Can I Get a Mortgage with a Default?
If you’ve got a default on your credit record, you might be wondering if it means your homeownership plans are over. The short answer is no — it’s absolutely possible to get a mortgage with a default on your file.
At Mortgage Bridge, we help people every day who’ve faced credit challenges like missed payments, defaults, or CCJs. With the right lender and a bit of preparation, you can still find a mortgage that fits your situation.
Let’s walk through what you need to know.
What Is a Default and How Does It Affect a Mortgage Application?
A default happens when you’ve missed several payments on a credit account, such as a loan, credit card, or utility bill. The lender then closes your account and records the default with credit reference agencies.
Defaults stay on your credit report for six years, even if you’ve since repaid the debt.
This doesn’t mean you can’t get a mortgage — it just changes which lenders are likely to accept you. High street banks tend to be stricter, but specialist lenders often take a more flexible view, especially if the default was over a year ago or has been settled.
Can I Get a Mortgage with a Recent Default?
Yes, but it depends on when the default happened and what caused it.
If the default is less than a year old, your options will be more limited. Lenders will want reassurance that your finances are now stable — a regular income, controlled spending, and evidence that you’ve rebuilt your credit since.
If it’s been more than two years, many specialist lenders are open to considering your application, particularly if the default is satisfied (paid off).
General rule:
- Within 12 months: Expect higher deposits and rates.
- 1–3 years old: Wider choice, but still mostly specialist lenders.
- 3+ years old: Increasingly mainstream options available.
How Much Deposit Do I Need with a Default?
The size of your deposit often makes a big difference.
For applicants with defaults:
- Recent defaults (under 2 years): 15–25% deposit recommended.
- Older defaults (over 3 years): 10–15% is often enough.
- Clean since default: Some lenders may accept as little as 5%.
The larger your deposit, the less risk the lender takes on — and that can help you secure better rates.
If your deposit is coming from a gift, make sure it’s declared as a gifted deposit, not a loan.
What Kind of Mortgage Rates Can I Expect?
Rates for borrowers with defaults are typically higher than standard deals, but they can still be competitive.
Your rate will depend on:
- How old the default is
- Whether it’s settled
- Your deposit size
- Your overall credit profile
As your credit improves over time, you can often remortgage later onto a better rate once you’ve built a stronger track record.
Do All Lenders Treat Defaults the Same Way?
Not at all.
High street lenders are usually stricter and may decline your application outright. Specialist lenders, on the other hand, look at the bigger picture — what caused the issue, how long ago it was, and what your finances look like now.
They’ll consider:
- How many defaults you have
- The total amounts involved
- Whether they’ve been paid
- Your income and affordability
We work with lenders who regularly approve applications others might turn down.
Should I Pay Off My Default Before Applying?
If you can afford to, yes — but it’s not always essential.
Some lenders are happy with unsatisfied defaults, especially if they’re over two years old. However, settling them first generally improves your score and shows responsibility.
If you’re unsure, we’ll help you decide whether paying it off first or applying now is the better move based on your lender options.
Can I Get a Mortgage If I Have Multiple Defaults?
Yes, you can — though the more recent or numerous they are, the more challenging it becomes.
A single default from years ago will carry less weight than several recent ones. That said, lenders still look at context: Was it due to job loss, illness, or an isolated event? Have things stabilised since?
We’ve seen many clients with two or more defaults still get approved. The key is preparation, transparency, and choosing the right lender.
Let’s explore your options together — we’ll match you with lenders who focus on where you are now, not where you were.
Can I Get a Mortgage with a Default and Bad Credit?
Yes. Many of our clients have both defaults and other credit issues like CCJs, missed payments, or a Debt Management Plan.
Lenders call this adverse credit, and there are entire mortgage ranges designed for these situations.
It’s all about showing that your circumstances have improved. Regular income, reduced debts, and a stable financial pattern can go a long way.
We explain this in more detail in our guides on Debt Management Plans and Bankruptcy Mortgages, which cover similar recovery paths.
How Can I Improve My Chances of Getting Approved?
Here are some practical steps to prepare before applying:
- Check your credit reports with Experian, Equifax, and TransUnion — make sure everything is accurate.
- Register to vote at your current address.
- Avoid new credit applications in the months before applying.
- Keep up with all bills and commitments.
- Save the largest deposit you can.
- Work with a broker experienced in default and bad credit cases — we’ll present your case in the best possible light.
We’re here to help if you’d like to talk through your situation.
What If My Bank Has Already Said No?
Don’t worry — that’s extremely common.
Banks often use automated criteria that immediately reject anyone with recent defaults, even if the rest of your profile looks good.
We work with specialist lenders who assess each application individually. If your income and affordability are solid, a default doesn’t have to be a deal-breaker.
Can I Remortgage If I Have a Default?
Yes, you can — and it can even help you get back on track.
Remortgaging with a default might allow you to:
- Lower your interest rate
- Consolidate debts into one payment
- Access equity for home improvements or financial stability
Even if your current lender won’t offer you a deal, others might. We’ll check what’s possible and guide you through your options.
How Mortgage Bridge Can Help
At Mortgage Bridge, we specialise in helping people rebuild after credit issues. Whether you’ve got a single default or several, we’ll help you:
✅ Understand your mortgage options
✅ Identify lenders that match your situation
✅ Prepare your documents and credit reports
✅ Secure a deal that fits your goals
We know this process can feel daunting — but with the right guidance, it’s absolutely achievable.
If you’d like to see what could work for you, we’re happy to help.
Final Thoughts
Having a default doesn’t close the door on homeownership — it just means you might need a different route.
With patience, preparation, and the right broker on your side, you can absolutely get a mortgage and move forward confidently.
Let’s explore your options together.