Mortgage With Defaults FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
Can I get a mortgage if I have defaults on my credit file?
Yes, but your options will be more limited. The impact of a default depends on whether it has been satisfied (paid off), how long ago it was registered, the total value, and the category of debt (utility vs. financial product). Specialist adverse credit lenders will consider applicants with defaults, but typically require a larger deposit and charge a higher interest rate. Mainstream lenders generally decline applications with unsatisfied defaults.
How long do defaults stay on my credit file?
Defaults remain on your credit file for six years from the date they were registered, whether paid or not. After six years, they drop off automatically and mainstream lenders generally cannot see them. During the six-year period, the age of the default matters significantly — one registered five years ago has far less impact than one registered last year.
Does it matter if my default has been satisfied (paid off)?
Yes. A satisfied default is viewed more favourably than an outstanding one — it shows you have taken responsibility for the debt. However, satisfaction does not remove the default from your credit file; it only updates the status. Many specialist lenders require defaults to be satisfied before considering a mortgage. Clearing outstanding defaults before applying is strongly advisable.
What deposit do I need for a mortgage with defaults?
Deposit requirements depend on the severity, recency, and number of defaults. With older, satisfied defaults (two-plus years ago, total under £500), some specialist lenders may accept 10–15%. More recent or higher-value defaults typically require 15–25% or more. A larger deposit improves both approval chances and the interest rate available. A specialist broker can advise on the minimum deposit for your specific default profile.
Are some types of default worse than others for a mortgage application?
Yes. Financial product defaults — on mortgages, loans, or credit cards — are viewed more seriously than utility or telecoms defaults. A previous mortgage default is the most damaging, as it indicates prior difficulty sustaining mortgage payments. A missed phone bill default is treated far more leniently. The total value also matters: a £50 utility default is very different from a £10,000 loan default in lender assessment.
Should I apply to multiple lenders if I have defaults?
No. Each application triggers a hard credit search, and multiple hard searches in a short period can further damage your credit score and make lenders more cautious. Instead, work with a specialist adverse credit mortgage broker who can identify the most suitable lender and submit a single targeted application. Many brokers can also run a soft search — which does not affect your credit file — to assess eligibility before any formal application.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Adverse credit history will affect the interest rates and products available to you.
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