Mortgage with Defaults.

A default on your credit file does not always mean you cannot get a mortgage. Some lenders may consider applicants with defaults, depending on when the default was registered, the amount, whether it has been satisfied and the overall strength of the application.

[ WHAT THEY LOOK AT ]

  • Date of default registration

  • Default amount

  • Whether the default has been satisfied

  • Number of defaults

  • Type of account defaulted

  • Reason for the default

  • Deposit level

  • Current credit conduct

  • Income and affordability

  • Other adverse credit

What is a default?

  • A default usually means a lender or credit provider has recorded that a credit agreement was not maintained as required.

  • It can relate to credit cards, loans, utilities, mobile phone accounts, mail order, car finance or other credit commitments.

Satisfied vs Unsatisfied defaults

A satisfied default means the debt has been repaid or settled. Some lenders view satisfied defaults more favourably than unsatisfied defaults. However, satisfaction alone does not guarantee acceptance.

How we help?

Mortgage Centre reviews the default details, wider credit profile, income, deposit and affordability before a lender approach is considered. This can help reduce the risk of unsuitable applications and avoidable declines.

[ FAQs ]

  1. Can I get a mortgage with a default?

    Possibly. Some lenders accept defaults depending on the date, amount, satisfaction status, deposit and affordability.

  2. Is a satisfied default better than an unsatisfied default?

    Generally, yes. Some lenders prefer or require defaults to be satisfied, but criteria vary.

  3. Do defaults have to be over a certain age?

    Many lenders apply time limits, but these vary. Recent defaults are usually more difficult than older defaults.

  4. Should I pay off a default before applying? This depends on the lender and your wider situation. It is best to take advice before making decisions that may affect affordability or deposit funds.

[ WHAT DO YOU NEED ]

Personal

Passport

Proof of address

Credit report

Income

Payslips & P60



SA302s & Accounts



Bank statements

Property

Memorandum of Sale

Estate agent details

Solicitor details

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[ GLOSSARY ]

  • HMO: House in Multiple Occupation

  • SPV: Special Purpose Vehicle

  • IVA: Individual Voluntary Arrangement

  • DMP: Debt Management Plan

  • CCJ: County Court Judgment

[ DISCLAIMER ]

Your home may be repossessed if you do not keep up repayments on your mortgage.