Your mortgage deal is ending, and you need to remortgage. But you’ve missed a payment or two in the past. Will that stop you?
In many cases, no. You can still remortgage with missed payments. But your options may be narrower, and some lenders will decline. How much it matters depends on what you missed, when you missed it, and how your finances look now. Please note that this guide should be used as general guidance only. Always speak to a qualified mortgage adviser before you apply.
How missed payments affect your ability to remortgage
When you remortgage, the new lender checks your credit file. They see your payment history across all accounts. Missed payments show up with a status code that tells the lender how many months behind the payment was.
For some lenders, any missed payment in the last few years is enough to decline. Others look at the full picture and make a decision based on the circumstances. The gap between these two types of lenders is why working with a broker matters.
If you stay with your current lender, they may offer you a product transfer without a full credit check. This can be a useful option if your credit has taken a knock since you first applied. But product transfers don’t always offer the best rates.
What lenders consider if you’ve missed payments
How recent the missed payments were
A missed payment from four years ago carries far less weight than one from four months ago. Many lenders have a clean period they expect to see before lending. Some set this at 12 months. Others set it at two or three years.
The more time that has passed since the last missed payment, the better your chances of finding a lender willing to help.
The number of missed payments
One missed payment is viewed differently from five. A pattern of missed payments across multiple accounts tells a lender something different from a single slip. Isolated incidents, especially if there was a clear reason such as illness or job loss, tend to be treated more fairly by specialist lenders.
The type of credit affected
Not all missed payments are equal. Missing a payment on a mobile phone contract is a much smaller flag than missing a mortgage payment. Missing a secured loan payment sits somewhere between the two. Lenders pay close attention to what was missed, not just that something was missed.
Your current financial position
Lenders also look at where you are now. If your income is stable, your debts are under control, and your credit file has been clean for a year or more, that context matters. A difficult period in the past followed by clear recovery is a story that specialist lenders can work with.
For more on how bad credit affects mortgage applications more broadly, read our guide.
Are missed mortgage payments treated differently?
Mortgage vs unsecured credit
Yes. A missed mortgage payment is treated more seriously than a missed credit card payment. This is true even though both appear on your credit report in a similar way.
The reason for this is what the loan is secured against. Your mortgage is secured on your home. Missing a payment on it suggests you struggled to meet your biggest financial commitment. That’s a more serious signal to a lender than missing a utility bill.
Why secured lending is viewed as higher risk
When a lender agrees to a remortgage, they’re taking on secured exposure on your property. If you previously missed payments on that security, they have direct evidence that you may do so again. This is why mortgage arrears sit at the top of most lenders’ risk assessment.
Can you remortgage with recent or multiple missed payments?
High street lenders vs specialist lenders
High street lenders use automated credit scoring. If your score falls below their threshold, your application will be declined.
Specialist lenders work differently. An underwriter looks at your file. They want to understand what happened. A missed payment during a period of illness, job loss, or relationship breakdown may be treated differently from a pattern of financial carelessness. This doesn’t mean they will always say yes, but it means they’ll always look at the full picture.
When missed payments become less of an issue
Time, stability, and improvement are the three things that help most. As missed payments age, their impact reduces. As your record rebuilds, lenders see a more positive trend. As your equity grows, the risk to them falls.
A missed payment from three years ago, followed by three clean years, is a much easier application than one from six months ago. If you can wait, sometimes waiting is the right call.
How missed payments can impact your remortgage options
Fewer lenders and higher rates
The pool of lenders willing to consider your application is smaller when you have missed payments. Within that smaller pool, the rates on offer may be higher than for someone with a clean record. This reflects the greater risk the lender sees.
The difference in rate can be small. Or it can be material. It depends on how recent the missed payments are and what else is in your file. A broker can tell you what’s realistically available before you apply.
Deposit and loan-to-value (LTV) considerations
More equity helps. A lower LTV reduces the lender’s risk. This can open up more products to you, even if your credit isn’t perfect. Some specialist lenders will consider missed payments at 75% LTV that they wouldn’t consider at 90%, for example.
Understanding your LTV before you apply gives you a clearer picture of where you stand. Read our guide on how to calculate your loan-to-value ratio.
How to improve your chances of being accepted
Bring accounts up to date
If any accounts are currently in arrears, bring them up to date before you apply. Lenders look at your current position as well as your history. An active arrears situation is harder to work with than one that has been resolved.
Improve your credit profile
Check your credit file before you apply. Look for errors and get them corrected. Make sure you’re on the electoral roll. Keep existing accounts in good standing. Small, consistent steps to improve your credit score over several months build a more positive picture.
Prepare an explanation for missed payments
Specialist lenders often welcome a short explanation for credit issues. If there’s a clear reason, such as redundancy, illness, or a relationship breakdown, put it in writing. A letter explaining the circumstances and what has changed since can support your application.
Keep it brief and factual. A broker can advise on how to present this effectively.
FAQs
How long do missed payments stay on your credit file?
Six years from the date of the missed payment. After that, it’s removed and lenders cannot see them. The older a missed payment is, the less weight it carries well before the six-year mark.
How long should you wait before remortgaging?
It depends on the lender. Some high street lenders want a clean record for at least two to three years. Some specialist lenders will consider recent missed payments if the rest of the application is strong. There is no fixed answer. A broker can tell you which lenders are open to your specific situation right now.
Can you remortgage with one missed payment?
Yes, in many cases. One missed payment, especially on unsecured credit, may not stop you from remortgaging. It depends on how recent it was and which lender you approach. High street lenders may still decline. Specialist lenders are more likely to look at the full picture. One old missed payment in an otherwise strong application is unlikely to be a deal-breaker.
Final thoughts
Missed payments make remortgaging harder but rarely impossible. The right lender depends on what you missed, when, and where your finances stand now.
Pepper Money works with specialist brokers who deal with complex cases every day. They can tell you which lenders are likely to consider your application before you apply. You can find a broker through us today.
This article is for general information only. It is not financial advice. Always speak to a qualified mortgage adviser before applying.