What Happens If You Default on a Mortgage Payment?
If you’re struggling to keep up with your mortgage and fear you might default on a mortgage payment, you’re not alone. Many homeowners face short-term financial challenges that make it difficult to pay on time.
The good news? Missing a payment doesn’t automatically mean you’ll lose your home. What matters most is how quickly you act and communicate with your lender.
At Mortgage Bridge, we help clients every day who’ve fallen behind or are worried about defaulting. Understanding what happens — and what you can do — can make a big difference to your outcome.
What Does It Mean to Default on a Mortgage Payment?
To default on a mortgage payment simply means you’ve missed one or more agreed monthly payments. It could be because of reduced income, unexpected expenses, or temporary hardship.
Lenders see a default as a breach of your mortgage agreement, but the impact depends on how serious and frequent it is. A single missed payment can usually be fixed quickly; repeated missed payments need urgent attention.
What Happens After You Miss a Mortgage Payment?
If you miss one payment, most lenders will:
- Send a reminder or letter within a few days.
- Add late fees or interest depending on your agreement.
- Report the missed payment to credit agencies if not resolved within a month.
If you miss more than one payment, lenders may:
- Try to contact you directly to discuss a repayment plan.
- Mark your account as “in arrears.”
- Potentially start legal action if no arrangement is made.
The key is communication — responding early often prevents things from escalating.
How Does a Mortgage Default Affect Your Credit Score?
A default on a mortgage payment can appear on your credit report if it’s not resolved promptly. This can lower your credit score and make it harder to borrow in the short term.
However, credit impact depends on:
- How many payments you’ve missed.
- How quickly you catch up.
- Whether the default leads to repossession or court action.
If you can bring the account back up to date within a month or two, the damage is usually manageable and temporary.
Can You Stop a Default Before It Happens?
Yes — and this is the best approach. If you know you might miss a payment, contact your lender immediately. Most lenders prefer to work with you rather than take action.
They may offer:
- A payment holiday or short-term break.
- Reduced payments for a set period.
- A temporary interest-only arrangement.
- Mortgage term extension to lower monthly costs.
These steps can give you breathing space and prevent an official default being recorded.
What If You’ve Already Defaulted?
If you’ve already defaulted on a mortgage payment, don’t panic. It doesn’t automatically mean repossession.
Here’s what to do:
- Talk to your lender immediately.
Explain your situation honestly and ask what help is available. - Seek advice early.
Contact a broker like Mortgage Bridge or a free service such as MoneyHelper or Citizens Advice. - Set up a repayment plan.
Lenders are often open to arrangements that allow you to catch up over time. - Avoid ignoring letters or calls.
Communication helps protect your position and shows you’re acting responsibly.
What If Your Lender Starts Legal Action?
Repossession is always a last resort. Lenders must follow strict procedures before taking any legal steps.
Typically, this means:
- Sending multiple arrears letters.
- Offering repayment options or financial assistance.
- Providing notice before court proceedings.
Even if your case reaches court, you can often stop repossession by agreeing to clear arrears over time or refinancing the mortgage.
We regularly help clients remortgage or switch lenders after arrears — even those who’ve had a previous default on a mortgage payment.
Can You Get a Mortgage After Defaulting?
Yes. Many people go on to get approved for a new mortgage or remortgage after defaulting, especially if it was an isolated issue and has since been resolved.
Lenders consider:
- How long ago the default occurred.
- How much was missed.
- Whether you’ve kept payments up to date since.
Specialist lenders are often more flexible and may approve applicants as soon as 12–24 months after a default, provided your finances have stabilised.
We cover this more in our guide on getting a mortgage after defaults.
How to Avoid Future Mortgage Defaults
To prevent future issues, try these steps:
✅ Set up a direct debit for automatic payments.
✅ Keep a small emergency fund for unexpected expenses.
✅ Track your spending to avoid shortfalls.
✅ Speak to your lender early if problems arise.
✅ Review your mortgage regularly with a broker to ensure it’s still affordable.
We can help review your current deal and check whether refinancing or extending your term could reduce your payments.
Final Thoughts: Support Is Always Available
Missing or defaulting on a mortgage payment can feel overwhelming, but it doesn’t have to spiral. Most lenders want to help, not punish.
If you’re worried about a default on a mortgage payment, reach out for advice early.
At Mortgage Bridge, we’ll help you understand your options, speak to your lender if needed, and explore ways to protect your home and credit.
Let’s take the next step together.