Can you get a mortgage if you have defaults on your credit file?
A default is a formal record that a credit agreement has broken down, registered by a lender after you have missed a series of payments, usually between three and six. It stays on your credit file for six years from the date it was registered, whether or not you later repay the debt.
Defaults do not automatically rule out a mortgage. Mainstream lenders score applications against tight criteria, so a recent or large default will often trip an automated decline. Specialist lenders take a different approach, with underwriters who read the file and weigh the age, size, type and status of each default against the rest of your circumstances.
We are an information website rather than a broker or lender, so nothing here is advice and no outcome is ever guaranteed. What we can do is explain how lenders typically think, so you know which questions to ask an FCA-regulated mortgage broker about your own situation.
How much does the age of a default matter?
Age is usually the single biggest factor. Most lenders bracket defaults by how long ago they were registered, and each year that passes opens up more options, often at a lower deposit requirement.
A default registered in the last twelve months is the hardest position, and many specialist lenders will only consider it with a larger deposit and a clear explanation. Once a default passes the two year mark the picture changes noticeably, because several lenders simply disregard defaults older than two years, or only count them above a value threshold.
A default from five years ago is close to falling off your file entirely and is widely ignored, particularly if your credit conduct since has been clean. Once the full six years have passed, the default disappears from your credit report and lenders can no longer see it, although any unpaid balance can still legally be chased.
| Age of default | How lenders typically respond |
|---|---|
| Under 12 months | Hardest bracket; specialist lenders only, larger deposit usually expected |
| 1 to 2 years | More specialist options; small or satisfied defaults carry less weight |
| 2 to 4 years | Several lenders ignore defaults over 2 years old; deposit requirements ease |
| 4 to 6 years | Widely disregarded with clean recent conduct; some high street lenders possible |
| Over 6 years | No longer visible on your credit file at all |
Does it matter whether a default is satisfied or unsatisfied?
A satisfied default means the debt behind it has been repaid in full, and a partially satisfied marker means the lender accepted a reduced settlement. An unsatisfied default means money is still owing.
Satisfying a default does not remove it from your file or reset the six year clock, but it does change how underwriters read it. A repaid default tells a manual underwriter that you faced a problem and dealt with it, while an unsatisfied default leaves an open question about a live debt that could compete with your mortgage payments.
Some lenders insist that defaults above a certain value are satisfied before completion, while others accept unsatisfied defaults if they are old or small. If you can clear a default before applying it rarely hurts and often helps, although the registration date, not the satisfaction date, remains what most criteria are based on.
What deposit do you usually need with defaults?
Deposit requirements scale with perceived risk. With clean credit, mortgages at 5 percent deposit exist; with recent defaults, lenders generally want a bigger cushion because the loan to value affects their loss if things go wrong.
As a rough pattern, recent or multiple defaults tend to push expectations towards 15 to 25 percent deposit, while older or satisfied defaults may be workable at 10 percent or sometimes less. These are tendencies rather than rules, and every lender draws its lines differently.
A larger deposit also softens the rate premium. Adverse credit products are typically priced above mainstream deals, and the gap narrows as your deposit grows and your defaults age.
Which types of lender accept defaults?
The market splits into three broad tiers. High street banks generally want defaults to be old, small or satisfied, and their automated scoring gives little room for explanation. Building societies sit in the middle, and many use manual underwriting that can take a sympathetic view of a one-off event with a clear cause.
Specialist adverse credit lenders are built for this exact situation. They publish criteria stating how many defaults they accept, at what age and value, and they distribute almost entirely through brokers, which is why most people in this position end up working with one.
Because each lender treats defaults differently, the practical risk is applying to the wrong one and collecting a decline. A whole-of-market broker can match the details of your file to published criteria before any application is made.
How can you strengthen an application with defaults?
Lenders weigh your whole file, so the months before an application matter. The strongest cases pair an honest account of the default with evidence that the problem is firmly in the past.
- Get your statutory credit reports from all three agencies and check every default date, value and status is accurate
- Dispute genuine errors with the credit reference agency, since a wrongly dated default can cost you years
- Keep every active account paid on time, because recent conduct is weighed heavily against old problems
- Reduce credit card balances and avoid new borrowing in the six months before applying
- Save the largest deposit you reasonably can, as it widens the pool of willing lenders
- Prepare a short factual explanation of what caused the default and how it was resolved
- Speak to an FCA-regulated broker rather than applying speculatively to lenders whose criteria you cannot see
Common questions
Is it possible to get a mortgage with defaults on my credit report?
Yes, many lenders consider applicants with defaults, although your options depend on how recent and how large the defaults are and whether they have been satisfied. Recent defaults usually mean specialist lenders and a bigger deposit, while older defaults open up more of the market. No lender guarantees approval, so criteria matching matters.
How seriously do mortgage lenders treat a default notice?
A default is treated as a significant adverse event because it shows a credit agreement broke down completely, which weighs more heavily than the missed payments that preceded it. Its impact fades with time, and a single old default on an otherwise clean file is far less serious than several recent ones.
Can I get a mortgage with a default that is two years old?
A two year old default puts you in a noticeably better position than a recent one. Several lenders disregard defaults registered more than two years ago, and others accept them with modest deposits, particularly if the default is satisfied or low in value. An FCA-regulated broker can identify which lenders fit your file.
Will a default from five years ago still affect my application?
Usually only slightly. A five year old default is approaching the six year point at which it leaves your credit file, and most lenders place little weight on it provided your recent credit conduct is clean. After six years it is no longer visible to lenders at all.
Which mortgage lenders accept defaults?
Specialist adverse credit lenders accept defaults as a matter of published criteria, many building societies consider them through manual underwriting, and some high street banks tolerate older or satisfied defaults. The right lender depends on the specifics of your file, which is why broker access to whole-of-market criteria is valuable.
Should I pay off a default before applying for a mortgage?
Satisfying a default does not remove it from your file, but it changes how underwriters read your history, and some lenders require larger defaults to be settled before completion. If you can afford to clear it without draining your deposit, it generally strengthens your position.
Information Only - Not Financial Advice
This website provides guidance only. Always consult an FCA-regulated mortgage advisor before making decisions.