How Long After a Default Can You Get a Mortgage (Typical UK Timelines)

A default on a UK credit file does not permanently prevent someone from obtaining a mortgage. There is no law or regulation that prohibits mortgage lending to a person with a default. However, a default does affect which lenders may consider an application, what terms may be available, and how long it takes before the full lending market becomes accessible again.

This article explains how defaults interact with the UK mortgage process, what the key timelines are, and how the system works in practice. It covers only verified rules, regulatory frameworks, and published lender criteria.

A default stays on a UK credit file for six years from the date it was registered, regardless of whether the underlying debt has been paid. There is no legal rule preventing a mortgage application while a default is visible. Some specialist lenders may consider applications even with recent defaults, while many mainstream lenders require defaults to be older or settled before they will assess an application. Once the six-year period expires, the default is automatically removed from the credit file with no action required from the individual.

The UK credit file system is maintained by three major credit reference agencies: Experian, Equifax, and TransUnion. When a borrower falls behind on payments, the creditor may eventually register a default with one or more of these agencies. That default then becomes visible to any lender who checks the individual's credit file.

The retention period for defaults is six years from the date the default was recorded. This timeline is set by industry agreement with the Information Commissioner's Office (ICO) and applies equally across all three agencies. The six-year period runs from the original default date and is not reset or extended by any subsequent event, including payment of the debt, sale of the debt to a collection agency, or any other change in the account's status.

Mortgage lenders are regulated by the Financial Conduct Authority (FCA) under the Mortgage Conduct of Business (MCOB) rules. MCOB requires lenders to carry out affordability assessments based on income, expenditure, and credit history, but it does not prescribe specific exclusion periods for defaults. The FCA's regulatory focus is on ensuring that lending is affordable and that customers are treated fairly. This means that whether a lender will consider an application with a default on file is a matter of that lender's own risk appetite and internal criteria, not a regulatory prohibition.

The mortgage lending market therefore operates on a spectrum. At one end, specialist adverse credit lenders may consider applications where defaults are relatively recent. At the other end, many high street and mainstream lenders are reluctant to consider applications where defaults are recent or remain unsatisfied. The passage of time, the settlement status of the default, and the nature and size of the original debt all play a role in which part of the market may be accessible.

The process from missed payments to default registration, and from default to its eventual removal, follows a broadly predictable sequence, though individual circumstances and lender practices introduce variation.

From missed payments to default registration

According to industry guidelines set out in the SCOR Principles (the industry standard recognised by the ICO), a default may be registered when an account is three months in arrears and is normally registered by the time an account reaches six months in arrears. However, this is guidance rather than a rigid rule, and lenders have discretion on the exact timing. Mortgages and other secured loans are a noted exception where lenders have more discretion on timing. Before registering a default with a credit reference agency, the SCOR Principles state that the lender should notify the consumer of its intention to do so at least 28 days beforehand. This 28-day notice period is an industry guideline rather than a statutory requirement.

The default notice itself

For regulated consumer credit agreements, the Consumer Credit Act 1974 requires that a default notice give the borrower at least 14 days to remedy the breach before the creditor can take further action. This is a statutory minimum set out in Section 88(2) of the Act. If the borrower remedies the breach within this 14-day window, the default is treated as not having occurred under Section 89 of the Act.

The six-year retention period

Once a default is registered, it remains visible on the credit file for six years from the date of default. This applies whether the debt is paid in full, partially settled, or remains entirely outstanding. After six years, the default is automatically removed by the credit reference agencies. Once removed, the lender cannot re-register it, even if the underlying debt has never been paid. This six-year period is confirmed by the ICO and by all three major UK credit reference agencies.

Satisfied versus unsatisfied defaults

Both satisfied (paid) and unsatisfied (unpaid) defaults remain on the credit file for the same six-year period. However, in most cases, lenders view satisfied defaults more favourably than unsatisfied ones. Some lenders' published criteria specify that they will only consider applications where defaults have been satisfied. For example, published criteria from Newcastle Building Society indicate that any type of unsatisfied default is declined irrespective of amount. Published criteria from Leeds Building Society indicate that defaults within the last three years must be satisfied and no greater than £500 in value.

Default amount thresholds

The size of the default matters to lenders, though the thresholds vary. Published criteria from several lenders illustrate the range: Newcastle Building Society may accept up to two satisfied defaults or CCJs below £250 from utility or communication companies within the last three years. Bath Building Society may disregard mobile phone and utility arrears up to £250 at certain loan-to-value ratios, or up to £500 at lower loan-to-value ratios. Pepper Money may disregard up to two defaults for mail order, mobile, or utility accounts below £200. These are lender-specific policies and are subject to change.

The three-year mark

While there is no statutory or regulatory significance to the three-year point, it is a common threshold in published lender criteria. In most cases, specialist lenders are more willing to consider applications where satisfied defaults are over three years old. Published criteria from one specialist lender state that defaults registered over three years ago can potentially be disregarded. Another lender's published criteria indicate that communication defaults and defaults below £300 may be disregarded regardless of age.

