Securing a mortgage with a history of defaults, CCJs, or missed payments requires a different approach than a standard application. Most mainstream mortgage calculators assume a 4.5x salary multiple and a small deposit, which aren't always available to those with adverse credit.
Our specialist tool is built to reflect the reality of bad credit mortgage lending, helping you understand your true borrowing limits. Give it a try at the top of this page!
What our bad credit mortgage calculator can tell you
Unlike a standard mortgage calculator, this tool has been tailored specifically for borrowers with bad credit and applies specific "risk tiers" to provide a realistic outlook of your mortgage prospects. You can use it to work out the following:
-
Your "Risk Haircut": How much a lender might reduce your maximum loan based on your credit grade.
-
Deposit Requirements: Whether your current savings meet the higher Loan-to-Value (LTV) restrictions for your credit profile.
-
The Cost of Waiting: A projection of how much you could save on monthly payments if you wait for your credit to improve.
-
Stress Test Results: Whether your application is at "High Risk of Rejection" based on the latest affordability stress tests.
How this calculator works
The tool uses "Adverse Multiple" logic to calculate your maximum loan:
-
The Basic Calculation: It multiplies your annual gross income by a reduced multiple (3.5x to 4.25x) instead of the standard 4.5x.
-
Debt Deduction: Crucially, it subtracts your annual debt commitments (loans and credit card payments) from that total to find your true borrowing power.
-
Formula: Max Loan = (Annual Gross Income x Adverse Multiple) - Annual Debt Commitments
LTV Check: It compares your deposit against the "Credit Grade" requirements (ranging from 10% for minor issues to 30% for severe issues).
Why use this calculator?
Using a standard calculator when you have bad credit can give you a false sense of hope. Specialist lenders view risk differently and this calculator takes this into account to present a more realistic picture of your borrowing potential, based on the following factors:
-
Mandatory Debt Subtraction: Simple tools often ignore existing debts, but for adverse credit, these are a mandatory deduction from your total loan.
-
Realistic Rates: It uses the latest specialist rates (5% to 9%+) rather than "market best-buys" that you likely won't qualify for yet.
-
Future Planning: It shows you a "Future Estimate" of how your interest rate could drop as your credit issues age.
Important things to keep in mind
-
The "Wait it Out" Benefit: If you wait 2 years, a "Moderate" credit issue might become "Minor," potentially saving you thousands in interest.
-
Deposit Alerts: If you select "Severe" credit with a low deposit, the tool will alert you to the likely minimum requirement (often 25%+).
-
Affordability Stress Tests: Lenders test your ability to pay if rates rise by another 2%. If this exceeds 40% of your net income, the mortgage is flagged as high risk.
-
Accuracy of "Adverse Type": Being honest about whether you have an active CCJ versus an old missed payment drastically changes the result.
Begin your mortgage journey
How accurate is this calculator?
There’s an important disclaimer we need to make about this calculator. Like all online calculators, it can only give you a rough idea of the kind of results to expect when a mortgage lender carries out their affordability and credit checks on you.
This limitation is especially true of bad credit mortgage calculators, as there are so many factors the lender will consider when assessing you for a mortgage. It was impossible to feed all of these into the tool, so our bad credit mortgage calculator is unable to provide tailored results for every single type of credit issue and every possible status of those issues.
That said, we believe we have created the closest thing to an accurate bad credit mortgage calculator on the internet. Many of our competitors have attempted to pass off vanilla mortgage calculators as specialist ‘bad credit’ calculators, or write articles on this topic that don’t include a calculator at all.
We have gone the extra mile and tailored this calculator for borrowers with adverse credit, but the results should be treated as rough estimates only.
Example calculations
The calculations below were produced by this caluclator for example purposes to give you an idea of what typical bad credit mortgages look like.
