Getting a mortgage with a default
You could still get a mortgage even with a default on your credit record. With the right approach and access to specialist lenders, many applicants secure approval faster than they expect.
Your credit history isn’t your whole story.
See how much you could borrow for a mortgage with a default, only takes a few minutes, NO CREDIT CHECKS!
18 minutes
Updated: December 4th, 2025
Mortgages with a default: What you need to know
Can I get a mortgage with a default?
Yes – many applicants secure approval even with a default on their credit record. Your current financial situation matters more than past mistakes.
How can I improve my chances?
- Save a larger deposit to reduce lender risk.
- Show responsible recent credit behaviour.
- Work with specialist brokers who know the lenders that accept defaults.
- Consider timing – older defaults are easier to work with.
What do lenders look at?
Lenders assess the age and the size of the default, your income, outgoings, and deposit amount. Specialist lenders often consider your full financial picture, not just your credit history.
How likely you are to get a mortgage with a default
This table gives a quick overview of how lenders may view your mortgage application based on:
- How long ago your default happened.
- Whether the default is paid off or still outstanding.
- How large a deposit you can put down.
Use it as a starting point to assess your eligibility – it’s not a guarantee, but it helps you understand which lenders may be a fit and what steps could improve your chances.
| Time Since Default | Default Status | Typical Deposit Required | Likely Lender Access | Quick Tips |
|---|---|---|---|---|
| Less than 1 year | Unsatisfied | 10%+ | Specialist lenders only |
Save a larger deposit, show strong recent credit behaviour, work with a specialist broker, consider waiting if possible
|
| Less than 1 year | Satisfied | 10%+ | Specialist lenders only |
Paying off defaults helps credibility; maintain good recent credit
|
| 1–2 years | Unsatisfied | 7–10% | Specialist lenders only |
Larger deposit improves chances; maintain timely payments
|
| 1–2 years | Satisfied | 5–10% | High deposit likely required |
Focus on improving recent credit and reducing debt
|
| 2–3 years | Unsatisfied | 5–7% | More lender options available |
Consider timing applications strategically; stable income helps
|
| 2–3 years | Satisfied | 5% | Moderate options available |
Smaller deposit may work if recent credit is strong; specialist broker helps
|
| 3+ years | Any | 1–5% | Standard & specialist lenders |
Often eligible for standard rates; broker can maximise terms
|
If you would like a better understanding of your borrowing power, find out how much you might be able to borrow using our Bad Credit Mortgage Calculator!
Can you get a mortgage with a default?
Yes – a default doesn’t automatically block your chances. Lenders assess your current financial situation, not just past credit issues.
Key factors lenders consider:
- Size of the default: Smaller defaults (e.g. missed utility or mobile payments) may be easier to overcome than larger ones (e.g. credit card or loan defaults).
- Age of the default: Older defaults carry less weight, especially if your recent credit behaviour is strong.
- Deposit amount: A larger deposit demonstrates a reduced risk to lenders.
- Recent financial behaviour: Consistently on-time payments and low borrowing show responsibility.
Improving your chances
Even with defaults on your credit record, there are clear steps you can take to strengthen your mortgage application:
1. Improve your recent credit behaviour
- Make all current payments on time.
- Reduce outstanding balances.
- Avoid taking on new credit.
Think of this as proving you’re back in control of your finances – recent responsible behaviour can outweigh past defaults.
2. Provide a larger deposit
- Save more upfront to reduce lender risk.
- Even a small increase (2–5% above average) can make a meaningful difference.
- Larger deposits can sometimes unlock lower interest rates, saving money over the long term.
3. Consult a specialist bad credit mortgage broker
- Brokers with experience in defaults can guide you to lenders who understand your situation.
- They can identify weak spots in your application and suggest ways to address them.
- Their expertise helps secure the most favourable terms, rather than leaving it to chance.
You don’t need a perfect credit history to succeed. Improving credit behaviour, increasing your deposit, and consulting a broker actively demonstrate financial responsibility and give you the best chance for approval.
What lenders look for
When applying for a mortgage with a default, lenders assess your overall financial picture:
Income
- Lenders need to see that you can comfortably afford mortgage payments.
- Applicants with defaults may be able to borrow around 3–4 x annual income, depending on default size and age.
- Applicants with clean credit could borrow up to 5 x annual income.
Outgoings
- Lenders review monthly expenses like household bills, groceries, car finance, childcare, and commuting. The goal is to ensure you can manage mortgage payments alongside other commitments.
