Could your credit card debt prevent you from getting a mortgage in 2026? 

Have you come out of the Christmas period with a higher credit card balance and a knot of anxiety in your stomach, feeling that your overspending could impact your plans for a new mortgage this year? This is an extremely common feeling, and at the start of every year, we can guarantee it’s one of the first questions that new clients ask us.  

We get it. Of course, you’re going to worry that a bad credit history or credit card debt will look bad in front of mortgage lenders.  

But our message is clear: mortgage lenders aren’t looking for a perfect credit history.  

They’re looking for a realistic credit history that shows you can maintain your mortgage and credit card repayments.  

To set your mind at ease, in this article, we’re sharing everything you need to know about how to get a mortgage with credit card debt.  

How much credit card debt is there in the UK? 

Before we go into the details of how to get a mortgage with bad credit, we think it’s important to understand the scale of the situation.  

People naturally keep their finances close to their chests. People rarely want to admit they owe money to credit card companies, but that can lead to feelings of isolation and concerns that their debt is much worse than anyone else’s.  

The first thing to know is that your situation is far more common than you might think. 

Research from Nimblefins in January 2026 tells us that 

• The average UK household consumer debt (e.g. personal loans and credit cards) reached £8,304 at the end of 2025. 

• The average UK household credit card balance is approximately £2,601. This has risen by 13% over the last 10 years, perhaps due to the ongoing cost-of-living crisis. 

• 15% of all personal lending is in the form of credit card balances. 

• People aged 25–34 have the highest non-mortgage debt, with a median of £5,300. This means half of the people in that age group owe at least £5,300, and half owe less. 

We’re sharing these figures to help normalise how you’re feeling.  

Despite what you may think, credit card debt or other poor credit history is extremely common.  

Mortgage lenders are accustomed to lending to people with a history of using credit cards or personal loans. They recognise that life events such as Christmas spending, a period of illness, or a job change can temporarily push balances up. What matters is how you manage the debt from here and how your overall profile stacks up when we make your mortgage application. 

Will credit card debt stop you from getting a mortgage? 

This is a difficult question to answer, because every case is different. There’s no definitive yes or no response.  

What we do know is that lenders don’t just look at whether you have debt when making their decisions. They are more concerned about your affordability (your income and essential outgoings), stability, and your behaviour behind those numbers.  

Simply put, they are trying to identify your risk factors.  

Let’s look at a couple of different scenarios. 

You owe between £1,000 and £2,000 on a 0% credit card. You pay this on time every month, but you’re worried the balance will count against you.  

Usually, this isn’t something to worry about. Lenders want to know that your payments are on track and that the balance is trending down. In these circumstances, lenders will likely focus on the required minimum payment for their affordability calculations rather than the overall balance. 

You have a long-standing balance on your credit card and a history of missed or late payments. Your interest is compounding every month. 

This is a very different scenario. If you’ve got persistent or high-interest debt or a track record of late payments, this will almost certainly be a red flag because it suggests affordability stress. In these cases, your overall debt-to-income (DTI) and payment history weigh more heavily than the existence of debt itself. 

We can find the right lender if your credit card debt or credit history is becoming a barrier to getting a mortgage. 

We know that there are red flags which can trigger automated rejections from some high-street mortgage lenders.  

For example, if you’ve experienced any of the following, you may be unlikely to find a suitable mortgage by yourself.  

• Recent defaults or multiple missed payments 

• CCJs, IVAs, or a recent bankruptcy 

• Active debt management plans or ongoing arrangements to pay 

But that doesn’t mean you can’t get a mortgage with a poor credit history.  

Instead, it means you need to ask for additional help and support from a reputable mortgage broker (like us) who knows which lenders will be the right match for you. 

In these circumstances, we’ll steer you away from options that rely on automated scoring systems. Instead, we’ll prioritise poor credit mortgage lenders who work with trained underwriters who look at the whole story, not just your credit score.  

This is where our trained mortgage brokers excel.  

At The Mortgage Expert, we have relationships with lenders, so we know who the best people to talk to are. We want to get you on your path to owning your own home.  

