In this guide
Can you get a mortgage with defaults?
Yes. Having defaults on your credit file does not automatically prevent you from getting a mortgage. At least 10 UK lenders — including specialist adverse credit lenders and some near-prime options — will consider applicants with defaults.
How a default is assessed varies significantly between lenders. Some focus primarily on the age of the default, while others care more about whether it has been satisfied, its value, and the type of account it relates to. Notably, many lenders treat telecoms and utility defaults far more leniently than credit account defaults — Hodge and Bluestone ignore them entirely.
The key is understanding which lenders match your specific default profile. A single satisfied utility default from two years ago is treated very differently to multiple unsatisfied credit card defaults from six months ago.
Which lenders accept defaults — full comparison
The table below shows real published criteria from 10 lenders and product tiers that accept applicants with defaults. Criteria can change — always verify with the lender or a broker before applying.
| Lender | Accepts Defaults? | Max Age | Max Value | Must Be Satisfied? | Notes |
|---|---|---|---|---|---|
| Accord | Limited | 24+ months | Varies | Yes | Max 1 secured or 2 unsecured missed in 24 months |
| Atom Bank (Prime) | No | N/A | N/A | N/A | Any in last 12 months = decline |
| Atom Bank (Near Prime) | Yes | 12+ months | Varies | No | More flexible than Prime tier |
| Bluestone | Yes | 6+ months | Varies by tier | No | Under £500 or older than 36 months ignored; telecoms/utilities ignored |
| Generation Home | Limited | Any | £300 unsecured, £500 comms | Yes | Combined max £800 in last 3 years |
| Hodge | Yes | Any | £500 sat / £250 unsat | No | Comms/utilities not considered |
| Kensington (Select) | Yes | 36+ months | Varies | No | Prime tier |
| Kensington (Core) | Yes | 24+ months | Varies | No | More flexible |
| Precise | Yes | Any | Any | No | Tier-based assessment |
| Together | Yes | Any | Case-by-case | No | Manual underwriting |
Criteria sourced from published lender documentation. Last reviewed April 2026. Always confirm directly before applying.
How lenders assess defaults
Lenders evaluate defaults across several dimensions. Understanding these factors helps you identify which lenders are most likely to accept your application.
Age of the default
The older the default, the better your options. Bluestone will consider defaults from just 6 months ago, while Kensington Select requires 36 months. After 6 years, a default drops off your credit file completely, at which point mainstream lenders will no longer see it. Atom Bank Prime declines any application with a default in the last 12 months, but their Near Prime tier opens up after that point.
Satisfied vs unsatisfied
A satisfied (paid) default is viewed much more favourably. Accord and Generation Home require defaults to be satisfied. Hodge draws a clear distinction — allowing satisfied defaults up to £500 but limiting unsatisfied ones to £250. If you can afford to satisfy your defaults before applying, it significantly widens your options.
Value of the default
Lower-value defaults are easier to work around. Generation Home caps unsecured defaults at £300 (with a separate £500 allowance for communications defaults). Hodge allows up to £500 satisfied or £250 unsatisfied. Precise and Together have no stated maximum, assessing each case individually.
Secured vs unsecured defaults
Secured defaults (on a mortgage or secured loan) are treated far more seriously than unsecured defaults (credit cards, personal loans). Accord limits secured defaults to a maximum of 1 missed payment in 24 months. Most specialist lenders assess secured defaults much more cautiously, often requiring them to be older and satisfied.
Telecoms and utility defaults
This is an important distinction that many applicants overlook. Hodge does not consider communications or utility defaults at all. Bluestone ignores telecoms and utility defaults entirely. Generation Home has a separate, more generous allowance for communications defaults (£500 vs £300 for other unsecured). If your defaults are exclusively on utility or phone accounts, your options are considerably wider than you might think.
