Can I get a Mortgage with a Default(s)

In short the answer is yes (subject to certain criteria). Mortgage lenders in today’s age understand the financial pressures and have relaxed their criteria in some form.

The best advice would be not to worry, speak to a mortgage broker who specialises in bad credit and I am confident a deal could be sought for you.

Check your credit file

Knowing your credit file is very important, particularly when applying for a mortgage with a default. This is particularly important to find out the exact date of the default, the default balance and when you satisfied the default (if applicable). Your mortgage adviser will then help you get the right deal based on your default history. You can get your free credit report on our website

Are some defaults more severe than others?

A default can happen with any creditor. This could be a mobile phone default, utility bill default or even mortgage default.
The severity of the default could determine the type of lender that a broker will choose. For example, a mortgage default in the last 6 months would cause serious concerns for a mortgage lender and multiple missed mortgage payments would probably mean a definte decline, however, a utility bill default for a small amount could be ignored completely.

How long do I need to wait to get a mortgage with a default?

Each default will stay on your credit file for 6 years but this doesn’t mean you need to wait 6 years to get a mortgage.
The longer the default has been on your credit report the less impact it is likely to have on obtaining a mortgage offer with a low interest rate. However, regardless of when the default was, a specialist mortgage brokers can source the market to help find the right bad credit mortgage for you!

Affordability with a default

You may think that because you missed a few payments and you were issued with a default, the mortgage lender will assess your affordability and decline an application based on you being unable to manage your finances. This is partially un-true, particularly if you have satisfied (paid off) your default.
Your assessment of affordability will be the same as someone with a clean credit file. The lender will look at all your income and outgoing and make a judgment based on your ability to repay your mortgage. The risk will be greater to the lender if you have a history of defaults but this will be reflected in the mortgage rate.

Mortgage Lenders that accept defaults

Many mortgage lenders now consider some defaults, including various high street lenders. The right mortgage lender and mortgage rate depends on your situation, so if you have a default your best bet is to speak to a mortgage adviser who specialises in mortgages with defaults.

Get in touch with our friendly and knowledgeable team for more information.