Bad Credit Mortgages for Visa Holders – Deposits, Defaults & Approval Tips
Buying a home is a big step for anyone — but if you’re on a visa and have a bit of a messy credit history, it can feel like the odds are against you. Maybe you’ve had missed payments, defaults, or even a CCJ in the past. Add visa rules on top, and it’s no wonder so many people assume lenders won’t look at them.
The truth? You can still get a mortgage as a visa holder with bad credit. It might take more planning, a bigger deposit, or going through a specialist lender, but it’s very possible.
At Mortgage Wala, this is what we do every day. We help visa holders who’ve had bumps in the road — from missed payments to defaults — find lenders who’ll say yes. Let me walk you through how it works, what lenders look for, and the steps you can take to put yourself in the best position.
Can I Get a Mortgage With Bad Credit if I’m on a Visa?
Yes — you can.
The outcome depends on:
- What kind of credit issues you’ve had (missed payments, defaults, CCJs, IVA, bankruptcy, or a debt management plan)
- How long ago it happened
- Whether you’ve repaid or “satisfied” the debts
- How big your deposit is
- The type of visa you’re on and how much time is left
High street lenders are usually stricter. But there are specialist bad credit mortgage lenders for visa holders, and they’re far more open-minded. That’s who we deal with all the time.
What Types of Bad Credit Can Lenders Accept if I’m on a Visa?
Not all bad credit is treated the same. Some issues matter less to lenders than others. Here’s what we see most often:
Missed or Late Payments
- These are really common with phone bills, cards, or utilities.
- If they’re small and happened over six months ago, a lot of lenders won’t worry too much.
Defaults
- More serious, but not a total deal-breaker.
- Some lenders are fine with defaults that are at least 12 months old.
CCJs (County Court Judgments)
- If they’re small and you’ve paid them off, you could still be accepted once they’re a year or more old.
Debt Management Plans (DMPs)
- Some lenders will lend even if you’re still in a plan, as long as your payments are up to date.
Bankruptcy or IVA
- These are heavier black marks, but they don’t last forever. After 3–6 years from discharge, lenders will start considering you again.
💡 The key thing lenders look at is: how recent was it, and what have you done since?
How Do Lenders See Bad Credit When You’re on a Visa?
This is where it gets interesting. Visa holders often face two hurdles: bad credit and limited local credit history.
Here’s how lenders usually think about it:
- Having no credit history isn’t as bad as having active defaults.
- They don’t check overseas credit files — they only look at your local file.
- Stability is a huge plus. If you’ve been in the same job, at the same address, and kept your bank account in good shape, that can offset past problems.
In other words, they look at the bigger picture: your visa type, income, deposit, and how you’ve managed things recently.
How Long Do I Need to Wait After Bad Credit to Get a Mortgage?
Timing makes a huge difference. The further away the issue, the better your options.
- Missed payments: Often ignored if more than 6 months old.
- Defaults: Lenders open up once they’re 12 months old.
- CCJs: Most want them at least a year old, and paid is better than unpaid.
- Bankruptcy/IVA: You’ll usually need at least 3 years since discharge.
And remember — everything drops off your credit file after 6 years.
How Much Deposit Do I Need if I’ve Got Bad Credit on a Visa?
This is probably the most important part. A bigger deposit gives you way more options.
| Situation | Deposit Needed |
|---|---|
| Visa holder with good credit | 5–10% |
| Visa holder with bad credit | 15%+ |
| Buy-to-let mortgage as a visa holder | 25%+ |
So if you’re asking: “What deposit do I need with bad credit and a visa?” — the answer is usually at least 15%.
💡 The bigger your deposit, the lower your risk to the lender, and the better your interest rate is likely to be.
Can I Get a Mortgage With Defaults or CCJs if I’m on a Visa?
Yes — it’s possible.
We’ve placed plenty of mortgages for clients with old defaults or CCJs. The key things are:
- Are they more than 12 months old?
- Have they been repaid?
- Do you have a 10–15% deposit?
If the answer’s yes, there are lenders who’ll work with you.
Can I Get a Mortgage if I’m in a Debt Management Plan?
Some lenders will say no, but others will say yes — even if the plan is still running. As long as your payments are up to date, there are lenders who’ll consider you. You’ll usually need a larger deposit, though.
Can I Get a Mortgage After Bankruptcy or IVA as a Visa Holder?
Yes — but only once some time has passed. Most lenders want you to be at least three years past discharge, some want longer. You’ll also need a strong deposit (think 15%+).
Can I Use a Gifted Deposit if I’ve Got Bad Credit?
Yes, you can. Many of our clients use family support. Lenders are usually fine with it if:
- It’s from a close relative
- It’s a gift, not a loan
- You provide a signed gifted deposit letter
- You can show where the money came from
If it’s coming from overseas, you might have to show extra documents proving the source.
What if I Don’t Have Any Local Credit History?
You can still get a mortgage. In fact, a thin file can be easier than an active default.
To improve your chances:
- Open a local bank account and use it regularly
- Get on the electoral roll (if you’re allowed)
- Take out a small credit card and pay it off in full
- Avoid payday loans
These little steps can go a long way in building your credit profile.
Real Client Story: Skilled Worker Visa With Defaults
Here’s one example.
We worked with a client on a Skilled Worker visa with 18 months left. They had two small defaults (a phone contract and a credit card) from just over a year ago. They had a 10% deposit and a stable job.
High-street lenders said no because the defaults were recent. But we found a specialist lender who accepts defaults over 12 months old for visa holders.
Result? They got approved at a fair rate and moved into their first home within three months.
Why Should I Use a Broker for a Bad Credit Mortgage on a Visa?
Honestly — because it’s tough on your own. Many people waste time applying to lenders who’ll never say yes.
Here’s how we help:
- We know which lenders are open to visa holders with bad credit.
- We package your case properly — highlighting your deposit, job, and stability.
- We talk directly to underwriters to explain your situation.
- We help plan ahead. Even if you start with a specialist lender, we’ll move you to a mainstream one once your credit improves.
That’s the difference a broker makes.
Final Thoughts: Can Visa Holders Really Get a Mortgage With Bad Credit?
Yes — it’s absolutely possible.
It might mean saving a bigger deposit, being patient, or starting with a specialist lender, but you can still get approved.
The key is:
- Knowing which lenders to approach
- Understanding how much time needs to have passed
- Saving at least 15% deposit if you’ve had bad credit
- Working with someone who understands both visas and adverse credit
At Mortgage Wala, this is exactly what we do. Whether you’ve had defaults, CCJs, or no credit history at all, we’ll explore every option to get you moving.
📞 Specialist advice for visa holders with bad credit
We help visa holders every day get mortgages — even with defaults, CCJs, or thin credit files.
🗓️ Book your free consultation today and let’s make it happen.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.