Defaults can be seen as red flags to mortgage lenders, warning them of your inability to repay your debts. If you have defaults on your credit file, you will no doubt be concerned that the options available to you are small. Whilst mortgage applications with defaults will need to be carefully considered, there are steps you can take to boost your chances of success. We're here to help!
Defaults or no defaults, the mortgage process doesn't have to be confusing or frightening. When the Bank Says No is a team of specialist bad credit mortgage advisors, ready to equip you with all the information, tools, and tips you need to achieve your home-owning ambitions.
What is a default?
A default occurs if you fail to meet the financial commitments of a loan for at least 3-6 consecutive months on an open credit account. In this scenario, a lender will class you as a debtor rather than a customer and may close your account with a negative balance. This incident will subsequently be recorded on your credit file and can have implications for future finance applications.
Can I get a mortgage with a default?
The short answer is yes; some mortgage lenders will still consider you for a mortgage even if you have defaults on your credit file, you just might have fewer deals available than someone who has a perfect score. Making sure you are transparent about any defaults is key, so be as upfront with your lender as possible.
To be clear, the bank may say no to applicants with defaults in their credit history. However, there are a number of specialist lenders out there who will consider applicants with less-than-perfect credit. The whole of market mortgage brokers, we can help you access mortgage lenders who regularly approve applicants with defaults on their file.
Maximise your chance of approval with specialist advice from an expert in default mortgages
How long will a default stay on my credit file?
A default will stay on your credit file for 6 years. At this time, any applications for finance will result in a lender viewing the file and seeing a record of your defaults and any other marks against you.
You can’t hide defaults, so it’s best to be as upfront about them as possible – honesty really is the best policy. Our specialist mortgage advisors can help you navigate the added complications that come with defaults and bad credit, and connect you to the right lender the first time around.
Does the type of default matter or affect my chances of getting a mortgage?
It depends. Some mortgage lenders will view defaults on things like parking ticket charges or mobile phone contracts as less serious than something such as a mortgage default. For some, a default of any kind can result in instant disqualification based on their specific lending criteria. That’s why it’s important you are applying to the right lender, as some specialise in providing finance for those seeking a mortgage with a default or adverse credit.
When you work with us, we’ll analyse your credit rating in great detail, and take care to connect you to the lender who is most likely to approve your application. We have even managed to attain mortgages for people with defaults on secured loan mortgages – typically seen as the most serious.
Mortgages with defaults FAQs.
Mortgage Default Calculator
Specialist mortgage advice for defaults on your credit file.
Consecutive missed payments eventually leading to a default aren't ideal, but nor are they the end of the world. We all want a perfect credit score, but sometimes life gets in the way and mistakes are made.
Whatever your personal circumstances, we'll take a good look at your credit report and provide tailored advice on your best next steps. As expert mortgage brokers, we'll locate specialist lenders within our network, dedicated to providing secured loans to those with poor credit.
Our comprehensive knowledge of the bad credit mortgages market means we can pinpoint the lender most likely to accept your case. You don't need to be intimidated by the complexity of the mortgage process; find your way to your dream home with us.
We're on your side.
Life can be complicated, and sometimes these complications get noted down in your credit report. If you've defaulted on previous loans, it's easy to panic and think there will be no options available to you.
When the Bank Says No is committed to helping those in more difficult situations navigate the tricky world of mortgage applications. Whatever the circumstances of your default, our friendly mortgage broker team are here to fight your corner and find a lender away from the regular high street lenders who specialises in cases like yours. With our help, mortgages don't have to be scary.