The six-year mark and full removal

Once six years have passed from the default date, the default is automatically removed from the credit file. After removal, the individual regains access to the standard (non-specialist) mortgage market, subject to all other normal criteria being met.

Paying the debt does not remove the default early

A common misunderstanding is that settling the outstanding debt will cause the default to be removed from the credit file. It does not. Paying the debt changes the default's status from "unsatisfied" to "satisfied," which is generally viewed more favourably by lenders, but the default itself remains visible for the full six-year period from its original registration date.

The six-year clock starts from the default date, not the payment date

The removal date is calculated from when the default was originally registered, not from when it was paid or settled. If a default was registered in January 2020, it will be removed in January 2026 regardless of when or whether the debt was paid.

There is no legal bar on applying for a mortgage with a default

No FCA rule or UK legislation prohibits a person with a default from applying for a mortgage. The MCOB rules require lenders to assess affordability and treat customers fairly, but they leave the treatment of adverse credit to individual lender discretion.

Debt sold to a collection agency should not restart the clock

When a debt is sold to a new creditor, the SCOR Principles state that the original default date should be preserved. The debt should not appear as two separate defaults on the credit file. Only the original default date matters for calculating when the default will be removed.

Default notices and defaults are different things

A default notice is the formal warning issued by a creditor under the Consumer Credit Act 1974. Receiving a default notice does not automatically mean a default will be registered on the credit file. The notice gives the borrower 14 days to remedy the breach. If the breach is remedied within that period, the default is treated as not having occurred.

Defaults on secured versus unsecured debts

In most cases, mortgage lenders view defaults on secured debts (such as mortgages or car finance) more severely than defaults on unsecured debts. Mobile phone and utility defaults are typically viewed most leniently. This is a general market tendency rather than a statutory or regulatory requirement, and individual lender policies vary.

County Court Judgments follow different removal rules

A CCJ (or, in Scotland, a decree) also remains on the credit file for six years. However, unlike defaults, a CCJ that is paid within one calendar month of issue is removed from the register and the credit file entirely. After one month, even a paid CCJ remains for the full six years, marked as "satisfied." This one-month rule does not apply to defaults, which cannot be removed by payment once registered.

Scotland has different court processes but the same retention period

In Scotland, court judgments are called decrees and are issued by sheriff courts rather than county courts. The same six-year retention period applies, and the same one-month payment rule for removal of court judgments applies.

IVAs and bankruptcies may remain longer than six years

Individual Voluntary Arrangements (IVAs) and bankruptcies can remain on a credit file beyond the standard six-year period if the insolvency is not discharged or completed within that timeframe. According to published guidance, an IVA can stay on a credit report for up to 15 years if its criteria are not met. Bankruptcy Restriction Orders or Undertakings can also remain for up to 15 years. The standard six-year rule applies only if the insolvency is discharged or completed within that period.

Mortgages and secured loans — different default timing

The general industry guideline of defaults being registered after three to six months of arrears applies primarily to unsecured consumer credit. For mortgages and other secured loans, lenders have more discretion on the timing of default registration.

The timeline from default registration to full access to the standard mortgage market spans six years, but the picture is not simply a matter of waiting for the default to drop off the credit file.

In the period immediately following a default, the available lending market is narrowest. Some specialist lenders may consider applications even at this stage, though published criteria from these lenders typically require certain conditions to be met. For example, one specialist lender's published criteria state that defaults registered more than three months ago and less than 12 months ago may be considered up to a value of £1,000. Another specialist lender's published criteria indicate that applications with up to four registered defaults in the last three years may be considered, provided none were registered in the previous six months. Where applications are considered with recent defaults, deposit requirements are typically higher than for standard mortgage products.

As defaults age, more of the lending market may become accessible. Published criteria from several lenders suggest that the three-year mark is a common point at which defaults begin to be treated more leniently, particularly where they have been satisfied and are below certain value thresholds. However, this is lender-specific criteria and not a regulatory or statutory threshold.

The type and size of the default also matters. Small defaults related to mobile phone or utility accounts are typically treated more leniently than larger defaults or defaults on financial products. Published lender criteria indicate thresholds in the range of £200 to £500 for defaults that may be disregarded, depending on the lender and the type of account.

After six years, the default is automatically removed from the credit file. At that point, the individual's credit file no longer shows the default, and the full standard lending market becomes accessible again, subject to all other normal lending criteria being met., subject to all other normal lending criteria being met.

• A default remains on a UK credit file for six years from the date it was registered, whether the underlying debt is paid or not.
• There is no law or regulation that prevents a mortgage application while a default is visible, but individual lenders set their own criteria regarding the age, size, type, and satisfaction status of defaults they are willing to consider.
• Published lender criteria suggest that the range of available lenders widens as defaults age and are satisfied, with the three-year point being a common threshold in lender policies.
• After six years, the default is automatically removed and the full standard lending market becomes accessible, subject to all other normal criteria.
• The Consumer Credit Act 1974 governs the procedural requirements for issuing default notices but does not govern how long defaults remain on credit files — that retention period is set by ICO guidance and industry agreement.