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.
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:
Some lenders will ignore communication defaults whereas others will also ignore utility defaults. Some lenders will ignore any default under £300.00.
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.
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.
Yes, you can still get a mortgage even if you have a default on your credit record, but it can be harder.
Defaults happen when you miss payments on a debt, and they stay on your record for six years. Some lenders specialise in lending to people with bad credit, including those with defaults. However, you might face higher interest rates and stricter terms.
Before applying for a mortgage with a default, it's essential to address any outstanding debts and work on improving your credit score as much as possible.
Additionally, seeking advice from mortgage advisers who specialise in bad credit mortgages can help you understand your options and find lenders willing to work with your situation.
Your chances of getting a mortgage with defaults depend on factors like how severe they are and how recent. If you have defaults, traditional lenders might see you as a higher risk. However, some lenders specialise in lending to people with bad credit, including those with defaults.
If you have a history of defaults, especially if they are recent or numerous, traditional lenders may consider you a higher-risk borrower.
However, there are specialist lenders who cater to individuals with bad credit, which includes defaults. These lenders are more willing to consider your application, albeit with potentially higher interest rates and stricter terms.
To improve your chances, pay off any debts, work on improving your credit score, save for a larger deposit, and seek advice from a bad credit mortgage specialist.
Yes, you can still get a mortgage with defaulted student loans, but it might be harder. Defaulting can affect your credit score, making lenders cautious.
However, some lenders specialise in lending to people with bad credit, including those with student loans which have defaulted.
To improve your chances, work on repaying the default as this will boost your credit score, save for a larger deposit, and seek advice from a bad credit mortgage specialist.
To improve your chances of getting a mortgage after having defaults recorded against you follow these simple steps:
