📋 Real Case Study · Names Changed · FCA No. 301173
Multiple Defaults Mortgage — Home Mover Approved With 4 Defaults
Four defaults totalling £6,800. Declined by three lenders. Mortgage offered within 4 weeks. Here's the full story.
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📋 The Situation
- Home mover, couple aged 38 and 41, both employed
- 4 defaults on credit file — 3 satisfied, 1 outstanding (£900 telecoms default)
- Total default value: £6,800 across telecoms, credit card and a utility provider
- Most recent default 18 months ago — oldest default 4 years ago
- Equity of £67,000 in existing property — new purchase £385,000
- Declined by Barclays, Santander and NatWest on automated scoring
⚠️ The Challenge
Four defaults on a credit file, including one outstanding default, is a significant adverse credit profile. Most mainstream lenders decline automatically at this level of adverse credit, regardless of the overall financial picture.
The outstanding telecoms default was the specific trigger for the automated declines — even though it was for only £900, its unsatisfied status was flagging in every automated credit score.
The couple had £67,000 of equity — a 17.4% deposit on the new property — which was a genuine strength, but mainstream lenders were not giving this factor appropriate weight in their automated scoring.
🔍 What Darryl Did
Darryl's first recommendation was to satisfy the outstanding £900 telecoms default immediately. This small action — paying £900 — would meaningfully improve the application profile for specialist lenders who weighted the satisfied vs unsatisfied status heavily.
Once the default was satisfied, Darryl identified a specialist lender whose criteria allowed up to 5 defaults in the last 3 years, provided none were on mortgage accounts and the total default value was under £10,000. This case met both criteria.
The application was manually underwritten with full context — the defaults were spread across a period of financial difficulty 2-4 years earlier, both applicants had stable employment with growing incomes, and the 17.4% deposit demonstrated genuine financial recovery.
🎉 The Outcome
✅Outstanding default satisfied before application — removed the key automated trigger
✅Mortgage offer received 4 weeks after initial contact with Darryl
✅£318,000 mortgage at 82.6% LTV — using the full £67,000 equity as deposit
✅5-year fixed rate — providing payment certainty while credit profile continues to improve
✅All 4 defaults accepted by the specialist lender without issue once presented in context
✅Family now in their new home — move completed within the agreed timescale
"Darryl told us to pay off the £900 default first and we thought he was mad — it's only £900, why would that matter? But it made all the difference. Four weeks later we had our mortgage offer."
M. & K.T. — Home Movers, Yorkshire
Multiple defaults mortgage case — 2025
⚠️ Important: This case study is based on a real client scenario. Names and identifying details have been changed to protect client confidentiality. All figures are accurate. Individual results will vary depending on personal circumstances, credit history, lender criteria and market conditions at the time of application. Nothing in this case study constitutes financial advice.
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🔒 FCA No. 301173
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The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Registered in England No. 04427489. Your home may be repossessed if you do not keep up repayments on a mortgage.
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