Can you get a mortgage with a default?A default on your credit file doesn't automatically bar you from getting a mortgage in the UK — but it does narrow your options and will typically raise the interest rate you're offered. Whether you can borrow, and on what terms, depends on the age of the default, the amount owed, and whether it has been satisfied (paid off). Key fact: Many specialist lenders will consider mortgage applications with defaults, especially if the default is over two years old and has been satisfied. What is a default on a credit file?A default is recorded when you miss payments on a credit account — such as a loan, credit card, or mobile contract — and the lender closes or formally marks the account as defaulted. It stays on your credit file for six years from the date it was registered, regardless of whether you pay it off. Which lenders will consider a mortgage with a default?High street lenders (Barclays, HSBC, Nationwide, Halifax) generally decline applications with recent or unsatisfied defaults. Specialist and adverse credit lenders — including Pepper Money, Aldermore, and Kensington — have more flexible criteria and regularly lend to applicants with defaults on their file.
Does the type of default matter?Yes. Lenders treat defaults differently depending on the credit type:
How does default age affect your application?The older the default, the better your chances. Most specialist lenders follow this rough guide:
Satisfied vs unsatisfied defaultsA satisfied default means you've repaid the debt. Lenders view this more favourably than an outstanding balance, even though the default mark itself remains on your file. If you have an unsatisfied default, paying it off before applying can meaningfully improve your options. How much deposit will you need?Expect to need a larger deposit than a borrower with a clean credit history. Most specialist lenders offering mortgages to applicants with defaults require at least 15–25% deposit (75–85% LTV). The more recent or severe the default, the more deposit is typically required. Should you use a mortgage broker?Yes — a whole-of-market mortgage broker with experience in adverse credit is strongly recommended. Brokers can access lenders not available on the high street and know which lenders' criteria best fit your exact situation. Applying to the wrong lender leaves a hard credit search on your file and can make your situation worse. Many adverse credit brokers charge a fee of £300–£500, but this is generally worthwhile given the complexity involved. Verdict Possible but specialist You can get a mortgage with a default, especially if it's satisfied and more than two years old. Use a specialist broker, expect a higher deposit requirement, and avoid applying to mainstream lenders directly. Frequently asked questionsDoes a paid-off default still affect my mortgage application? Yes. Paying off a default removes the outstanding balance but the default marker stays on your credit file for six years from the date it was registered. Lenders can still see it, though a satisfied default is viewed more favourably. Can I get a Help to Buy mortgage with a default? The Help to Buy: Equity Loan scheme closed to new applicants in 2023. For current government-backed schemes, eligibility depends on the lender's individual criteria — a broker can advise based on your specific default history. How long does a default stay on my credit file? Six years from the date the default was registered, regardless of whether the debt is paid off. After six years it is automatically removed from your file. Will getting a mortgage with a default cost more? Yes. Lenders charge higher interest rates to reflect the greater perceived risk. The difference can be 1–3% above standard rates, depending on the severity and age of the default. This makes using a broker to find the best available deal especially important. |
Can You Get a Mortgage With a Default? UK Guide 2026
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