Can You Get a Mortgage with a Default? What Lenders Look For
Yes. Many people with a default can still get a mortgage.
Lenders will usually consider:
- How old the default is
- Whether it has been settled
- The amount involved
- How many defaults you have
- Your deposit
- Your income and affordability
- How you’ve managed your finances since the default
A default does not automatically mean your mortgage application will be declined. Many lenders assess the wider circumstances rather than focusing on one event in isolation.
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 can come from:
- Credit cards
- Personal loans
- Utility bills
- Mobile phone contracts
Once registered, a default typically stays on your credit file for six years from the default date, whether it has been settled or not.
Can You Get a Mortgage with a Default?
In many cases, yes. A default does not automatically stop you from getting a mortgage.
Lenders look at the full picture, including:
- How recent the default is
- Whether it has been settled
- The size of the default
- Your financial behaviour since the default
Many borrowers with defaults go on to secure mortgages, particularly where there has been clear improvement over time.
How Do Lenders Assess Defaults?
Lenders typically focus on four key areas.
How Recent Is the Default?
Recency is one of the most important factors.
- Defaults within the last 12 months are assessed more cautiously
- Defaults over 12–24 months old are viewed more favourably
- Older defaults usually have less impact
As time passes, more options typically become available.
Defaults at a Glance
| Default situation | Typical lender appetite |
|---|---|
| Less than 6 months old | Limited |
| 6–12 months old | Improving |
| 1–3 years old | Wider choice |
| Over 3 years old | Often significantly more options |
| Over 6 years old | Usually no longer shown on standard credit reports |
Has the Default Been Settled?
A settled default is generally viewed more positively than an outstanding one.
While settling a default does not remove it from your credit file, it shows:
- The issue has been resolved
- There is no ongoing debt attached
- Improved financial responsibility
How Many Defaults Are There?
An isolated default is very different from a pattern of credit issues.
Need help with your mortgage?
See what mortgage options may be available
If this guide sounds like your situation, send a few details and we can help organise the key information before introducing you to an FCA-regulated mortgage adviser where appropriate.
Make a mortgage enquiryNo obligation. Mortgage Bridge acts as a mortgage introducer.
Lenders will consider whether:
- The default was a one-off event
- There are multiple defaults
- There is a pattern of missed payments
What Has Happened Since the Default?
Your recent financial behaviour is crucial.
Lenders want to see:
- Payments made on time since the default
- Stable income and finances
- Reduced reliance on credit
Strong recent conduct can significantly improve your chances.
What Do Lenders Typically Accept?
Situations that may improve lender choice
- Older defaults
- Settled defaults
- Smaller default balances
- Stable employment
- A larger deposit
- No recent missed payments
- Positive financial conduct since the default
If you’re exploring your options, our bad credit mortgages guide explains how lenders assess applications in more detail.
When Is It Harder to Get a Mortgage with a Default?
Some situations are more challenging, including:
- Defaults registered within the last 3–6 months
- Multiple recent defaults
- Large unpaid defaults
- Ongoing missed payments or financial instability
In these cases, options may be more limited, but it does not always mean it is impossible.
How Long After a Default Can You Get a Mortgage?
There is no fixed rule, but typical patterns include:
- Recent defaults: Fewer options, often specialist lenders
- Older defaults: More lenders may be available
- Defaults nearing six years: Wider choice and potentially better terms
Lenders often place more weight on how you have managed your finances since the default rather than the default itself.
What Deposit Do You Need with a Default?
Deposit size can make a significant difference.
- 5–10% may be possible for small, older defaults
- 15% or more may be required for recent or larger defaults
A larger deposit reduces lender risk and can improve your chances of approval.
Does the Type of Default Matter?
Yes, lenders consider the type of default as well as the amount.
- Utility or mobile phone defaults may be viewed more leniently
- Unsecured credit defaults may carry more weight
- Mortgage-related defaults are usually assessed more strictly
The context behind the default is often just as important as the figures.
Example
Applicant A has:
- One default for £450
- The default was registered four years ago
- It has been settled
- They have a 15% deposit
- They have not missed any further payments
Applicant B has:
- Three defaults
- Two were registered within the last six months
- One remains outstanding
- They have a 5% deposit
Although every application is assessed individually, lenders are generally more likely to view Applicant A more favourably because there is evidence of improved financial management over time.
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 full credit profile rather than looking at the default in isolation.
Common Myths About Defaults and Mortgages
“You must wait six years.”
Not always. Many lenders consider applications much sooner.
“A default means automatic rejection.”
Incorrect. Lenders assess the full situation.
“Only high street banks offer mortgages.”
Specialist lenders exist specifically for more complex cases.
How to Improve Your Chances of Getting a Mortgage with a Default
- Keep all payments up to date going forward
- Settle outstanding defaults where possible
- Reduce credit card balances where you can
- Avoid applying for new credit before a mortgage application
- Save a larger deposit if possible
- Keep bank statements stable and consistent
Whilst preparation cannot guarantee a mortgage offer, it can improve the number of lenders willing to consider your application and help you approach the process with greater confidence.
How Mortgage Bridge Can Help
Understanding how lenders assess defaults can be complex.
At Mortgage Bridge, the brokers that we work with will:
- Review your credit profile in detail
- Explain how lenders are likely to view your situation
- Identify lenders suited to your circumstances
- Help you prepare before making an application
Their role is to help you understand what may be possible and connect you with the right next step.
Frequently Asked Questions
Can I get a mortgage with a recent default?
Potentially, yes. Recent defaults are often assessed more cautiously and lender choice may be more limited, but some lenders may still consider applications depending on the wider circumstances.
Is a settled default better than an outstanding default?
In many cases, yes. Settling a default shows the debt has been repaid, although the default will usually remain on your credit report until six years have passed.
How much deposit do I need if I have a default?
This depends on the age, value and number of defaults, together with the lender’s criteria. Larger deposits often increase the number of lenders willing to consider an application.
Can I get a mortgage with multiple defaults?
Possibly. Lenders will normally consider how many defaults there are, how recent they are, whether they have been settled and whether there has been positive financial conduct since.
Will a default stop me buying my first home?
Not necessarily. First-time buyers with defaults are assessed using the same principles as other applicants. A default does not automatically prevent someone from purchasing their first property.
How long does a default affect a mortgage application?
Defaults usually remain on your credit report for six years, but many lenders place greater emphasis on recent financial behaviour than on older credit issues.
Before Applying with a Default
Before applying for a mortgage, it can help to:
✔ Check all three credit reports.
✔ Make sure your default information is accurate.
✔ Avoid further missed payments.
✔ Keep existing borrowing under control.
✔ Save as much deposit as possible.
✔ Understand which lenders may be suitable before making an application.
Being well prepared can often improve the range of lenders willing to consider your application.
Summary
Having a default on your credit file does not mean getting a mortgage is out of reach. Lenders assess the full picture, including how long ago the default occurred, whether it has been settled, and how your finances have been managed since.
With the right preparation and a clear understanding of how lenders assess risk, many borrowers with defaults successfully secure mortgages.
This guide provides general information only. Personalised recommendations should always be obtained from a regulated mortgage advisor.
Check your credit in detail
View your full credit report
See your credit information from all three major credit reference agencies with Checkmyfile. Try it free, then it becomes a paid monthly subscription. You can cancel online anytime.
Check your credit report
Related Bad Credit Mortgage Guides
- Bad credit mortgage options
- Mortgage with defaults
- Mortgage with CCJs
- Missed payments and mortgage approval
- Mortgage with a Debt Management Plan
- Mortgage with a Bankruptcy
Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.