With our help, we can clarify to specialist lenders how long ago any missed payments were and whether old debts have been settled. With our knowledge of your deposit, income stability, and current repayment behaviours, we can establish clear patterns of improvement and reduce your risk factors. 

Many mortgage lenders understand bad credit and debt  

If you are worried about your finances, you should know that not all lenders view credit card debt or adverse credit history in the same way. 

There are some high-street names known for lending to people with poor credit histories and credit card debt. But specialist lenders are ideal if you have a complex background, such as an IVA or recent bankruptcy. 

Some of the bad credit mortgage lenders in the UK include Pepper Money, Bluestone Mortgages, Kensington Mortgages and Buckingham Building Society. These types of specialist lenders usually work through mortgage brokers, so if you are concerned that your credit card debt or financial history could hold you back, please talk to our team.  

Of course, it’s worth reiterating that product availability and criteria will move frequently. Our job is to match you with the right lender who understands the timing of your credit issues, deposit, income, and property needs.  

Five things you can do to prepare your finances before applying for a mortgage with credit card debt 

We want you to be in the best possible place before you make your first mortgage application. Whether you’re a first-time buyer, self-employed, renewing a mortgage or applying for a joint mortgage, the process should be as easy and stress-free as possible.  

Here are five steps you can take to prepare your finances before you start thinking about bad credit mortgages.  

1. Check your credit files carefully. 

Use tools such as Experian to ensure your credit history is accurate. If you’ve had a historic credit card debt or personal loan, has it been marked that you’ve paid it off? If there are any obvious errors, now is the time to organise those corrections.  

1. Make sure that you’re prioritising your repayments.  

You might have credit card debt spread across multiple cards. If so, make sure that you’re tackling the high-interest card repayments first to avoid any debt from compounding. If you’ve got a 0% credit card, make sure you have a direct debit set up for the minimum payment each month, and note when the promotional period ends.  

1. Keep paying little and often, and make sure all payments are on time. 

Lenders want to see consistent, positive behaviour. If you can show a proven history of making regular on-time repayments, they will have more confidence in your affordability.  

1. Stabilise your budget and minimise outgoings where possible. 

As part of affordability checks, lenders will assess your income vs your outgoings. Now is the time to cancel any unused subscriptions and minimise any spending. Now is the time to put those extras into your debt repayments or into your deposit balance.    

1. Pull your paperwork together.  

Manual underwriters will want to see that you’ve got all the correct paperwork in place. If you’re employed, you’ll need to have your payslips and P60’s available; if you’re self-employed, you’ll need at least two years of self-assessment tax returns or business bank statements to prove your income.  

If you’ve taken out personal loans or have current credit card debt, make sure you have the paperwork available detailing any balances, minimum repayments due, and interest rates.  

The more information we have at our disposal, the easier it is to provide clarity and context to manual underwriters.  

If you have credit card debt, don’t worry about the fear of “computer says no” 

We know this is your biggest concern when getting a mortgage with credit card debt. The automated scoring that many High Street lenders use can feel extremely blunt. 

But that’s what we’re here for.  

We’re here to become your advocate and your application partner. Our role is to shortlist specialist lenders that allow human review. That way, we can present the background context of your poor financial history. We can explain why the blip happened, how you’ve recovered, and what has changed.  

You don’t have to be perfect to be mortgage-ready.  

You need a plan, clear evidence of improvement, and a specialist bad credit mortgage broker who knows which lenders will truly listen. 

Talk to The Mortgage Expert to find out how we can help you 

We specialise in helping clients with bad credit, credit card debt, debt arrangements, defaults, CCJs, IVAs, and other complex financial histories. 

Too often, people put off speaking to a broker because they’re worried about their financial past or their current debt levels. But we promise, there’s nothing we haven’t seen before. As we stated at the start of this article, credit card debt is extremely common in the UK; it’s just that no one talks about it.  

This is what we do every day. Helping people like you to take those steps to owning your own home.  

All you’ve got to do is book an appointment with one of our mortgage advisors. From there, we can  

• Review your credit and affordability in detail 

• Recommend steps to strengthen your profile  

• Shortlist specialist mortgage lenders who fit your circumstances 

• Manage the application so your real story is heard, beyond your credit score 

A credit card debt mortgage is often possible, and it all starts with a phone call.