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Getting a mortgage with a default

No judgement, just mortgages.

It is possible to get a mortgage with a default on your credit record. We understand that defaults often arise from complex life events like divorce or financial disputes. We’re here to help!

Discover your borrowing power with NO credit checks, only takes a few minutes!

Do you qualify?
Speak to our team

Getting a mortgage with a default

No judgement, just mortgages.

It is possible to get a mortgage with a default on your credit record. We understand that defaults often arise from complex life events like divorce or financial disputes. We’re here to help!

Discover your borrowing power with NO credit checks, only takes a few minutes!

Do you qualify?
Speak to our team
Author's Avatar Author: Carl Shave CEO and co-founder

9 mins

Updated: January 26th, 2026

Contents

9 mins

Updated: January 26th, 2026

In this article

Can I get a mortgage with a default? How much deposit will I need for a mortgage with a default? How to maximise your chances of mortgage success Lenders for getting a mortgage with a default Can I remortgage with a default? Why choose us for your mortgage with a default?

Mortgages with a Default: Key Takeaways

  • Is it possible? Yes, we know it’s possible through our experience of working with many customers in difficult credit situations. While High Street banks usually reject recent cases, specialist lenders are available and routinely approve applicants with defaults.
  • What do lenders look at? Lenders focus on three critical factors:
    • Time since default: The longer the time elapsed, the better your chances.
    • Deposit size: Larger deposits reduce lender risk significantly.
    • Severity: Secured loan defaults are viewed more seriously than minor utility bill defaults.
  • How can I improve my chances? We recommend three key actions:
  • Use a specialist broker like us: Access “whole-of-market” deals and benefit from our expertise in presenting complex cases directly to underwriters.
  • Provide a larger deposit: Aim for 15-20% if the default is recent, as this is often more valuable than paying off small, old debts.
  • Repair recent credit: Clean up any other outstanding or late payments on your file.

Getting a mortgage with a default may seem difficult, but with the right support and guidance, it is possible to move forward.

Book your free initial consultation

Can I get a mortgage with a default?

Defaults on your credit file are a common reason for mortgage rejections. However, they are less harmful than other types of bad credit issues such as IVAs or bankruptcies. In turn, this does mean it is possible to get a mortgage with one on your credit file.

Typically, a mortgage application will be automatically turned down by high street banks and building societies if they see a recent default. However, there are many specialist lenders that are still willing to consider a mortgage application for people with adverse credit and defaults.

A bad credit mortgage with a default will not be as competitively priced as if your credit record were clean. You may also need the assistance of an experienced bad credit mortgage broker to find the very best deal.

How lenders assess default severity

Not all defaults are weighted equally by mortgage lenders. Specialist lenders, in particular, will consider the type of debt, which can significantly influence their willingness to approve your application.

Here is how mortgage lenders typically categorise the severity of a default, from most to least severe:

Most Severe

  • Secured Loans (e.g., Previous Mortgages or Large Secured Loans): A default on a mortgage or any loan secured against an asset indicates a high risk to the lender, as the borrower failed to pay a debt that could result in repossession. This type requires a specialist broker [2], [4].

Medium Severity

  • Unsecured Loans (e.g., Credit Cards, Personal Loans): These defaults are less severe than secured loans but still indicate a significant issue with managing substantial debt. They typically require specialist lenders but are much easier to overcome than secured loan defaults.

Least Severe

  • Service/Utility Accounts (e.g., Mobile Phone Bills, Utility Bills): Defaults on small, non-priority bills are generally viewed as the least serious. Specialist lenders are often willing to disregard these entirely if the amount was small and the default has since been settled.

The General Specialist Lender Rule

  • Many specialist lenders will completely ignore defaults related to minor services (like utility or mobile bills) if they are satisfied and the rest of your financial profile is strong.

How soon after can you get a mortgage with a default?

