Default Mortgage Advice

If you have defaults showing on your credit file, you might be worried that it rules out getting a mortgage. The good news is that many lenders will still consider you, even if your defaults are recent or unsettled. What usually matters most is the age of the default, the type of account, the amount, and how your credit profile has looked since.

At Mortgage Bridge, we regularly help clients with multiple defaults, old defaults, and even recent telecom or utility defaults. Every lender views defaults differently, so understanding how they assess risk is key to finding the right option.

Can you get a mortgage with defaults?

Yes. Hundreds of people secure mortgages every year despite having defaults on their credit reports. Whether a lender accepts you will depend on:

How long ago the default was registered

Whether it is settled or still open

The size of the default

Whether it was a one-off issue or part of a broader pattern

Your income, affordability, and deposit

Many lenders treat defaults under £500 more leniently, especially if they relate to phone bills, utilities, or disputes. Larger defaults, particularly those involving credit cards or loans, can require a longer period of clean payment history.

How lenders assess defaults

1. Age of the default

This is the most important factor.

Under 12 months old: Very limited options

1–2 years old: More choice, especially if settled

Over 3 years old: Significantly easier

Over 6 years old: They drop off your file entirely

The older the default, the less weight it carries.

2. Whether the default is settled

A settled default shows lenders that you have taken responsibility.
Unsettled defaults don’t always prevent a mortgage, but you may need:

A larger deposit

A specialist lender

Evidence of clean conduct since

Settling a default before applying can sometimes improve the interest rate you’re offered.

3. Size and number of defaults

Light telecom or utility defaults are far easier than high-value credit defaults.
Multiple defaults are acceptable as long as:

They are dated

You have been stable since

Your overall affordability is strong

4. Deposit requirements

This depends on the lender, but as a general guide:

5 percent deposit possible if defaults are older and settled

10–15 percent deposit needed for more recent or higher-value defaults

Scheme options like Shared Ownership may accept lower deposits

We can assess your credit report and confirm exactly where you stand.

Improving your chances of being approved

You can strengthen your application by:

Providing a full digital credit report

Settling any outstanding defaults

Ensuring your bank conduct is clean (no overdraft issues, gambling spikes, or returned items)

Minimising new credit applications

Showing stable income and employment history

Small changes can make a big difference in the type of lender available.

Get specialist support

Having defaults doesn’t mean your mortgage plans stop. It simply means finding a lender who understands your circumstances. At Mortgage Bridge, we work with lenders who regularly help clients with historic credit issues and provide clear guidance throughout the process.

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