Finding a mortgage with a poor credit history is difficult and has to be approached very carefully because of the shortage of lenders available in this market. Having the advice of a qualified Poor Credit Mortgage Broker will greatly enhance your chances. With only a few sub prime lenders to choose from, getting it right first time is very important.

Steven Neale – Specialist Bad Credit Mortgage Broker

Our experience as first time buyers was simply exceptional! We have been guided through the mortgage process and buying our first home has been an easy journey thanks to your professionalism and efficiency.

13th Jan 2022

After thinking I was going to lose the new home I had fallen in love with, Steven worked hard with me and understood my circumstances. I was at the point of nearly giving up and within 4 weeks I had a full mortgage offer. Thank you for making my dreams come true. I would highly recommend your services. Absolutely no bull or jargon.

T Jones
10th Jan 2022

The service we have received has been amazing. We were kept up to date every step of the way. Honestly, the relief on my face when I received your email with the mortgage offer was priceless. I can not thank you both enough you are both amazing at what you do. We can not thank you enough for everything, Thank you so much, you have made our dreams a reality.

4th Nov 2021

Thank you foremost for choosing to specialise in adverse credit services for people. All we read online is that it is not possible or easy to get any form of credit when you have or settle an IVA and I’m so glad I kept looking and found you. You have helped us more than you’ll ever realise. We are so happy to have a chance to start again and be able to remain on the property ladder, all thanks to you.

1st Nov 2021

I would highly recommend Steve and Sue. Getting a mortgage seemed to be difficult for me at first when speaking to another advisor, I very nearly gave up due to the lack of effort and communication. Once we got in touch with Steve everything fell into place. Both Steve and Sue were very professional and informative throughout the process.

27th Jan 2022

Steven & Sue have been absolutely amazing through the whole process – extremely calm, organised and helpful. We will definitely be using them in the future and would highly recommend them to family & friends.

20th Sept 2021

Steve and Sue have been absolutely amazing. I was really worried about my financial history meaning I wouldn’t be able to get a mortgage but they were nothing but supportive and non-judgemental, always available to explain things and answer questions as well as extremely efficient.

18th Jan 2022

The professionalism of Steve and Sue is second to none. We were advised of our options and guided through the application process every step of the way. The big thing for us was the personal touch and relationship we built. My wife and I both agreed it felt like Steve and Sue are so motivated because they actually want to help. Probably the best professional service I have ever used so if you find yourself in need of a specialist mortgage broker look no further. Great service great people.

28th March 2022

Struggling to ‘get back’ on the housing ladder after 15 years and being ‘self-employed’ was proving near enough impossible, until we found Steve & Sue. They found us a lender that would use my ‘day-rate’ rather than the usual ‘self-assessment’ and even though there was stumbling blocks along the way, they get us over the line with a ‘mortgage offer’! We can’t thank them enough and would definitely have no hesitation in using them again!

28th July 2021

A fantastic service provided by SN Mortgages once again. Highly recommend SN Mortgages, they have been brilliant at finding the best rates for us, keeping in regular communication and quite frankly achieving the impossible! Where other brokers fail to come back to us or could not find a deal, SN would always go the extra mile and revert back. Thank you so much!

22nd July 2021

We are so grateful to Sue and Steve for all their effort in helping us get our mortgage. Their knowledge and clear love of their job shines through and they have been on hand to answer all our questions no matter how silly or small. They have clearly explained everything from start to finish which has made us feel so much more at ease throughout the whole process. We can’t recommend them enough!

1st July 2021

Mortgage with defaults

Can I get a Mortgage with Defaults?

Getting a mortgage with one or more defaults registered on your credit file can be difficult, especially if you go directly to a high street lender. Fortunately there are lenders who are willing to provide mortgages with defaults, but it is highly recommended you go through a specialist adverse credit mortgage broker, as they will have a good understanding of lending criteria.

So, can I get a mortgage with defaults?

In short, yes! I know of 3 lenders that will lend up to 95% of a property’s value! 

Each case will be different, and depend on a number of different factors, such as the number of defaults, how much they were for, whether they are settled, and how long ago they were.

