A default that is over 3 years old has passed the point most lenders weigh most heavily, and it is now more than halfway to dropping off your credit file for good. That does not mean it stops mattering, and it does not open the door to every lender, but the choice available at this stage is generally wider than it was in the first year or two. Settled status, the size of the default and what has happened since usually count for more than the age on its own.
This page covers what tends to open up once a default passes 3 years, what still matters at this stage, and how to think about the final years before it drops off. For the earlier stages, see defaults 1 to 2 years old or our main page on remortgaging with defaults.
On this page
This page covers
- Credit issue
- DefaultsUsually stays on your credit file for 6 years from the default date.
- When it happened
- More than 3 years agoOlder issues usually have less influence, especially when your credit since then is clean.
Read the main guide: Remortgaging with defaults on your credit file
In short
- A default over 3 years old is usually viewed more easily than a recent one, though it is not disregarded.
- Settled status and a clean record since usually matter more than age alone.
- Some application forms ask about defaults from a set number of years, so check the exact wording.
- The final years before a default drops off can be a good time to review your options.
What tends to open up once a default passes 3 years?
By this point, the default is no longer the newest thing on your file unless something else recent has happened. Some lenders that avoid recent adverse credit may be willing to look at a default of this age, particularly if it is settled and your mortgage and other accounts have stayed up to date since.
| Time since the default date | What tends to matter most | Rough sense of choice |
|---|---|---|
| 3 to 4 years | Settled status and a clean record since, more than the age itself | Wider than in the first 2 years, still narrower than for a very old default |
| 4 to 5 years | Whether anything newer has appeared on the file | Generally wider, particularly with nothing recent |
| 5 to 6 years | The default nearing removal, alongside the rest of your file | Often close to what would apply with no default at all, subject to the rest of your history |
For illustration only. These are general tendencies, not the criteria of any lender, and every lender sets its own view.
What still matters, even once a default is older?
Age is only one part of the picture. An older default that is still unpaid can be viewed differently from one settled years ago, so our page on unsatisfied defaults is worth reading if yours has not been cleared. The type of account matters too: a default on a mortgage or secured loan is usually taken more seriously for longer than one on a small utility bill.
- Anything more recent. A newer missed payment, default or CCJ can outweigh how well this default has aged.
- Whether it is settled. Settling an old default still helps, even years later, because it clears an outstanding balance from your file.
- How many there are. One older default is usually more straightforward than several spread across different years. See multiple defaults.
- Your mortgage record. Keeping your mortgage payments on time throughout is one of the strongest points in your favour at any stage.
Do old defaults still need to be declared on application forms?
Many application forms ask whether you have ever had a default, without a time limit, so answer honestly even if the default is several years old. Others ask about defaults in the last 3 or 6 years specifically, so read the question carefully rather than assuming an older default no longer needs to be mentioned. A lender will see it on your credit file regardless of how the form is worded.
If you are unsure whether an old default is recorded correctly, check your free statutory report from Experian, Equifax and TransUnion, and raise anything that looks wrong with the creditor and the agency before you apply.
Is it worth waiting for the default to drop off completely?
If a default is close to 6 years old, waiting a short time for it to be removed can sometimes widen your options further, but it depends on your deal end date and any early repayment charges. If your deal is ending sooner than the default will drop off, a product transfer with your current lender may bridge the gap without relying on a new credit assessment in the same way.
See defaults over 6 years ago for what happens once the 6 years are up, including what to check if an old default still appears to show.
What lenders may weigh with an older default
| Factor | Why it matters |
|---|---|
| Time left until removal | How close the default is to 6 years old, alongside how it has been viewed so far. |
| Settled or unsatisfied | Whether the balance was cleared, and if so, how long ago. |
| Anything more recent | A newer credit issue can weigh more heavily than an older, well-aged default. |
| Type of account | A default on secured borrowing or a larger loan is usually taken more seriously for longer. |
| Number of defaults | One older default is usually easier to explain than several spread over the years. |
| Mortgage payment history | A consistently up-to-date mortgage record strengthens an application at any stage. |
| Loan to value and equity | More equity generally widens the choice further once a default has aged. |
| Affordability | Income and outgoings, stress tested against a higher rate, regardless of how old the default is. |
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 exact default date and current status
- Confirmation of whether the default is settled, and when
- Details of anything else on your file, however old
- Your mortgage balance, deal end date and any early repayment charges
- Recent payslips, or accounts and tax calculations if you are self-employed
- Copies of your reports from Experian, Equifax and TransUnion
Frequently asked questions
Does a default over 3 years old still affect a mortgage application?
It can, though usually less than a recent one. Some lenders may look past a default of this age, particularly if it is settled and nothing more recent has appeared, while others still take it into account for the full 6 years.
Should I wait for the default to reach 6 years before remortgaging?
Not necessarily. If your deal is ending before then, waiting may mean paying a higher standard variable rate in the meantime. It is often worth comparing what may be available now with the cost of waiting, particularly if a product transfer is on offer.
Do I still need to mention a default from more than 3 years ago?
Check the exact wording of the application form. Many ask whether you have ever had a default, with no time limit, so answer honestly. A lender checking your credit file will see it regardless of how the question is worded.
Does settling an old, unpaid default still make a difference?
It can. Settling clears the outstanding balance from your file and changes the status, which some lenders may view more favourably even years later. It will not shorten the 6 years the default stays on file, though.