Documentation
Expect to provide 3–6 months of bank statements. These show spending habits, repayment behaviour, and financial stability.
Deposit
- A larger deposit reduces lender risk and can increase how much you’re eligible to borrow.
Age and severity of default
- Older defaults generally carry less weight.
- Smaller, paid defaults are less concerning than large, unpaid ones.
Specialist lender access
- High-street lenders may reject recent defaults, but specialist lenders are often more flexible. A mortgage broker can give you access to these lenders and help secure better terms.
Even with defaults, a strong income, manageable outgoings, a larger deposit, and a clean recent credit record can significantly improve your chances. Partnering with a specialist broker opens doors to lenders who consider more than just your credit history.
Find out where you stand – defaults don’t define you
Our bad credit mortgage calculator shows what you might be able to borrow. Quick, easy and credit-check–free.
What works and what doesn't
| Common Mistakes | Best Practice |
|---|---|
| Assuming a default blocks all mortgage options | Understand that defaults don’t automatically prevent approval |
| Applying too soon after a recent default | Wait if possible and improve recent credit behaviour |
| Only saving the minimum deposit | Save a slightly larger deposit (even 2–5% more can help) |
| Ignoring current spending and affordability | Keep outgoings manageable and maintain on-time payments |
| Applying without knowing which lenders accept defaults | Work with a specialist broker who understands the market |
Mortgage lenders that accept defaults
When applying with a default on your credit record, lenders generally fall into two main categories: mainstream and specialist. Mainstream lenders, such as high-street banks, tend to be stricter and usually consider only older or smaller defaults. Specialist lenders are more flexible and can work with recent or multiple defaults, though they may charge slightly higher rates or fees.
Comparison of lender types
| Factor | Mainstream Lenders | Specialist Lenders |
|---|---|---|
| Flexibility | Limited – usually older or paid defaults only | Higher – can accept recent or multiple defaults |
| Deposit Requirements | Often 10%+ | Can accept 5–10%, depending on risk |
| Typical Wait Times After Default | 2–3+ years | May consider applications within 12 months |
| Rates & Fees | Standard mortgage rates | Slightly higher; may include broker fees or other charges |
| Application Access | Directly via branch or online | Often via specialist brokers only |
Key tips
- Why use a broker: Access lenders that don’t advertise publicly, navigate complex applications, and improve approval chances.
- Check before applying: Confirm deposit requirements, understand any fees, and avoid lenders promising guaranteed approval for upfront payments.
- Flexibility vs cost: Specialist lenders are more flexible but may have higher rates; weigh the benefit of approval against potential extra costs.
Getting a mortgage once the default has been removed
As long as you don’t have any more credit problems and meet the lender’s requirements, your chances of securing a mortgage will go up once your default is removed from your record.
Even though your credit history might not be perfect, having a larger deposit and a stable income will increase your chances of unlocking a good deal.
What if your default is ‘satisfied’?
Even if your default is marked as ‘satisfied’, some lenders focus more on how long it’s been since the default rather than whether it’s been paid off. A satisfied default still improves your standing for a mortgage with a default.
A mortgage broker with experience can help you find the right lenders for your situation. So, if you’ve had a default and are thinking about getting a mortgage, why not get in touch with us today?
How long after a default can you get a mortgage?
It might be possible to get a mortgage within a year, depending on the default. The longer you wait, the better your chances for a mortgage with a default on your credit file. After six years, applying for mortgages becomes easier with improvements to your credit rating.
Defaults have less impact on a mortgage application than things like a bankruptcy [1] or an IVA [2] but they can still affect your application.
A high-street lender may turn you down, but specialist lenders who work with bad credit applicants can be more flexible. These lenders often work through intermediaries (like us!), so partnering with a mortgage broker who understands your situation and knows the best options for you is the best way to find the right deal.
Do default balances affect how much you can borrow?
A key part of the mortgage application process is the affordability assessment. Their decision will also be influenced by the number of defaults and their age when considering a mortgage with a default.
If you have a number of defaults, as well as other current financial commitments, it’s likely they will offer you a lower amount and you will likely be asked to provide a larger deposit.
Lenders will always consider how long ago various defaults happened, what has changed since then, and take a view on the risk they are taking now.
Lenders have different criteria, and the size of your default matters. The right deposit strategy is crucial for a successful mortgage with a default. Get in touch for a free initial consultation with one of our team to see what’s possible for you!