There is no specific waiting period required to get a mortgage with a default. Instead, specialist lenders assess your financial situation as a whole, not just your credit history

Generally, the more time that has passed since the default, the better, and you may even be able to secure a mortgage with a default within the year, depending on your circumstances.

If your default has been registered within the last two years, mainstream and high-street lenders will be less likely to approve your application but there are plenty of specialist lenders out there.

Once your default has been removed after 6 years, your chances of approval with mainstream lenders will improve if you’ve managed your finances well and kept a clean record. If you’ve settled your default, it shows lenders you’ve taken control of your finances, which works in your favour.

Mortgage eligibility with a default: at a glance

This summary illustrates the general lending landscape. The time elapsed since your default and the size of your deposit are the two most critical factors.

Time Since Default (TSD) Minimum Deposit Required (Typical) Likelihood of Approval Lender Type
< 1 Year 20% or more High (with specialist broker) Specialist Lenders Only
1-3 Years 15-20% High (with specialist broker) Specialist Lenders
3-4 Years 10-15% Very High Specialist Lenders, possibly Niche High Street
4-6 Years 10% Excellent Majority of Specialist/Niche Lenders
6+ Years 5% (Standard) Excellent Mainstream Lenders (Default is removed from file)

How much deposit will I need for a mortgage with a default?

In the UK, most lenders usually ask for a deposit between 5% and 10% if you have a good history to back it up. Trying to get a mortgage with a default may increase your deposit requirements due to the impact on your credit.

A good rule to apply is the more recent a default, the more likely your deposit requirements will need to increase. For example, if you have had a registered default in the past year, you may need a deposit of 20%.

However, if 6 years have passed and the default has been removed from your credit file, then you may be able to provide a lender’s minimum requirement.

It’s important to remember that lenders also consider other factors, like your income and recent credit activity [2]. So, even if two people have a default from the same time, their deposit requirements could still differ.

For a clearer idea of what you might need to put down, get in touch with one of our expert advisors to discuss your situation today!

How to maximise your chances of mortgage success

To maximise your chances of getting a mortgage with a default, we have put together some steps that can help you present yourself in the best light to any lender. Our expert mortgage advisors are also on hand to help and guide you through the whole process.

Repairing your credit score

Repairing your recent credit will demonstrate to lenders that you are better able to manage your finances in recent times, compared to your past. In turn, this can lead lenders to perceive you as a smaller risk, which can significantly help your case when applying.

It can also prevent lenders from imposing certain conditions like higher interest rates or deposit requirements.

Use a mortgage broker

Using a mortgage broker can prove invaluable when it comes to applying for a mortgage with a default. Not only will they be able to analyse your situation and make recommendations surrounding your application, they also have access to specialist mortgage lenders.

These lenders don’t always make themselves accessible to the general public, instead they only work with intermediaries.

Therefore, by consulting a broker’s services, you could significantly open up your mortgage options and increase your chances of success.

Provide a larger-than-average deposit

As discussed above, a larger deposit reduces the lender’s risk, which can make the lender more willing to approve a mortgage with a default.

For example, if the minimum deposit requirement is 10% of the property’s value, try to aim for 15% instead.

This will not only make your application more attractive, but it can also allow you to access more competitive products with lower rates. These lower rate products can actually save you in the long run, as you won’t be paying as much in interest over the mortgage term.

Reduce any existing debt

During their affordability assessment, a lender will look at all of your expenses, including any debts you have [2]. Therefore, lowering your debt-to-income ratio by paying off existing debts can make you more appealing to lenders.

The less financial commitment you have to other debt, the more capacity you’ll have for mortgage repayments. This will not only make you more attractive to lenders, but can also allow you to borrow more in some circumstances.

Lenders for getting a mortgage with a default

As discussed, the result will depend on the time that has passed since the default and what steps you have taken to improve your situation.

The more recent a default, the more chance a mainstream or high street lender won’t be willing to offer you a mortgage. However, there are specialist lenders available in the market who specifically cater to those with bad credit.

