Important information: Mortgage Bridge provides general information and administrative support as a mortgage introducer. It does not provide mortgage or debt advice, assess eligibility, affordability or suitability, or recommend products. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
Your home may be repossessed if you do not keep up repayments on your mortgage.
An application for a mortgage with a default may be considered by some lenders and declined by others. The default record is one part of an assessment that also depends on affordability, the deposit, the property and current lender criteria.
Mortgage availability depends on the applicant’s overall circumstances, affordability, credit history, deposit, property and the requirements of the lender approached. Acceptance is not guaranteed.
This guide explains factors some lenders may consider. It does not establish whether a mortgage is available to you or which lender or product would be appropriate.
Default evidence: distinguish the date, amount and current status
| Record field | What to establish | What it does not answer |
|---|---|---|
| Default date | The date actually recorded for the event. | The date on which a lender must accept an application. |
| Original amount | The amount associated with the recorded default. | The amount still owed now. |
| Current balance and status | What is outstanding and what payments or settlement are recorded. | Whether affordability or property requirements are satisfied. |
| Creditor or debt owner | Which account the entry concerns, including any transfer. | Whether another entry is the same debt or a separate event without checking. |
| Disputed information | The specific field challenged and the supporting records. | A guaranteed correction or deletion of accurate information. |
Fictional illustration: an entry shows an original £1,200 default and a later £200 balance. The two amounts describe different points in the account history. A lender enquiry should identify which figure is being discussed, along with dates and status. This example does not specify accepted lender thresholds.
A consumer score is a separate summary from the underlying account history. Correcting a genuine reporting error, settling a balance and meeting a lender’s policy are also separate matters. Our credit-score guide explains the distinction.
What Is a Default on a Credit Report?
A default is recorded when a creditor considers that the relationship under an account has broken down following a failure to meet its terms. It is different from an individual late-payment marker, although missed payments may precede a default.
Defaults may relate to accounts such as:
- Credit cards.
- Personal loans.
- Utility accounts.
- Mobile phone contracts.
A default recorded on a credit report is also different from a County Court Judgment. Separate court action may result in a judgment, which has its own reporting and legal implications.
How Long Does a Default Stay on a Credit Report?
A defaulted account normally remains on a credit report for six years from the recorded default date, whether or not the debt is subsequently paid.
Paying the debt does not normally remove an accurate default entry early or restart that six-year period. The record should be updated to reflect the payment and account status.
The removal of a default from a credit report does not, by itself, confirm that an outstanding debt has been cancelled or that a mortgage application will be accepted.
A lender may also hold its own account records and ask questions about previous financial difficulties. Application questions should be answered accurately, including where they concern events no longer shown on a credit report.
What may lenders assess for a mortgage with a default?
Lenders do not all assess defaults in the same way. Relevant factors may include the following, depending on the lender and the application.
The Date of the Default
A lender may consider when the default was recorded and whether there have been further payment problems since then.
Some lenders apply minimum periods since a default, while others have different restrictions or assessment methods. There is no universal waiting period after which an application becomes acceptable.
An older default does not guarantee access to more lenders, a particular interest rate or a mortgage offer.
The Amount and Outstanding Balance
The original amount and any remaining balance may be relevant. Some lenders set limits on the defaults they will consider or distinguish between different account types.
A small default is not automatically disregarded. Equally, the amount alone does not determine the outcome of an application.
Whether the Account Has Been Paid
A lender may distinguish between an outstanding default, an account paid in full and an account closed following an agreed partial settlement.
Reporting descriptions can differ. A partial settlement should not be assumed to have the same meaning as repayment in full.
Some lenders may require settlement before considering an application or before completion. Others may take a different approach. Paying a default does not guarantee mortgage acceptance or removal of the credit entry.
The Number and Type of Credit Issues
A lender may consider whether there is one default or several, the accounts involved and whether other issues appear in the credit history.
These might include missed payments, arrears, judgments, repayment arrangements or previous debt solutions. They may be assessed together rather than as unrelated entries.
Do not assume that utility or mobile phone defaults will be ignored, or that a lender will apply the same rules to every type of account.
