A default means a lender closed an account after a run of missed payments, and how much it matters depends on when it was registered, the amount, what kind of account it was on and whether it has been settled. One small, settled phone bill default from years ago is usually treated very differently from several recent defaults on loans or credit cards.
Below we explain how defaults are dated, why settling one still matters, and what an adviser is likely to ask. If you have already cleared yours, see remortgaging with a satisfied default. For a wider overview, our guide to what adverse credit means is a good place to start.
On this page
In short
- A default stays on your file for 6 years from the default date, whether or not you pay it.
- Settling a default does not shorten the 6 years, but it can widen your options.
- The type of account matters: a utility default may be viewed differently from one on secured borrowing.
- Check the default date on all three credit reports before you apply.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
What is a default and when is it recorded?
A default is registered when a lender decides the credit agreement has broken down, normally after about 3 to 6 months of missed payments, in line with Information Commissioner’s Office guidance. Before that point the account shows a run of late payment markers, which our page on remortgaging with missed payments covers.
Once registered, the default stays for 6 years from the default date. That does not change when you pay it, or if the debt is sold to a collection agency. A sold debt may appear under the new owner’s name, but it should keep the original default date.
| Stage | Example date | What shows on the file |
|---|---|---|
| First missed payment | January 2023 | Late payment markers begin |
| Default registered | May 2023 | Default recorded, with the outstanding balance |
| Debt sold to a collection agency | November 2023 | May show the new owner, with the same default date |
| Paid in full | June 2025 | Marked as satisfied or settled |
| 6 years after the default date | May 2029 | Default removed from the file |
Dates are for illustration only. The 6 years always run from the default date, not from the first missed payment or the date you settle.
Does paying off a default help you remortgage?
Paying a default does not remove it or restart the clock. It changes the status to satisfied or settled, and for many lenders that makes a real difference: an unpaid default suggests the debt is still outstanding, while a settled one shows it has been dealt with. Some lenders only consider settled defaults, or ask for unpaid ones to be cleared when the remortgage completes.
If a creditor accepted less than the full balance, the default is usually marked as partially settled or partially satisfied. That is generally better than unpaid, though some lenders may view it less favourably than a default paid in full. Our page on satisfied defaults covers the paperwork worth keeping.
Does the type of account the default was on matter?
It often does. Mortgage lenders are mainly interested in how you have handled borrowing, and above all secured borrowing. A default on an old mobile phone contract is a different signal from one on a personal loan, and a default on a mortgage usually follows serious arrears, which our mortgage arrears page explains.
| Type of account | How it may be viewed |
|---|---|
| Mobile phone, broadband or utility bill | Often treated as less serious, especially if small and settled |
| Catalogue, store card or buy now pay later | Usually counted as consumer credit, with the amount and date both considered |
| Credit card, overdraft or personal loan | Often looked at closely, as it shows how you managed unsecured borrowing |
| Mortgage or secured loan | Usually taken most seriously by mortgage lenders |
A general guide only. Each lender sets its own criteria, and some treat every default the same way.
How many defaults is too many?
There is no single number. One default is usually easier to explain than several, particularly if the others are recent or unsettled. Some lenders limit the number or total value of defaults they will consider, while others focus on when they happened. Several accounts defaulting at once after a job loss or illness can be easier to explain than defaults spread over years. See remortgaging with multiple defaults for more.
A default can also lead to court action. If a creditor went on to get a judgment, that is recorded separately, and our page on remortgaging with a CCJ explains how lenders treat it.
What should you check on your credit file before applying?
Not every default is reported to all three agencies, and dates or balances can differ between them. Get your free statutory report from Experian, Equifax and TransUnion and check:
- the default date on each account, which sets when it drops off
- that settled defaults are marked as satisfied or settled
- that sold debts show the original default date, not a later one
- that balances are correct and nothing appears twice
- that you are on the electoral register at your current address
If something is wrong, raise it with the lender that reported it, then with the credit reference agency. The number shown in a credit app is not what a lender sees, as our page on remortgaging with a low credit score explains.
Should you use a remortgage to clear defaults?
Clearing unpaid defaults through a remortgage changes their status to settled, and some people combine this with paying off other debts. It also means those debts become secured on your home, which may be repossessed if you do not keep up repayments. A longer term can mean paying more in total, even if the monthly cost falls.
You might settle a small default from savings, agree a payment plan with the creditor, or get free advice from StepChange or National Debtline. Our page on debt consolidation remortgages sets out the risks in more detail.
