Getting a Mortgage with a Default: What You Need to Know
If you’ve had a default in the past, you’re probably wondering whether it’s still possible to get a mortgage. The short answer is yes — it absolutely can be done. At Mortgage Bridge, we regularly help people secure mortgages even with defaults or other credit issues on their record. Let’s explore how it works, what lenders look for, and how to give yourself the best chance of success.
Can You Get a Mortgage with a Default?
Yes, you can get a mortgage even if you have a default on your credit file.
Many people assume defaults automatically mean a “no” from lenders, but that’s not the case. Some high-street banks might decline applications with active or recent defaults, but specialist lenders often take a more flexible view — especially if you’ve taken steps to get your finances back on track.
At Mortgage Bridge, we work with a wide range of lenders who assess applications individually rather than just looking at your credit score. They’ll consider when the default happened, how much it was for, and what caused it — not just the fact that it exists.
If you’d like to see what options could work for you, we’re happy to help.
What Exactly Is a Default?
A default happens when you’ve missed several payments on a credit account — such as a loan, credit card, or mobile contract — and the lender closes the account. It’s then marked on your credit file and stays there for six years from the date it was registered.
It doesn’t necessarily mean you can’t borrow again during that time. Some people get approved for mortgages with defaults that are only a year or two old. The key is showing that your situation has improved since.
How Old Does a Default Need to Be to Get a Mortgage?
The older the default, the better.
Here’s how lenders usually view them:
- Less than 12 months old – Very few lenders will approve, but it’s not impossible.
- 1–3 years old – Some specialist lenders will consider your application, especially if you’ve been paying everything else on time since.
- 3–6 years old – Many lenders are open to considering your case, often with better rates.
- 6+ years old – The default drops off your credit file, and your record effectively looks clean again.
If your default has been satisfied (i.e., paid off), that also works in your favour — even if it’s recent.
Do I Need a Bigger Deposit If I Have a Default?
Typically, yes — a larger deposit helps.
Most lenders will want to see a deposit of 15–25% if you have one or more defaults. That’s because a bigger deposit reduces their risk and shows you’re financially committed.
If your default is older or small, some lenders might consider lower deposits of around 10%. Either way, the larger your deposit, the more mortgage options you’ll unlock.
If you’re not sure how much you’ll need, we can help calculate that based on your current credit and income profile.
How Do Lenders View Defaults on Different Types of Credit?
Not all defaults are viewed equally.
- Utility or phone defaults – Usually seen as less serious, especially if they’re small and old.
- Credit card or loan defaults – Considered more significant, but still manageable depending on how long ago they occurred.
- Mortgage or secured loan defaults – These are the most serious and will limit your lender options more heavily.
Even then, it’s not game over. We’ve helped clients secure mortgages after mortgage defaults — it’s just about presenting the full story clearly and finding the right lender.
What Kind of Mortgage Rates Can I Expect with a Default?
Rates for applicants with defaults are usually higher at first, reflecting the perceived risk to the lender. However, they’re not necessarily extreme.
You can expect interest rates to be a few percentage points higher than standard deals initially, but after a couple of years of consistent repayments, you can often remortgage onto a better rate once your credit has improved.
We’ll help you plan for that so you can get back to mainstream rates as soon as possible.
What Documents Will I Need for a Mortgage with a Default?
Most lenders will want to see:
- Proof of income – Payslips, P60s, or self-employed accounts
- Bank statements – Usually 3–6 months
- Credit report – To verify the default details
- Deposit evidence – Where the funds are coming from
If you’re self-employed or have complex income, you’ll need to provide business accounts or tax returns too. Don’t worry if this sounds like a lot — we’ll guide you through every step.
Does It Matter If My Default Is Satisfied or Unsatisfied?
Yes — but in different ways depending on the lender.
A satisfied default (one that’s been repaid or settled) is always better, especially if you’ve been managing everything well since.
However, some specialist lenders will still consider unsatisfied defaults, particularly if they’re older and you’ve maintained good conduct elsewhere.
If you can afford to, it’s worth settling the default before applying. It demonstrates responsibility and can improve your mortgage options.
How Can I Improve My Chances of Getting a Mortgage After a Default?
Here are a few practical steps you can take right now:
- Check your credit file with Experian, Equifax, or TransUnion and correct any errors.
- Settle any outstanding defaults or debts if you can.
- Keep up with all other repayments — even one missed bill can set you back.
- Avoid taking on new credit before applying.
- Save the largest deposit possible.
- Work with a broker (like us!) who knows which lenders are open to applicants with defaults.
A clear, stable financial picture goes a long way with lenders.
Can I Get a Mortgage with Multiple Defaults?
Yes, though your options will depend on the number, size, and age of the defaults.
For example:
- A few small, satisfied defaults from several years ago might be fine.
- Multiple large or recent defaults will limit your choices but not eliminate them.
Each lender has its own criteria. Some care more about how much you defaulted on, while others focus on timing. We’ll match you to the ones that fit your profile best.
Can I Get a Mortgage If I’ve Been Declined Elsewhere?
Absolutely.
Being declined by one lender doesn’t mean all lenders will say no. High-street banks often have strict policies that don’t take personal circumstances into account. Specialist lenders, however, assess cases individually and can be much more understanding.
We help clients every week who’ve been turned down elsewhere — often securing approval within days once we approach the right lender.
What If I’m Self-Employed with a Default?
You can still get a mortgage — it just takes a bit more preparation.
Lenders will look at your trading history, income stability, and how your business has performed since the default. They’ll usually want at least one to two years of accounts, sometimes three.
If your business is steady and your default is in the past, you’ve got every chance of success. We work with self-employed applicants all the time, so we’ll make sure your case is presented clearly.
How Much Can I Borrow with a Default?
Most lenders base affordability on 4–4.5 times your annual income, though this can vary depending on your credit profile and outgoings.
For example, if you earn £40,000 a year, you might be able to borrow around £160,000–£180,000.
The size and recency of your default can influence how close you get to that figure, but strong affordability can often offset minor credit issues.
We can help estimate how much you could realistically borrow before applying.
Should I Wait Before Applying for a Mortgage with a Default?
If your default is very recent (within the last year), waiting a bit can help — especially if it gives you time to rebuild your credit and save a bigger deposit.
However, if your default is older and your finances are now stable, there’s no need to delay. The right lender might already be open to considering you today.
We can review your situation and advise whether it’s worth applying now or waiting a few more months.
What Type of Mortgage Should I Go For?
The type of mortgage — fixed, variable, or tracker — depends on your goals and comfort with rate changes.
Most clients with defaults choose fixed-rate mortgages for predictable payments and peace of mind while rebuilding credit.
Once you’ve built a stronger track record, you can remortgage onto a more competitive deal.
We’ll guide you through what’s best for your situation.
How Mortgage Bridge Can Help You Get Approved
At Mortgage Bridge, we specialise in helping people with adverse credit, defaults, and complex income secure the mortgages they deserve.
We’ll:
- Review your credit profile and income carefully
- Match you with lenders who understand your circumstances
- Handle the paperwork and communication for you
- Make sure your application is as strong as possible before it goes anywhere
Getting a mortgage with a default isn’t about luck — it’s about strategy, preparation, and working with the right broker.
If you’re ready to see what could work for you, let’s talk. We’ll help you take that next confident step toward your new home.
Final Thoughts
Having a default doesn’t mean your dream of homeownership is over. With the right guidance, preparation, and lender, a mortgage is absolutely achievable — and often sooner than you think.
We’ve helped countless clients in the same situation move from uncertainty to approval. If you’d like to explore your options, we’re here to help. Let’s take that step together.