If you’re applying for a new mortgage with late or missed mortgage payments on your credit history, we can still help you find a lender to approve your application. However, this will depend on a number of factors including when the payment was missed or late.
At Adverse Mortgage Advisors we deal with a range of applications from those with low credit score and have access to lenders who regularly approve this type of application. Our experience and understanding of the lenders’ requirements mean we’ll do everything we can to maximise your chances of being accepted.
The information below looks at applications with mortgage arrears in more depth to help you understand the likelihood of getting a new mortgage.
Mortgage arrears are seen as the most severe type of missed payment or default. It suggests to the lender that you might struggle to repay the loan and there is a higher risk of going into default. It is important that if you start missing payments on your mortgage that you contact your current lender to explain your current circumstances as they will be keen to work with you and put a plan in place to get you back on track. Missing multiple payments on your mortgage without contacting your lender could mean that they default your account which can lead to your house being repossessed.
Specialist lenders when assessing your application will want to see evidence that your previous 24 months rental payments have been made on time and may choose to reference your current landlord. They will treat any missed rental payments with the same level of severity as missed mortgage payments.
However, depending on how long ago these missed payments were, how many times it happened and the reason why they were missed, you still have a chance of getting a new mortgage.
Adverse Mortgage Advisors specialise in mortgages with challenging credit history and understand the criteria of lenders who deal with a variety of financial situations. So, get in touch to see if we can find a solution for you.
If you don’t keep up with mortgage payments, your home could be at risk of repossession. Mortgage payments should always be your top priority when paying your bills and you should try to avoid missed mortgage payments.
If you have had a missed mortgage payment in the last 12 months and you’re applying for a new mortgage, this will be seen as a big issue for potential lenders. You won’t be able to make changes with your current lender to change the term or borrow further until the arrears have been repaid and the missed mortgage payments are six months clear.
If you’re looking to raise funds, you might still be able to get a Second Charge mortgage, however, your current arrears will need to be repaid with any of the funds raised.
Is your mortgage payment in arrears? Mortgages are considered as the most severe type of missed payment or default.
Any missed mortgage payments in the three months prior to applying for an Agreement in Principle, will prevent you getting a new mortgage.
And even if you only missed the mortgage payment by one day, lenders might still consider it a missed payment and report this as a missed payment to the credit agencies.
They’ll also look at the amount of missed payments within the past 12 or 24 months. You will also be required to have a larger deposit to support the application and interest rates will almost certainly be higher.
If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.
If you missed your mortgage payment by a day, here's what you can do:
Taking these steps can help you manage the situation and prevent further problems.
Yes, missing a mortgage payment can lower your credit score.
Payment history is crucial for your credit score, and lenders report missed payments to the credit reporting agencies. Even one late payment can have an impact, especially if it becomes a pattern.
It's important to pay on time to maintain a good credit score.
Yes, late payments will likely affect your mortgage application.
Lenders check your credit history, and late payments may make them concerned about your ability to manage debt.
While a few late payments may not stop you from getting a mortgage, a pattern of late payments could make it harder or affect the mortgage terms you're offered. It's crucial to pay bills on time to show you're financially responsible.
Yes, you can remortgage after missing a mortgage payment, but it might be harder. Lenders review your credit history, and missed payments could make them cautious.
If it's just one missed payment and you have good credit otherwise, you may still be able to remortgage, though with potentially higher rates. If you've had multiple missed payments, it could be more challenging.
It's essential to address any missed payments and work on improving your credit score before applying.
