In this blog, we will discuss getting a bad credit mortgage in Scotland and how you can ensure you present your best mortgage self if you have bad credit and want to get a mortgage in Scotland.

bad credit mortgages are handled slightly differently in Scotland than they are in England so if you have moved over from England recently you may be approaching getting a bad credit mortgage in Scotland the wrong way.

Bad credit mortgages in Scotland

bad credit mortgages in Scotland are somewhat different from those in England but what are we referring to when we speak about bad credit?

Bad credit in Scotland could be referring to:

No credit score

Low credit score

mortgage default

Missed mortgage repayments

Late credit account repayments



A debt management plan

A default

A bankruptcy

A home reposession

Usually, mortgage lenders will insist on mortgage borrowers with bad credit putting down a larger mortgage deposit to reduce the mortgage lenders loan to value and hence their risk.

What can you do for bad credit mortgages in Scotland?

If you are considering applying for a mortgage in Scotland and you have bad credit then here are a few things you may want to do to make your mortgage affordability much better.

Get on the electoral roll

Reduce your credit utilization to less than 30%

Avoid missing repayments

Avoid payday loans

Avoid closing your credit accounts

Avoiding using too much credit

Open a bank account

Avoid late credit account repayments

Get a credit builder card or loan

Avoid too many credit applications at the same time

Check your credit report for errors

You should check your credit score for errors by checking the four credit bureaus (includingCrediva) by using a service known as checkmyfile.

Checkmyfile will show you your credit report from the four credit bureaus.

If you spot any errors on your credit file you can then take these errors and report them to the credit bureau.

How to get a mortgage with bad credit in Scotland?

Getting a bad credit mortgage in Scotland isn’t necessarily harder but is somewhat different.

Due to how property prices in some parts of Scotland are much lower, you will tend to find that a lot of buyers with bad credit apply for mortgages in Scotland in order to get their hands on those properties which they simply won’t be able to find at that price range in the Uk.

Some Scottish mortgage lenders may view rural properties as a riskier investment as their location can make them more difficult to resell.

Buying a property in the rural areas of Scotland where property prices are much lower may be harder and even further compounded for those borrowers who try to get mortgages with bad credit in Scotland.

Can I get a bad credit mortgage in Scotland?

Yes, as with most places, bad credit mortgages are accessible in Scotland but you can expect a larger mortgage deposit requirement and the interest rate to be much higher than usual.

You will be able to find bad credit mortgage lenders in Scotland for both the rural and urban areas but whether a bad credit mortgage lender in Scotland will offer you a mortgage or not will depend heavily on your personal circumstances.

If the bad credit you had has been a few years since the event occurred then you may find more bad credit Scottish mortgage lenders are willing to lend to you.

Some bad credit Scottish lenders will even use the size and type of credit account your bad credit occurred with to decide if you meet their eligibility requirements.

Different bad credit mortgage lenders in Scotland will have different eligibility criteria with they work with. A bad credit mortgage broker with some experience of the Scottish mortgage lenders may be willing to help you get a bad credit mortgage in Scotland.

Buying in Scotland vs England

When you buy in Scotland you won’t pay stamp duty but may have to pay the land and transaction building tax. In a case where you have no tax due you may be able to use these funds towards the mortgage deposit for your bad credit mortgage in Scotland.

Increasing your mortgage deposit will also help you secure a bad credit mortgage in Scotland so this can be seen as a win.

The costs of buying a home are somewhat lower in Scotland than in England as the associated costs of buying a home is much lower. E.g in Scotland the surveyor’s report on the property is paid for by the seller and the seller must use an accredited surveyor to carry out the survey.

How to get a bad credit mortgage in Scotland

If you are looking to get a bad credit mortgage in Scotland then a bad credit mortgage broker may be able to help you.

bad credit mortgages are a specialist part of the mortgage market and great care needs to be taken when putting a bad credit mortgage application in Scotland.

A bad credit mortgage broker in Scotland will research all the lenders that may be willing to lend to you and make recommendations on what your best possible mortgage lending options are.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.