Extra costs to expect if you’ve had a default
Your deposit is the biggest cost when getting a mortgage, but there are a few other things to budget for.
The good news? Having bad credit doesn’t automatically mean loads of extra fees for a mortgage with a default. But there are some added costs to be aware of, such as:
- Higher interest rates: Lenders see bad credit as a risk, so they often charge higher rates to protect themselves.
- Credit repair costs: If you’re working on improving your credit score, you might pay for things like credit reports or financial advice.
- Broker fees: We do charge a fee for our service, but we’re always upfront about any costs before you move forward with our service.
How much extra you’ll pay depends on how serious your default was and how long ago it happened. A recent default will have a bigger impact than a few missed phone bill payments from years ago.
Using a mortgage broker if you have a default
Unlimited specialist mortgage brokers like us have access to the whole market and exclusive interest rates from lenders not found on the high-street. Your best chance of finding a mortgage with a default is to contact a specialist broker. You’ll be able to:
- fully consider your options,
- get personalised mortgage advice from someone who completely understands your situation,
- and even get assistance with your mortgage application.
Your best chance of finding a mortgage with a default is to contact a specialist broker. At The Mortgage Centres, our team of specialists know the market inside out. We can turn to exactly the right providers to get the best deals for getting a mortgage with a default.
Get in touch today to set up your free initial consultation and get a no-obligation quote.
What to do next
Now that you have a clearer picture of how defaults impact your mortgage options, here are some practical steps to take next:
- Check your credit report: Knowing exactly where you stand is the first step. Get a detailed credit report from Checkmyfile to see what lenders will be looking at.
- Start saving for a deposit: A bigger deposit can open up better mortgage deals, so if possible, start putting more aside now.
- Work on your credit score: If your credit history has some bumps, take steps to improve it. Small changes like making payments on time and reducing outstanding debts can make a big difference.
- Speak to a specialist mortgage broker: Navigating trying to get a mortgage with a default can be tricky, but you don’t have to do it alone. Our expert brokers can match you with the right lenders and help you find the best deal for your situation.
- Explore your mortgage options: Ready to take the next step? Find out what’s possible by getting in touch with our team today for a no-obligation chat.
Find out your credit score today!
View your complete credit report from all three agencies with Checkmyfile. FREE for 30 days, then £14.99/month (cancel anytime).
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FAQs
A default notice is a letter from your lender telling you that you’ve missed payments on your loan or credit agreement. You’ll usually get this after missing 3 to 6 payments or if you haven’t paid the full amount due.
Understanding what a default means is the first step towards getting a mortgage with a default.
It’s a legal requirement for lenders to send this notice, but it doesn’t mean at this stage that court action has started. However, if your debt remains unpaid, it could lead to a County Court Judgment (CCJ), which may affect your mortgage options [3].
A default notice only applies to debts covered by the Consumer Credit Act [4]. It will include:
- The part of the agreement you’ve broken.
- How much you need to pay to fix the issue.
- The deadline for making the payment.
- What could happen if you don’t pay.
- How long you have to respond (usually 14 days).
A default stays on your credit report for six years, even if you’ve paid it off. After that, it’s no longer on your report [5]. However, its presence during this period can impact your eligibility for a mortgage with a default.
But, be careful – if a debt gets sold to a collection agency, they might re-register it as a new debt, and it could stay on your report longer.
The good news is, you don’t have to wait six years before applying for a mortgage. Even with a default, you could still be eligible – it’s all about your current situation.
The impact a default has on your credit history will depend on the kind of credit facility you are trying to get.
But, in the case of a mortgage, a lender will also consider when the default occurred and how much for, as well as other aspects of your current situation, before deciding.
It may influence the outcome but will not prevent you outright from getting a mortgage.
Yes, you can have a default removed from your credit report by paying off the balance after getting the notice. Clearing a default can significantly improve your application for a mortgage with a default.
Even if you pay it off, it will still show as a late payment on your report, but it’ll look better than leaving it unpaid. If you’re struggling to pay the full amount, get in touch with your creditor. They may let you pay in instalments.
The key thing to remember here is that it is the defaults in the last year or two that matter most [6]. If the default was within the last year, from our experience, lenders will generally not want to see anything over £1,500.
If the default is over a year old, lenders are less likely to worry about the amount. Lenders will usually accept two defaults within the last two years, but after that it isn’t critical.
This can happen in cases where your debt has been sold on to a debt collection agency.
The original creditor should have marked it as ‘satisfied’, and the debt collector should re-register the default, flagging it as ‘debt assigned’, to show what has happened to anyone checking your credit report [7].
