If a lender has already told you no because of a default, that is one lender’s policy, not the market’s. I compare mortgages across 120+ lenders including specialists who assess defaults on their date, size and status, and I will tell you honestly whether your file is placeable now or what needs to happen first.
HTG Mortgages
Mortgage With Defaults | Six Months Cleared Is the Starting Line
Last Updated: September 2026
Featured in The Telegraph • Daily Mail • The Times • Sky News
A default on your credit file does not rule out a mortgage. What decides it is when the default was registered, how much it was for, whether it has been settled, and what the rest of your file looks like. As a rule of thumb from my own cases, a default cleared at least six months ago, or a small one, gets you to the starting line with specialist lenders. One cleared six years ago barely registers with most of the high street.
A default stays on your file for six years from the date it was registered, paid or not
Settled defaults over six months old, or low value ones, are where specialist lenders start to say yes
The older and the smaller the default, the closer you get to mainstream lenders and normal rates
As featured in…
Meet your Advisor
Harry Goodliffe
- FCA Authorised
- Director & Mortgage Advisor
“I‘m not about confusing jargon or passing you from person to person. From our first chat to the day you get the keys, you’ll deal directly with me. I‘ll keep you updated, answer any burning questions, and do everything I can to make the whole process as stress-free as possible.”
Let’s Talk About Your Mortgage
The mortgage process with a default on your file
1
Step 1
First Chat
Send me a copy of your credit report from all three agencies, so I see exactly what a lender will see, including the default date, amount and whether it shows as satisfied.
2
Step 2
Research
I match your file against lender criteria, because each lender sets its own rules on how old and how large a default can be before it is a decline.
3
Step 3
Application
Once you have chosen a lender, I handle the application and present the default properly, with the explanation and the evidence the underwriter wants.
4
Step 4
Completion
After the offer I stay on it through to completion, and I will work around whatever fits your circumstances, not just office hours.
About
Our approach.
Why choose HTG Mortgages?
The mistake I see most is applying to a high street bank first, getting declined, then applying somewhere else. Each application leaves a footprint, and a string of them makes a placeable case harder. Check the criteria before you apply, not after.
Date, amount, status.
Lenders look at three things on a default: when it was registered, how much it was for, and whether it has been satisfied. A settled default from four years ago for a mobile phone bill is a very different case from an unsettled one from last year for a loan.
Six months cleared is the minimum.
In my experience the specialist end of the market wants a default either settled at least six months ago or small enough to be treated as minor. Six years cleared, so it has dropped off your file, is the point where most lenders stop asking.
Deposit does some of the work.
A bigger deposit widens your choice with adverse credit. Lenders that will take a recent default often want more equity in the deal than a clean case, and the rate reflects the risk. As the default ages, that gap closes.
Your credit report first, not a lender.
Get your report from all three agencies before anyone runs a search. Defaults sometimes show on one file and not another, and a mis-recorded default can be disputed and removed. I read the reports with you before we go anywhere near an application.
How lenders assess a default
A default is registered when you have missed payments, usually for three to six months, and the lender has sent a default notice. It then sits on your credit file for six years from the default date, whether or not you later pay it. Paying it marks it as satisfied, which most lenders view more favourably, but does not remove it. Every lender then applies its own criteria. Mainstream lenders often accept older, smaller, satisfied defaults and decline recent or unsatisfied ones. Specialist lenders assess defaults by age bands, so a default registered more than 12, 24 or 36 months ago moves you into progressively better tiers, and many treat low value defaults for things like utility or telecoms accounts differently from missed loan payments. The rest of your file matters as much as the default itself: recent missed payments elsewhere, a high use of available credit or several recent applications all weigh against you. If the default was registered in error, or the account was in dispute, you can challenge it with the credit reference agency and the original lender. My guide to how your credit score affects a mortgage covers the wider picture.
What you can do before you apply
Get your reports from Experian, Equifax and TransUnion, because lenders use different agencies and a default can appear on one and not another. Settle anything you can, and ask for written confirmation that it is marked satisfied. Register on the electoral roll at your current address, keep every payment on time from now on, and do not apply for new credit in the months before the mortgage. If the default is one of several issues, see my bad credit mortgages page, and if there is a CCJ alongside it, my mortgage with a CCJ page explains how lenders treat the two together. Whether you should apply now or wait for a default to age is a case by case judgement based on your whole file and your deposit, and working that out is what an advice appointment is for.
Why use HTG’s mortgage services?
Available 24/7, so we are always there to help when you need us
We are an independently owned, whole-of-market mortgage broker offering first-charge mortgages
We provide unrivalled customer service, ensuring that you get the care you deserve
Let’s get your mortgage sorted
Written by Harry Goodliffe
Director & Mortgage Adviser, HTG Mortgages · FCA Authorised (1017945)
CeMAP Qualified · Featured in National Press · South England Prestige Awards 2026/27 winner