Deposit requirements by scenario
The deposit you need depends on the severity and type of your defaults. Here is a realistic guide:
| Scenario | Typical Deposit Required |
|---|---|
| Utility/telecoms defaults only, satisfied | 5% — 10% |
| Small satisfied default (under £500), 2+ years old | 5% — 15% |
| Satisfied defaults (£500–£1,000), 12+ months | 10% — 15% |
| Unsatisfied defaults or multiple defaults | 15% — 25% |
| Defaults combined with CCJs or other adverse credit | 20% — 30% |
Interest rate expectations
Mortgage rates for applicants with defaults are higher than mainstream rates, but the premium depends heavily on the type and severity of your defaults.
As a general guide in April 2026, expect the following indicative ranges:
- Utility/telecoms defaults only (ignored by lender): Mainstream rates or very close. If the lender does not count your defaults, you may access near-prime rates from Atom Bank or Kensington Select.
- Small satisfied defaults, 2+ years old: 1% — 2% above high-street rates. Kensington Core and Bluestone typically sit in this range.
- Multiple or unsatisfied defaults: 2% — 4% above high-street rates. Precise, Together, and Bluestone's higher tiers offer products here.
- Defaults combined with other adverse credit: 3% — 5% above high-street rates, depending on the full picture.
The good news is that you can remortgage to a better rate once your defaults age or drop off your credit file. Many borrowers start with a specialist lender and move to a mainstream product within 2 to 3 years.
Default mortgage affordability example
Consider a single applicant earning £40,000 per year with two satisfied defaults totalling £1,200 (one credit card, one mobile phone contract), both registered 20 months ago, looking to buy with a 10% deposit on a 25-year repayment term:
| Lender | Approx. Max Borrowing | Indicative Rate | Notes |
|---|---|---|---|
| Bluestone | £170,000 | 5.4% | Phone default ignored; credit card default assessed |
| Kensington (Core) | £175,000 | 5.1% | Both defaults considered but within criteria |
| Precise | £172,000 | 5.6% | Tier 2 assessment based on default profile |
| Hodge | £160,000 | 5.3% | Phone default ignored; credit card default within £500 limit |
| Together | £155,000 | 6.0% | Manual underwriting, case-by-case |
Illustrative only. Actual offers depend on full underwriting assessment. Rates as of April 2026.
In this example, the applicant could borrow between £155,000 and £175,000 depending on the lender. With a 10% deposit, that translates to a property value of roughly £172,000 to £194,000. Notice how the phone default being ignored by some lenders improves the outcome.
Check your default mortgage affordability
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Start Your CheckSteps to getting a mortgage with defaults
- Check your credit file thoroughly. Get your full credit report from Experian, Equifax, and TransUnion. Confirm the exact date, value, type, and status (satisfied or unsatisfied) of each default. Check whether they are on credit accounts, utilities, or telecoms — this distinction matters. Errors on credit files are common, so dispute anything that is incorrect.
- Satisfy your defaults if possible. Paying off unsatisfied defaults significantly widens your lender options. Contact the original creditor to arrange payment and obtain written confirmation that the default is now satisfied. This is marked on your credit file and lenders will see it.
- Identify which defaults lenders will ignore. If you have utility or telecoms defaults, note that several lenders disregard them entirely. This can dramatically change your options — you may qualify for near-prime rather than specialist products.
- Save the largest deposit you can. A bigger deposit opens more lender doors and reduces rates. For applicants with defaults, moving from 10% to 15% deposit can shift you from a specialist to a near-prime product tier.
- Check your affordability across multiple lenders. Different lenders have very different criteria and affordability calculations. A lender that declines one applicant may approve another with similar defaults but different income. Our calculator checks 60+ lenders simultaneously.
- Speak to a specialist broker. A broker experienced in adverse credit mortgages can access products not available directly to the public. They will know which lenders are most likely to approve your specific default profile and can present your case in the best possible way.
- Prepare your documentation. Have proof of defaults being satisfied (if applicable), a clear explanation of the circumstances that led to each default, bank statements showing responsible financial management since the defaults, and all standard mortgage documents (payslips, ID, address proof).
