Which Mortgage Lenders Accept Defaults?
Which mortgage lenders accept defaults? Specialist lenders including Pepper Money, Bluestone, Vida Homeloans, Aldermore and Kensington all place default cases regularly, and some mainstream lenders accept older satisfied defaults. Deposit requirements depend on the age and status of the default — a settled default over 24 months old may need only 5–10%, while a recent unsatisfied default typically requires 25–30%. Mobile phone and utility defaults under £500 are frequently disregarded entirely.
Deposit requirements by default age
| Default Registered | Settled | Unsettled |
|---|---|---|
| Under 12 months | 15%–25% | 25%–30% |
| 12–24 months | 10%–15% | 15%–20% |
| 24–36 months | 5%–10% | 10%–15% |
| 3–6 years | 5% | 5%–10% |
Which defaults do lenders ignore?
Communications and utility defaults under £500 are commonly disregarded by specialist lenders regardless of age — a small unpaid mobile phone bill is treated very differently to a defaulted credit card or loan. Payday loan defaults sit at the opposite end and are the hardest to place.
Does the default need to be satisfied?
It helps considerably but is not always required. Some specialist lenders will accept unsatisfied defaults, particularly where they are older and the total value is small. Settling before you apply widens the panel and improves the rate.
How many defaults can you have?
There is no fixed cap. Lenders assess the total value and how recent they are rather than the raw count. Three small satisfied defaults from four years ago is a stronger profile than one large unsatisfied default from last month.
A County Court Judgment does not have to stop you getting a mortgage. Darryl Dhoffer is the UK's award-winning CCJ mortgage specialist — he knows exactly which lenders will consider your situation and at what rates.
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