Current Financial Circumstances
Income, expenditure, existing borrowing and ongoing payment commitments may affect affordability and the lender’s assessment.
Recent account conduct may also be relevant. However, meeting payments after a default does not override a lender’s restrictions or guarantee approval.
The Circumstances Behind the Default
A lender may request an explanation or supporting evidence. Whether this affects the assessment depends on its criteria and the information provided.
An explanation does not erase an accurate default or establish that it can be accepted. Similar explanations can result in different outcomes because applications and lender requirements differ.
How Long After a Default Can an Application Be Considered?
There is no single timescale that applies across mortgage lenders.
Some lenders may consider particular defaults while they remain on a credit report, subject to their criteria. Others may not accept those circumstances or may require a specified period to have passed.
The six-year credit-reporting period is not a universal mortgage waiting period. Neither the passage of time nor the removal of an entry guarantees acceptance.
An adviser acting through an FCA-authorised and regulated network can assess the relevant information and explain whether any options may be available under current criteria.
What Deposit Might Be Required?
There is no standard deposit requirement for an applicant with a default.
The amount required may depend on:
- The lender’s current borrowing limits.
- The applicant’s credit history and financial circumstances.
- The property and the lender’s valuation.
- The amount being borrowed.
- The source of the deposit.
A larger deposit does not guarantee that a lender will accept a default or approve an otherwise unacceptable application.
Figures discussed in another customer’s circumstances or in an older guide should not be treated as the requirement for your application.
What If There Are Multiple Defaults or Other Credit Issues?
Some lenders may consider applications involving more than one credit issue, subject to their current requirements and an individual assessment. Other lenders may decline.
The interaction between defaults, ongoing arrears, judgments and debt solutions can affect the assessment. Meeting a lender’s rule for one issue does not mean the rest of the application is acceptable.
A previous borrower’s outcome is not evidence that another application with apparently similar credit issues will receive the same decision.
Does Settling a Default Guarantee a Mortgage?
No. Settlement can change the status and outstanding balance of the account, but it does not guarantee that a mortgage lender will accept the application.
This guide does not recommend repaying a particular debt, using savings to settle it, taking out new credit or changing financial commitments to obtain a mortgage.
If you are struggling with repayments or deciding how to manage debts, a free, impartial debt adviser can help you understand your options. Information about accessing support is available through MoneyHelper’s debt advice locator.
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What happens after a mortgage enquiry?
This is an initial enquiry for administrative support and an adviser introduction where appropriate. It is not a mortgage application or an eligibility assessment. Any mortgage advice comes separately from an adviser acting through an FCA-authorised and regulated network. The receiving firm explains its service, fees and information requirements.
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes. Acceptance is not guaranteed.
Ask about an adviser introduction
Send details of your enquiry for administrative support and an adviser introduction where appropriate. Mortgage Bridge does not provide mortgage or debt advice, assess eligibility, affordability or suitability, or recommend products. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
Make a mortgage enquiryNo obligation. Mortgage Bridge acts as a mortgage introducer.
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What If a Default Entry Appears Incorrect?
Credit reports can contain information from different organisations, and the information held by each credit reference agency may differ.
If an entry appears inaccurate, you can raise the issue with the organisation that supplied the information and the relevant credit reference agency. Supporting records may help explain what you believe is wrong.
A dispute does not guarantee that an entry will be changed or removed. An accurate default is not normally removed simply because it has been paid or because it affects a mortgage application.
If a debt has been sold, entries should accurately reflect the account and its history. An apparent duplicate or unexpected change to the default date can be raised for investigation.
What Information May Be Requested?
Depending on the receiving firm and lender, information requested may include:
- The creditor and account type.
- The recorded default date.
- The original amount and current balance.
- Whether the account is outstanding, paid in full or partially settled.
- Details of other credit issues and existing commitments.
- Income and expenditure evidence.
- The deposit amount and its source.
- Information about the property and proposed borrowing.
Providing documents allows the information to be reviewed; it does not establish eligibility or guarantee a mortgage offer.
Mortgage Bridge’s handling of enquiry information is administrative. Any assessment for advice or lending purposes is carried out separately by the receiving firm or lender.
