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Getting a mortgage with a default

Defaults have a direct impact on your credit score, which in turn can make securing a mortgage much more difficult. Difficult but not impossible with the help of our mortgage experts.

Mortgage lenders can see the amount you owe and how long it took to pay off your debt. The level of impact defaults can have on your mortgage prospects depend on:

  • The type of payment you missed
  • The length of time you didn’t make the payment
  • The size of your deposit

However, our mortgage advisors can offer help and advice so that you can secure a mortgage that works for you. Start a conversation with us by phoning us on 0121 4000 052, requesting a callback or completing our online contact form.

Default mortgage FAQ

What is a default?

A default is a notice that is served if you miss a payment to a creditor. You have to miss between three and six payments or enter arrears by not making the full payment for a notice to be served. Default notices are only eligible if the Consumer Credit Act regulates the debt.

What happens if you receive a default notice?

Multiple actions can be demanded with the delivery of a default notice. These include:

  • Making the payment in full
  • Passing your debt onto a collection agency
  • Beginning court proceedings
  • Starting a process of repossessing assets associated with the agreement

All default notices must be responded to immediately.

How bad is a default?

Some lenders are unlikely to approve a mortgage application if defaults are involved; however, that does not make securing a mortgage impossible. Our specialists can help. While mortgage approvals with defaults are not as competitively priced, they are still available.

Can I get a mortgage with a default?

The mortgage process includes opening your bank statements to lenders so that they can gain an understanding of where your money is allocated. People with adverse credit, such as a default, will be considered a higher risk, which will reduce the amount that lenders are willing to offer. Our team can help you find a lender that is open to offering mortgages with a default.

How long does a default last?

Defaults have a place in your credit history, and will do for six years, but will count against you for a minimum of one year. Defaults are more serious than simple late payments when it comes to applying for a mortgage. The more recent the default notice, the more difficult it may be to obtain a mortgage. That is where our team can help.

How much can I borrow with a default?

The amount you will be able to borrow will vary from lender to lender. Lenders have their own method of calculating both risk and the amount they are willing to lend. The length and size of the default, as well as your income and outgoings, will be taken into account. Explain your situation to our team to gauge a more accurate idea of how much you may be able to borrow.

Do defaults vary in severity?

Yes, while some mortgage lenders are more relaxed than others, the type of payment you missed will impact the way a lender sees the level of risk. Our team can discuss the severity of your default and offer advice.

What happens to my mortgage prospects if my default is satisfied?

If you pay off your default, it will stay on your record, but it will increase your chances of gaining a mortgage. With that said, the timing of your default is more likely to have an impact.

Want to get started?

Choosing the right mortgage for you can be really tricky. At ams: our expert advisers guide you through the process. Simply, efficiently and professionally.

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As a guide, you could potentially borrow around:

The figure above is calculated based around current lender criteria and may not be representative of the actual figure you may be able to borrow.

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