Life happens. Sometimes we miss payments, fall behind on bills, or even default on credit agreements. If you’ve got multiple defaults on your credit file, you might be wondering if homeownership is even possible. The good news? It absolutely is. Here at Mortgage Bridge, we specialise in helping people with bad credit get on the property ladder. Let’s break it all down and show you how you can still secure a mortgage, even with defaults.
Can You Get a Mortgage with Multiple Defaults?
Yes! While mainstream lenders may decline applications with multiple defaults, specialist lenders offer mortgage options based on your current financial stability, deposit amount, and credit history improvements. The key is to demonstrate affordability, work with a mortgage broker, and explore bad credit mortgage options.
What Exactly Are Defaults, and How Do They Affect Your Mortgage Application?
A default happens when you miss payments on a credit agreement, and the lender officially marks the account as defaulted. These stay on your credit report for six years and can make getting a mortgage trickier—but not impossible! Different lenders have different criteria, and some are much more understanding of past financial hiccups than others.
What Do Lenders Look At If You Have Defaults?
- How many defaults you have – One default is easier to work with than several.
- How recent they are – Older defaults tend to have less impact.
- The amount of debt involved – Larger defaults can be a bigger issue.
- Why they happened – If it was due to job loss or illness, some lenders may be more flexible.
- Your financial situation now – If you’re in a stronger position, you’ll have better chances.
How Do You Check Your Credit Report Before a Mortgage Application?
Before applying, grab a copy of your credit report from Experian, Equifax, or TransUnion. To check your credit report, access free reports from these agencies to review defaults, outstanding debts, and errors before applying for a mortgage.
Look for:
- Any errors that can be corrected.
- The number and dates of defaults.
- Your overall credit score and outstanding debts.
Knowing what’s on your report helps you take the right steps before applying. If you’re wondering, “how do defaults affect mortgage applications?”, this is where to start.
How Can You Improve Your Credit Before Applying for a Mortgage?
Even if you can’t erase defaults, you can improve your overall creditworthiness by:
- Registering on the electoral roll – Boosts your credit score.
- Keeping up with current payments – No more missed payments!
- Reducing existing debt – Lowering your debt-to-income ratio helps.
- Using credit responsibly – Small, well-managed credit accounts can be a plus.
If you’re asking, “how do I improve my credit after defaults?”, these simple steps will help build a stronger profile over time.
What’s the Minimum Deposit Needed for a Mortgage with Defaults?
A bigger deposit makes you less risky to lenders. If you have multiple defaults, expect to need at least a 15–30% deposit, depending on how recent the defaults are and your overall credit history. The more you can put down, the better your chances of getting approved. At Mortgage Bridge, we always say: save as much as you can—it gives you more options and better mortgage deals!
Should You Go to a Specialist Lender If You Have Defaults?
Big banks might turn you down straight away, but specialist lenders exist to help people with credit issues. They assess applications on a case-by-case basis and are often more flexible. However, they might charge slightly higher interest rates.
We work with specialist lenders for bad credit mortgages who understand that life isn’t always smooth sailing. If you’ve got defaults, we can help match you with the right lender.
How Can You Show Lenders That You’re Financially Stable Now?
Lenders love stability. You can improve your chances by:
- Showing steady employment and income – The longer you’ve been in a job, the better.
- Cutting down on unnecessary spending – Helps with affordability checks.
- Demonstrating good financial habits – Regular savings and no recent missed payments are a plus.
Can a Guarantor or Joint Application Help You Get a Mortgage?
If your credit history is a sticking point, bringing in a financially stronger applicant can help. A guarantor mortgage means a family member backs your loan, making lenders more comfortable. Alternatively, applying jointly with a partner with a better credit score can boost your chances.
What Are the Mortgage Interest Rates for Applicants with Defaults?
Interest rates for applicants with defaults are typically higher, ranging from 5% to 10%, depending on your deposit size, lender, and financial stability. Getting a mortgage after defaults on your credit file usually means a higher interest rate—at least at first. But here’s the good part: once you’ve built up a track record of making mortgage payments on time, you can remortgage for a better rate down the line.
Why Use a Mortgage Broker to Find the Best Deal?
Mortgage brokers (like us at Mortgage Bridge!) have access to lenders who won’t show up on comparison sites. We know exactly which lenders are more flexible when it comes to bad credit mortgage options. Plus, we make sure you avoid unnecessary credit searches that could hurt your score.
What Types of Mortgages Can You Get If You Have Defaults?
You’ve got options! These include:
- Bad Credit Mortgages – Designed for those with past financial issues.
- Fixed-Rate Mortgages – Predictable payments for stability.
- Variable-Rate Mortgages – Interest rates that can change over time.
- Specialist Lender Products – Tailored for people with bad credit.
If you’re asking, “can you get a mortgage with recent defaults?”, the answer depends on your situation, but these options could work for you.
What Should You Do After Getting a Mortgage with Defaults?
Once you’ve secured a mortgage, it’s all about staying on track. Here’s what we recommend:
- Make all mortgage payments on time – This will rebuild your credit.
- Stay on top of your finances – Avoid future defaults.
- Look at remortgaging later – Once your credit improves, you can get a better deal.
If you’re wondering, “how long after a default can you get a mortgage?”, it really depends on your circumstances—but improving your credit will always help.
Case Study: How We Helped a Client Get a Mortgage with Multiple Defaults
One of our clients, Sarah, had five defaults due to financial struggles after being made redundant. She had since secured stable employment and was ready to buy her first home. Mainstream lenders vs. specialist lenders for bad credit was the big challenge—traditional banks turned her down.
We found Sarah a mortgage through a specialist lender who looked at her recent financial improvements rather than just her past defaults. With a 20% deposit and a slightly higher interest rate, she got the home she wanted. She plans to remortgage in a few years for a better deal once her credit score improves.
Final Thoughts
Having multiple defaults doesn’t mean you can’t get a mortgage—it just means you need to take the right approach. By improving your credit, saving a bigger deposit, looking at specialist lenders, and proving financial stability, you can absolutely still buy a home.
At Mortgage Bridge, we help people with bad credit find mortgage solutions tailored to their needs. If you’re struggling with defaults but still want to get on the property ladder, reach out—we’d love to help you bridge the gap to homeownership.