Why am I struggling to get a mortgage with 3 missed payments?

The FCA guidelines on what they considered to be credit impaired is when your credit accounts fall 3 months in arrears (also known as status 3). Your account will then need to be brought up to date for a minimum of 12 months before your credit impaired status is removed.

Once you have been classified as credit impaired this will affect the lenders you can approach as most lenders won’t hold the required permissions to lend to borrowers that are considered as credit impaired.  Unfortunately, this means traditional high street lenders or Building Societies won’t be able to consider your application until you account has been brought up to date for at least 12 months.

The good news is that even if you are classified as credit impaired there are still lenders that will consider your application, and this is the reason it is important to work with a bad credit mortgage specialist like us at Adverse Mortgage Advisors, as they will match you with the right lender for your circumstances to give your mortgage application the best chances of being successful.

The best way to not miss payments is to ensure that you have direct debits set up for all your commitments, and the best date to set them up for is the day after pay day, this will ensure that you have sufficient funds available, so no missed payments occur.

Back to faqs
Do you qualify for a mortgage?
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started
Can’t find what you are looking for?
Call us or complete the form on our contact page with any questions
01268 294777 Get in touch