Mortgage With Defaults: What UK Lenders Accept and Ignore

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By Jake Stott, Knox Mortgages. Published 25 September 2026. Last reviewed 25 September 2026.

A mortgage with defaults is a residential mortgage approved for a borrower whose credit file shows one or more defaulted accounts, meaning credit agreements the lender formally closed after sustained missed payments. Yes, you can get one. Several lenders ignore small, old or telecoms defaults entirely, and others lend up to 95% of the property value depending on the default’s age, value and status.

What is a default on your credit file?

A default is a marker a lender adds to your credit file when it decides the credit agreement has broken down. Under the Information Commissioner’s Office principles for reporting arrears and defaults, an account should not normally be defaulted before you are three months behind, and it should normally be defaulted once you are six months behind.

Before that point, the missed payments show month by month as arrears. If you are still at that stage, our guide on a mortgage with missed payments covers it. Once the default is registered, the account closes and the default date is fixed.

A default is not a court order. That makes it less serious than a county court judgement (CCJ), and lender thresholds for defaults are usually more generous as a result.

How long do defaults stay on your credit file?

A default stays on your credit file for six years from the default date, then drops off automatically. That applies at Experian, Equifax and TransUnion, and it applies whether or not you have paid it.

Paying the debt does not remove the default or restart the clock. It changes the status to “satisfied” and adds a settlement date. The default still disappears six years after the original default date.

The nuance that catches people out is that some lenders judge the default by its settlement date, not its default date. A default registered four years ago but settled last month can look recent to those lenders. That matters when you decide whether to settle before applying, covered further down.

What do mortgage lenders look at when you have a default?

Lenders ask four questions, and the answers decide which lender and which loan-to-value (LTV) tier you can access.

How old is it? The bands that matter are 3, 6, 12, 24 and 36 months. Many mainstream lenders ignore defaults older than three years.
How much was it? Small defaults are often ignored. Published thresholds sit between £200 and £300.
Is it satisfied? A settled default reads as a problem dealt with. An unsatisfied one reads as a problem still live.
How many are there? One default is common. Four or more within three years narrows the field to specialist lenders.

The type of credit matters too. Mobile phone, utility and mail order defaults are treated more leniently than loan or credit card defaults. Payday loan defaults are treated worst, because they suggest short-term cash pressure. Lenders underwrite this detail, not your credit score, which is why the credit score you need is a less useful question than most people think.

Which mortgage lenders accept defaults?

Many lenders accept defaults, including building societies and specialist lenders, and some high street lenders accept older or smaller ones. The table below uses criteria three lenders publish on their own websites, checked on 25 September 2026. Criteria change often, so treat this as an illustration of how the market works, not a live quote.

Lender and product	Maximum LTV	Default rule
Mansfield BS, Standard Residential	95%	No credit defaults in the last 36 months
Mansfield BS, Versatility	85%	No credit defaults in the last 24 months
Mansfield BS, Versatility Plus	80%	No credit defaults in the last 24 months, with more room on telecoms and other defaults
Mansfield BS, Credit Repair	75%	Defaults over 3 months old, total value up to £2,500
Bluestone, Clear	85%	One satisfied default in the last 3 years
Bluestone, Deposit Unlock	95%	One satisfied default in the last 3 years, first-time buyers
Bluestone, general	Varies by product	Up to 4 defaults in the last 3 years

Which defaults do lenders ignore?

Many lenders ignore small, old or telecoms defaults completely, which means a default on your file does not always count against you. This is the single most useful fact on this page, and the one most borrowers never hear.

Lender	What it ignores
Bluestone	Defaults under £300, defaults over 3 years old, and all telecoms defaults
Mansfield BS	Credit defaults older than the product’s lookback (36 or 24 months), and non-credit defaults up to £250 combined
Pepper Money	Two utility, communications or mail order defaults of up to £200 each on most products; one on its Pepper 36 range

If your only default is a £180 phone bill from 2023, several lenders will treat you as if it is not there. That is why checking the detail before applying matters more than the headline “I have a default”.

How much deposit do you need for a mortgage with defaults?

You need a 5% deposit if your defaults are old, small or satisfied, and 15% to 25% if they are recent, large or unsatisfied. The published criteria above show the ladder clearly: 95% LTV with nothing in 36 months, 85% with one satisfied default, and 75% on a credit repair product.