Full Repayment, Partial Settlement and Ongoing Payments
These account positions should be distinguished:
- Full repayment: the full amount owed has been paid.
- Agreed partial settlement: the creditor has accepted a lower amount under terms dealing with the remainder.
- Ongoing repayments: payments are being made, but an outstanding balance remains.
- A proposed settlement: an offer has been made but has not yet been accepted or completed.
Paying part of a debt does not automatically mean that a partial settlement has been agreed. Written confirmation may be needed to establish the terms and whether anything remains payable.
Credit reports may distinguish full repayment from partial settlement. A zero balance does not necessarily mean that the original debt was repaid in full.
Frequently Asked Questions
Can a lender consider a recent default?
Some lenders may consider certain recent defaults, while others may exclude them under their criteria. The default’s date, amount, status and the wider application may be relevant. There is no guaranteed minimum waiting period that applies to everyone.
Is a settled default treated differently from an outstanding default?
It may be. Lenders differ in their settlement requirements and how they assess outstanding or previously paid accounts. Settlement does not normally remove an accurate default early and does not guarantee acceptance.
Will a small mobile phone or utility default be ignored?
Do not assume so. Some lenders distinguish between account types or amounts, but others may still treat the entry as relevant. The applicable criteria need to be checked for the individual application.
Can a first-time buyer apply with a default?
A default does not automatically prevent an application from being considered. However, first-time buyer status does not create an exception to lender criteria. Affordability, the deposit, property and overall credit history remain relevant.
Will waiting until the default disappears guarantee acceptance?
No. The credit-reporting period and a lender’s assessment are different matters. The lender may consider other information and still decline an application after the default is no longer displayed.
Does an agreement in principle confirm that a default has been accepted?
An agreement in principle is not a binding mortgage offer. Further credit, affordability, document and property checks may apply. The information reviewed and any conditions depend on the lender.
Can Mortgage Bridge tell me which lender will approve me?
No. Mortgage Bridge does not determine eligibility, recommend lenders or make lending decisions. We provide general information and administrative support and can introduce an enquiry to an adviser. An introduction does not guarantee that finance will be available.
How Mortgage Bridge Can Help
Mortgage Bridge can help organise enquiry information and introduce an enquiry to a mortgage adviser. Any review we carry out is administrative only.
We do not assess mortgage suitability or eligibility, recommend products or provide regulated mortgage advice. The receiving firm will explain its services, any fees and whether it can assist with your enquiry.
Any regulated mortgage advice is provided separately by an adviser acting through a network authorised and regulated by the Financial Conduct Authority. The lender makes its own lending decision.
Mortgage Bridge has commercial referral relationships and receives a percentage of the commission earned by the adviser on introduced cases that complete. We therefore have a financial interest in those cases completing.
Read more in our About Us page, Terms and Conditions and Privacy Policy.
Related Mortgage Information
This guide provides general information only. Lender criteria, products and evidence requirements can change. Mortgage availability depends on individual circumstances and is not guaranteed.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Eligibility, affordability and suitability
Eligibility concerns a lender’s current requirements. Affordability concerns whether repayments can be maintained, taking account of relevant income, expenditure and commitments. Suitability concerns whether a recommended mortgage meets individual needs and circumstances and is assessed when an adviser acting through an FCA-authorised and regulated network provides mortgage advice. Meeting one assessment does not establish the others. Mortgage Bridge does not carry out these assessments.
Costs and independent debt support
Free, independent debt advice is available through MoneyHelper’s debt advice locator. This guide does not recommend changing debt repayments, using savings or taking additional credit to obtain a mortgage.
Securing previously unsecured debts against a home increases the risk to the home. Lower monthly payments do not necessarily mean lower total costs. Longer repayment terms and fees can increase the total amount repaid.
Referral disclosure
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes. An introduction does not guarantee acceptance or completion.
Read about us, our terms and conditions and our privacy policy.
Sources and review
- FCA Handbook: responsible lending
- FCA Handbook: mortgage advice and suitability
- TransUnion: account information and reporting
- ICO: credit records and accuracy
- MoneyHelper: consolidation risks
Last reviewed: . This article is subject to periodic review. Information and lender criteria may change. General information only; this is not a personal recommendation.
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