Can You Get a Mortgage with Defaults? Realistic Options Explained
If you’ve had defaults recorded on your credit file, you’re not alone — and it doesn’t necessarily mean you can’t get a mortgage. Many people secure a home loan after defaults, but it depends on how recent they are, whether they’re settled, and which lender you apply to.
This guide explains how lenders view defaults, what options exist, and what you can do to improve your approval chances.
What is a default?
A default is when a lender closes your credit account after several missed payments (usually three to six months). It’s then recorded on your credit report and stays there for six years, even if you later repay the balance.
Example: You fall behind on a £500 phone bill, receive several warnings, and eventually the account is closed. The credit file will show a default dated the day the lender officially closed it.
How lenders view defaults
Each lender has its own risk rules, but here’s how they generally assess your application:
Time since default: Defaults older than three years are often ignored by specialist lenders, especially if everything else on your file is now clean.
Amount and type: Small communication or utility defaults are viewed more leniently than large loans or credit-card defaults.
Settled vs unsettled: A settled default shows responsibility. Unsettled ones can still be considered, but usually with higher deposits or rates.
Number of defaults: One old default might be fine — several recent ones can make mainstream approval unlikely for now.
Mortgage routes available
Mainstream lenders:
Usually need at least three years since the last default.
Prefer all defaults marked as satisfied.
May accept one older, low-value default if other credit conduct is strong.
Specialist lenders:
Can accept defaults registered within the last 12 months.
May ignore small or communications-related defaults.
Require larger deposits (often 15–25%) but have far higher approval rates for bad-credit cases.
Credit-repair approach:
If you’re not quite ready, a six-to-twelve-month plan to settle debts, stay current on payments, and build savings can make a big difference before re-applying.
How to improve your chances
• Get your credit reports from Experian, Equifax, and TransUnion to know exactly what’s showing.
• Settle any unpaid defaults or negotiate partial settlements.
• Stay on top of bills — no missed payments for six months is a major plus.
• Register to vote — being on the electoral roll confirms stability.
• Use a specialist mortgage broker experienced in defaults and bad credit. They’ll know which lenders are open to your profile.
What to prepare before applying
Gather these documents in advance:
• Three months’ payslips (or two years’ accounts if self-employed)
• Latest bank statements
• Proof of deposit and ID
• Any letters confirming defaults are settled
Having these ready speeds up your application and shows you’re organised and serious.
Next steps
Getting a mortgage with defaults is possible — it just takes the right lender and preparation.
Visit our Bad-Credit Mortgage Hub to explore more guides, or check our [Specialist Lenders page] to see who might consider your case.
Ready to talk it through? Contact us today and we’ll help you find realistic mortgage options based on your situation.
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This information is for general guidance only and does not constitute mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage.