What Happens If You Miss a Mortgage Payment? Consequences & What to Do Next
Missing a mortgage payment is something many homeowners fear, but it’s more common than people realise. Whether caused by an unexpected bill, reduced income or a banking issue, falling behind can feel overwhelming. So what happens if you miss a mortgage payment, and what steps should you take next?
This guide provides a clear explanation of the consequences, how lenders respond and what practical actions can help stabilise the situation. This article provides general information only and does not offer regulated mortgage advice.
What Counts as a Missed Mortgage Payment?
A missed mortgage payment occurs when your monthly instalment is not received by your lender on the due date. Lenders may allow a short grace period before marking the payment as missed, but this varies.
A payment is usually considered officially “in arrears” once it is one full month behind.
What Happens Immediately After You Miss a Mortgage Payment?
1. Your lender will contact you
Lenders typically reach out by:
- Letter
- Text
- Phone
The purpose is to understand what happened and whether you can make the payment quickly.
2. A late payment may be added to your account
If the payment is not made during the grace period, your lender records a late or missed payment.
3. A charge may be applied
Some lenders add arrears fees, although these must be fair and transparent.
4. Your mortgage doesn’t enter arrears straight away
You only enter arrears after being a full month behind.
A single missed payment that is then paid soon after is less serious than long-term arrears.
Does a Missed Mortgage Payment Affect Your Credit Score?
Yes. Mortgage late payments carry significant weight because they indicate difficulty meeting the most important financial commitment.
A missed payment can:
- Reduce your credit score
- Affect future mortgage applications
- Impact remortgage options
- Trigger additional checks from lenders
The impact depends on how late the payment was and whether more payments were missed afterwards.
What Happens If You Miss More Than One Payment?
If the issue continues, consequences escalate.
1. Your account goes into arrears
Once behind by one full payment, your account is classed as in arrears.
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2. Arrears notices must be issued
Lenders must send statutory notices explaining:
- How much you owe
- Your rights
- How to contact support services
3. Your credit file records ongoing arrears
Arrears markers remain on your credit record for six years, affecting:
- Mortgage approvals
- Loan applications
- Credit limits
- Credit scoring
4. Lenders may create a repayment plan
A repayment plan aims to help you gradually clear arrears while maintaining current payments.
5. Legal action becomes possible
Repossession is always a last resort. Lenders must follow strict rules and show they attempted to help you first.
Reasons Why People Miss Mortgage Payments
Lenders understand that missed payments can happen due to:
- Temporary cash-flow issues
- Reduced income or job loss
- Illness
- Increased household expenses
- Divorce or separation
- Banking errors
- Direct debit failures
- Poor budgeting
The reason matters because lenders assess whether the problem is temporary or ongoing.
What to Do If You Miss a Mortgage Payment
(General Information Only)
1. Contact your lender immediately
Early communication helps prevent escalation.
Lenders may offer:
- Short-term payment arrangements
- A revised schedule
- Temporary support options
2. Make the payment as soon as possible
Even if late, catching up quickly can prevent future issues.
3. Review your budget
Look at:
- Essential spending
- Non-essential spending
- Areas where temporary cuts can be made
4. Check for banking errors
If the missed payment was caused by a technical issue, provide evidence to your lender.
5. Avoid missing the next payment
A one-off late payment is far less serious than multiple consecutive missed payments.
6. Seek debt support if required
Independent organisations can offer guidance if your difficulty is part of a wider financial problem.
How Lenders Decide Their Next Steps
Lenders must treat customers fairly and consider individual circumstances.
Key things lenders evaluate:
1. The cause of the missed payment
Temporary issues are treated differently than long-term affordability problems.
2. Your recent financial behaviour
Lenders review:
- Bank statements
- Other debt payments
- Overdraft usage
3. Communication
Applicants who engage quickly are more likely to receive flexible arrangements.
4. Equity and property value
This helps lenders understand risk but does not replace the need to resolve arrears.
5. Your long-term ability to maintain payments
If affordability has permanently changed, lenders may explore restructuring or other solutions.
Can You Get a Mortgage in the Future After Missing Payments?
Yes — many people secure mortgages after previous missed payments, depending on:
- How long ago the missed payments occurred
- How many were missed
- Whether the account went into arrears
- How long you took to catch up
- Your recent financial behaviour
A single missed payment from years ago is very different from multiple recent arrears.
Specialist lenders often consider applicants with previous mortgage issues, provided the situation has stabilised.
Common Scenarios and Likely Outcomes
Scenario 1: One missed payment caught up immediately
Often minimal long-term impact, though your credit file may show a late payment.
Scenario 2: Two missed payments due to temporary income loss
Lenders may agree a repayment plan; impact on future borrowing depends on how quickly the account is brought up to date.
Scenario 3: Several months in arrears
Significant impact on credit file and future mortgage options; specialist lenders may still consider cases once arrears are resolved.
Scenario 4: Banking error caused the missed payment
If you correct it quickly and provide proof, lenders may treat it more leniently.
Scenario 5: Ongoing affordability issues
Lenders may explore restructuring, but long-term changes require careful assessment.
How to Reduce the Impact of a Missed Mortgage Payment
(General Information Only)
1. Catch up as quickly as possible
The faster arrears are cleared, the better.
2. Keep future payments on time
Lenders place heavy emphasis on the most recent six months of conduct.
3. Improve your bank statement stability
Aim for no overdraft reliance or returned payments.
4. Avoid taking on new credit
New borrowing can worsen affordability calculations.
5. Build a small emergency buffer
A safety net helps prevent future missed payments.
Summary
Understanding what happens if you miss a mortgage payment helps you manage the situation calmly and take the right steps. Missing a payment can:
- Trigger lender contact
- Lead to late payment charges
- Reduce your credit score
- Create arrears
- Limit future mortgage options
However, prompt communication, catching up quickly and maintaining strong financial behaviour can reduce the long-term impact significantly.
This article provides general information only. For personalised support, 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.