared ownership property and naturally, lacked knowledge in several areas and Sheridan explained everything clearly, simply and no question was off the table.
Georgina Sapak
Exceptional service
I could not recommend the OMA group enough. From the beginning it has been a clear process, and Richard was exceptional at communicating where the application was up to, navigating any questions or concerns I had. Especially for non traditional income professionals I wouldn't recommend anywhere else
Vanda White
Luke has been very helpful
Luke has been very helpful and reassuring so far! Nice to speak to someone who sympathises with how stressful buying your first property can be!
Dawn Job
Why our advice works better
When you’re dealing with bad credit, the right advice makes all the difference. That’s why Online Mortgage Advisor takes a unique, channel-expertise approach.
Specialist brokers: Our channel-experts focus exclusively on helping bad credit borrowers, helping people just like you every day.
Strict vetting: We carefully select and train our advisors to ensure they have the expertise needed to deliver better outcomes.
Customer-led approach: We recognise & reward advisors based on real customer feedback, using AdvisorScore and other mechanisms – ensuring they stay focused on the best outcomes for every customer.
Everybody’s unique – and it’s important to speak with someone who understands your situation without judgment, and can offer solutions you’re able to trust.
Our service is hassle-free, and you’ll be protected by our 3 guarantees.
👉 Find out more about our channel-expertise approach.
👉 Meet the bad credit mortgage experts.
Note
Why a broker matters
Approximately 35% of lenders in the market are only accessible through an advisor. Working with a verified expert ensures you:
- Know what you actually qualify for.
- Avoid nasty surprises later in the process.
- Get the best possible deal for your situation.
Meet Our Bad Credit Experts
These guys are on the frontline helping people just like you every single day. They also ensure the information we provide on this website is accurate and up-to-date.
Graham Turner
Richard Davidson
Sheridan Repton
Luke Naylor
Do the same rules apply if I’m staircasing?
If you already have a shared ownership mortgage and want to increase your share, borrowing may now be more difficult than it was the first time around.
That’s because remortgaging to fund the extra share is treated as a brand new application. Your current lender doesn’t have to say yes, and if your credit history has worsened or your income has changed, you may no longer meet their criteria.
If that is the case, you may need to switch lenders entirely. One of our experts can help with this. They’ll tell you if you’re best off sticking with your existing lender. They’ll let you know what’s possible if you’re best off going elsewhere.
What if there are multiple applicants?
When applying jointly, lenders assess the application based on both credit histories. You’re not judged in isolation – it’s the combined picture that matters.
If one applicant has bad credit, the application is only as strong as the weakest credit profile.
If both have bad credit, your credit histories are added together, so restrictions will be even more stringent.
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Compare mortgage lenders and rates – specific to bad credit and shared ownership
As mentioned, there are many options available for most bad-credit borrowers wanting to purchase a shared ownership property. The challenge is knowing which lenders who say they will on paper will actually do so.
If you’re just researching and want an idea of what options (and rates) are available to you, our comparison tool is perfect.
Click on the links below to compare shared ownership mortgages with pre-applied filters based on your credit issues. You can also read each lender’s specific policies.
- CCJs
- Defaults
- Missed payments (utility bills)
- Mobile phone arrears or defaults
- Debt management plans
- IVAs
- Mortgage arrears or defaults
- Bankruptcy
- Repossesssion
All links have shared ownership pre-applied. Just select the credit issue that is relevant to you. Remember to personalise the loan amount and deposit to your situation.
Note
⚠️ A Quick Note Before You Compare
Our tool is a great starting point, but doesn’t provide the full picture.
- Meeting a shared ownership lender’s bad credit criteria doesn’t guarantee approval. Other factors often come into play.
- Lenders change their rules often, and not everything is published. Sometimes, you’ll technically “qualify” but still get declined, or vice versa.
- Our advisors often place people with high street lenders, others wouldn’t even try. They know the subtle exceptions and have strong relationships with underwriters.
- If timing matters, be aware: Some lenders move fast. Others can drag things out with no guarantees.
If you’re unsure or need a quick answer, speaking to an expert can save you a lot of time and stress
Compare Bad Credit Shared Ownership Mortgages With Our Comparison Tool
Our free mortgage comparison tool allows you to filter for mortgage lenders that will consider your credit history
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Our free mortgage comparison tool allows you to filter for mortgage lenders that will consider your credit history
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How We Change Lives
Discover stories from customers who've transformed their lives after choosing Online Mortgage Advisor to match them with the perfect advisor for their needs.
Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and 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 successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and 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 Online Mortgage Advisor of course!