Default Mortgage Information

If you have defaults recorded on your credit file, it is common to worry that this rules out getting a mortgage. In reality, some lenders will still consider applicants with defaults, including cases where the defaults are recent or unsettled. Outcomes usually depend on factors such as the age of the default, the type of account involved, the balance, and how your credit profile has looked since.

Mortgage Bridge provides clear information to help you understand how defaults are commonly viewed by lenders. Where appropriate, we can introduce you to an FCA-regulated mortgage adviser who can review your circumstances and provide regulated advice.

Can you get a mortgage with defaults?

Yes. Many people obtain mortgages despite having one or more defaults on their credit report. Whether a lender may consider an application usually depends on:

• How long ago the default was registered

• Whether the default is settled or outstanding

• The size of the default

• Whether it was an isolated issue or part of a wider pattern

• Income, affordability, and deposit level

Smaller defaults, particularly those linked to mobile phone bills, utilities, or disputes, are often viewed differently to higher-value credit card or loan defaults. Larger defaults may require a longer period of clean payment history.

How lenders typically assess defaults

While criteria vary by lender, defaults are usually assessed across several key areas.

1. Age of the default

The age of the default is often one of the most important factors.

• Under 12 months old: Very limited lender options

• 1 to 2 years old: Broader choice, particularly if settled

• Over 3 years old: Generally easier for specialist lenders

• Over 6 years old: Usually removed from your credit file

In most cases, older defaults carry less weight.

2. Whether the default is settled

Settlement status can influence lender appetite.

• Settled defaults often open up more options

• Unsettled defaults may still be accepted, but often require:

  • A larger deposit

  • Use of a specialist lender

  • Evidence of clean conduct since

Settling a default before applying can sometimes improve the range of lenders available.

3. Size and number of defaults

Lower-value telecom or utility defaults are generally easier for lenders to work with than higher-value credit defaults. Multiple defaults do not automatically prevent an application, particularly where:

• The defaults are older

• There has been stable financial conduct since

• Affordability is strong

4. Deposit expectations

Deposit requirements vary by lender and by the overall credit profile. General guidance only:

• Around 5% may be possible where defaults are older and settled

• Around 10% to 15% is more common for recent or higher-value defaults

Some schemes may accept lower deposits, depending on individual circumstances and lender criteria.

Improving your position before applying

Steps that may help strengthen your position include:

• Providing a full digital, multi-agency credit report

• Settling outstanding defaults where possible

• Keeping recent bank statements clean

• Avoiding new credit applications

• Showing stable and provable income

Different lenders place weight on different factors, which is why understanding criteria in advance can be important.

How Mortgage Bridge supports you

Mortgage Bridge provides information to help you understand how defaults are commonly assessed by lenders and what factors may affect your options. We do not provide mortgage advice or recommend lenders.

Where appropriate, we can introduce you to an FCA-regulated mortgage adviser who can review your full circumstances and provide regulated advice tailored to your situation.

Next steps

If you have defaults on your credit file and want a clearer understanding of how they may affect your mortgage options, Mortgage Bridge can provide information and, where appropriate, introduce you to an FCA-regulated mortgage adviser.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

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