Mortgage With Previous Debt Write-Off: Can You Still Get Approved?

A debt write-off is one of the most significant forms of adverse credit. When a creditor writes off a debt, it means they do not expect you to repay the outstanding balance, usually due to long-term financial difficulty or insolvency processes. Understandably, many borrowers worry whether a past write-off will prevent them from ever securing a mortgage.

The truth is more nuanced. A mortgage with previous debt write off is still possible in many cases, but your options will depend on how long ago the write-off occurred, your financial conduct since, and your overall affordability.

This guide explains how lenders assess previous write-offs, what appears on your credit file, and what factors influence approval. This article provides general information only and does not offer regulated mortgage advice.

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What Does “Debt Write-Off” Mean?

A debt write-off happens when a lender decides a debt is unlikely to be repaid. This usually occurs because:

• The borrower cannot repay due to long-term financial difficulty
• The account has defaulted and collections have been unsuccessful
• Insolvency arrangements were in place (e.g., IVA, DRO, bankruptcy)
• The lender chooses to close the account after recovery attempts

A write-off does not mean the debt never existed. It is recorded on your credit file and remains visible for up to six years from the date of the default or write-off.

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Can You Get a Mortgage With a Previous Debt Write-Off?

Yes — many people secure mortgages after past debt write-offs.
However, the recency and context of the write-off matter greatly.

Lenders will assess:

• When the write-off happened
• Whether it was linked to a default or insolvency
• Whether it was an isolated issue or part of a pattern
• How your finances look today
• Deposit size and affordability

A recent write-off may require specialist lenders, while older write-offs pose less of a challenge.

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How Debt Write-Offs Appear on Your Credit Report

Your credit file will usually show:

• A default marker
• A write-off indicator when the lender closes the account
• A zero balance once written off
• The date of the write-off

Lenders use this information to judge risk and financial recovery.

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How Recency Influences Mortgage Options

Write-Off Within the Last 6 Months

Highest impact.
Most high street lenders will decline. Specialist lenders may consider depending on circumstances.

Write-Off 6–12 Months Ago

Some specialist lenders may accept, but criteria may be tighter.

Write-Off 12–24 Months Ago

Options begin to improve, especially with strong bank statements and good recent credit conduct.

Write-Off Over 2 Years Ago

Many lenders view older write-offs as less severe provided the rest of your credit file is stable.

Write-Off Over 6 Years Ago

The write-off disappears from your credit file entirely and no longer affects eligibility.

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Was the Write-Off Part of an Insolvency?

Lenders treat write-offs differently depending on the cause.

Write-Off Due to Default Only

Less severe than insolvency; lenders assess as adverse credit.

Write-Off Linked to an IVA or Debt Management Plan

Lenders check dates, repayment behaviour and discharge status.

Write-Off Due to Bankruptcy or DRO

Considered more serious.
Mortgage eligibility improves significantly once discharged and time has passed.

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How Lenders Assess a Mortgage With Previous Debt Write-Off

Lenders look at the bigger picture rather than the write-off alone.

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1. Recent Credit Behaviour

This is often the most important factor.

Underwriters check for:

• On-time payments
• No new adverse entries
• Low or reducing credit utilisation
• Stability across all accounts

Recent positive conduct can outweigh older issues.

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2. Bank Statement Conduct

Lenders review the last 3–6 months for:

• Overdraft reliance
• Returned payments
• Irregular or high spending
• Evidence of controlled budgeting
• Stable income patterns

Good bank statement conduct helps build trust.

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3. Affordability and Income Stability

Lenders assess your ability to sustain future mortgage payments.

They look at:

• Employment stability
• Monthly disposable income
• Existing commitments
• Household expenditure
• Any future changes in income

Even with a write-off, strong affordability can improve your options.

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4. Deposit Size

Deposit size matters greatly when a write-off has occurred.

Typical outcomes:

• 5% deposit: Usually too low with recent write-offs
• 10% deposit: Possible with some specialist lenders
• 15–25% deposit: Wider lender choice
• 25%+ deposit: Many lenders more flexible, especially with older write-offs

A larger deposit reduces perceived risk.

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5. Number of Previous Debt Issues

Lenders assess write-offs differently depending on whether:

• It was a one-off event
• Multiple accounts were written off
• It followed a period of widespread financial difficulty

An isolated write-off is easier to overcome.

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High Street vs Specialist Lender Approach

High Street Lenders

Typically require:

• At least 2–3 years since the write-off
• Strong, clean conduct after the event
• Stable employment
• No other recent adverse credit

They may decline if the write-off is recent or linked to serious insolvency.

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Specialist Lenders

More flexible in cases involving:

• Recent adverse credit
• Defaults and write-offs
• Complex income
• Borrowers rebuilding financially

These lenders use manual underwriting and assess context more closely.

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Does a Write-Off Affect Mortgage Rates?

A previous write-off may lead to:

• Higher mortgage rates in the early years after the event
• Lower maximum borrowing
• Higher deposit requirements
• Limited choice of lenders

As the write-off ages, its impact usually reduces.

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Common Scenarios

Scenario 1: Write-off 18 months ago, now stable

Some specialist lenders may consider, especially with a larger deposit.

Scenario 2: Write-off 4 years ago, clean since

Many lenders may consider with good affordability.

Scenario 3: Multiple write-offs from the same period

Likely to require specialist lenders.

Scenario 4: Write-off from more than 6 years ago

No longer visible; treated as a normal application.

Scenario 5: Write-off linked to bankruptcy

Options depend on discharge date and recent conduct.

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How to Strengthen Your Application (General Information Only)

Applicants often choose to:

1. Build a strong payment record

Recent behaviour heavily influences lender decisions.

2. Reduce existing credit balances

Improves affordability and risk assessment.

3. Maintain clean bank statements

Underwriters look closely at consistency.

4. Avoid new credit applications

Too many searches may raise concerns.

5. Allow time for the write-off to age

Impact reduces naturally over time.

6. Save a larger deposit

This helps widen lender options.

7. Check all credit reports

Ensure the write-off is recorded accurately and marked as settled where relevant.

These are general considerations, not regulated advice.

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Summary

A mortgage with previous debt write off is often still achievable. Lenders will look at:

• How long ago the write-off occurred
• Whether it was part of a wider insolvency
• Your recent credit behaviour
• Stability of bank statements
• Affordability and income
• Deposit size

While recency matters, older write-offs — especially those over two years old — carry far less weight. And once beyond six years, they no longer appear on your credit file.

This article provides general information only. For personalised guidance, regulated mortgage advice is required.