Get A Mortgage With Defaults
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Having a default doesn’t mean you can’t get a mortgage. You’re unlikely to get accepted by high street lenders, but we are specialist brokers who understand what lenders are looking for and are well-placed to help you secure mortgages with defaults on your record.

At Adverse Mortgage Advisors we have the knowledge in understanding the key criteria for each lender that will help your chances of getting a mortgage offer. If your profile suits the lenders’ criteria, you have a better chance.

For example, some lenders won’t accept any mortgage application with a history of default, no matter what it was for, but others will look at your profile as a whole and you will be successful in your application.

At Adverse Mortgage Advisors, we’ll only look to the lender most suited to your financial circumstances.

Here’s some information about mortgages with defaults that might help you

A default will remain on your credit file for six years whether it is satisfied (paid) or not.

It’s also important to understand that if you have a default on your account, a creditor can still issue a CCJ at any time in the six years of having the default. The CCJ will then be on your profile for another six years (and the original default will no longer be visible), unless paid within the 30-day period. But if paid, a default will show as satisfied.

With a default there is no grace period to repay the default so that it’s removed from your credit file.

When you’re applying for a mortgage with defaults, lenders will be looking at the type of default you have. For example, mortgage payment defaults are likely to be seen as the most severe type of default and can make it difficult to get accepted for another mortgage.

The severity order of the type of default is as follows:

  • Mortgages or secured loans
  • Unsecured loans
  • HP
  • Credit cards (this is the most common default as minimum payments are not automatically set up)
  • Mail order (similar to credit cards, as minimum payments are not set up)
  • Utilities
  • Communications

Some lenders will ignore communication defaults whereas others will also ignore utility defaults. Some lenders will ignore any default under £300.00.

Get A Mortgage With Defaults
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.

Get A Mortgage With Defaults
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.


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FAQs

If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.

Read more FAQs
What is a Default?

A default refers to the failure to fulfil a financial or contractual obligation or agreement. It will often occur when an individual or business fails to make the agreed monthly payments or meet a deadline for repayment of a loan. People often underestimate the impact that a default has on their credit file and focus more on CCJ’s.

Defaults are usually recorded against you once your account has run more than 6 months in arrears. The severity of the default will depend on the balance of the default and the type of credit commitment account which has defaulted. For example, a mobile phone contract default would be considered less severe than a defaulted credit card account.

Once a default has been recorded on your credit file it stays there for 6 years.  However, if a creditor does decide they want to pursue the case through the court, it could stay on your credit file for a further 6 years (making 12 years in all). Repaying the debt or coming to an agreement with the creditor will stop this happening.

The difference between a CCJ and Defaults

Default’s and CCJ’s are both legal actions related to debt and payment obligations which have not been met. A default is a notice of intent to take legal action, whereas a CCJ is a court order that has been issued against a borrower who has failed to repay a debt.

A default is a notice that a lender or creditor sends to the borrower when they have failed to maintain the agreed monthly payments on an agreement or failed to meet a deadline for repayment. It is a warning that should not be ignored.  It means the creditor or lender intends to take further action unless the debt is repaid in full, or an agreement is reached. 

Although a default is not a court order, it can still severely impact your credit score and financial reputation and will remain on your credit file for 6 years.

When does a CCJ get removed?  As an actual court order that has been issued by a County Court against a borrower who has failed to repay a debt, a CCJ will stay on the borrower’s credit file for 6 years unless the CCJ is cleared within a month of the registration date. The court will set a repayment schedule for the outstanding agreed debt along with any additional charges like court fees and interest.  

If you are already a homeowner, a creditor or lender may apply to the court for a charge to be registered against the property. That charge will then stay on the title deeds until it has been repaid. If this happens the property can’t be sold or remortgaged unless the charge is removed. This will involve repaying the debt plus any interest that has been added.

Can I still get a mortgage with a CCJ or default?

The short answer is YES, however there are lots of factors that will determine the level of deposit required to support your mortgage application, and the interest rate you will be charged by the bank or lender that makes them feel comfortable against the risk.

The main things to consider are as follows:

A specialist lender, who will likely charge a higher interest rate, will ignore a CCJ and defaults that have been registered for over 36 months (3 years) even if they have not been satisfied.

The older the CCJ or default, the more lenders you will have available to apply for a mortgage with. 

High Street lenders (like building society’s and banks) will give lower interest if the CCJ or default been satisfied (repaid) for over 36 months. 

How much does a CCJ affect my credit score? On average a borrower’s credit score can go up by as much as 200 points by satisfying a CCJ or default.

The amount the CCJ or default that was recorded against you and the higher the balance will reduce the number of lenders that will consider your application unless they have been satisfied for 36 months. The tolerance that most mainstream lenders will have generally ranges between £250 to £500. If you have a CCJ or default that is more than this, it doesn’t mean a mortgage is not possible. However, it is likely that you will need a larger deposit and can expect to pay higher interest rates.

How many CCJ’s can you have? It doesn’t matter however, the number of CCJ’s or defaults that have been recorded against you will reduce the number of lenders that will consider your mortgage, especially if they are all recorded against you within the last 36 months. 

Lenders will all have their own unique criteria around CCJ’s and defaults and will also have different tolerance levels around the number that they will consider recorded against you. The more CCJ’s and defaults that you have had recorded against you, especially within the past 36 months, will directly affect the amount of deposit you will likely have to put down to support your mortgage application and the interest rate which will be made available to you.

The type of CCJ that has been recorded against you will also determine which lenders can consider your application. For example, if you have just one CCJ for a parking offence then it would be looked upon differently then if you had a CCJ recorded against you for not paying a financial commitment such as credit cards, hire purchases or personal loans.

Just like with CCJ’s the type of default that has been recorded against you will be viewed differently by lenders. For example, defaults for communication (mobile phones & broadband) and utility (household bills such as gas, electricity and water) will be viewed differently to defaults that have been recorded against you for credit card, personal loan & car hire purchase agreements.