Interestingly, even if it is re-assigned, the debt only stays on your report for six years from the time it was originally registered, not re-registered, after which it drops off.
Yes, some defaults are more severe than others. All mortgage lenders will view any defaults on secured loans or home loan payments as very serious. They will factor this into their assessment when deciding to offer you a mortgage [8].
Defaults on smaller amounts or things like mobile phone or mail order accounts will be viewed in a more relaxed way. Defaults on credit cards or personal loans fall into a middle ground, and leniency varies from lender to lender.
Yes, you can remortgage even with defaults. The process is similar to getting a regular mortgage, so the same rules will apply.
Some lenders look at your whole situation, not just the default. What matters is:
- How much you owe.
- What kind of loan it was.
- Which lender you had the default with.
If you defaulted with the same lender, they might turn down your remortgage application. It may be better to go with a specialist lender if you have a default.
How long ago the default happened also makes a difference. Defaults from the past year will be taken more seriously than those from 3 or 4 years ago.
The longer you wait, the more chances you have to improve your credit. Some lenders are more flexible and may consider your application even if the default is recent.
Yes, but it depends on how recent and how large they are. Most lenders focus on your overall pattern of credit behaviour.
If your defaults are over two years old and your finances are stable, a specialist lender may still approve your application – typically with a higher deposit (around 10% or more).
It’s possible, but options are limited. Some specialist lenders will consider unsatisfied defaults if they’re small, old, or if you can explain the circumstances. Paying off the default before applying usually improves your chances and the interest rate offered.
This situation is common. The lender will review both credit reports – the applicant with clean credit can help balance the risk, though the overall borrowing limit or rate might be adjusted.
Yes. Smaller defaults (like missed phone bills) are treated more leniently than large personal loans or credit card defaults. Lenders view size and frequency together to judge risk.
Yes. Reapply only once something meaningful has changed – for example, the default is older, your income or deposit has increased, or you’ve shown several months of on-time payments. A broker can help time your next application for the best result.
Absolutely. High-street banks tend to be strict about recent or unsatisfied defaults, while specialist lenders look at the full picture – income stability, deposit size, and time since the default.
Yes. Many specialist lenders only accept applications through intermediaries. A broker knows which lenders are open to defaults and can position your case to highlight strengths (like stable employment or improved credit conduct).
- StepChange Debt Charity. (n.d.). Bankruptcy and my credit rating. Retrieved March 21, 2025, from StepChange | Bankruptcy and my credit rating
- StepChange Debt Charity. (n.d.). How an IVA affects me. Retrieved March 21, 2025, from StepChange | How an IVA affects me
- Gov.uk. (July 3, 2015). County Court Judgments (CCJs) and your credit rating. Retrieved March 21, 2025, from Gov.uk | CCJs and your Credit Rating
- Consumer Credit Act 1974, c. 39, s. 87. (1974). Retrieved March 21, 2025, from Legislation.gov.uk | Default Notices
- Checkmyfile. (October 28, 2024). How long does information remain on my credit report? Checkmyfile Help Centre. Retrieved March 21, 2025, from Checkmyfile | How long does information remain on my credit report
- Financial Conduct Authority. (January 1, 2022). SUP 16 Annex 19B: Impaired credit history. Retrieved March 21, 2025, from FCA Handbook | SUP 16 Annex 19B Notes for completion of the Mortgage Lenders & Administrators Return (‘MLAR’) | E3.1 Impaired credit history
- SCOR (Steering Committee on Reciprocity). (2024, June). Principles for the Reporting of Arrears Arrangements and Defaults at Credit Reference Agencies version 2a final [PDF document]. SCOR Online. Retrieved March 21, 2025, from SCOR | Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies
- Information Commissioner’s Office. (February 19, 2025). Credit. Retrieved March 21, 2025, from ICO | For the public | Credit
About the author
Phil Scott: Director
Phil has worked in the financial services industry since 1992, having started with a large insurance company. He went self employed in 1996 as an Independent Financial Adviser before setting up his first company, Needham Market Home Financial in 1999.
After four years, he decided to concentrate solely on mortgages and related insurances, and The Mortgage Centres was born. Since then, Phil has been influential in the opening of several new offices as the business continues to grow.
Qualifications:
- Financial Planning Certificate: 1, 2 & 3 | Year Attained: 1992
- Certificate in Mortgage Advice and Practice (CEMAP) | Year Attained: 2001
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