If you’ve got a default on your credit file, you’re probably wondering:
“Is getting a mortgage even possible?”
The short answer is: yes, you can get a mortgage with defaults, but it depends on how recent they are, how many you have, and how much they’re for.
Let’s break it down properly.
What Is a Default?
A default is recorded when you’ve missed payments over a period of time and the lender considers the account to have broken down.
Once applied:
- It stays on your credit file for 6 years
- It significantly impacts your credit profile
But it doesn’t automatically mean you’re locked out of a mortgage.
How Lenders View Defaults
Mortgage lenders look at defaults as a sign of:
- Past financial difficulty
- Potential affordability risk
But they don’t all treat them the same.
Some lenders will decline any application with recent defaults.
Others specialise in bad credit mortgages.
The Most Important Factors
1. How Recent the Default Is
This is the biggest factor.
- Within 12 months — very difficult
- 1–2 years old — limited options
- 2–3 years old — more options open up
- 3+ years old — much less impact
Time makes a big difference.
2. Number of Defaults
- One or two small defaults — manageable
- Multiple defaults — higher risk
The more defaults you have, the stricter lenders become.
3. Value of the Default
- Small defaults, such as £100–£500, are less concerning
- Larger defaults, such as £1,000+, may face more scrutiny
Lenders assess the scale of the issue.
4. Whether They Are Settled
- Satisfied defaults, meaning paid or settled, look better
- Outstanding defaults can limit your options
Some lenders require defaults to be settled before applying.
5. Your Overall Financial Situation
Defaults don’t exist in isolation.
Lenders will also look at:
- Income
- Job stability
- Existing debt
- Deposit size
A strong overall profile can offset older defaults.
Can You Get a Mortgage With Recent Defaults?
It’s possible, but more difficult.
You may need:
- A larger deposit, often 10%–25% but some lenders can offer 5%.
- A specialist lender
- Higher interest rates
Mainstream lenders are less likely to accept recent defaults.
How to Improve Your Chances
If you have defaults, you can strengthen your application by:
- Making all current payments on time
- Reducing outstanding debts
- Settling defaults where possible
- Avoiding new credit issues
- Building a consistent financial track record
Over time, your profile becomes more acceptable to lenders.
Should You Wait Before Applying?
In many cases, yes.
Waiting even 6–12 months can:
- Improve your credit profile
- Open up more lenders
- Reduce interest rates
Timing can make a significant difference.
The Role of a Mortgage Broker
If you have defaults, a broker can:
- Identify lenders who will consider your situation
- Avoid unnecessary declines
- Guide you on timing and preparation
Going direct without understanding criteria can lead to wasted applications.
Key Takeaways
- You can get a mortgage with defaults
- The age of the default matters most
- Fewer and smaller defaults are easier to manage
- Settled defaults are viewed more favourably
- Time and stability improve your chances
Final Thoughts
Having a default doesn’t mean the end of your mortgage options.
It does mean you need to approach things more carefully, understand how lenders will view your situation, and possibly wait until your profile improves.
For many people, it’s not about if they can get a mortgage, but when.