Example 1: Moderate Credit (CCJ over 3 years old)
A saver with a £40,000 income and £200 monthly debt payments.
|
Factor |
Calculation Logic |
Estimated Result |
|
Annual Income |
£40,000 |
- |
|
Adverse Multiple |
3.75x |
- |
|
Annual Debt |
£2,400 |
- |
|
Max Loan |
(£40k x 3.75) - £2,400 |
£147,600 |
|
Est. Interest Rate |
Moderate Tier (2026) |
~6.0% - 7.5% |
Example 2: Severe Credit vs. Waiting 2 Years
Impact of recent bankruptcy or active CCJs.
|
Feature |
Current (Severe) |
Future (Improved) |
|
Min. Deposit Required |
25% - 30% |
15% - 20% |
|
Interest Rate |
8.0% + |
~6.0% |
|
Status |
High Risk / Limited Lenders |
Moderate / More Options |
Example 3: Minor Credit (1-2 Missed Payments)
In this scenario, a borrower with a higher income but a few historical missed payments (over 2 years ago) uses a slightly higher income multiple.
|
Factor |
Calculation Logic |
Estimated Result |
|
Annual Income |
£60,000 |
- |
|
Adverse Multiple |
4.25x |
- |
|
Monthly Debt |
£350 |
- |
|
Annual Debt |
£4,200 |
- |
|
Max Loan |
(£60k x 4.25) - £4,200 |
£250,800 |
|
Min Deposit |
10% of Property Value |
Varies by Price |
|
Interest Rate |
Minor Tier |
~4.5% - 5.5% |
Example 4: Severe Credit (Recent Bankruptcy or IVA)
This example illustrates the "risk haircut" applied to a borrower with more significant recent credit issues.
|
Factor |
Calculation Logic |
Estimated Result |
|
Annual Income |
£35,000 |
- |
|
Adverse Multiple |
3.5x |
- |
|
Monthly Debt |
£100 |
- |
|
Annual Debt |
£1,200 |
- |
|
Max Loan |
(£35k x 3.5) - £1,200 |
£121,300 |
|
Min Deposit |
25% - 30% Required |
Significant |
|
Interest Rate |
Severe Tier (2026) |
~8.0% + |
Do all bad credit mortgage lenders cap their income multiples?
Most bad credit mortgages are based on capped salary multiples, but there are specialist bad credit mortgage lenders who may offer higher ones.
The table below shows the highest salary multiple available at each bad credit lender:
|
Bad Credit Mortgage Lender |
Highest Salary Multiple Available |
|
4.5 times annual income |
|
|
6 times annual income |
|
|
5 times annual income |
|
|
5.5 times annual income |
|
|
4.49 times annual income |
|
|
4.49 times annual income |
Please note that mortgages based on 5.5-6 times salary are rare for borrowers with bad credit. Kensington, for example, will only offer these multiples to applicants in high-earning professions, such as medicine or law and may place more scrutiny around the application.
Can you get a mortgage with bad credit but good income?
Yes, it’s certainly possible but your bad credit will be assessed by mortgage lenders in the same way, regardless of how high your income is. If you have a severe type of bad credit, like a bankruptcy or repossession, or the issues are very recent, being a high earner is unlikely to convince most lenders that you are low risk and creditworthy.
However, earning over a certain amount of income (anywhere between £50k and £100k as a starting point) can grant you access to a wider range of mortgage deals and income multiples. Having a greater range of products to choose from can increase your chances of getting approved for a mortgage with bad credit, for obvious reasons.
If you earn a high salary, the best thing you can do to increase your chances of securing a bad credit mortgage is save up extra deposit. If you can cobble together at 30-40% of the property’s value, this will open you up to a wider range of rates and deals.
What to do after running your calculations
Now that you have a clearer idea of how much you can borrow on a mortgage with bad credit and how much it will cost, you can get a free rate comparison by a Money Helpdesk broker who specialises in borrowers with adverse credit.
Here are just some of the reasons people choose us for their bad credit mortgage:
- Our brokers can access exclusive deals for borrowers with adverse
- We are 5-star rated on leading review websites
- We can help you secure an agreement in principle in minutes
Ready to speak to a broker who specialises in customers just like you? Get started here.
FAQs
Affordability is assessed in exactly the same way for first-time buyers with bad credit, compared to homemovers, meaning you can typically borrow 4-4.5 times your annual salary, provided your credit problems don’t prevent you from qualifying for a mortgage.
You can potentially boost your affordability and eligibility by exploring family support options, such as guarantor mortgages, or government schemes like the First Homes initiative.