TL;DR - Quick Answer
Defaults are one of the most common credit issues, and many lenders accept them. The key factors are: whether they're satisfied, when they were registered, the amount, and whether they're on secured or unsecured accounts. Specialist lenders can often help even with multiple recent defaults.
Key Points
- Satisfied defaults are viewed more favourably than unsatisfied
- Defaults over 3 years old are ignored by many lenders
- Utility defaults (gas, electric, water) may be treated more leniently
- The total value of defaults matters - under £500 has less impact
- Secured defaults (on mortgages) are more serious than unsecured
- Some lenders allow unlimited defaults if all satisfied
Lender Examples
How different lenders approach this scenario
| Lender Type | Accepts | Notes |
|---|---|---|
| High Street | No defaults in 6 years | Very strict on any default |
| Building Societies | Satisfied 3+ years, under £500 | Manual underwriting possible |
| Specialist Tier 1 | Satisfied 12+ months | Up to 3 defaults accepted |
| Specialist Tier 2 | Unsatisfied considered | Must explain circumstances |
| Adverse Specialists | Multiple defaults OK | Focus on current affordability |
Frequently Asked Questions
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