Mortgage with a default
A default does not block a mortgage. Many specialist lenders accept defaults, judging them on how recent they are, the amount, the account type, and whether they are satisfied. Communications and utility defaults are treated more leniently than credit or mortgage defaults. Recency matters most: a default over three years old opens far more options, and all defaults drop off your credit file after six years.
Not all defaults are equal
Lenders rank defaults by seriousness. A defaulted mobile or utility account is minor to most; a defaulted loan or credit card carries more weight; a default on a previous mortgage is the most serious. The amount and the date matter too. A small, old, satisfied default from a phone contract is something many specialist lenders barely notice, while a recent large credit default needs a more carefully chosen lender.
How time improves things
- Within 12 months: specialist lenders, larger deposit, rate premium.
- One to three years: more lenders accept, premium narrows.
- Three years and beyond: many borrowers reach near-mainstream options.
- Six years: drops off your file and stops affecting applications.
Common questions
Can I get a mortgage with a default?
Yes, this is one of the more common adverse-credit cases and many specialist lenders accept it. The main factors are how recently the default was registered, the amount, and the type of account (a missed mobile bill is viewed differently from a defaulted loan).
Does the type of default matter?
Yes. Lenders tend to treat communications or utility defaults more leniently than defaults on credit such as loans, credit cards or, most seriously, a previous mortgage. A small telecoms default from years ago is a minor issue for many lenders.
Should I pay off the default?
Often it helps, as a satisfied default reads better than an unsatisfied one, though some lenders accept either. If the default is close to dropping off your file (near six years old), the benefit of settling it is smaller. A broker can advise on the order to do things.
How much does recency matter?
A lot. A default in the last 12 months narrows your options to specialist lenders at a premium; one three or more years old opens up far more choice. Defaults drop off the file after six years, after which they no longer affect applications.
Related: after missed payments and the adverse-credit hub.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 29 June 2026