Adverse Credit
Can I Get a Mortgage With a Default?
Yes, many people get a mortgage with a default on their credit file. Lenders look at how much it was for, how long ago it was registered and whether you have paid it. A small, settled default from a few years ago is accepted by many lenders.
Written and reviewed by Davi Thakar, CeMAP qualified mortgage and protection adviser Updated
Yes, you can get a mortgage with a default. Lenders look at how old it is, how much it was for and whether you have paid it, and a small settled default from a few years ago is accepted by many lenders.
A default is registered when a lender closes an account because you fell behind, usually after three to six months of missed payments. It stays on your credit file for six years from the default date, whether or not you pay it.
A default does not stop you getting a mortgage. What matters is which lender you apply to. Mainstream lenders accept some defaults, specialist lenders accept more, and the right choice depends on the details.
For how defaults compare with other credit problems, see our bad credit mortgage guide.
Can you get a mortgage with a default?
Yes, with the right lender. A small, satisfied default more than a few years old is accepted by many mainstream lenders. A recent, large or unpaid default usually needs a specialist lender, a bigger deposit and a higher rate. Several defaults narrow the choice further, so the details matter more than the fact you have one.
What do lenders look at?
| Factor | Why it matters |
|---|---|
| How old it is | Older is better. Some mainstream lenders disregard small, settled defaults after a few years. Recent defaults usually need a specialist |
| How much it was for | Small defaults, such as a phone bill under a few hundred pounds, are treated very differently from large loan defaults |
| Whether it is satisfied | A paid (satisfied) default is viewed more kindly than an unpaid one. Some lenders require it to be settled |
| How many there are | One default is far easier to place than several, especially if they are recent |
Lenders also ask what kind of debt it was. A default on a mobile phone or utility bill is often viewed more leniently than one on a loan, credit card or previous mortgage.
How do lenders treat defaults? (criteria checked October 2026)
We checked the criteria these lenders publish for brokers on 16 and 17 October 2026. Criteria change often, every lender also credit scores, and meeting a rule does not guarantee approval. Use this as a guide to where you might fit, not a promise.
| Lender (source) | What they publish |
|---|---|
| Virgin Money (high street) | No unsatisfied defaults. None registered in the last 12 months. In the last 6 years, up to 2 satisfied defaults, £2,000 in total |
| TSB (high street) | Declines a default over £100 in the last 12 months, or over £500 in the last 3 years, or two or more with the latest in the last 3 years. Otherwise credit scored |
| Skipton (building society) | Up to 1 default under £500 in 12 months, or up to 3 under £1,000 in total in 24 months, all satisfied. Unsatisfied only if under £50 |
| Leeds (building society) | Up to 1 default or CCJ in 3 years, satisfied and no more than £500. Unsatisfied not accepted |
| Accord (building society) | No more than 2 defaults totalling £250 or less in the last 6 years |
| Kensington (specialist) | From older than 36 months (up to 95% LTV) down to none in the last 6 months, max 1 in 24 months and £1,500 (85% LTV) |
| Bluestone (specialist) | Tiers from 1 satisfied in 36 months (90% LTV) to 4 in 36 months (75% LTV). Defaults under £500 ignored |
| Precise (specialist) | Up to 5 in the last 24 months, none in the last 3 months. Unsatisfied may be accepted |
What this tells you: high street lenders usually want defaults small, paid and more than a year old. Specialist lenders will look at recent and unpaid defaults, with a bigger deposit. The difference between lenders is huge, which is why matching before you apply matters.
Rules are summarised in plain English from each lender’s own published criteria. Lenders change them regularly, so we check again before recommending anything.
Real client case: a recent utility default
Our client had a default on a utility bill for under £300, registered about a year before they applied. They were worried it meant going to a specialist lender. Because the default was small and they had a 20% deposit, we placed the mortgage with a high street lender instead. The client was very relieved. The mortgage completed.
What this shows: a recent default does not automatically mean a specialist lender. The size of the default, what it was for and the size of your deposit all count. Some high street lenders publish limits that a small default can fit within, even a recent one.
Which situations do lenders see most?
These are illustrative situations, not Option Finance client outcomes.
Small and settled
An old phone or utility default, paid off years ago. Many mainstream lenders will consider it.
Often a normal rateRecent but small
A small default in the last year. Fewer mainstream lenders, but specialists are often comfortable.
Pay it and get it marked satisfiedLarge and unpaid
A big loan or credit card default that is still open. Usually a specialist lender and a bigger deposit.
