Can I get a mortgage with a default?

Yes you usually can get a mortgage with a default. Depending on how long ago the default was and how much it was for. Even what it was for can make a difference as some lenders will ignore certain types of defaults. The first thing you should do if you think you have bad credit is check your credit report. We recommend Checkmyfile for this. Once you have a credit report speak to your Bank or a specialist mortgage advisor to see what your options are.

Different lenders have different criteria, so a mortgage broker can help you find the right mortgage with a default.

Are some defaults more severe than others?

Yes, lenders will dislike a default on a mortgage or secured loan more than on a mobile phone contract. Credit cards and unsecured loans are in between. If your default is smaller they will also view this better than if it were larger. This is similar to CCJ’s

How long does a default stay on my credit file?

A default stays on your credit file for six years, and as it gets older lenders will take a better and better view on it. Despite what people tell you, you can usually get a mortgage with a default. Even a recent default may not stop you getting a mortgage. As long as it’s over 6 months old you have options. If it’s small or if it’s for a mobile phone or parking ticket some lenders might even ignore it completely.

How soon after a default can I get a mortgage?

Some lenders allow defaults as recently as six months ago. The longer ago you had the default the better your chances and the more lenders will consider you. If it is over 2 years old there are quite a few options available. Most lenders will want a default to be satisfied before you apply though, but not always.

Can I get a mortgage with a satisfied default?

Most lenders prefer to see your default is satisfied, and if it was registered over 6 months ago there may be lenders that will lend to you. If it’s unsatisfied there are still lenders available.However if your default is from years ago and it’s been satisfied there will likely be quite a few options available to you. If you have a bigger deposit this will help too.

How much can I borrow if I have defaults?

The defaults don’t generally affect how much you can borrow, mostly they limit which lenders you can use. So in this case, usually the same as someone with perfect credit for the most part. We could provide you with a Mortgage Calculator, however they are wildly inaccurate in general. So many things affect how much you can borrow, it’s much easier to have a 10 minute conversation with you, and then we can tell you exactly what you can borrow. It’s worth speaking to a specialist mortgage advisor to get exact numbers as it will depend on various parts of your situation.

How can my income affect getting a mortgage with a default?

Obviously the more you earn the more you can borrow. However unfortunately whether you earn £100,000 or £10,000 per year, a default would be regarded the same by most lenders.

Should I check my credit history before applying for a mortgage?

We believe that you should always check your credit history before applying for a mortgage. There may be things you weren’t expecting on there, and if you know what they are you may be able to correct them before application. Our preferred credit report website is Checkmyfile as they will tell you what is on your credit report for the three big credit reference agencies. Checkmyfile will show you Experian, Equifax and Clearscore.

Can I find a commercial mortgage lender if I have a default?

Much like a normal mortgage you have the potential to get a commercial mortgage with a default. Best to speak to a commercial mortgage broker to make sure you go to the right one.

Mortgage lenders who accept defaults

There are many lenders that accept defaults, and depending on how much it was, how long ago it was, and what it was for you can look at a few different lenders. A lot of these lenders may be on the high street, but depending on how recent and how much it was for you may have to use a specialist lender.

Can I Get A Shared Ownership Mortgage With A Default?

Getting a shared ownership mortgage will restrict which lenders you can use. When you couple this in with the fact that you have a default it may make it harder. If the default is older and satisfied you have a better chance. However if it is more recent you may struggle. A lot of the lenders that are happy with Bad Credit aren’t currently doing shared ownership mortgages. The first thing you should do is check your credit file. Once you have speak to your Bank or a specialist mortgage advisor. You may still be able to get a shared ownership mortgage but have to put in more deposit.

Can I Get A Joint Mortgage With A Default?

Yes! Lots of lenders are ok with a default. Even if you or your partner have a default you still have options available to you. Even the likes of Halifax and other High street lenders may consider you with a Default. It’s worth speaking to a specialist who will be able to tell you which ones.

If you can’t find the answer to your question, try our main bad credit article here. If you still can’t find it, get in touch!