What is a default?
A lender may register a default when an account has fallen significantly behind or the credit agreement has broken down. It is different from an isolated late payment and usually remains visible for six years from registration.
What details affect a mortgage decision?
The underwriter may consider more than the word default.
- Credit type and creditor
- Value and number of defaults
- Date registered
- Whether it is settled
- Reason and subsequent account conduct
Do defaults need to be settled?
Some mortgage lenders require settlement; others may accept outstanding defaults within limits. The suitable action depends on the debts themselves as well as the mortgage criteria.
Preparing a careful application
Check all credit files for consistent dates and balances, avoid repeated speculative applications and prepare a brief factual explanation. Holly can then screen the case against likely lender tolerances.
Frequently asked questions
Can an old default be ignored?+
Some lenders disregard defaults after a defined period or below certain values, but policies differ.
Does settling reset the six years?+
The entry is generally removed six years from the original default date, not the settlement date.
Are utility defaults treated differently?+
Some lenders are more tolerant of communications or utility defaults than mortgage or secured-credit problems.