Investing Insiders blog: How to get a mortgage if you have a poor credit score

Many mortgage applications are being rejected for reasons that are easily-fixable, according to research by Shawbrook Bank.

A survey by the lender found that key reasons cited for mortgage applications being declined included a poor credit score (25%) and missed payments (21%).

But there are ways you can get a mortgage even if you have a poor credit history.

Tidy up your credit report

One of the best ways to get yourself ready before applying for a mortgage is to tidy up your credit report and take a bit of time to boost your score.

If you have any missed payments on your record, make sure you’ve paid off any arrears – settled payments look better to lenders than outstanding debts.

Then, try to build up a few months of history of paying your bills on time before submitting your mortgage application. Lenders want to see a consistent pattern of reliably meeting payments, so you want to make sure any missed bills are put far behind you.

Next, look for other ways to improve your credit score. Make sure you are registered on your electoral roll, and consider holding off opening any new bank accounts or credit cards for a while.

Opening new accounts can temporarily impact your score, while a period of stability can give your score space to improve.

It’s worth fully scouring your credit history and making sure there are not any mistakes on your record, too, particularly if you aren’t sure why your score is low.

Consider using a specialist lender

Many people may not realise that there are specialist mortgage lenders who help people with low credit scores or poor credit histories to find a suitable mortgage.

These are often names you might not see on the high street, but they are designed for people who might be automatically rejected by mainstream lenders.

Be aware that mortgage rates can sometimes be higher with specialist brokers, as they are taking on some extra risk by lending to people with poor credit histories.

But they can be a way to get onto the housing ladder sooner than you may be able to with a high street bank.

Consider using a mortgage broker to find the right mortgage for you. You will usually have to pay a fee to a broker, but they tend to have access to a wider range of deals than you may be able to find online, and this could save you a lot of money long-term.

 

Energy bills will rise by 2% for millions of households in October, according to the latest announcement by the energy regulator Ofgem.

From 1 October to 31 December 2025, households using a typical amount of energy could pay up to £1,755 per year. That’s up £35 from the July price cap of £1,720.

The increase is more than double the £17 increase to £1,737 per year that industry analysts initially predicted.

It comes as households are already facing higher-than-expected living costs with July inflation hitting 3.8% – its highest level in 18 months.

Ofgem says the price cap increase is partly due the higher cost of transporting energy to customers and extra support measures for vulnerable customers, such as the Warm Home Discount.

The energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

It’s important to note that the price cap doesn’t limit the size of your actual bill. This will be determined by the amount of energy you use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

How can you save on energy bills?

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before October 1, switching onto a fixed-rate tariff can help you cut the cost of your energy.

1. Shop around: price comparison websites are a great place to start. They’ll help you compare lots of energy deals quickly and help you find the best value. Remember to look out for exit fees which could make your tariff more expensive if you want to switch again before your deal ends.

2. Get energy efficient: try to reduce energy waste by switching off lights, appliances and technology when they’re not in use. Taking steps to insulate your home can also help reduce your energy costs.

3. Apply for support: check if you’re eligible for support from your energy supplier or the government to help you afford the cost of heating and powering your home.

4. Create a budget: making a budget can help you identify other areas in your life to try and make a saving. A budgeting app can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?

If you’re worried that you won’t be able to pay your energy bills, it’s important to act quickly to get help.

Contact your energy supplier as soon as possible to arrange a payment plan that you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help