Can I Get a Mortgage with Missed Payments?

If you’ve missed payments on a credit card, loan, mortgage, mobile phone contract or another financial commitment, you may be wondering whether getting a mortgage is still possible.

The good news is that missed payments don’t automatically mean you’ll be declined for a mortgage.

In fact, missed payments are one of the most common credit issues we see, and many people with missed payments successfully obtain a mortgage every year.

The key factors are usually how recent the missed payments are, how many there have been, what type of account they relate to and whether your finances have been managed well since.

The Short Answer

Yes, you may still be able to get a mortgage with missed payments.

Many lenders are willing to consider applicants who have experienced missed payments in the past, particularly if the issues are historic and there has been a period of good account conduct since.

Whether a lender is willing to consider your application will depend on factors such as:

• How recent the missed payments are
• How many payments were missed
• What type of account was affected
• Whether payments have since been brought up to date
• Your deposit size
• Your income and affordability
• Your overall credit profile

Every lender has different criteria, which is why one lender may decline an application whilst another may be willing to consider it.

What Is A Missed Payment?

A missed payment occurs when you fail to make the minimum payment required under a credit agreement by the due date.

Missed payments can occur on:

• Credit cards
• Personal loans
• Car finance
• Mortgages
• Mobile phone contracts
• Utility accounts
• Store cards
• Catalogue accounts

When a payment is missed, the lender may report this to the credit reference agencies, where it can appear on your credit report.

Whilst a single missed payment may not have a significant impact in some cases, multiple missed payments can become a concern for mortgage lenders.

Do Mortgage Lenders Care About Missed Payments?

Yes.

Mortgage lenders use your recent payment history to assess how you manage credit.

However, not all missed payments are viewed equally.

Lenders will often consider:

• How many payments were missed
• How recent they are
• Whether they occurred on secured or unsecured borrowing
• Whether the account is now up to date
• Whether there are any other credit issues present

A single missed payment from several years ago is usually viewed very differently from multiple missed payments over the last few months.

Does The Age Of The Missed Payments Matter?

Absolutely.

The age of the missed payments is often one of the biggest factors in determining which lenders may be available.

Missed Payments Within The Last 6 Months

Recent missed payments can be more challenging.

Some lenders may decline applications where there have been recent payment issues, whilst others may consider them depending on the circumstances.

Missed Payments Between 12 And 24 Months Old

As missed payments become older, lender options often improve.

Many lenders are more comfortable when they can see a period of good account conduct following the missed payments.

Missed Payments Over 2 Years Old

Historic missed payments generally have less impact than recent ones.

Provided there have been no further issues, lender choice can often improve significantly.

Does It Matter Which Account Had The Missed Payments?

Yes.

Different lenders may view missed payments differently depending on the type of credit involved.

For example:

Mortgage Missed Payments

Mortgage arrears are often viewed more seriously because they relate directly to a previous housing commitment.

Loan And Credit Card Missed Payments

These are common issues that many lenders encounter and may be willing to consider, depending on the circumstances.

Mobile Phone And Utility Missed Payments

Whilst still important, some lenders may view these differently to missed payments on larger credit commitments.

The overall picture is what matters most.

Why Do People Miss Payments?

One thing we’ve learned from helping clients over the years is that missed payments often happen because of genuine life events.

Common examples include:

• Divorce or separation
• Relationship breakdowns
• Redundancy
• Illness
• Maternity leave
• Business difficulties
• Cost of living pressures

A missed payment doesn’t always mean someone is financially irresponsible.

Many people experience temporary financial difficulties before getting back on track.

How Many Missed Payments Is Too Many?

There isn’t a simple answer because every lender has different criteria.

Generally speaking:

• One isolated missed payment is often easier to place than multiple missed payments.
• A series of consecutive missed payments may be viewed more seriously.
• Multiple accounts showing missed payments can reduce lender choice.

Lenders want to understand whether the missed payments were an isolated issue or part of a wider pattern.

How Much Deposit Do I Need?

Deposit requirements vary depending on the severity and recency of the missed payments.

In our experience:

• Some applicants with historic missed payments may still qualify with relatively small deposits.
• A 10% to 15% deposit often improves lender choice.
• Larger deposits can create additional options.

The deposit requirement will usually depend on the overall strength of the application.

Why Did My Bank Say No?

One of the biggest misconceptions is that if your bank declines you, nobody else will help.

Banks can only offer their own products and must follow their own lending criteria.

If your missed payments fall outside their criteria, they may have no flexibility to proceed.

Specialist lenders often take a different approach and may be willing to consider circumstances that mainstream lenders won’t.

We’ve seen many situations where applicants have been declined by a high street lender due to missed payments but later secured a mortgage through a lender whose criteria were more suitable.

What Else Do Lenders Look At?

Missed payments are only one part of the overall assessment.

Lenders will also consider:

Affordability

Can you comfortably afford the mortgage payments?

Existing Credit Commitments

High levels of debt can affect affordability calculations.

Income

Stable and sustainable income is important.

Deposit

Larger deposits generally improve lender choice.

Recent Financial Conduct

Lenders often want to see evidence that finances have been managed well since the missed payments occurred.

Common Myths About Missed Payments

“One Missed Payment Means I Can’t Get A Mortgage”

Not necessarily.

Many lenders may still be willing to consider applications with isolated missed payments.

“I Need Perfect Credit To Get A Mortgage”

This is simply not true.

Many homeowners have experienced some form of credit issue in the past.

“All Lenders Assess Missed Payments The Same Way”

Every lender has different criteria.

What one lender won’t consider, another may be willing to assess.

“I Shouldn’t Bother Applying”

Many people rule themselves out before understanding what options may be available.

Common Mistakes To Avoid

If you’re planning to apply for a mortgage, avoid:

Missing Further Payments

Maintaining accounts correctly after the missed payments is important.

Taking Out Additional Credit

New borrowing can affect affordability and potentially reduce lender choice.

Ignoring Existing Debt

Keeping commitments under control can strengthen an application.

Assuming The Problem Is Worse Than It Is

We’ve spoken to many clients who believed they had no chance, only to discover there were lenders willing to consider them.

What We’ve Learned From Helping Clients With Missed Payments

One thing that surprises many people is that missed payments alone are not always the main issue.

In many cases, affordability, existing debt levels or deposit size become more important factors.

We’ve also found that many applicants assume their missed payments have ruined their chances indefinitely, when in reality lender options often improve significantly as the missed payments become older.

Every case is different, which is why understanding the full picture is so important.

Frequently Asked Questions

Can I get a mortgage with recent missed payments?

Potentially, although lender choice may be more limited than for historic missed payments.

Can I get a mortgage with multiple missed payments?

Possibly. The number, age and type of missed payments will all be considered.

Are mortgage missed payments worse than credit card missed payments?

Many lenders view mortgage arrears more seriously because they relate directly to housing costs.

Can first-time buyers get a mortgage with missed payments?

Yes, potentially. Missed payments do not automatically prevent someone from buying their first property.

How long do missed payments affect a mortgage application?

Recent missed payments generally have the biggest impact. As they become older, lender options often improve.

Final Thoughts

Missed payments don’t automatically mean you can’t get a mortgage.

The age of the missed payments, the number involved, the type of account affected, your deposit size and your overall financial circumstances will all influence what options may be available.

The biggest mistake people make is assuming they have no chance without properly exploring their options.

Every lender assesses missed payments differently, and what one lender declines, another may be willing to consider.

If you’ve experienced missed payments in the past, don’t automatically assume homeownership is out of reach. Depending on your circumstances, there may be more options available than you think.

Disclaimer: This article is intended for general information purposes only and should not be considered financial or mortgage advice. Mortgage eligibility and lending criteria vary between lenders and individual circumstances.

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