When it was recorded
Use the default date shown on the report. Also explain any payment problems since then; an older default is only part of the picture.
Advice about defaults and mortgages
Mortgage with defaults
A default does not always rule out a mortgage. Count Ready can help you understand how the details on your credit report may affect your plans.
The default’s date, amount and payment status matter, alongside your income, commitments and deposit or equity. A lender must assess the whole application.
Free initial consultation. Further mortgage work is chargeable, with fees agreed in advance. See fee information.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Can I get a mortgage with a default?
You may be able to get a mortgage with a default on your credit file. There is no single rule for all UK lenders: the age and details of the default, your circumstances now and the proposed mortgage all affect the decision. Some applications will be unsuitable, even with a deposit.
The useful starting point is the actual entry on your report. A credit score alone will not tell you which lender, if any, will consider the case.
Count Ready can review the information with you before discussing an application. An initial indication from a broker or lender is not a mortgage offer.
A missed payment, a default notice and a default are different
A missed payment
A payment was not made when due. It can appear in the account’s payment history without a default having been registered. Check whether the account is now up to date.
A default notice
This is a formal notice used for certain credit agreements under the Consumer Credit Act. It explains a breach and the action required. The notice itself is not the default entry on your credit report.
If you receive one, respond to its deadline and seek help if you cannot make the requested payment.
A credit-report default
This is an account status showing that the provider regards the credit relationship as having broken down. The default date, balance and later payment status are relevant to a mortgage assessment.
The rules for reporting a default and issuing a legal default notice are separate. Not receiving a notice does not automatically make the credit-file entry removable.
See StepChange on default notices (opens in a new tab) and the ICO’s explanation of credit records (opens in a new tab). Our existing missed-payments guide (opens in a new tab) covers the earlier stages.
What will a mortgage lender want to know?
Have these details available for every default. If reports show different information, keep the differences visible so they can be checked.
The amount and account
Note the original default amount, current balance and type of borrowing. A phone account and missed mortgage payments may fall under different lender policies.
Whether it has been paid
A lender may distinguish between a satisfied default, an unpaid balance and a partial settlement. Keep any payment or settlement confirmation.
The wider credit history
Several defaults, a County Court judgment (CCJ) or current arrears need to be considered together. Include issues affecting anyone applying with you.
Your finances now
Income, regular spending and existing debt payments affect affordability. Explain what caused the difficulty and what has changed since.
The property and borrowing
Have a purchase price or property value, deposit or equity figure and proposed borrowing amount ready. The property also needs to meet the lender’s requirements.
Does the default need to be paid off?
That depends on the lender’s policy and the circumstances. Paying a default does not remove the entry or guarantee a mortgage, and an unpaid default does not produce the same decision from every lender.
Satisfied
The defaulted debt has been paid in full. Check that the report shows the correct status and balance, and keep the confirmation. The earlier default remains part of the recorded history until it expires.
Unsatisfied
A balance remains unpaid. An adviser needs to understand what is owed, any repayment arrangement and how the commitment affects your budget. Do not leave an account out because you expect a lender to reject it.
Partially settled
The creditor has accepted less than the full balance in settlement. This differs from paying in full. Keep the agreement and confirmation of what, if anything, remains payable; the precise reporting and lender treatment need checking.
How long after a default can I apply?
There is no waiting period that guarantees a mortgage. Lenders can use different limits for the age, amount or type of default, and may also look at your payment history since then. Ask for current criteria to be checked against your circumstances.
What does the six-year rule mean?
A default normally stays on your credit report for six years from its recorded default date, whether paid or unpaid. Paying it does not start a new six-year period. This is a reporting timescale, not a requirement to wait six years before seeking mortgage advice.
When the entry disappears, it does not necessarily mean the debt no longer exists or that a lender has no other records. Answer questions about previous credit problems accurately, including older events where asked.
Experian’s guide to defaults (opens in a new tab) · Credit-file reporting times (opens in a new tab)
Deposit, interest rate and affordability
How much deposit will I need?