Settlement widens the choiceSeveral defaults
A run of defaults from one difficult period. Lenders want to see the reason and a clean record since.
Explain the cause up frontIllustration only
Two buyers each have one default. The first is a £350 phone bill from four years ago, now satisfied. Many mainstream lenders would consider them at 90% loan-to-value. The second is a £6,000 loan default from eight months ago, still unpaid. They are likely to need a specialist lender and a deposit of 15% to 25%.
How much deposit will you need?
As a general guide:
- Older, small, satisfied defaults: some lenders accept a 5% to 10% deposit.
- Recent or larger defaults: commonly 15% or more.
- Several recent defaults: often 20% to 25%, and a narrower choice of lenders.
A bigger deposit lowers the lender’s risk, so it widens your options and usually lowers the rate.
Should you pay off the default?
Usually, yes. Paying it will not remove it from your file, because it still drops off six years from the default date. But a satisfied default:
- widens the number of lenders that will consider you
- shows you have dealt with the debt
- can be a condition for some lenders
Ask the creditor to update the record to “satisfied” once paid, and check it shows correctly. If you cannot pay in full, a partial settlement agreed in writing may show as “partially satisfied”.
How do you check the default is correct?
Defaults are sometimes registered wrongly, recorded twice by a debt purchaser, or show the wrong date. Get your files from Experian, Equifax and TransUnion. The ICO explains how to get your credit file free and how to correct errors. If something is wrong, raise it with the lender and the credit reference agency. An incorrect default date can keep it on your file longer than it should be.
If the entry is accurate but there is context, such as a debt settled for less than the full amount, you can add a short notice of correction to your file explaining it. If the original lender treated you unfairly and will not put it right after a complaint, you can take it to the Financial Ombudsman Service.
What will a lender ask you for?
- Your credit reports, so the lender sees the same dates and amounts you do
- A settlement letter for any default you have paid
- A short explanation of what happened and what has changed since
- Recent bank statements showing your accounts are now run well
Having these ready before you apply avoids delays once the underwriter starts asking questions.
What if you have defaults and other problems?
If you also have missed payments, CCJs or a debt management plan, lenders look at the whole picture. The most recent problem usually counts most.
Self-employed? See our self-employed bad credit guide. Already own a home? See remortgaging with bad credit.
How can you improve your chances?
- Get all three credit files and list each default with its date, amount and status.
- Settle what you can and make sure it is marked satisfied.
- Keep everything else clean. No new missed payments.
- Register on the electoral roll.
- Avoid new credit and multiple applications in the months before applying.
- Save the biggest deposit you can.
Frequently asked questions
Can I get a mortgage with a default?
Yes. Many lenders accept defaults, depending on how old and large they are and whether they are paid. Recent or large defaults usually need a specialist lender and a bigger deposit.
How long does a default stay on my credit file?
Six years from the date of default, whether or not you pay it.
Will paying off a default help me get a mortgage?
Yes. It will not remove the default, but a satisfied default is viewed more favourably and some lenders require defaults to be settled.
How much deposit do I need with a default?
It depends. Older, small, satisfied defaults may be accepted with 5% to 10%. Recent or larger defaults commonly need 15% or more.
Does a default on a phone bill count?
Yes, but some lenders treat small utility and phone defaults more leniently than defaults on loans or credit cards.
Can I get a mortgage with a default from the last 12 months?
Possibly, with a specialist lender. Expect to need a larger deposit and to pay a higher rate.
Can a default be removed from my credit file early?
Only if it is wrong. A correct default stays for six years from the default date, even once paid. If it is inaccurate, ask the creditor and the credit reference agency to correct it.
What if my default was sold to a debt collector?
The original default date should not change when a debt is sold. Check the new owner has not added a second default or a later date.
Speak to Option Finance about a mortgage with a default
Send us your credit files and the details of the default. We will tell you straight which lenders would consider you, what deposit you would need and whether paying it first would help.
Book a free initial consultation using the enquiry form below. See our adverse credit mortgage advice, and read our guides to mortgages with a CCJ and mortgages after late payments.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Written and reviewed by Davi Thakar
Director & Senior Mortgage Broker
CeMAP Qualified Mortgage and Protection Adviser
Davi founded Option Finance with a vision to deliver transparent mortgage advice from a wide panel of lenders. With over 10 years in financial services, he specialises in complex cases including adverse credit, self-employed borrowers with limited trading history, and large buy-to-let portfolios. He works directly on complex cases and explains each option clearly.
Meet Davi Thakar
