Can you get a mortgage with defaults?
Yes, in many cases you can. Learn what lenders look for, how to improve your chances, and what to do next.
Having a default on your credit file doesn’t automatically mean you’ll be declined. Some lenders are willing to consider applications with past credit issues, especially if your circumstances have improved.
The key is understanding how lenders assess your application and what they look at beyond just the default itself.
What do lenders look at?
When you apply for a mortgage with a default, lenders will look at several factors:
- How long ago the default occurred
- The amount of the default
- Whether it has been settled
- Your recent credit behaviour
- Your income and affordability
A default from a few years ago that has been settled is viewed very differently to a recent or unpaid one.
At CW Mortgages I help clients across Essex understand how income protection supports their long-term goal of owning their home, by helping keep mortgage payments covered if they’re unable to work.
How to improve your chances
If you have a default and want to get a mortgage, there are steps you can take:
- Make all current payments on time
- Reduce outstanding debts where possible
- Avoid applying for lots of credit
- Check your credit report for accuracy
- Save a larger deposit if you can
These small improvements can make a big difference when lenders assess your application.
When should you speak to a mortgage advisor?
If you’ve had a default, it’s worth speaking to a mortgage advisor early.
Applying directly to a lender without understanding your options can sometimes lead to unnecessary declines, which can make things more difficult.
A broker can help you approach the right lenders based on your situation and avoid wasted applications.
Which lenders will consider applicants with defaults?
Not all lenders treat defaults the same way. High street banks tend to be stricter, especially with recent or unpaid defaults.
However, there are specialist lenders who are more flexible and will consider applications based on your overall situation rather than just your credit history.
This is where getting advice can make a big difference, as knowing which lenders to approach can save time and avoid unnecessary declines.
Will a default affect your mortgage rate?
In some cases, yes. If you have a recent default or a more complex credit history, you may be offered a higher interest rate compared to someone with a clean credit file.
The good news is that this doesn’t have to be permanent. As your credit profile improves over time, you may be able to remortgage onto a more competitive deal in the future.
Common questions about defaults and mortgages
Can I get a mortgage with an unpaid default?
It’s possible, but more difficult. Most lenders prefer defaults to be settled.Does the size of the default matter?
Yes. Smaller defaults are generally less of a concern than larger ones.Do all lenders assess defaults the same way?
No, each lender has different criteria, which is why advice can be so important.
Final thoughts
Having a default on your credit file doesn’t mean your homeownership plans are over. With the right approach and the right advice, there are often still options available.
If you’re unsure where you stand, getting clear guidance early can help you move forward with confidence.
If you’ve had a default and want to understand your mortgage options, get in touch and I’ll talk you through what’s possible based on your situation.
