If you’ve received a default on your credit report, it means you’ve broken the terms of a credit agreement. This usually happens when payments are missed, and the lender takes formal action. Once a default is registered, it stays on your credit file and can significantly lower your credit score.
Even if you go on to repay the debt in full, known as “satisfying” the default, the record still remains. That said, there are ways to move forward, and depending on your circumstances, getting a mortgage could still be possible.
Can you still get a mortgage in Birmingham with a default?
Your credit history plays a key role in any mortgage application. It gives lenders a picture of how you’ve handled credit in the past, and defaults are something they’ll always take seriously.
Lenders want to be confident that you’ll manage your mortgage responsibly. If you’ve received a default recently, it may be harder to find a lender willing to offer you a mortgage straight away. That said, some lenders are more flexible than others, especially if the default happened a while ago or if there’s a strong reason behind it.
Every situation is different, and mortgage approval will depend on several factors, not just the presence of a default, but when it occurred, how it’s been handled since, and what your wider financial profile looks like.
How does a default affect your mortgage options?
Once a default is on your file, it can limit which lenders you’re able to access. Many high street banks won’t accept applications where a default is showing, which means you may need to look at more specialist options.
As a mortgage broker in Birmingham, we work with a wide range of specialist lenders. Depending on your situation and how serious the default is, we will check whether there are options available to you through a specialist lender.
In most cases, these types of mortgages start off with higher interest rates. Over time, once your credit profile has improved and your default is older or removed, there may be an opportunity to switch to a better rate through a remortgage in Birmingham.
Does the type of default matter?
Yes, in some cases. Lenders can usually see the type of account linked to the default, and some are more willing to consider less serious defaults, for example, from a mobile phone provider, over missed payments on loans or credit cards.
That said, many lenders treat all defaults in a similar way. From their perspective, it’s a sign that a previous credit agreement has broken down, which raises concerns about affordability and future repayments.
What if the default hasn’t been satisfied?
If the default hasn’t been repaid, your options may be even more limited. Lenders tend to prefer seeing that you’ve taken steps to settle the debt, even if the default is still visible on your file.
Interestingly, the date the default was registered can sometimes carry more weight than whether it’s been satisfied. A default from several years ago may be less of a concern than an unpaid one that appeared last month.
How long does a default stay on your credit file?
Defaults remain on your credit report for six years from the date they’re registered. Paying it off won’t remove it early, the record stays, but it will be marked as “satisfied”.
This doesn’t mean you have to wait six years to apply for a mortgage. Some lenders are happy to assess applications from people with older defaults, particularly if other areas of your finances are in good shape.
When can you apply for a mortgage after a default?
There’s no set timeframe, but the longer it’s been since the default occurred, the more options are likely to open up. Some lenders will consider applications after 12 months, while others prefer a longer gap.
If you’re not quite ready to apply, you should use the time to improve your credit score. Lenders look at trends as well as snapshots, showing improved financial behaviour can work in your favour later on.
Ways To Start Rebuilding Your Credit Score
Once a default appears on your credit file, your credit score is likely to drop and it may stay low for a while. You can help your score recover by keeping all other credit accounts in good standing and making payments on time.
A good starting point is to check that your address details are up to date across all credit and store accounts, and that you’re registered on the electoral roll. You might also want to use a credit card with a low limit, spending only on essentials and paying the balance off in full each month.
These changes won’t improve your score overnight, but they can make a difference over time, especially as the default gets older.
Speak With Our Mortgage Advisors Today
If you’re based in Birmingham and have a default on your credit file, our team is here to help you explore your options. We’ll take the time to understand your situation and connect you with lenders who are more open to applications like yours.
Getting specialist mortgage advice in Birmingham is essential when you are in a complex mortgage situation. You should be cautious when applying for a mortgage with a default, as a rejected application could cause further damage to your credit file.
We’re available seven days a week and ready to help you move forward, no matter where you’re starting from.
Date Last Edited: June 17, 2025
