Small Default and a 5% Deposit

Mortgage With a Small Default and a 5% Deposit

Quick answer — Can I get a mortgage with a small default and a 5% deposit? It is possible in some cases but hard. A 5% deposit means a 95% loan to value, and most specialist lenders cap borrowing at a lower level when there is adverse credit. A small, old, settled default helps a lot, but if lenders will not go to 95%, options include a bigger deposit, a gifted deposit, a guarantor or shared ownership. Check criteria with a UK-wide specialist broker before you apply.

Updated 6 November 2026

Your Circumstances at a Glance

Why a 5% Deposit With a Default Is Harder

Lenders price risk on both your credit history and the size of the loan compared with the property. A default together with a 95% loan to value is a combination fewer lenders accept. For example, TMG's notes on Pepper Money list 80% loan to value, so many specialist lenders sit well below 95%. Criteria differ and change, so a broker should check current lender policy. See lenders that accept defaults.

What Makes a Small Default Easier to Place

• The default is small, ideally under £500, and settled.
• It is more than a year or two old, with clean credit since.
• You have a stable income and affordability is comfortable.
• You have no other defaults, CCJs or recent missed payments.

See how long defaults affect a mortgage and how long after a default you can get a mortgage.

Options If 5% Is Not Enough

• Save a bit more: moving from 5% to 10% opens more lenders. See 10% deposit mortgages with adverse credit.
• Gifted deposit: a family gift can lift your deposit. Lenders will want to see a gifted deposit letter.
• Guarantor: see a guarantor mortgage with bad credit.
• Shared ownership: a smaller deposit on a share of the home. See shared ownership with bad credit.

What to Ask Any Broker

• Are you FCA authorised? Check the FCA Register.
• Which lenders suit my situation, and why?
• What is your fee, and when is it payable? Is anything charged upfront?
• Will you check criteria before any credit search?
• Can I see reviews from clients with similar circumstances?

The Mortgage Geezer (Darryl Dhoffer, CeMAP and CeRER, FCA No. 301173) works UK-wide. There are no upfront fees: the only fee is £750 to £995, payable once your mortgage is agreed and offered. The initial assessment is free with no credit search. See who we are, 53 Google reviews rated 5.0, mortgages with defaults, first-time buyer with defaults.