I have a default on my credit file; can I still get a mortgage?

Jodi Spreadbury, Senior Mortgage Adviser at The Mortgage Broker LTD, offers her advice on a number of common questions and situations her clients face.

A: This depends on the size of the default, whether or not it is satisfied and the date of the default. For example, a £200 default from 13 months ago which has now been satisfied would not be a problem for most lenders. In comparison a £1500 unsatisfied default from 6 months ago would be near impossible to find a willing mortgage lender.

Every lender has different criteria on how they deal with a default showing on your credit file. Some will look at the size of the default and the age of it, an example of this would be if it’s over 12 months old and under £200 then most lenders would be keen to lend. Other mortgage lenders will need the default to be satisfied regardless. Some lenders will even consider a much larger default running into thousands of pounds but in this scenario the lenders will want the default to be at least 12 or 24 months old. To add another layer of complexity ? confusion on these various  examples some lenders will lend if there is a good reason for the default and it wasn’t just a case of bad financial management.

In summary, there is potential to get a mortgage but we would need to know more about your personal circumstances. The best way forward in this scenario would be to provide your mortgage broker with a copy of your credit file and then a good mortgage broker will quickly match your file to the lenders criteria to see who would be willing to lend and provide quotes off the back of this.

Darren Pescod