Can You Get a Mortgage If You Have a History of Payment Protection or Insurance Claims?
Yes — in most cases, having a history of Payment Protection Insurance (PPI) claims or other insurance claims does not stop you from getting a mortgage. However, lenders are less concerned about the claim itself and far more focused on why the claim happened and what your finances look like now.
This guide explains how lenders view PPI and insurance claims, what may raise questions during underwriting, and how to prepare your application if you’ve claimed in the past.
What Is the Intent Behind This Question?
People searching this are usually worried that claiming on insurance — especially PPI — might look like a red flag to mortgage lenders. The intent is informational, with a strong need for reassurance and clarity before applying.
Do Mortgage Lenders See PPI or Insurance Claims?
Short Answer
No — lenders do not see insurance claims directly. They only see what appears on your credit file and bank statements.
Insurance claims (including PPI, income protection, or critical illness payouts) are not recorded on your credit report. There is no central database showing that you made a claim.
What lenders can see is:
- Missed or late payments
- Defaults or arrangements to pay
- Markers showing financial difficulty
- Bank statement activity
The claim itself is invisible — but the financial events around it may not be.
Does a PPI Claim Affect Mortgage Approval?
Short Answer
A PPI claim does not harm your mortgage application — and in many cases, it has no impact at all.
PPI was designed to cover repayments during periods of:
- Illness
- Injury
- Redundancy
Many people claimed legitimately. Lenders do not penalise applicants for having used insurance as intended.
What lenders will look at instead:
- Did you miss payments before the PPI kicked in?
- Were there defaults or arrears during that time?
- Has your credit been stable since?
If your credit recovered after the claim period, lenders generally have no issue.
What About Other Insurance Claims (Income Protection, Critical Illness, Accident Cover)?
Short Answer
Other insurance claims are also not a problem on their own.
Examples include:
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- Income protection claims
- Critical illness payouts
- Accident or sickness cover
- Redundancy insurance
These claims do not appear on credit files and are not shared with lenders.
However, lenders may notice:
- Reduced income during the claim period
- Reliance on benefits or insurance payments
- Changes in employment status
Again, the focus is on current affordability and stability, not the fact you made a claim.
When Can Insurance Claims Indirectly Cause Issues?
Short Answer
Only when the claim coincided with missed payments, defaults, or ongoing instability.
Here are the main situations lenders care about:
1. Missed Payments or Defaults
If you missed credit payments before or during the claim period, these will still show on your credit file.
- Recent missed payments matter more than older ones
- Settled issues are viewed more favourably
- Clear explanations help
We cover this in more detail in our guide on missed payments and mortgage applications.
2. Ongoing Reduced Income
If your income is still lower than before — for example, returning to work part-time after illness — affordability may be tighter.
This is not about the claim, but about:
- Current income level
- Sustainability
- Outgoings
Lenders lend based on what you earn now, not what you earned before.
3. Bank Statement Evidence of Financial Stress
Lenders review bank statements for:
- Heavy overdraft use
- Returned direct debits
- Gambling or unexplained spending
Insurance claims themselves are fine, but messy bank statements can raise questions. We explain this fully in our guide on what lenders look for on bank statements.
Does Making Multiple Insurance Claims Look Bad?
Short Answer
Not automatically — but lenders may ask more questions if claims coincide with repeated financial difficulty.
Multiple claims are not visible, but patterns such as:
- Repeated income gaps
- Frequent job changes
- Long-term reliance on benefits
can lead lenders to assess risk more cautiously.
This does not mean a decline — it just means the application needs to be presented clearly.
How Lenders Really Assess Your Application
Short Answer
Lenders care about now, not what happened years ago.
They focus on:
- Current income
- Current outgoings
- Credit conduct in recent years
- Deposit size
- Overall affordability
Older issues linked to illness or redundancy are often accepted — especially if your finances have been stable since.
How Long After a Claim Can You Get a Mortgage?
Short Answer
There is no set waiting period after an insurance or PPI claim.
Instead, lenders look at:
- How long you’ve been back in stable income
- Whether credit has been clean since
- Whether the situation that caused the claim has resolved
As a general guide:
- 6–12 months of stable income helps
- Clean credit since the event strengthens your case
- A larger deposit can offset perceived risk
What If the Claim Was Due to Illness or Injury?
Short Answer
This is common and usually acceptable — lenders may simply want reassurance.
They may ask:
- Are you back at work?
- Is your income sustainable?
- Are there ongoing health-related costs?
This is not about judging health conditions — it’s about ensuring affordability.
Do Specialist Lenders View This Differently?
Short Answer
Yes — specialist lenders are often more pragmatic.
They are used to:
- Complex life events
- Periods of reduced income
- Past insurance claims
They focus on whether:
- The issue is resolved
- Your finances are stable
- The mortgage is affordable long term
This is particularly relevant if you’ve also had missed payments, defaults, or gaps in employment. We cover similar scenarios in our guide on mortgages after financial difficulty.
How to Prepare Your Application If You’ve Made Insurance Claims
Practical Steps
1. Check Your Credit Report
Make sure:
- Old issues are marked as settled
- No errors remain
- Recent history is clean
2. Gather Income Evidence
Provide:
- Current payslips
- Employment contracts
- Proof of stable income
3. Be Ready to Explain (If Asked)
A simple explanation such as:
“There was a short-term illness which is now resolved, and income has been stable since.”
Clear explanations reduce uncertainty.
4. Strengthen the Deposit
A larger deposit improves lender confidence, especially where income history has interruptions.
Key Takeaways
- PPI and insurance claims do not appear on credit files
- Lenders do not penalise you for using insurance
- What matters is credit conduct and affordability
- Past illness or redundancy is usually acceptable if resolved
- Specialist lenders can be more flexible where needed
Final Thoughts
Claiming on insurance or PPI does not mean you’ll be declined for a mortgage. These products exist for a reason, and lenders understand that life events happen.
What matters is showing that your finances are stable now and that the mortgage is affordable going forward.
This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.
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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.