Can I get a Mortgage with Defaults in 2022

This is an updated version of a previous post relevant for 2022. A lot has changed over the last year or 2 so I thought it was time we did an update.

Mortgage criteria and Defaults

When it comes to applying for a mortgage with defaults we have to look at a number of things. Firstly are we looking at high street lenders or specialist lenders?

Getting a high street Mortgage with defaults

If we are looking at high street lenders, we need to check what the lender will consider. Most lenders will say something along the lines of “No more than 2 defaults with a combined value of £500 in the last 6 years”. That does not mean if you have 2 defaults for for £100 each you will be accepted. It means if you have 3 defaults for £100 each, you will definitely not be accepted.

Lets assume your defaults are within criteria, we also need to consider the likely acceptance. If you have 2 defaults registered last month, you are less likely to be accepted than if they were 5 years old. As brokers that means we need to look at the overall picture of not just your adverse but your application as a whole. The adverse is a negative, are there enough positives to overcome that? We are looking at things like:

  • Is your deposit saved or gifted? Saved is better than gifted.
  • Are you earning the bare minimum to get the mortgage you want or is there excess income?
  • Do you have a 10% deposit or a 50%?

There is a lot that needs to be looked at, it is not an exact science but over the years we get an idea of what is likely to pass or not and this does change over time.

Specialist mortgage lenders with Defaults

This tends to be a little easier. Typically their criteria is black and white. They may say that they will accept 5 defaults in the last 3 years for example. That usually means if you have less than 5 defaults in the last 3 years it does not matter if they were 6 months ago or 35 months ago, it all fits.

Typically these lenders charge higher interest rates, are harder work and take longer to get a Mortgage offer. That means it is better all round if we can get you a normal mortgage but where that is not possible, these specialist lenders pay an important role.

Mortgages with Defaults Success stories

Default Success story – This one is from around 12 months ago. However, it happened whilst we were in the midst of covid beginning to peak again. The other positive with this case is that despite the Default and arrears we still managed to place it at normal rates.

Defaults & DMP Success story – This one is quite recent and involves multiple types of adverse.


The only way I can think to sum up Defaults is that the devil is in the detail. One or 2 small historic defaults are going to be far easier to overcome that 5 recent large defaults.

However there are lenders who will look at defaults ranging from the high street through to specialist lenders. Defaults do not necessarily mean higher rates and where possible we will always look to get you on the high street in the first instance.

It is always advisable to get a copy of your credit report upfront (not clear score) so that we can review what is on there, how it appears and then we can give you a more accurate idea of what your options are likely to look like. Something like CheckMyFile is ideal as it contains all 3 credit agencies or alternatively you can use the credit agencies directly – Equifax and Experian are the 2 main credit reference agencies.