Rates, fees and the real monthly cost
There is no single rate for a bad-credit mortgage. The rate available to you depends on the credit events, deposit or equity, affordability, property, product and lender criteria when your application is assessed.
Rates and products can change. An advertised rate is not a personal quote, and an application remains subject to lender checks, affordability, valuation and product availability.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A direct answer
You need a comparison based on your actual circumstances and products available at the time. A rate table cannot account for when a default was registered, whether an arrangement is active, your deposit or equity, affordability, the property or the lender’s current criteria.
Past credit problems can limit the products open to an applicant and may affect the rate or fees. They do not create one standard “bad credit rate” or a fixed percentage penalty. Two people with the same consumer credit score can receive different outcomes because lenders assess the underlying credit history and the rest of the application.
Start with the bad credit mortgage overview (opens in a new tab) if you first need to understand possible routes. For wider product explanations, use the general UK mortgage rates guide (opens in a new tab).
How a case is priced
A lender usually considers several connected factors. Improving one factor can help the range of options without cancelling the others.
The type, date, amount, status, cause and pattern can matter. A recent unresolved default can be treated differently from an older satisfied event. See the distinct guides to mortgages after a default (opens in a new tab), CCJs (opens in a new tab) and IVAs (opens in a new tab).
The loan compared with the property’s value can affect both eligibility and pricing. More deposit or equity may open different products, but it does not guarantee a rate or acceptance. Keep enough cash for fees and a workable reserve.
Income, regular commitments, dependants, term and expected payments all contribute to affordability. Employed, self-employed and variable-income applicants can need different evidence; the figures still have to meet the lender’s assessment.
Purchase or remortgage, residential or buy-to-let, property construction, valuation, repayment method and loan purpose can change which products apply. A headline rate for a different transaction may not be relevant.
Fixed, tracker and other variable products divide certainty and flexibility differently. Deal length, early repayment charges, overpayment terms and portability can matter as much as a small rate difference.
Lenders can change product ranges, funding costs and pricing. Wider rate changes can influence the market, but mortgage rates do not all move by the same amount or on the same day. Recheck products when you are ready to apply.
Different mortgage journeys
The same rate question can involve different costs, evidence and timing. Use the relevant owner page for the full journey.
Deposit source, available cash after fees and the condition of the property can shape the comparison. See the first-time buyer bad-credit mortgage guide (opens in a new tab).
Porting usually involves a fresh affordability and lending assessment. Compare any early repayment charge, additional borrowing and a completely new deal in the porting mortgages guide (opens in a new tab).
Compare a product transfer with suitable new-lender options, including fees and timing. The remortgage rate section explains the starting checks and links to the full service.
Income evidence and the credit-event chronology need to be considered together. Use the self-employed bad-credit mortgage service (opens in a new tab) for that combined assessment.
A practical comparison
Use the same loan, property value, term and repayment method for each option. Then compare the personalised mortgage illustrations side by side.
Product choices
Bad credit does not automatically decide the rate type. The suitable structure depends on the products available and how much payment certainty or flexibility you need.
The interest rate and scheduled payment stay fixed for the agreed deal period, subject to the mortgage terms. This gives payment certainty, although early repayment charges may apply and the follow-on rate can be different.
The rate follows a stated benchmark plus the lender’s margin, so payments can rise or fall. Check whether there is a floor, cap or early repayment charge and how quickly changes feed through.
Discount and standard variable rates can change under their product terms. Ask what controls the rate, whether there is an initial discount and what flexibility the product gives you.
From estimate to offer
Rates and calculators help with planning, but results depend on assumptions. A repayment calculator (opens in a new tab) is an illustration, not an offer.
This is usually an initial indication based on limited information. Ask whether any product has been selected or reserved and what further checks remain.
The lender assesses documents, credit history, affordability and the property. Product availability and the lender’s process determine when a rate can be reserved.
The formal offer sets out the approved product, rate, payment, conditions and expiry. Read the illustration and offer together and ask about anything that is unclear.
Ask whether the selected product is reserved, how long it remains valid and whether a different product can be considered before completion. The answer depends on the lender’s process, available products and whether a further assessment is needed.
Existing homeowners
If your current deal is ending, compare the existing lender’s product-transfer options with any suitable new-lender remortgage. Include early repayment charges, exit costs, new product fees, valuation, legal work and the time needed for a full application.
Improved credit history may widen the options, but it does not guarantee access to a particular rate. The lender will still assess the full application and property. Start with remortgaging with bad credit (opens in a new tab), then use the focused guide on reviewing a mortgage after your credit record improves (opens in a new tab).
Before a rate review
A useful adviser conversation
Count Ready can start with the credit events, mortgage figures, income evidence and your plans for the property. The comparison should use the same facts across suitable options and explain why a recommendation fits those circumstances.
You should be told the advice service and any fee before you decide to proceed. Ask which part of the market is considered, when a product is reserved, what can still change and what the mortgage illustration shows.
Common questions
There is no single bad-credit mortgage rate. A meaningful answer depends on the credit events, deposit or equity, affordability, property, loan and products available when the case is assessed. An advertised rate is not a personal quote and acceptance is not guaranteed.
Past credit problems can reduce the number of products available and may affect the price, but there is no universal rate increase. The outcome depends on the full application and current lender criteria, so compare the suitable products actually available to you.
A larger deposit reduces the loan-to-value ratio and can change the products available. It does not guarantee a lower rate or acceptance because affordability, credit history, property and other criteria still apply. Keep enough money for fees and a realistic emergency reserve.
No standard fixed penalty applies to every case. Lenders can assess the type, date, amount, status and pattern of each credit event differently. An adviser needs the exact dates and current status before checking suitable options.
APRC is a standardised way to compare the annual cost over the mortgage’s assumed full lifetime, including relevant fees and charges. Also compare the monthly payment, upfront costs, incentives, early repayment charges and cost over the period you realistically expect to keep the deal.
An agreement in principle is normally an early lending indication rather than a mortgage offer. Ask when a product is reserved, how long it is valid and what could change before offer or completion. A property valuation, full underwriting and the lender’s conditions can still affect the application.
Discuss your circumstances
Tell Count Ready about the credit events, deposit or equity, income and property. An adviser can explain the information needed to check suitable options and the costs that need to be compared.
No mortgage or rate is guaranteed. Availability depends on your circumstances, the property, affordability, lender criteria and products at the time of application.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Independent guidance
Content reviewed 12 September 2026. Product availability and rates can change; personalised documents and advice should reflect the position when you apply.
