If you’ve got defaults on your credit file, it can feel like getting a mortgage is off the table. The good news is that, in many cases, it may still be possible – especially with the help of specialist lenders and advisers who understand adverse credit.

In this guide, we’ll look at what a default actually is, how lenders view them, and when you might still be able to get a mortgage.

What is a Default?

A default usually appears on your credit file when you’ve missed several payments on a credit agreement – for example a credit card, loan, phone contract or utility bill. The lender effectively closes the account and marks it as defaulted.

On your credit file, a default will typically show:

• The date the account defaulted
• The amount owed at the time
• Whether it has since been settled or partially settled

Defaults normally remain on your credit report for six years from the default date, even if you pay them off in full.

How Do Mortgage Lenders View Defaults?

Different lenders have different rules, but most will look at:

• How long ago the default happened – recent defaults usually carry more weight.
• Whether the default is now settled – paying it off can be viewed more positively.
• The size of the default – a £200 mobile bill is very different from a £10,000 loan.
• The number of defaults – one isolated default may be easier to explain than several.
• The reason behind it – redundancy, illness or divorce may be seen differently to ongoing financial mismanagement.

More mainstream high-street lenders can be strict, especially if the defaults are recent. However, there are specialist lenders who focus on the bigger picture – including your current income, outgoings and how you’ve managed your credit since the default. Brokers like Just Mortgages work closely with these specialist lenders through our dedicated Adverse Credit Solutions Team.

When Might a Mortgage Be Possible After a Default?

Everyone’s situation is different, but as a general guide:

• Defaults within the last 12 months
  You may still have options, especially if the default was small, now settled, and the rest of your credit conduct is strong. However, expect fewer lender choices, and you may need a larger deposit and higher interest rate.
• Defaults 1–3 years ago
  More lenders may be willing to consider you, particularly if you’ve been paying everything else on time since, and the default is settled. Again, deposit size and overall affordability will be important.
• Defaults 3–6 years ago
  As time passes, the impact of a default tends to lessen – especially if your current finances and payment history are solid. Some lenders may treat these as “historic” issues, particularly if there were clear reasons (for example, a one-off life event).
• Defaults older than 6 years
  After six years, defaults usually fall off your credit file. At this stage, other factors become far more important: your income, regular commitments, and how you’ve managed your money more recently.

Remember: these are general pointers, not guarantees. The right approach is to get your credit file reviewed by a specialist mortgage adviser who can tell you what’s realistic for you.

How Much Deposit Do I Need with Defaults?

A bigger deposit generally gives you:

• More lender options
• Access to potentially lower interest rates
• A better chance of passing affordability checks

With defaults, many lenders may want you to put down more than the minimum 5% – for example 10–25% depending on your circumstances. An adviser can look at your full situation and explain what deposit level might open up more choices.

What Can You Do to Improve Your Chances?

If you’ve got defaults and you’re thinking about a mortgage, here are some practical steps:

1. Get copies of all your credit reports
   Check Experian, Equifax and TransUnion for any errors or outdated information.
2. Settle or reduce defaults where you can
   Even if it’s not possible to pay everything off immediately, reducing balances and setting up payment plans can help.
3. Make every payment on time going forward
   Lenders want to see that the problems are in the past. A clean pattern of payments in the last 12–24 months is a big plus.
4. Avoid taking out new credit before applying
   New loans, credit cards or buy now, pay later commitments could affect affordability and how lenders view you.
5. Build up your deposit
   Even small, regular savings can add up and improve the deals available to you.
6. Speak to a specialist mortgage adviser early
   At Just Mortgages, our Adverse Credit Solutions Team is experienced in cases involving defaults and other credit issues. We can assess your situation, explain your options clearly and match you with suitable lenders.

Next Steps

Defaults don’t have to mean the end of your homeownership plans. With the right preparation and the right support – you may still be able to secure a mortgage that fits your circumstances.

If you’ve got defaults on your credit file and you’re not sure what to do next, speak to one of our Just Mortgages advisers. We’ll take the time to understand your situation and guide you through your options.

Book to speak to the Adverse Credit Solutions Team

Just Mortgages is a trading name of Just Mortgages Direct Ltd which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 9/12/2025.