A default on your credit file can affect how lenders view your mortgage application. It shows that a previous credit agreement was not kept to, which may make some lenders more cautious.
However, a default does not automatically mean you cannot get a mortgage. The right route will depend on your circumstances, including when the default happened, whether it has been settled, and how your finances look now.
Can I get a mortgage with defaults?
It may be possible to get a mortgage with defaults, particularly if they are older, settled, or there is a clear explanation behind them. Lenders will usually assess the full picture rather than looking at one item in isolation.
Some lenders may decline applications with recent defaults, while others may take a more flexible approach if your current finances are stable and the mortgage appears affordable.
What lenders may look at
A lender may consider:
- How many defaults are on your credit file
- When the defaults were registered
- Whether they have been settled
- The value of each default
- Whether the defaults relate to secured or unsecured borrowing
- Your deposit and loan-to-value
- Your income and affordability
- Your credit conduct since the default
Why specialist advice matters
Applying to the wrong lender could lead to unnecessary stress and may affect your credit file if a hard search is carried out. A specialist mortgage adviser can help identify lenders whose criteria are more likely to match your circumstances.
At Just Mortgages, our Adverse Credit Solutions Team works with clients who have had defaults, arrears, missed payments and other credit challenges. We will explain your options clearly and help you understand what may be realistic.
Start with a conversation
Whether your default was recent or several years ago, it is worth getting advice before applying. We can help you understand your next steps and whether now is the right time to explore a mortgage.
Speak to Just Mortgages about mortgage options with defaults.
Mortgage with Defaults FAQs
Can I get a mortgage with defaults?
You may still be able to get a mortgage with defaults on your credit file. Lenders will usually look at when the defaults happened, whether they have been settled, their value, your recent credit conduct, deposit and affordability.
Are settled defaults better than unsettled defaults?
Generally, a settled default may be viewed more favourably than an unsettled one. However, lenders will still consider the full picture, including how recent the default is and whether there are any other credit issues.
Do old defaults matter when applying for a mortgage?
Old defaults may have less impact than recent defaults, but this depends on the lender’s criteria. Some lenders may be more comfortable if the default happened several years ago and your credit conduct has improved since.
Can I get a mortgage with multiple defaults?
It may be possible, but multiple defaults can reduce the number of lenders available to you. A specialist mortgage adviser can help identify lenders who may be more willing to consider your circumstances.
Will a default affect how much I can borrow?
It could. Lenders assess affordability as well as credit history, so a default may affect which lenders are available and what terms they offer. Your income, outgoings, deposit and overall financial position will also matter.
Should I apply directly to a high street lender with defaults?
It may be better to speak to a specialist adviser first. Applying to an unsuitable lender could lead to a declined application and may result in unnecessary credit searches.
How can Just Mortgages help with defaults?
We can review your credit history, explain what lenders may look for, and help you explore mortgage options that may be suitable for people with defaults.