Can I Get a Mortgage with Missed Payments?
If you are planning to apply for a mortgage and have missed payments on your credit report, it is natural to be concerned about how this might affect your chances. Missed payments are one of the most common forms of adverse credit and appear on many borrowers’ credit files at some point.
The presence of missed payments does not automatically mean a mortgage is impossible. Lenders assess missed payments in context, alongside income, affordability, deposit size, and overall financial behaviour. This guide explains how missed payments are recorded, how mortgage lenders typically view them, and the general factors that may influence an application.
This article is intended to provide general information only and does not offer regulated mortgage advice.
What Are Missed Payments?
A missed payment is recorded when a scheduled payment to a credit account is not made on time. This could relate to a wide range of commitments, including:
- Credit cards
- Personal loans
- Car finance
- Mobile phone contracts
- Utility bills
- Mail order or catalogue accounts
Missed payments are usually reported to credit reference agencies as a late payment marker, often shown as one, two, or more months in arrears. These markers can remain visible on a credit report for up to six years.
How Missed Payments Appear on a Credit Report
Credit reports show missed payments using status codes that indicate how late a payment was. For example:
- 1 month late – a single missed or late payment
- 2–3 months late – repeated missed payments
- Arrangement to pay – an agreed reduced payment plan
- Default – more serious non-payment over a longer period
Mortgage lenders review not just the presence of missed payments, but also their pattern, frequency, and timing.
Can You Get a Mortgage with Missed Payments?
In general terms, it may be possible to get a mortgage with missed payments, depending on several factors. Lenders rarely make decisions based on a single piece of information and instead look at the overall picture.
Key considerations often include:
- How recent the missed payments were
- How many missed payments there are
- Whether the missed payments were isolated or repeated
- The type of credit involved
- How your credit conduct has been since
A single missed payment from several years ago is often viewed very differently to multiple missed payments within the last few months.
How Recent Are the Missed Payments?
Recency is one of the most important factors. Many lenders place greater weight on recent credit behaviour, as it is seen as a better indicator of current financial stability.
- Older missed payments (for example, more than two or three years ago) may carry less impact
- Recent missed payments (within the last 6–12 months) may raise more concern
Some lenders apply specific time thresholds, while others assess cases on an individual basis.
How Many Missed Payments Are There?
The number of missed payments can influence how lenders view risk:
- One-off missed payment – often seen as lower risk, especially if followed by good conduct
- Multiple missed payments – may suggest ongoing financial pressure
- Missed payments across several accounts – can indicate broader affordability issues
Patterns matter. A single issue followed by consistent payments is generally viewed more favourably than repeated problems.
What Type of Credit Was Affected?
Lenders often distinguish between different types of credit:
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- Essential commitments, such as utilities or housing-related payments, may be viewed more seriously
- Unsecured credit, such as credit cards, may be assessed with more flexibility
- Mobile phone or small accounts may be seen as lower impact if isolated
Context is important, and lenders may look at the size of the missed payment as well as the type of account involved.
Has the Account Been Brought Up to Date?
Whether missed payments have been resolved can also be relevant. Lenders may consider:
- Whether the account is now up to date
- Whether arrears have been cleared
- Whether there is an ongoing payment arrangement
Evidence of bringing accounts back under control and maintaining payments since can help demonstrate improved financial behaviour.
Missed Payments vs Defaults
It is important to distinguish missed payments from defaults:
- Missed payments indicate late or skipped payments
- Defaults usually occur after several months of non-payment
Defaults are generally viewed more seriously than isolated missed payments, although lenders still assess them in context.
Deposit Size and Loan-to-Value (LTV)
The size of your deposit can influence how missed payments are viewed. A lower loan-to-value (meaning a larger deposit) reduces the lender’s risk.
In some cases, applicants with missed payments may find that:
- Higher LTV options are more limited
- Larger deposits provide access to a wider range of lenders
- Product choice may improve at lower LTV bands
This does not guarantee acceptance, but deposit size can form part of the overall assessment.
Affordability and Income Stability
Mortgage lenders assess affordability separately from credit history, but the two are linked. Stable income, manageable outgoings, and clear affordability can help balance historical credit issues.
Lenders may consider:
- Employment stability
- Consistency of income
- Existing financial commitments
- Overall affordability calculations
Strong affordability does not override credit issues, but it contributes to the overall risk assessment.
Specialist and Mainstream Lenders
Not all lenders view missed payments in the same way. Some mainstream lenders apply stricter criteria, while others are more flexible depending on circumstances.
There are also specialist lenders who focus on cases involving adverse credit. These lenders may consider applications that fall outside standard criteria, though products may involve different rates, fees, or conditions.
Lender availability and criteria change over time.
Common Misunderstandings About Missed Payments
There are several common misconceptions:
“Any Missed Payment Means Automatic Decline”
This is not always the case. Many borrowers have at least one missed payment on their credit file.
“Credit Scores Are All That Matter”
Mortgage lenders look at the full credit report, not just a single score.
“Older Issues Carry the Same Weight as Recent Ones”
In most cases, recent behaviour is more influential than historic issues.
Steps People Often Consider Before Applying
While circumstances differ, people with missed payments often consider the following before applying for a mortgage:
- Reviewing their credit report for accuracy
- Allowing time to pass since the last missed payment
- Maintaining consistent payment behaviour
- Reducing existing unsecured debt where possible
- Understanding deposit and affordability requirements
These are general considerations and do not guarantee any particular outcome.
Buy-to-Let vs Residential Mortgages
Missed payments can affect both residential and buy-to-let mortgage applications, but the way lenders assess them may differ.
Buy-to-let mortgages often focus more on rental income, but credit history is still reviewed. Some lenders apply similar credit standards to both types, while others have separate criteria.
How Long Do Missed Payments Stay on Your Credit File?
Missed payments typically remain visible on a credit report for six years from the date they occurred. Over time, their impact may lessen, particularly where there is evidence of good financial conduct since.
They are not automatically removed early, even if the account is later brought up to date.
Summary
Getting a mortgage with missed payments is not automatically ruled out, but it can be more complex than applying with a clean credit history. Lenders consider the recency, frequency, and context of missed payments, alongside affordability, deposit size, and overall financial stability.
Understanding how missed payments are viewed and how lenders assess risk can help you prepare more effectively and set realistic expectations when exploring mortgage options.
This article provides general information only. For personalised guidance, regulated mortgage advice is required.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.