Mortgage With Defaults
At JB Mortgages we offer the personal attention required to find a perfect fit at the lowest interest rates available for your circumstances.
- Access to competitive rates and some you can't get direct
- Specialist Mortgage Advisers
- You'll experience an unrivalled customer service
What's On This Page?
Get In Touch
Mortgage With Defaults
Sam Bull is here to explain how the mortgage process works if you have a default.
Can I get a mortgage with a default on my credit file? How does it work?
Yes, there are lots of mortgage lenders who are happy to lend to applicants with a default on their credit report. The very first step would be requesting a copy of your full credit report.
We can then see when the default was registered, how much it was for and if it is satisfied. Those are the main three things mortgage lenders will need to know when it comes to a default. We’ll also take note of any other issues on the credit report.
Does a default make getting a mortgage more difficult?
Most high street mortgage lenders will actually decline mortgage applications if there’s a default on the credit report. But if the applicant informs us up front and we’ve got all the information, plus a full copy of the credit report, it shouldn’t be any more difficult.
We’ll get all the details and then recommend a lender who’s happy with the default.
How long does a default stay on your credit file?
Your credit file is always a six year history, so a default will stay on there for six years.
How soon can I get a mortgage after a default?
Mortgage lenders have different eligibility criteria around when they can accept a default. It’s therefore best to send a copy of your credit report to a mortgage broker that deals with bad credit.
Some mortgage lenders can accept a default immediately, while others might want a three year waiting period. It all depends on the lender, but if we’ve got all the information up front, we’ll find a suitable one.
Can I get a mortgage with a satisfied default?
Yes, lots of mortgage lenders are happy to lend to applicants with a satisfied default. Lenders will usually request the date the default was satisfied. Again, having that copy of your credit report will give us all the information we need prior to the mortgage application.
Are some defaults worse than others when applying for a mortgage?
The main factors that lenders consider when assessing a default is, first of all, the amount and then the date it was registered.
Each lender has their own eligibility criteria on the maximum default amount and when it was registered. Even if it was a very large default that was registered relatively recently, once we have the details we should still be able to find a lender.
How much deposit do I need if I’ve got a default on my credit file?
Some lenders offer mortgages to applicants with a default on their credit file with as little as a 5% deposit. But depending on the size of the default and when it was registered, other lenders may require 10% to 15%.
Speak To an Expert
Everyone’s different. You might be self-employed. You might have some credit history issues – whatever your situation, we will find the most suitable product available to you from across the whole market.
How much can I borrow if I have defaults?
The amount you can borrow doesn’t really change if you have a default on your credit report. It will still be dependent on your income and your expenditure. It would be the standard lending multiple of up to six times your income.
Do only certain mortgage lenders accept defaults?
Yes, not all mortgage lenders are happy to lend to applicants who have defaults on their credit report. Those are usually high street lenders. It’s therefore important to give a copy of your credit report to your broker upfront, and we’ll recommend a suitable lender for your circumstances.
What types of mortgages are available for people with defaults. Any differences here?
No, there aren’t really any differences. The main types of mortgages are either residential or Buy to Let mortgages. Both of those are available to people with defaults on their credit reports.
How can I improve my chances of getting a mortgage with a default? Any top tips here?
You can improve your chances of getting a mortgage, even with a default on your credit report. First, satisfy any outstanding debt and then make sure you have good conduct on all your other accounts.
That means making sure all your minimum credit card payments are made on time, all your loans are paid on time, and you’re not going over credit limits or your agreed overdraft. Those are the main points to consider.
How can a mortgage broker help here? Is there anything else you’d like to add?
The theme in most of these questions has been to get that copy of your credit report to your broker straight away.
The default should really be the first thing you tell your broker – then there won’t be any issues going forward.
OUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
As Seen In . . .