Some specialist lenders who we have access to and have worked with include:

  • Precise
  • Pepper Money
  • Aldermore
  • Kent Reliance

The mortgage process: From default to completion

Getting a mortgage with a default involves a slightly more focused process than a standard application, primarily because we are targeting specialist lenders. We manage this process for you step-by-step to secure the best possible outcome.

Stage What We Do Estimated Timeframe
1. Free Initial Enquiry & Discovery You contact us for a free consultation. This phase involves extensive, complimentary work and advice, often spread across multiple conversations and emails, where we: 1. Conduct full fact-finding. 2. Review your credit profile and default details. 3. Provide you with tailored mortgage recommendations. We only charge if you are happy with our recommendation and proceed with arranging your mortgage through us Our extensive fact-finding & recommendation service can range from a few hours to a few days, depending on case complexity and client availability.
2. Case Building & Research Based on your unique circumstances (income, deposit, and default specifics), we use our specialist access to match your case with the exact lending criteria of the most suitable underwriters. If you aren’t yet ready for a mortgage, our team can help work out a timeline to get you mortgage ready! 1-3 Working Days
3. Agreement in Principle (AIP) We submit your complex case to the chosen specialist lender for an initial agreement. This confirms the lender is willing to lend in principle, significantly increasing your confidence. 2-5 Working Days
4. Full Application Submission We collate and submit your full documentation (proof of ID, income, address, and evidence related to the default). Our specialisation involves presenting complex cases directly to the specialist underwriters. Immediate Submission after AIP
5. Specialist Underwriting & Valuation The specialist lender reviews your file in detail and instructs a property valuation. Because specialist cases require more manual review, this stage is longer than a high-street application. 2-4 Weeks
6. Mortgage Offer & Completion Once the lender is satisfied, they issue a formal mortgage offer. We manage the final legal steps with your solicitor until the purchase or remortgage is completed. 4-8 Weeks from Offer to Completion

Can I remortgage with a default?

It is possible to remortgage with a default on your credit record, as with a standard mortgage. A lot will depend on:

  • The size of the previous default
  • The length of time since the default occurred
  • Whether it was for mortgage payments or for another loan
  • Whether it was settled

Default notices in the past 18 months are important, and having other marks on your credit record could make things harder.

Your actions since the default(s) to rebuild your credit score will also be considered. This includes:

  • Regularly repaid credit card bills
  • Mortgage payments being paid on time
  • Not falling behind on any other outgoings for an extended period

Some lenders are more flexible than others about defaults on your credit history. If you’re unsure you are in the position to remortgage after a default, then reach out today.

One of our expert specialists will be on hand to discuss your needs over a free initial consultation.

Why choose a specialist fee-charging broker for your mortgage?

At Just Mortgage Brokers, we understand that for clients with a DMP or complex credit, the journey to a mortgage starts long before the application. We operate on a model where our reputation is on the line with every case; we only earn a fee if we successfully navigate the market for you.

  • Education & pre-application coaching: A major part of our service involves preparing you for success. We invest heavily in coaching our clients on document readiness and credit positioning. This “pre-application” work is included in our service, and we only charge once we have demonstrated that we can secure the outcome you need.
  • Personal advocacy: When a situation isn’t “computer-says-yes,” you need a human advocate. Our fee allows us to provide a high-touch service where we spend time fighting for your application and communicating directly with specialist lenders to ensure your real-life story is heard.
    A dedicated partnership: Because we don’t rely on high-volume automated processing, we can focus on the attention to detail that complex cases require. This investment in your success is only rewarded when you are satisfied and moving forward with your mortgage deal.

FREQUENTLY ASKED QUESTIONS

A default occurs when you have missed, or haven’t paid in full, several payments to the same creditor. The creditor closes your account to prevent further borrowing and adds a mark to your credit report.

In turn, this will negatively impact your credit rating.

A default notice is a formal letter sent to you if the debt is regulated by the Consumer Credit Act [1]. Sending the letter is a legal requirement, it doesn’t mean that legal action has begun [1].