I see more defaults registered on client’s credit file than any other adverse credit data. Lenders are obligated to inform you if you have missed payments on an agreement and to give you time to bring the payments up to date.

Unfortunately, some are too quick off the mark and before you know it, a default has been registered on your credit file and once there, it is very difficult to have them removed. Assuming the company you owe money to agrees to remove it, you then have to wait until they inform the credit agencies to update their systems. And then the agencies have to update their systems!

Because of this, the lenders I deal with have a wide range of products to cater for the odd default right up to unlimited after 1 year and anything in between.

How long ago does the default need to have been?

With the majority of the adverse credit lenders, any defaults registered over 2 years ago can be ignored up to 85% loan to value and do not have to be repaid. If they were registered over 36 months ago, you could borrow up to 95%.

The important thing to remember when looking at your credit file is the date the defaults were registered and the amount. When they were cleared is important to some lenders as they will not lend unless they have been paid off before making a mortgage application but as you can see below, I have a lender that will allow 5 defaults in the past 2 years for any monetary amount. The majority of the lenders I deal with do not expect defaults to be cleared so save your money for a deposit.

Can I get a mortgage with a satisfied default?

Although clearing the default debt may help your application, the main issue is the fact that you actually had a default in the first place. A lender will likely look at an outstanding default and a cleared default in the same way – the issue is you defaulted on a credit agreement. 

However, as already covered, it is possible to get a mortgage with a default using a specialist mortgage broker and a select few adverse lenders.

How much can I expect to borrow with defaults?

  • 95% if the defaults were registered over 3 years ago
  • 90% if the defaults were registered over 2 years ago
  • 85% with unlimited defaults if they were all registered over 2 years ago
  • 85% if you have no more than 5 defaults in the last 2 years.
  • 75% with unlimited defaults after 1 year

It is very important that you obtain a copy of your credit file to see when the defaults were registered and showing the actual monetary value they were for. Click the following link that will take you to a company called Check My File to download a copy of your credit file.

Check your credit file if you need a mortgage with defaults

Always have an open account with a credit reference agency when arranging a mortgage, especially the ones that warn you if an entry is added to your file. Why?

You are applying for a mortgage, you sign up for the one month’s free credit report with one of the three agencies (Equifax, Experian & TransUnion) and then you cancel the monthly subscription fee once the free trial is over because you want to save money.

Then, an adverse entry is added to your file and guess what – you did not know about it because you canceled the subscription last week and nobody told you!

Having carried out a credit search when a lender receives your mortgage application, most lenders would not carry out another credit search before issuing a mortgage offer. But what if the time between mortgage offer and completion is say 4, 5 or 6 months ahead, or your personal situation changes, you can be pretty sure they will carry out another search, and bingo – what do they find? The adverse entry you knew nothing about and they declined your mortgage.

Think for a moment – what if that had happened between Exchange and Completion? If you are not sure of the implications of that, call me!

Now, if you had maintained an open account, you would have been made aware of entries added to your file and could have done something about it. Once you have completed the purchase and moved in, then cancel the subscription.

There are free reports offered by Clearscore (Equifax) and Credit Karma (TransUnion) but I recommend Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three – Equifax, Experian & TransUnion – so it is a good place to start to get an overview of your credit history. It may be that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.

Right to Buy and Shared Ownership purchasers should go to the relevant page as the criteria for defaults, CCJ’s and arrears is not the same. Any defaults, CCJ’s or arrears are ignored after 1 year.

If you’re looking for Help to Buy (H2B) Mortgage advice with defaults, I can help. Find out more on Help to Buy Mortgages with defaults.

For more information on how I can help you, please call me on: 01494 526400 or complete my online enquiry form.


Years of Experience

I specialise in Bad Credit Mortgages for people who have a poor credit history because of any number of reasons.

Choice of Lenders

I am a Whole of Market, Mortgage Broker meaning I can talk to every lender to see about finding you the right mortgage.

Saving You Money

As a specialist Mortgage Broker for over 30 years I have a great deal of experience that will help save you time & money.