Should I pay off defaults before applying for a mortgage?

Satisfying defaults is generally advisable as it improves your options. However, recently satisfied defaults don't have an immediate benefit over older unsatisfied ones. Speak to a broker before paying off old defaults to understand the impact.

How long do defaults stay on my credit file UK?

Defaults remain on your credit file for 6 years from the date they were registered, regardless of whether you pay them off. After 6 years, they're automatically removed. Satisfying them shows they're paid but doesn't remove them sooner.

Can I get a mortgage with a satisfied default?

Yes, satisfied defaults are viewed more favourably than unsatisfied ones. Many mainstream lenders accept applications with satisfied defaults over 3 years old. Specialist lenders consider more recent satisfied defaults.

What deposit do I need for a mortgage with defaults?

With defaults, expect to need 10-15% deposit for older satisfied defaults, or 15-25% for more recent or unsatisfied defaults. The exact requirement depends on the total value, age, and type of defaults on your file.

Quick Answer

Can I Get a Mortgage with Defaults on My Credit File?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Yes, you can get a mortgage with defaults, though your options depend on the number, value, and age of the defaults.

Many lenders, especially specialist adverse credit lenders, will consider applications from borrowers with defaults. Key factors include whether defaults are satisfied, how old they are, and the total value. Satisfied defaults over 2-3 years old have minimal impact, while multiple recent unsatisfied defaults will require specialist lending.

Your home may be repossessed if you do not keep up repayments on your mortgage. Your Home Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA 989177).

Key Points

1Satisfied defaults are viewed more favourably than unsatisfied
2Defaults over 3 years old have significantly less impact
3Small defaults under £200 may be ignored by some lenders
4The type of default matters (utility vs credit card vs mortgage)
5A mortgage default is more serious than other types
6Total value of defaults across all accounts is considered

Eligibility Criteria

Preferably satisfied defaults (paid in full)
Defaults ideally over 12 months old
Total default value typically under £5,000 for best rates
No ongoing missed payments on current credit
Minimum 10-15% deposit (more for recent/large defaults)
Stable income and employment

Typical Timeframe

Defaults remain on your credit file for 6 years from the date they were registered. Once satisfied, they show as 'satisfied' but don't disappear. After 6 years, they're removed automatically regardless of whether they were paid.

Next Steps

1Check your credit file to confirm all defaults and their status
2Consider satisfying any outstanding defaults if affordable
3Avoid any new missed payments or credit problems
4Gather evidence of current financial stability
5Speak to a specialist mortgage broker for tailored advice

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Can I Get a Mortgage with Defaults on My Credit File?

Key Points

Eligibility Criteria

Typical Timeframe

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