Specialist support for borrowers with past credit issues.
Having a default on your credit file does not necessarily mean you cannot obtain a mortgage. While traditional high street lenders often have strict lending criteria, many specialist lenders in the UK are willing to consider applications from borrowers who have experienced past financial difficulties.
A default occurs when a borrower fails to meet the repayment terms of a credit agreement such as a credit card, loan, or utility account. When payments are missed for a prolonged period, the lender may register a default on your credit report. This can negatively impact your credit score and make borrowing more difficult.
However, the mortgage market has evolved significantly in recent years. Many specialist lenders understand that financial circumstances can change and that past credit issues do not always reflect a borrower's current financial stability. These lenders assess applications on a case-by-case basis, taking into account factors such as income, employment stability, deposit size, and how long ago the default occurred.
A default is recorded on your credit file when you fail to keep up with repayments on a credit agreement. Typically, this happens after several missed payments and when the lender believes the agreement has broken down.
Once recorded, a default remains on your credit file for six years, even if the debt has been repaid. However, many lenders may still consider your mortgage application depending on the circumstances.
Yes, it is possible to obtain a mortgage even if you have a default on your credit file. Specialist lenders focus more on your current financial situation rather than solely on past mistakes.
Key factors lenders typically consider include:
Borrowers with defaults may need to provide a larger deposit compared to those with perfect credit histories. Typically deposits range between 10% and 25%, although some lenders may require more depending on the circumstances.
As specialist mortgage brokers, we work with a wide range of lenders including those who specifically cater to borrowers with adverse credit histories. Our role is to understand your financial situation and match you with lenders who are most likely to approve your application.
We help clients with:
Our goal is to provide honest advice and help you secure the most suitable mortgage solution available.
We work with lenders who consider applications with previous defaults.
Some lenders focus on your current financial situation rather than past mistakes.
Every case is different. We find solutions based on your unique circumstances.
We help structure your application for better chances of approval.
Yes. Many specialist lenders consider mortgage applications from borrowers with previous defaults, depending on the circumstances.
A default usually remains on your credit file for six years from the date it was registered.
Some lenders require defaults to be settled, while others may accept outstanding balances depending on the case.
Most lenders require a deposit of between 10% and 25% if you have adverse credit.
Yes, interest rates may be slightly higher due to the increased risk to lenders.
Yes, although the lender will review the size, number, and age of the defaults.
Yes, smaller defaults are generally viewed more favourably than large ones.
Many lenders prefer defaults to be at least 12 months old, although some will consider more recent cases.
Yes, remortgaging is possible depending on your current financial position.
Yes, lenders assess your credit report when reviewing your mortgage application.
Yes, self-employed borrowers may still qualify provided they can demonstrate stable income.
Utility defaults are sometimes viewed less seriously than loan or credit card defaults.
Yes, settling the default can improve your mortgage eligibility.
Yes, first-time buyers with defaults may still be able to obtain a mortgage.
No. Many specialist lenders specifically work with borrowers who have adverse credit.
Some lenders may consider recent defaults, particularly if the rest of your financial profile is strong.
Yes. Stable employment and consistent income can improve approval chances.
Yes. Defaults related to loans and credit cards are often viewed differently than utility defaults.
A specialist mortgage broker can help match you with lenders who accept applicants with adverse credit.
Lenders usually require proof of income, bank statements, identification, and details of the default.