A bigger deposit reduces the lender’s risk, so it widens your choice and improves the rate. For the full picture on deposit tiers, see how much deposit you need for a house.

Should you pay off a default before applying for a mortgage?

Usually yes, but time it. A satisfied default is viewed more favourably by most lenders, and some products, such as Bluestone’s 85% and 95% options, require the default to be satisfied. Settling it also removes a live debt from your affordability.

The risk is timing. Lenders that date the default from its settlement date will see a default settled last week as recent. If you are weeks away from applying, the right move depends on which lender fits the rest of your case. Settling first and then applying to the wrong lender can cost you an LTV tier.

Our view: settle the default, then get the case matched to a lender that dates from the default date. That is a criteria question, not a guessing game, and it is exactly what a whole-of-market adviser should check before anything is submitted.

Worked example: two defaults, 10% deposit

Consider a first-time buyer purchasing at £220,000 with a £22,000 deposit, so borrowing £198,000 at 90% LTV. Their file shows two defaults:

£240 mobile phone default, registered 30 months ago, unsatisfied
£1,100 credit card default, registered 20 months ago, satisfied 6 months ago

At Mansfield BS, the credit card default rules out Standard Residential (none allowed in 36 months) and both Versatility tiers (none in 24 months). That leaves Credit Repair at 75% LTV, well short of the 90% needed. At Bluestone, the phone default is ignored as telecoms, leaving one satisfied default inside three years, so the 95% Deposit Unlock product fits on criteria for a first-time buyer.

How do you check your defaults before applying?

Pull your report from all three credit reference agencies: Experian, Equifax and TransUnion. Lenders use different agencies, and a default can show at one and not another, or show a different date.

For each default, write down four things: the lender, the value, the default date and the settlement date if paid. If a default date looks wrong, for example later than when you actually stopped paying, raise it with the lender and the agency. A wrong date keeps the default on your file longer than it should be.

Then get a Decision in Principle on a soft search where possible, so a decline does not add a hard search to your record. Our guide on improving your credit profile for a mortgage covers the steps that help most.

Is a default worse than a CCJ?

No, a CCJ is generally worse. A CCJ is a court order and means the creditor took legal action, so lenders apply stricter rules and shorter acceptance windows to them. A default is the creditor’s own decision to close the account. Both stay on file for six years, and having both together narrows your options more than either alone. Defaults that sit inside a debt management plan or an IVA are assessed as part of that plan, not in isolation.

Frequently asked questions

Can I get a mortgage with a default?

Yes. Many lenders accept defaults, and several ignore small, old or telecoms defaults entirely. Your options depend on the default’s age, value, status and number. One satisfied default can still allow up to 95% LTV with the right lender for a first-time buyer.

How long after a default can I get a mortgage?

From three months after the default date with a specialist lender, usually at 75% LTV. After 24 months, more lenders open up at 80% to 85% LTV. After 36 months, many mainstream lenders ignore it and lend up to 95% LTV.

Can I get a mortgage with a default from 5 years ago?

Yes, and it should barely matter. Most mainstream lenders only look back three years for defaults. A five-year-old default drops off your file completely at the six-year mark.

Do satisfied defaults still affect a mortgage?

Yes, until they drop off after six years, but less than unsatisfied ones. A satisfied default shows the debt is resolved, and some products only accept defaults that are satisfied.

How many defaults is too many for a mortgage?

Four within three years is where most published criteria stop. Bluestone accepts up to four in three years. Beyond that, or with large recent values, you are limited to credit repair products or waiting for defaults to age.

Does a mobile phone default affect a mortgage?

Often not. Bluestone ignores all telecoms defaults, Pepper Money ignores small communications defaults up to £200 each, and Mansfield BS ignores non-credit defaults up to £250 combined.

Will a default stop me remortgaging?

No. You can usually take a product transfer with your current lender without a new credit check. Moving to a new lender is assessed like a purchase. See our remortgage page for how that works.

Is a broker worth it for a mortgage with defaults?

Yes. The difference between lenders is widest in adverse credit, and each decline adds a hard search. A whole-of-market broker checks your file against criteria before anything is submitted. See our bad credit mortgages service.

Related adverse credit guides

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