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.
Defaults and mortgage rates involve more than the age of a credit entry. A lender may consider the default’s date, amount and settlement status alongside other credit history, income, commitments, the deposit and the property.
A lender may consider the default’s date, amount, account type and settlement status alongside other credit history, income, commitments, the deposit and the property. There is no universal point at which an older default guarantees acceptance or access to a particular interest rate.
Defaults and mortgage rates: eligibility and pricing differ
A lender first needs to establish whether an application meets its requirements. An applicant cannot assume that a default falling outside one product’s criteria will simply result in a higher rate instead of a decline.
Where an application can be considered, the available products and pricing depend on the lender and circumstances at the time. A previous default may affect product availability, but there is no standard interest-rate increase that applies to every default.
Terms such as “standard rates”, “high-street rates” and “competitive rates” do not establish what a particular applicant will be offered. A comparison requires consideration of actual available products, fees and conditions.
How Long Does a Default Remain on a Credit Report?
A default generally remains on a credit report for six years from the original default date, whether or not the debt is subsequently repaid.
The default date and a later repayment or settlement date are different pieces of information. Repayment does not normally restart the six-year reporting period or automatically remove an accurately recorded default early.
A sale or transfer of the debt should not restart the original default period or make the same debt appear as two separate outstanding liabilities.
Removal of a default from a credit report does not, by itself, mean an unpaid debt has been cancelled or that later enforcement action is impossible. Questions about an outstanding debt’s legal position require appropriate debt or legal advice.
Does a Default Stop Mattering After Six Years?
The end of the credit-report retention period is not a guarantee that the default has no relevance to a mortgage assessment.
A lender may ask about previous financial difficulties or hold relevant information from an earlier customer relationship. Any continuing debt payments may also remain relevant to affordability.
Answer the application questions accurately, including where they concern events that no longer appear on a credit report. Do not assume that removal of an entry guarantees eligibility or a particular rate.
What Details About a Default May Be Considered?
The Original Default Date
A lender may have requirements relating to how recently a default occurred. These depend on the lender and product; there are no universal age bands linking a default to a particular interest rate.
Waiting for a default to reach a particular anniversary does not guarantee that the application will meet the criteria then in force. Mortgage products and market rates may also change during that time.
The Amount, Account Type and Number of Entries
The original amount, type of account and number of defaults may be relevant. Other credit entries and the circumstances surrounding them may also be considered.
There is no general classification of small, medium and large defaults that reliably determines mortgage pricing. A single small default is not automatically acceptable, and several defaults do not identify which lender or product would be suitable.
Whether the Debt Has Been Resolved
A lender may distinguish between an outstanding debt, full repayment, an accepted partial settlement and an ongoing repayment arrangement.
A zero balance following an accepted partial settlement does not necessarily mean the original debt was repaid in full. The recorded status and supporting documents should accurately reflect how the account was resolved.
Settlement may be relevant to a lender’s criteria, but it does not guarantee acceptance, a lower rate or an increase in the amount available to borrow.
Other Factors Affecting Mortgage Availability
Income and Affordability
The lender will assess the proposed borrowing against its affordability requirements. Relevant information may include income, household expenditure, dependants, existing debt payments and other commitments.
Meeting an affordability calculation does not require a lender to overlook a default that falls outside its credit-history criteria.
Recent Credit History and Financial Evidence
A lender may consider subsequent payment history and request bank statements or other financial evidence. The information and periods required vary.
There is no standard period without missed payments that automatically outweighs an earlier default. A higher consumer credit score is also not confirmation that a particular lender will accept the application.
The Deposit and Property
The deposit, its source and the proposed loan compared with the property’s value may affect product availability. The property must also meet the lender’s requirements.
A larger deposit does not override credit-history or affordability criteria. It does not guarantee acceptance or access to a particular rate.
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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.
Is a Specialist Lender Always Required?
The description of a lender as “specialist” or “high street” is not enough to determine whether it will consider an application. The relevant criteria and full circumstances need to be checked.
A specialist lender is not automatically suitable, and a manual review does not mean requirements will be waived. An adviser can assess potential options within the scope of their service and explain relevant costs and restrictions.
Comparing Mortgage Rates and Overall Costs
The initial interest rate is one part of a mortgage’s cost. A comparison may also need to consider:
- Product, application, valuation, legal and adviser fees.
- Whether fees are paid separately or added to the mortgage.
- The mortgage term and repayment method.
- The length of any initial rate period and what happens afterwards.
- Early repayment charges and other relevant conditions.
A lower initial rate does not necessarily mean the lowest overall cost. Adding fees to the mortgage increases borrowing and can result in interest being charged on those fees.
A future remortgage or lower rate is not guaranteed. It would depend on circumstances, property value, available products and lending criteria at that time.
Checking Credit Information
Credit reference agencies may hold different information. Relevant details to check include the original default date, amount, balance and current account status.
If an entry appears inaccurate or duplicated, contact the organisation supplying it and the relevant credit reference agency. Keep supporting documents, including payment evidence and settlement correspondence.
Correcting an error is different from removing accurate historical information. A default is not necessarily incorrect because it has been repaid or is affecting a mortgage application.
Repayment and Settlement Decisions
Whether and how to repay or settle a debt requires consideration of essential living costs, other commitments and the terms of any agreement. This guide does not recommend using savings, increasing borrowing or changing repayment arrangements to influence mortgage pricing.
If you are considering a settlement or struggling with repayments, free support is available through MoneyHelper’s debt advice locator.
How Mortgage Bridge Can Help
Mortgage Bridge provides general information and administrative support and passes mortgage enquiries to advisers acting through an FCA-authorised and regulated network. We do not recommend mortgage products, assess suitability or confirm eligibility or the rate a lender will offer.
The receiving adviser can discuss your circumstances, explain their service and any fees, and assess potential mortgage options. Any application remains subject to the lender’s criteria, checks and decision.
Mortgage Bridge has commercial relationships with receiving firms. When an introduced case completes, we receive a percentage of the commission earned by the adviser. We therefore have a financial interest in completed introductions.
Read more about our role on our About Us page, in our Terms and Conditions and in our Privacy Policy.
This guide provides general information only. It is not mortgage or debt advice and does not confirm eligibility or guarantee acceptance.
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.
Frequently asked questions
Does meeting one criterion guarantee a mortgage offer?
No. The lender assesses the complete application, including credit, affordability, property and other requirements. Acceptance is not guaranteed.
Does Mortgage Bridge assess eligibility or recommend a mortgage?
No. Mortgage Bridge provides general information and administrative support as a mortgage introducer. It does not assess eligibility, affordability or suitability or provide mortgage or debt advice. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
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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