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

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.


Can’t find what you are looking for?
Call us or complete the form on our contact page with any questions
01268 294777 Get in touch
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.

Are mortgages possible for people with defaults?
Most people belittle the severity of a default however they are viewed by lenders in a similar way to CCJ’s as you are far more likely to pick up a default before a CCJ. Lenders will generally accept defaults recorded against you, however, there can be a tolerance as to how many defaults you have recorded against you in the past 24 months. If there is a tolerance a higher deposit will be required, and the interest rate will reflect the risk to the lender.
I have paid off my defaults so why am I still struggling to get a mortgage?
This is because defaults will remain on your credit file for 6 years after the registration date whether they are satisfied or not. Some lenders may look upon your application more favourably where a default has been satisfied as the date of satisfaction will be shown on your credit file.
Can you get a mortgage with a default?

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.

Chances of getting a mortgage with defaults?

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.

Can I get a mortgage with a defaulted student loan?

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.

What steps should I take to get a mortgage after defaulting on a commitment? 

To improve your chances of getting a mortgage after having defaults recorded against you follow these simple steps:

  1. Deal with the default, this means contact the creditor to make arrangements to repay the debt.
  2. Improve your credit score by paying bills on time and reducing debts. Our bad credit mortgage specialists at Adverse Mortgage Advisors can help you understand your credit report and talk you through what you need to do to improve it.
  3. Save more for a deposit to show financial responsibility. Having a larger deposit reduces the lender’s risk. Lender’s love nothing more than borrowers has managed to save their own deposit.
  4. Get advice from bad credit mortgage specialists who can help find you the best lender for your circumstances.
  5. Look for lenders who work with people with bad credit.
  6. Gather documents showing your income and assets. Keeping good financial records shows responsibility and recording the steps you have taken to address any defaults will demonstrate financial stability to a potential lender.
  7. Be patient and persistent in your efforts to improve your financial situation and you will find lenders willing to offer you a mortgage on more favourable terms.