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.
Can You Get a Mortgage with Missed Payments?
Yes. Many people with missed payments can still get a mortgage.
Mortgage lenders will usually consider:
- How recent the missed payments are
- How many payments were missed
- Which account they relate to
- Whether the account has since been brought up to date
- Your deposit
- Your income and affordability
- Your overall credit history
Having missed payments does not automatically mean your mortgage application will be declined. Many lenders assess the overall picture rather than focusing on one issue alone.
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:
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- 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.
Missed Payments at a Glance
| Missed payment history | Typical lender appetite |
|---|---|
| Within the last 6 months | Limited |
| 6–12 months ago | Improving |
| 1–2 years ago | Wider choice |
| More than 2 years ago | Often significantly more options |
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.
Lenders often look at the context behind the missed payments as well as the account involved. For example, a single missed mobile phone payment from several years ago may be viewed very differently from recent missed mortgage payments or repeated missed credit card payments.
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.
Example
Applicant A has:
- One missed credit card payment from three years ago
- All accounts now up to date
- A 10% deposit
- Stable employment
Applicant B has:
- Four consecutive missed loan payments within the last three months
- Two accounts still in arrears
- A 5% deposit
Although every application is assessed individually, lenders are generally more likely to view Applicant A more favourably because there is evidence of sustained good financial management since the missed payment.
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.
Before Applying for a Mortgage with Missed Payments
✔ Check all three credit reports.
✔ Bring any overdue accounts up to date where possible.
✔ Avoid any further missed payments.
✔ Keep existing borrowing under control.
✔ Save as much deposit as possible.
✔ Understand which lenders may be suitable before making an application.
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 one missed payment?
Potentially, yes. A single historic missed payment is often viewed much more favourably than repeated or recent missed payments.
Can I get a mortgage with recent missed payments?
Possibly, although lender choice may be more limited. Some lenders assess recent missed payments more cautiously than older ones.
Are missed mortgage payments treated differently?
In many cases, yes. Missed mortgage payments often receive greater scrutiny because they relate directly to previous housing costs.
Can I get a mortgage with multiple missed payments?
Potentially. Lenders will usually consider how many payments were missed, how recent they were and whether your finances have been managed well since.
Will missed payments affect my interest rate?
They can do. Some applicants with recent or more significant missed payments may have fewer products available and could be offered higher interest rates than borrowers with a clean credit history.
How long do missed payments affect a mortgage application?
Recent missed payments usually have the greatest impact. As they become older and your financial conduct improves, more lenders may become willing to consider an application.
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.
One of the most common misconceptions is that missed payments automatically prevent someone from getting a mortgage. In reality, lenders usually assess the wider financial picture.
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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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.