What may affect your remortgage options
Lenders look at the detail behind each default, not just the fact that one exists.
| Factor | Why it matters |
|---|---|
| Age of the default | Time since the default date is usually the key point. Defaults registered in the last year or two tend to narrow options more than older ones. |
| Amount | Small defaults, such as an unpaid final phone bill, are often viewed more leniently. Some lenders disregard defaults below a certain value, while others count every one. |
| Settled or unsettled | A settled default shows the debt is resolved. Unsettled defaults may need to be paid before or on completion. |
| Number of defaults | Several defaults spread over time can suggest an ongoing problem. Defaults from one difficult period may be easier to explain. |
| Mortgage payment history | Keeping your mortgage up to date while other accounts defaulted shows you prioritised your home, which may count in your favour. |
| Property value | An up-to-date valuation sets your equity and helps an adviser gauge what may be possible. |
| Outstanding mortgage balance | What you owe now, plus any extra borrowing, sets the new loan amount and your LTV band. |
| LTV and equity | More equity usually gives lenders more comfort with defaults on file. Our guide on how LTV affects a bad credit remortgage explains the bands. |
| Income and affordability | Lenders check income against all your commitments and stress test the new payment. Payment plans on defaulted debts count as outgoings. |
| Employment type | Self-employed, director and contractor income is assessed differently from employed income, which can affect how much you can borrow. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- The default date for each account, as shown on your credit report
- The original creditor, and the current owner if the debt was sold
- The default balance and what is still owed
- Whether each default is settled, partially settled or unpaid
- Settlement letters or statements showing a nil balance, if you have them
- A sentence or two on what led to the defaults
- Your mortgage balance, monthly payment and deal end date
- Recent payslips, or accounts and tax calculations if self-employed
Specific default situations
More detail for particular circumstances.
Remortgaging with a default 1 to 2 years old
What a default 1 to 2 years old tends to mean for a remortgage, whether waiting helps, and how to use the time if your current deal is ending.
Remortgaging with a default from over 6 years ago
What happens once a default passes 6 years old, how to check it has been removed from your credit file, and what to do if it still shows.
Remortgaging with a default sold to a debt collector
Why a defaulted debt gets sold to a debt collector, how it may appear twice on your credit file, and what to check before you remortgage.
Remortgaging with more than one default
How lenders may assess several defaults, from the dates and amounts to sold debts and settlement status, plus the risks of clearing them through a remortgage and the alternatives.
Remortgaging with a default over 3 years old
What tends to change once a default passes 3 years old, what still matters at this stage, and how the last few years before it drops off may affect a remortgage.
Remortgaging with a partially settled default
What a partially settled default is, how it may be viewed compared with a default paid in full, and whether to negotiate one before you remortgage.
Using a remortgage to pay off defaults
How raising money through a remortgage to pay off defaults works, how lenders handle it on completion, and the alternatives worth comparing first.
Remortgaging with a phone or utility default
Why phone, broadband and energy defaults are so common, how they may be viewed compared with other defaults, and what to do about a disputed final bill.
Remortgaging with a default from the last 12 months
What a default registered in the last 12 months means for a remortgage, the checks worth making now and the options if your deal ends before the default ages.
Remortgaging with satisfied defaults
What paying off a default changes on your credit file, the difference between satisfied and partially settled, and how settled defaults may be viewed when you remortgage.
Remortgaging with an unsatisfied default
What an unsatisfied default means, how it may differ from a settled one, and whether to pay it off before applying, through the remortgage, or wait.
Frequently asked questions
Does a default disappear after 6 years even if I never paid it?
Yes. A default is removed from your credit file 6 years after the default date, whether or not it was paid. The debt itself does not necessarily disappear, though, and the creditor may still be able to pursue it. If you have old debts you are unsure about, National Debtline can explain your position for free.
Why is my default date later than when I stopped paying?
Lenders normally register a default after about 3 to 6 months of missed payments, so the default date is usually a few months after the first missed payment. That later date is the one that counts, because the 6 years run from when the default was registered. If the date looks much later than you would expect, ask the lender to check it.
Can I remortgage while I am still paying off a default?
It can be possible. A default with an agreed repayment plan shows you are dealing with the debt, but it stays unsatisfied until it is cleared, and the monthly payments count in affordability checks. Some lenders may ask for it to be settled from the remortgage. An adviser can help you compare clearing it, keeping the plan or waiting.
What can I do if a default on my file is wrong?
Raise it first with the lender that reported it, explaining what is wrong, for example the date, the balance or that the account was never yours. You can also dispute it directly with the credit reference agency. A correctly recorded default stays for 6 years from the default date, so be wary of firms that charge to remove accurate defaults, as they cannot.
Can a debt collection agency change my default date?
It should not. When a debt is sold, the new owner may report the account under its own name, but the default date should stay the same as when the original lender registered it. If a sold debt shows a later default date, which would keep it on your file for longer, raise it with the new owner and the credit reference agency.