A missed payment on your credit file can make a mortgage application more complicated, but it does not automatically mean you cannot get a mortgage.
What matters is the full picture: what was missed, how recent it was, whether the account is now up to date, the size of the deposit, your wider credit history, income and affordability, and the lender’s own criteria.
Will one missed payment stop me getting a mortgage?
Not necessarily. Lenders assess adverse credit differently. A single historic missed payment that has since been brought up to date is not the same as ongoing arrears or a pattern of repeated missed payments.
MoneyHelper notes that recent missed or late payments are a warning sign for lenders, but their impact generally reduces as they become older. It also recommends checking your credit report before applying and correcting any errors you find.
How recent is the missed payment?
Recency is one of the first things a lender may consider. A missed payment from several years ago can be viewed differently from one recorded last month.
The type of credit also matters. A missed mobile-phone payment, credit-card payment or unsecured loan payment may be assessed differently from recent mortgage arrears. If the missed payment relates to your existing mortgage, the options can be more restricted, particularly where the account is still in arrears.
Does the reason for the missed payment matter?
It can. Lenders are interested in whether the issue appears to have been a one-off event or evidence of wider financial difficulty.
For example, a payment missed because a direct debit failed during a bank-account switch may present differently from repeated missed payments across several accounts. You may still need evidence and a clear explanation, and the lender is not obliged to accept that explanation.
What should I do before applying?
- Check all three credit reports. Make sure the information is accurate and up to date.
- Bring any outstanding arrears up to date where possible. Ongoing unpaid arrears are generally more difficult than historic satisfied issues.
- Avoid making multiple speculative applications. MoneyHelper warns that repeated credit applications in a short period can weaken your position.
- Keep recent account conduct clean. Avoid unnecessary new borrowing and missed payments while preparing for a mortgage.
- Prepare a clear explanation. If there was a genuine one-off cause, be ready to explain what happened and why the position is now different.
Will a bigger deposit help?
A stronger deposit can improve the range of options in some cases, because the lender is taking a lower loan-to-value risk. But a bigger deposit does not erase adverse credit. Affordability, the type of credit issue and the lender’s policy still matter.
What if I have more than one missed payment?
Multiple missed payments, defaults, county court judgments or recent mortgage arrears can narrow the market further. That does not necessarily mean there is no solution, but it becomes more important to understand the exact dates, amounts, status and type of each credit event before approaching lenders.
This is where a more targeted broker approach can help. Rather than applying widely, the aim should be to identify lenders whose criteria are potentially compatible with the actual credit history.
What if my previous mortgage application was declined?
Do not automatically apply somewhere else the next day. MoneyHelper recommends first understanding why the application was declined and checking your credit file before making another application.
A declined application may have been caused by credit history, affordability, employment history or another lender-specific issue. The next step should depend on the reason, not simply on finding another lender.
Can I remortgage after a missed payment?
Possibly, but recent missed mortgage payments or current arrears can make remortgaging significantly harder. MoneyHelper specifically notes that borrowers with mortgage arrears or missed mortgage payments in the previous 12 months may struggle to remortgage.
If the issue is with your current mortgage and you are struggling with payments, contact your existing lender early. Free independent debt advice may also be appropriate before considering new borrowing.
How TLA Finance can help
TLA Finance can review adverse-credit and complex mortgage cases before a full application is made. We can look at the dates and type of credit issues, current income, deposit, affordability and the wider circumstances, then assess whether there are realistic lender options worth exploring.
Read more about our adverse credit and complex mortgage service, or contact TLA Finance to discuss your circumstances.
Important: Mortgage availability and lender criteria can change. Your home may be repossessed if you do not keep up repayments on your mortgage. If you are already struggling with mortgage payments or other debts, you may benefit from free independent debt advice before taking on further borrowing. This article is general information and is not a personal mortgage recommendation.
