Can I Get a Mortgage with a Default? Real Options Explained

Can I Get a Mortgage with a Default? Real Options Explained

Seeing a default on your credit file can make applying for a mortgage feel daunting. Many people assume a default means an automatic rejection or that they must wait years before even thinking about home ownership.

The reality is more reassuring. You can often get a mortgage with a default, depending on the type of default, how long ago it occurred, and how your finances look now.

At Mortgage Bridge, helping clients secure mortgages after defaults is one of our core specialisms. In this guide, we explain how lenders view defaults, what options genuinely exist, and how to put yourself in the strongest possible position.

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What Is a Default on Your Credit File?

A default is recorded when a lender believes an account has broken down — usually after several missed payments.

Defaults commonly arise from:

• Credit cards
• Loans
• Utility bills
• Mobile phone contracts

Once registered, a default typically remains on your credit file for six years from the default date, whether or not it has been settled.

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Can You Get a Mortgage with a Default?

Short answer: yes — in many cases.

A default does not automatically stop you getting a mortgage. Lenders assess defaults in context, focusing on:

• How recent the default was
• Whether it has been settled
• The amount involved
• Your behaviour since the default

Many borrowers with defaults go on to secure mortgages successfully.

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How Do Lenders Assess Defaults?

Lenders usually look at four key factors.

How Recent Is the Default?

Recency matters most.

• Defaults within the last 12 months are viewed more cautiously
• Older defaults carry less weight
• Defaults several years old are often far easier to work around

Time really does make a difference.

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Has the Default Been Settled?

A settled default is viewed more positively than an outstanding one.

While settling a default doesn’t remove it, it shows:

• Responsibility
• Closure of the issue
• Reduced ongoing risk

Where possible, lenders prefer defaults to be settled before application.

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How Many Defaults Are There?

One isolated default is very different from:

• Multiple defaults
• A pattern of repeated credit problems

Lenders look for evidence that the issue was a one-off rather than ongoing behaviour.

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What Has Happened Since?

Clean recent credit history is crucial.

Lenders want to see:

• On-time payments since the default
• Reduced reliance on credit
• Stable finances

Strong recent behaviour can outweigh older mistakes.

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How Long After a Default Can You Get a Mortgage?

There’s no single rule, but typical patterns include:

• Recent defaults: Limited options, usually specialist lenders
• Older defaults: More lenders available
• Defaults nearing the end of their six-year period: Wider choice

Approval often depends more on improvement since the default than the default itself.

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What Deposit Do You Need with a Default?

Deposit size plays a major role.

Typical expectations may include:

• 5–10% deposit for small, historic defaults
• 15% or more for recent or larger defaults

A bigger deposit reduces lender risk and can significantly improve approval chances.

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Does the Type of Default Matter?

Yes — very much so.

Lenders may view:

• Small utility or phone defaults more leniently
• Large unsecured credit defaults more cautiously
• Mortgage-related defaults most seriously

Context and explanation matter alongside the numbers.

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Can You Get a Mortgage with a Default and Other Credit Issues?

Possibly — but options may be narrower.

If you also have:

• Missed payments
• CCJs
• Past debt solutions

Lenders will assess the overall credit picture. Specialist lenders are often better suited to these cases.

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Common Myths About Defaults and Mortgages

“You must wait six years after a default.”
Not always — many lenders consider you sooner.

“A default means automatic rejection.”
False — context matters.

“Only high-street banks offer mortgages.”
Incorrect — specialist lenders exist for exactly these situations.

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How to Improve Your Chances of Approval

If you have a default, these steps can help:

• Keep all payments up to date going forward
• Settle outstanding defaults where possible
• Reduce other debts
• Avoid new credit applications
• Save a stronger deposit
• Keep bank statements clean and consistent

Preparation makes a real difference.

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How Mortgage Bridge Helps Clients with Defaults

This is where specialist advice matters most.

At Mortgage Bridge, we:

• Review your credit file in detail
• Assess how lenders will view your default
• Identify lenders suited to your situation
• Advise on timing, deposit, and preparation
• Structure applications to reduce decline risk

We’re here to help you understand what’s genuinely possible.

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Key Takeaways

• You can often get a mortgage with a default
• Recency, size, and settlement matter most
• Clean recent credit behaviour is critical
• Deposit size significantly affects options
• Specialist lenders offer realistic solutions

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Summary

Having a default on your credit file does not mean home ownership is out of reach. Mortgage lenders look at the full picture — including how long ago the default occurred, whether it has been settled, and how you’ve managed your finances since.

With the right preparation, realistic expectations, and access to lenders experienced in adverse credit cases, many borrowers successfully secure mortgages after defaults. Understanding how lenders assess risk — and getting expert guidance — can turn uncertainty into a clear plan forward.

This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor