Defaults, late payments and refused mortgages

Some lenders accept applicants with defaults on the credit file. A default is recorded when an account is closed after missed payments, and it stays on the file for 6 years from the default date (credit reference agencies, accessed 20 Oct 2026). Lenders look at its age, amount, type and whether it is settled.

Recent or large defaults narrow the choice to lenders with specialist criteria. Older, small and settled defaults may be accepted by more lenders, particularly where the file shows on-time payments since.

A missed or late mortgage payment is reported to the credit reference agencies and stays on the file for 6 years (credit reference agencies, accessed 20 Oct 2026). One late payment some time ago is viewed differently from recent or repeated arrears. Lenders often ask whether there have been any missed mortgage or secured loan payments in recent years.

Missed payments on a mortgage tend to be treated more seriously than those on smaller accounts, because they relate to secured borrowing on a home.

Arrears are recorded each month the account is behind, so a long period of arrears creates a series of entries. Agreeing an arrangement with the lender to clear the arrears can be recorded as well. Once the account is back up to date, the file starts to show on-time payments again, which helps over time.

Arrears that led to repossession are among the most serious entries, and many lenders have specific rules for applicants with this history.

A mortgage can be refused because of something on the credit file, because of the lender's own scoring or because of affordability. Lenders do not have to give a detailed reason, but they can say whether a credit reference agency was used and which one. Checking that file is the first step after a decline.

Applying to several lenders straight after a refusal adds hard searches. Finding a lender whose criteria fit the file before applying again avoids this. The adverse credit mortgages section covers lenders and brokers that deal with these cases.

County court judgments, individual voluntary arrangements, debt management plans and bankruptcy also stay on the file for 6 years (credit reference agencies, accessed 20 Oct 2026). Each is treated differently by lenders. A satisfied judgment is usually viewed more favourably than an unsatisfied one, and discharge dates matter for insolvency.

Debt management plans and arrangements to pay are also visible, and lenders may ask about them separately on the application.