The creditor does not have to send a notice if the debt is not regulated by the Consumer Credit Act. However, it will still affect your credit report.

A default will last 6 years on your credit file from the date of registration [1]. A collection agency may add another default to your credit file if they buy your debt. This happens when the collection agency takes over the debt, resulting in two defaults on your report.

The collection agency will re-register the first default as “satisfied” and then register a new default as “debt assigned”. This tells anyone checking your report what has happened [1].

The expiration date remains the same. It stays on your report for 6 years from the first entry, and then both entries should be deleted [1].

If you get a default notice the creditor can:

  • Demand the full outstanding balance (not just the overdue amount).
  • Pass the debt to a collection agency.
  • Start court action.
  • Start proceedings to repossess assets that form part of the agreement (a car or property).

If you can afford to bring the account up to date, you should. If you can pay the late balance on time, you can request to remove the default from your credit report.

You can check your credit report with any of the three main credit reference agencies, Experian, Equifax or TransUnion [1].

If you are unable to pay your debt, reach out to the person you owe money to. Try to come to an agreement on a repayment plan for the amount you owe.

If you have deliberately withheld payment because of a dispute, make sure the creditor’s accounts department are aware. It is better to get in touch with them at this stage than if they commence legal proceedings against you.

If a default has been registered correctly this will remain on your credit file for 6 years, even if you have paid it off in full. However, if it has been registered in error you can request its removal.

To do so, you will need to contact the company that has registered the default or the credit reference agencies where it is recorded. Ensure you have evidence to hand that you can provide where required. Items such as proof of payment, bank statements, identification and proof of address.

If the agency is satisfied with this evidence, they will then remove the default from your credit file.

If you fall into arrears on an account, the lender will close it and a default will be registered. As well as the missed payments showing on your credit report, the default will also show.

A default notice will set out how much you owe and when you need to pay it. If you can pay, you should do so when you receive the notice.

You can request to remove the negative mark from your credit history if you pay the amount you owe on time. However, the late payments will remain on file.

Contact your creditor if you are unable to make a payment. It’s possible you will be able to arrange to make smaller regular payments to clear the debt.

If you can’t pay, talk to your creditor and make repayment arrangements. Also, check your credit report for any problems.

If you see the same default twice on your credit report, it means the debt was sold to a collection agency. If this happens, then the first default should be marked as “satisfied” [1].

The debt collector will re-register the default, but it should be flagged as “debt assigned”. Anyone checking your report will then understand that your debt has been sold on.

The default on your credit report will stay for 6 years from the first entry, even if it is entered again. After that, both entries should be removed.

If a lender is willing to offer a mortgage with a default, how much they offer will depend on your ability to repay. A mortgage affordability assessment looks at your income versus your outgoings [2], [3].

If you have good credit, you can usually borrow up to five times your income. Lenders will always take your affordability into consideration.

If you have defaults and other financial commitments, you will probably be able to borrow less money. You might also be expected to put down a bigger deposit.

Often, it depends on when the default occurred and how much risk the lender thinks they are taking.

References

  1. Information Commissioner’s Office (ICO): Credit reporting: how it works and your rights.
  2. Financial Conduct Authority (FCA): CONC 5: Responsible lending and the Consumer Credit Act.
  3. Financial Conduct Authority (FCA): Understanding Consumer Credit: Creditworthiness and Affordability.
  4. Financial Conduct Authority (FCA): SUP 16.36: Data reporting on arrears and adverse credit.

About the author

Author's Avatar

Carl Shave: CEO and co-founder

Carl Shave has been involved in the mortgage & finance industry since leaving education and is one of the co-founders of Just Mortgage Brokers. He has written guest posts and provided journalist comments for companies such as The Times, FT Adviser, Mortgage Strategy, Mortgage Solutions and others, demonstrating his extensive industry knowledge.

Qualifications:
Certificate in Mortgage Advice and Practice (CEMAP): Year Attained: 2001

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