Getting a mortgage with defaults or missed payments

Yes. Many lenders consider applicants with a default on their credit file, especially if it is small, settled and more than a year or two old. Recent, large or multiple defaults narrow the choice to specialist lenders. Each lender sets its own rules on the number, size, age and type of defaults it will accept.

A default is recorded when a lender closes an account after a run of missed payments, usually after several months of arrears. The default date, the amount and whether it has been settled are all shown on the credit file.

A default stays on a credit file for 6 years from the date it was recorded, whether or not it is paid off (MoneyHelper, accessed 20 Oct 2026). Missed and late payments also stay for 6 years (MoneyHelper, accessed 20 Oct 2026). After that they drop off the file automatically, and lenders no longer see them in the credit search.

Settling a default marks it as satisfied but does not remove it. Lenders still view a settled default more favourably, because it shows the debt was cleared.

A missed payment on a phone contract, card or loan reads differently from missed mortgage or secured loan payments. Lenders treat arrears on a home loan more seriously, because they relate to borrowing secured on a property. Many application forms ask specifically about missed mortgage payments in recent years, and the answer must match the file.

Repossession is the most serious entry of this kind, and many lenders have fixed rules on how long ago it must have happened. A history of arrears that were cleared and followed by on-time payments reads better than arrears that are still running.

How each credit reference agency records defaults and late payments, and how they affect a score, is explained in the credit scoring guide, which covers how lenders read a credit file.

Lenders check the date of each default, the amount, the type of account, whether it is settled and how many there are. A single small default on a mobile phone account reads very differently from several large defaults on loans and cards. The pattern since matters too, because on-time payments afterwards show the problem has passed.

Deposit and income are assessed as for any mortgage. A larger deposit opens up more lenders and better pricing, while affordability checks still apply in full.

Settling outstanding defaults, checking all three credit files for errors and adding a notice of correction where there is a genuine explanation are common first steps. Registering on the electoral roll, keeping current accounts up to date and avoiding new credit applications before a mortgage application also help.

Waiting until a default is older, or until it has dropped off the file, widens the choice of lenders. Brokers who arrange adverse credit cases can be compared on the adverse credit mortgage brokers page, by rating, reviews and region.