Mortgages with defaults (first-time buyers)

Can you get a mortgage with a default?

For many first-time buyers, a default on their credit file can feel like an automatic barrier. In practice, it doesn’t always mean you can’t get a mortgage. What matters is how the default is recorded, how long ago it happened, and how your overall application looks to a lender.

Mortgage lenders assess risk using a range of information, including your income and employment, your spending and existing debts, your address history, and—crucially—your affordability and deposit.

How lenders typically look at defaults

A default is one type of credit issue, and lenders will treat it differently depending on the details. While each lender has its own approach, the following factors commonly influence decisions.

1) When the default was registered

Time is often a key factor. Defaults that are older are usually viewed more favourably than recent ones, because they suggest a longer period of improved credit behaviour.

2) Whether the default is satisfied

A default that has been paid (or otherwise settled) can be easier for lenders to assess than an unsatisfied default. That said, some lenders may still consider applications with an unsatisfied default, but the overall risk profile may lead to stricter requirements.

3) How many defaults there are

Multiple defaults can indicate a pattern of missed payments across different accounts. Even if the total amount is similar, lenders may view several defaults as higher risk than a single default.

4) The value of the default(s)

The amount involved can affect how serious the lender considers the credit issue to be. A smaller default is generally easier to explain and may carry less impact than a larger one.

5) Secured or unsecured credit

A default linked to unsecured borrowing (such as credit cards or personal loans) is usually assessed differently from issues involving secured lending. The nature of the debt can influence how lenders interpret the circumstances.

6) The reason behind the default

Lenders often want to understand the context. A default caused by a temporary difficulty (for example, a short-term change in circumstances) may be treated differently from a situation that suggests ongoing financial stress.

What this can mean for first-time buyers

If you have a default, the most common practical outcome is that your mortgage options may be narrower. Lenders may require:

• a stronger deposit position to reduce overall risk
• a stronger affordability position (clearer income and manageable monthly outgoings)
• more detailed documentation to support your application

It’s also common for lenders to be more cautious when the default is recent, unsatisfied, or there are multiple defaults.

Deposit and affordability: the two levers you can often control

While you can’t change when a default happened, you can often improve how your application is presented.

Deposit

A higher deposit can help offset the lender’s concern about credit history. It may also improve the range of products you can access.

Affordability

Lenders will look closely at your monthly commitments. That includes current debts, credit commitments, and any regular expenses that affect how much you can comfortably repay.

If your income is variable, or your outgoings are tight, it can make the overall decision harder. Being able to demonstrate stable income and realistic budgeting can be important.

Credit file timing: what happens after a default ages

Defaults don’t stay on credit files forever. As time passes, the information may become less prominent, and your credit profile can improve.

However, it’s important not to assume that “older” automatically means “no impact”. Lenders may still consider the history, especially if there are other credit issues or if the default is relatively recent.

Preparing your application to reduce friction

When a default is part of your credit history, the way you prepare can make a difference.

Consider focusing on:

• Accuracy: ensure your credit file information is correct where possible
• Consistency: match details across your application and supporting documents
• Clarity: be ready to explain the circumstances around the default
• Stability: avoid taking on new credit commitments close to applying

Mortgage types and default scenarios

Not every mortgage product is assessed in the same way. Some lenders may be more willing to consider first-time buyers with defaults than others, and the decision can also depend on the property type and how the mortgage is structured.

This is one reason why it can help to explore options rather than assuming there’s only one outcome.

Important considerations

• A default doesn’t automatically rule you out, but it can affect which lenders and products are available.
• Affordability and deposit strength are likely to be key factors in any decision.
• Multiple or recent defaults typically make approval more challenging.

Property and repayment risk

Taking on a mortgage is a long-term commitment. Your home may be repossessed if you do not keep up with repayments on your mortgage.

Related guides

If you’re exploring other credit-related options as a first-time buyer, you may also find it useful to look at guidance on bad credit history, CCJs, and other credit issues within the first-time buyer guides section.