Get a mortgage with missed payments

When you miss a mortgage payment, your lender follows a set process. The first thing that happens is a late payment marker on your credit file. This is recorded once your payment is more than 30 days overdue and stays on your credit report for six years from the date it was registered.

The severity escalates depending on how many consecutive payments you miss:

• 1 missed payment (30 days late): A late payment marker is added to your credit file. Your lender will contact you to arrange payment.
• 2 missed payments (60 days late): A second marker is added, and your lender will send formal arrears letters. You may be charged late fees.
• 3 to 6 missed payments: Your lender may issue a formal demand for full payment and begin legal proceedings. Your account could be passed to a collections team.
• 6 or more missed payments: Repossession proceedings may begin, though lenders must demonstrate they have explored all other options first.

It is important to understand the difference between a missed payment and a default. A missed payment is a single late or skipped payment. A default happens when your lender formally closes your account after several months of non-payment. Both affect your credit, but defaults are treated far more seriously by future lenders.

Each missed payment is recorded individually on your credit file. A single late payment can reduce your credit score by 50 to 130 points depending on which credit reference agency is reporting it. The impact is most severe in the first 12 months and gradually reduces over time, though the marker remains visible for six years.

Several factors determine how heavily a missed payment affects your ability to get a new mortgage:

Missed payments on your mortgage carry more weight than missed payments on other credit types. Lenders view mortgage arrears as a direct indicator of how you might handle a future mortgage, whereas a late credit card payment is considered less relevant. If your missed payments were on a credit card or utility bill rather than a mortgage, your options will generally be wider.

Check your credit reports with all three UK agencies before applying. Experian, Equifax (via ClearScore), and TransUnion (via Credit Karma) all offer free access. You may find that a missed payment appears on one report but not another, since lenders report to different agencies. Understanding exactly what shows on your file helps a broker identify the right lenders for your situation.

Yes, you can get a mortgage with missed payments on your credit file. The key question is which lenders will consider your application and at what rate. High street banks typically auto-decline applications with any missed payments in the last 12 to 24 months. Specialist lenders take a more flexible approach, manually reviewing each application.

Your options depend on the severity of your missed payment history:

Deposit size plays a significant role. With a 10% deposit and missed payments, your options are limited. Increasing to 15% opens more lender options, and at 25% you access the widest range of adverse credit mortgage products. Some specialist lenders, including Pepper Money, Kensington Mortgages, and Aldermore, specifically design products for borrowers with missed payment histories.

If you are remortgaging with missed payments on your current mortgage, lenders will look at your recent payment record carefully. Demonstrating 12 or more months of on-time payments since the last miss significantly strengthens your application.

With the Bank of England base rate at 4.5% as of mid-2026, standard mortgage rates for borrowers with clean credit sit around 4.2 to 4.6% for a 2-year fixed deal and 3.9 to 4.3% for a 5-year fixed deal at 75% LTV. If you have missed payments, expect to pay more depending on your circumstances.

These higher rates are not permanent. If you maintain a clean payment record on your new mortgage, you can remortgage to a better deal after 2 to 3 years. By that point, the missed payment is older and your recent track record demonstrates reliability. This strategy can save tens of thousands of pounds over the life of the mortgage.

The single most important step you can take is establishing a clean payment history after your missed payments. Lenders want to see that the issue was temporary and that you have since demonstrated reliable financial behaviour. At least 12 months of on-time payments across all credit accounts makes a significant difference.

Other practical steps to strengthen your application:

• Clear any outstanding arrears: Bring all accounts fully up to date before applying. Outstanding arrears are a much bigger barrier than historical missed payments.
• Save a larger deposit: Moving from 10% to 15% or 20% opens more lender options and reduces rates. Each 5% increase gives you access to better deals.
• Reduce existing debt: Pay down credit cards and loans to lower your debt-to-income ratio. Keep credit card balances below 30% of their limits.
• Avoid new credit applications: Each application adds a hard search to your file. Multiple searches in a short period suggest financial difficulty.
• Register on the electoral roll: This is a basic requirement for identity verification that some people overlook.

If your missed payments were caused by a specific event, such as redundancy, illness, or divorce, prepare a brief written explanation. Specialist lenders who manually underwrite your application will consider these circumstances. A clear, honest account of what happened and what has changed since can make the difference between approval and decline.