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Author: Carl Shave-Director
Updated on April 17th, 2024

Can you still get a Mortgage with missed payments?

If you have missed payments on your credit records then it is our task as a mortgage broker to obtain the finance for your needs. It will likely be a little more difficult than it would have been if you had a clean credit history.

However, as is the case with most kinds of adverse credit, missed payments do not spell the end of your search for a home loan.

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Mortgage broker for missed payments

As unlimited mortgage brokers, we are able to approach lenders from across the whole spectrum of the UK market. This includes specialist lenders you won’t see on the high street. These lenders are willing to offer deals to people with a bad credit history.

There are a few factors that these specialist lenders will bear in mind when assessing your application. Firstly, when the missed payments occurred, and what they related to, will have some bearing on whether a lender will be willing to help you. The amount of money involved will also influence their decision.

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Can I get a mortgage if I have missed payments?

There is no definite answer, it always depends on your exact circumstances and the nature of the bad credit.

We’re confident that we will be able to help you in your quest for a home loan, even if you’ve had missed payments.

As with any adverse credit issue, a diligent broker and lender will look into a number of factors, including:

  • The number of missed payments
  • The date(s) that they occurred
  • What the payments related to
  • Are they still missed, or paid off and classed as late payments?
  • Any other bad credit issues on file

In addition to this, other aspects of your circumstances will also come into play. Among these will be:

  • The amount of deposit or equity you can put on the table in relation to the property value
  • Recent and current financial behaviour
  • Current commitments and debt to income ratio
  • Proposed loan to income ratio

After taking all the above into account, the lender will have a good grasp of your affordability as well as your diligence in looking after your finances. They’ll then be able to make an informed decision about whether or not to offer you a mortgage.

How do you get a mortgage with missed payments?

Being able to demonstrate your ability to make regular repayments; for example, on other lines of credit, can help you before applying.

All lenders apply slightly different criteria for applicants from one to the next. This said, making multiple applications to a number of lenders, in the hope that one of them will be amenable to your situation, is something we would always advise against. This is because several credit checks, by these lenders, over a short period is certain to count against you.

A great starting point is to approach an expert mortgage broker who can look at your circumstances and recommend a lender. A specialist adviser will be dealing with this kind of enquiry on a routine basis. Therefore, they will have the experience and knowledge to be able to point you in the right direction fairly quickly.

It’s likely that you’ll have to look to other sources than the high street to find the mortgage you need. Why not get in touch with our team today to arrange a free, no-obligation initial consultation.


How old do missed payments need to be before I can apply for a mortgage?

There is no set-in-stone answer to this, but the general accepted rule of thumb is: the older, the better.

A string of missed payments on any form of finance three or more years ago will have a lot less impact than if they occurred within the last few months. However, the duration of time since they occurred is only half the story. The nature of the borrowing will have a bearing on how seriously a lender views the situation.

For example, missed instalments on secured loans or mortgage payments require more time to pass than those on unsecured borrowing. An unsecured borrowing method could be a credit card or phone bill. Of course, with credit records only covering the last six years, any issues fall outside the scope of a credit check after that time.

Below shows the number of missed payments generally allowed by lenders within certain periods, when taken against the loan-to-value ratio of the proposed mortgage. We have done this for both unsecured and secured loans.

Please be aware that lenders’ criteria and general priorities within the financial market will shift over time. You should contact an expert adviser to get the most up-to-date perspective on your missed payments.

Unsecured loans

LTV Missed in last 3 months Missed in last 6 months Missed in last 12 months Missed in last 24 months Missed in last 36 months Missed over 36 months ago
Up to 95% None Maximum status 2 Maximum status 2 Maximum status 2 Any Any
Up to 90% None Maximum status 2 Maximum status 2 Maximum status 2 Any Any
85% or below Any Any Any Any Any Any

Secured loans

LTV Missed in last 3 months Missed in last 6 months Missed in last 12 months Missed in last 24 months Missed in last 36 months Missed over 36 months ago
Up to 95% None Maximum status 1 Maximum status 1 Maximum status 2 Any Any
Up to 90% None Maximum status 1 Maximum status 1 Maximum status 2 Any Any
Up to 85% Maximum status 1 Maximum status 1 Maximum status 1 Any Any Any
75% or below Any Any Any Any Any Any

None – indicates no missed or late payments per credit agreement

Any – permits any number of missed or late payments per credit agreement

Maximum status 1 – this represents one missed or late payment per credit agreement

Maximum status 2 – this represents 2 missed payments per credit agreement indicating arrears. The status recorded will increase consecutively with each missed payment.

What other factors do mortgage lenders look at if I have missed payments?

The missed payments resting on your credit files are just one aspect of your whole credit record. These missed payments may be reduced in importance according to the circumstances around the bad credit and your position on a number of other factors. The other things a lender will look at include:

What they relate to. – the nature of the loan, or type of credit you missed payments for, will have an influence on a lender’s view of your case.

Your deposit or equity amount. –  how much money you are able to put on the table or show that you have already invested in property. The more deposit or equity, the lower the risk to the lender, and the better your chances will be.

Your income and what you can afford – lenders will look at the amount you need to borrow in relation to your income. As well as this, they’ll look at what you will be able to allocate from your household budgets for mortgage repayments each month. The less you borrow compared to your income, the better.

Other adverse credit issues. – if you have other bad credit items on your record that could paint a poor picture of your finances and cause an additional issue. This also works the other way. If you have a clean credit history aside from the missed payments, it can benefit you.

The number of missed payments. –  if you only have one or two missed payments, then it’s likely a lender will understand this was probably an oversight. Conversely, a string of missed payments, will be treated as a sign you struggled to manage your budgets.

The amount of time that has passed. – if your missed payments were three or more years ago, then lenders may understand that your finances are currently in a good state. However, if they were quite recent, perhaps within the last 12 months, then it could be seen as a sign you are still experiencing financial problems.

Some lenders might also take into consideration the context of the missed payments. For example, perhaps you had recently lost your job or suffered a severe injury or illness.

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Mortgage lenders if I have missed payments

With missed payments on your credit records, the chances are that you will find your options for mortgage lenders reduced. You may even have already been refused by one or two of the high street providers.

How much of an issue you actually have and which lenders you will be able to approach will depend on the nature and context of the missed payment(s). If they related to a priority debt like your mortgage and were within the last year, then you will almost certainly have a problem with most lenders.

If they were on a less-important line of credit, such as a phone bill, and occurred a few years ago, a mainstream lender may be an option.

This said, normally if your credit records feature some missed payments, it’s likely you will have to work with a specialist lender and mortgage broker. The task then becomes finding the most favourable deal amongst them to meet your needs.

Although smaller than high street banks, specialist lenders are still governed by the same regulations as their mainstream counterparts. This means your mortgage and home will be completely secure.

Many specialist lenders don’t advertise publicly, so you won’t find them in any online listings or ‘best buy’ charts. They prefer to only accept mortgage applications made through a trusted intermediary. Therefore, you’ll need to enlist the services of a broker.

If you want to learn more about your options, please get in touch with our team today. You can arrange a free, no-obligation initial discussion to get you started on your journey.

Mortgage rates if I have missed payments

When assessing all your options, if you have a clean credit record then you’ll have a broad range of providers to choose from. You will also have access to a lot more favourable rates. Unfortunately, if you have one or more missed payments, then your choices will be reduced, and rates can be a little higher.

How much higher exactly will depend on all the influencing factors around your bad credit and your current finances. The more of a risk you are viewed as, the more efforts a lender will impose to mitigate this risk.

The amount of time since the missed payment, as well as the type of missed payment, will influence the rate you’re offered. This means that the more recent and severe a payment, the higher chance of you being offered a higher interest rate. As well as a higher rate, lenders could possibly request a larger deposit or level of equity than average.

Bear in mind that a headline rate doesn’t always give you the whole picture on what you might pay in total for the mortgage. You will often find that a product with a lower rate comes with higher costs in other areas. This includes administration fees or early repayment charges.


Missed Payments FAQs

  • How many missed payments are acceptable to a mortgage lender?
  • I have missed a mortgage payment – does it matter?

There is no specific answer to this question, as different lenders adopt different criteria across the market.
Their attitude to missed payments will also depend on what debts they related to, and the amount(s) of money involved.

At a push, we could say that most lenders will accept maybe one, maximum two, missed payments on general credit or loans during the last two or three years. It’s very unlikely they will accept you if there have been any within the last 12 months.

After three years have passed, lenders generally become more forgiving, especially if you have had no further issues.

If you have any missed payments on your credit record, you should try to pay them off, so they become ‘late payments’. Lenders view late payments far less seriously than missed payments.

If in doubt, always assume that a missed payment on your mortgage will be very serious to a lender. If you’re unable to meet your current payments, lenders are likely to wonder if you will be reliable on a new mortgage.

This said, some lenders may be more forgiving than others. Specialist lenders may consider a single missed mortgage payment within the last three months if there were mitigating circumstances.

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