A larger deposit reduces the proportion you need to borrow and may open up options, but it does not override credit criteria or affordability checks. There is no deposit percentage that guarantees acceptance with a default.
Keep legal costs, fees and other purchase expenses in your budget. For a remortgage, an adviser will need your property value, current mortgage balance and details of any other secured borrowing.
Understand deposits for bad credit mortgages (opens in a new tab)
Will I pay more or borrow less?
A default can restrict lender choice and may affect the rate and terms available. The borrowing amount also depends on acceptable income, spending and commitments; a salary multiple cannot confirm it.
Compare total costs and the monthly payment, including fees and any early repayment charge. A later move to a cheaper deal is uncertain, so the proposed mortgage needs to be affordable on its own terms.
Prepare for a useful first conversation
- Check the reports. List the account, default date, original amount, current balance and status. A free statutory report is available from each credit reference agency; a paid subscription is not essential.
- Keep supporting evidence. Settlement letters, repayment arrangements and correction requests can explain entries that are unclear or out of date.
- Explain the change. A short account of what happened, when payments stabilised and any continuing difficulties is more useful than guessing which lender might accept you.
- Outline the mortgage. Include your income, regular commitments, deposit or equity, property plans and any deadline.
Getting your credit reports (opens in a new tab) · ICO guidance on free statutory reports (opens in a new tab)
Discuss the next step with Count Ready
We can talk through the default details and your mortgage plans, then explain what else an adviser needs to review. If a suitable route is identified, you can discuss the recommendation, evidence and costs before deciding whether to proceed.
Sometimes more preparation, correction of a record or help with current debt is the appropriate next step. A callback does not commit you to a mortgage application.
Count Ready is a mortgage broker and protection adviser. Our service does not cover mortgage deals available only by applying directly to a lender. Read about Count Ready (opens in a new tab) and our Terms of Business (opens in a new tab) for the business relationship and scope of advice.
For a business property rather than your own home, use our separate commercial mortgage service (opens in a new tab).
Questions about mortgages with defaults
Can I get a mortgage with more than one default?
It may be possible, but the number of defaults is considered alongside their dates, amounts, account types and status. Several recent unpaid accounts can raise different concerns from older settled entries. Provide the full history so an adviser can check relevant criteria rather than assess each default in isolation.
Will a small phone or utility default be ignored?
Do not assume so. Some lender policies treat particular account types or small amounts differently, but the details and the rest of the application still matter. Include the entry when discussing your credit history and answer application questions accurately.
Is the default date the same as my last missed payment?
Not necessarily. A credit report’s default date records when the account was registered as defaulted; missed payments may have started earlier. Check the entry itself and ask the provider or credit reference agency to investigate if the recorded date appears wrong.
Why does the same default appear under two company names?
This can happen after a debt is sold. The records should make clear that they concern the same debt, use the same default date and not suggest two separate outstanding debts. A transfer should not extend how long the default is reported. Ask for an investigation if the entries are unclear or inaccurate.
What if I have a default and a CCJ?
A default on a credit report and a County Court judgment are different records. Tell the adviser about both, even if they concern the same debt, and provide their dates, amounts and payment status. Criteria for defaults alone will not establish whether the lender accepts the combined history.
Will applying with someone who has good credit solve the problem?
A joint application does not erase either applicant’s credit history. The lender considers both applicants and their finances. A second income may help affordability, but it does not guarantee that a default will be accepted. The mortgage also creates responsibilities for both borrowers.
Tell us about your default and your plans
A brief outline is enough to request a callback: when the default occurred, whether a balance remains and whether you want to buy or remortgage.
Leave account numbers and full credit reports out of the enquiry message. The adviser can explain how to provide documents if needed.
Requesting a callback is an enquiry, not an application for borrowing.
The initial consultation is free; further work has agreed fees. See fee information and our Privacy Policy (opens in a new tab).
Your home may be repossessed if you do not keep up repayments on your mortgage.