Mortgage After Defaults

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Mortgage After Defaults

Is it possible to get a mortgage with a default?

It’s perfectly possible to secure a mortgage with Defaults or even CCJs. Just so long as you approach the right type of lender. Whilst most high street lenders are unlikely to offer Bad Credit Mortgages, there are a range of independent Mortgage Lenders who will be able to help you.

When the default was registered and what led to your adverse credit history will also be considered. This will be in order to form a more accurate idea of your overall level of financial responsibility.

Does the type of default make a difference with mortgage applications?

Although each Mortgage Lender will have different criteria to satisfy with regards to the level of acceptable issues on your credit record, there is a general sliding scale observed by the majority of lenders in terms of how severely different types of default will impact your mortgage application.

Your chances of securing a mortgage will typically be lower, the further down the list the reason for your default appears:

  • Unpaid mobile phone bills
  • Unpaid utility bills
  • Overdrafts or other bank related fees
  • Missed credit card payments
  • Missed payments on unsecured loans
  • Missed payments on secured loans (such as car finance)
  • Mortgage arrears
  • IVAs and bankruptcy

Those with an Individual Voluntary Arrangement (IVA) and bankruptcy levels of debt are least likely to be able to secure a mortgage. Although when it comes to defaults and CCJs, those acquired through non-payment of secured debts are generally looked upon much more severely than those with unpaid unsecured debt.

What is a satisfied default?

A satisfied default is a default that you have repaid. It will stay on your credit file for the same length of time as an unsatisfied default. However, the fact that you have repaid the debt will be reflected.

Mortgage Lenders are more likely to consider your applications if your credit report shows that your defaults are satisfied.

Speak To An Expert

We’ll take care of all the heavy work. From finding the right mortgage product and providing you with a detailed quote, to submitting the mortgage application on your behalf and guiding you right through to the completion of your mortgage.

What if I have other credit issues as well?

The more credit issues you have when you apply for a mortgage, the lower your chance of obtaining an offer. Again, this is something that will depend on the exact circumstances. So, for example, two defaults for small amounts on a mobile phone bill and a water bill may be considered. Whereas a default for missed mortgage payments and a bankruptcy is much less likely to be approved.

How much can I borrow if I have defaults?

A typical mortgage applicant can expect to borrow between three and five times their annual income. Your credit score will usually influence the multiple of your income that a Mortgage Lender is willing to offer. Those with a poor credit rating are more likely to achieve a loan at the bottom of the scale of multiples.

If you have defaults or other adverse credit, it can be helpful to look into improving your credit score before you apply for a mortgage. As well as increasing your loan multiple, this can also give you access to more competitive rates of interest.

How soon after a default can I get a mortgage?

This will depend on the individual lender’s criteria. However, many will consider a resolved default as soon as it is registered as satisfied. Your chances of securing a mortgage will increase with all lenders the longer ago your default was registered. After six years, both satisfied and unsatisfied defaults will be removed from your credit file, so they will no longer impact your ability to obtain a mortgage offer at this point.

How can a Mortgage Broker help?

Here at Mortgage Broker Services, we specialise in helping those applicants with a complex credit history to secure a competitive mortgage. Our current knowledge of lending criterias across the full spectrum of lenders offering bad credit options allow us to easily recommend a suitable lender for your individual circumstances.

If you have very severe credit issues, we can help put you on the path to better preparing your finances for a successful application in the near future.


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