---
title: "Mortgages with Missed Payments, Late Payments and Arrears"
description: "Mortgages with missed payments: how lenders weigh late payments by number, age and account, mortgage arrears, arrangements to pay, Breathing Space and timing."
url: "https://mortgagelane.com/mortgages/mortgages-with-missed-payments"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-10-06"
author: "Joseph Lane"
category: "Mortgages"
reviewed: "2026-10-08"
reading_time: "48 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Mortgages with Missed Payments, Late Payments and Arrears

Mortgages with missed payments: how lenders weigh late payments by number, age and account, mortgage arrears, arrangements to pay, Breathing Space and timing.

Mortgages with missed payments: how lenders weigh late payments by number, age and account, mortgage arrears, arrangements to pay, Breathing Space and timing.

[Missed payment (late payment marker)](https://mortgagelane.com/definitions?term=missed-payment)

Lending and affordability

A payment not made as agreed, which the lender reports to the credit reference agencies as a status number for each month the account is behind.

[Read the full definition of Missed payment (late payment marker)](https://mortgagelane.com/definitions?term=missed-payment)

## Expert advice on mortgages with missed payments

Speak to a Mortgage Lane adviser about your options.

## In short

Yes, you can get a mortgage with missed payments: a late payment mortgage is an ordinary mortgage from a lender whose rules accept your history. Lenders weigh the number of late payments, how recent they are, how far behind each account fell and whether any was on a mortgage. An isolated late payment from years ago may matter little, while recent mortgage arrears can mean a specialist lender and a lower maximum loan to value.

## What is a mortgage with missed payments?

**A mortgage with missed payments, often called a late payment mortgage, is an ordinary residential or buy to let mortgage from a lender whose credit scoring or written criteria accept the late payments on your credit file.** There is no separate product. Which lenders will consider the case turns on how recent the late payments are, how many there were and what they were on. A light history can fit a high street lender's standard products, while a heavier or more recent one can mean a [specialist lender](https://mortgagelane.com/definitions#def-specialist-lending), which prices for the credit history and may lower the maximum [loan to value (LTV)](https://mortgagelane.com/definitions#def-loan-to-value).

Late payments usually stay on a credit file for six years, but lenders give the most weight to the most recent. A single late payment two or three years ago, on an account since brought up to date, may fall within some high street lenders' criteria, while several missed mortgage payments in the last year can narrow the choice to specialist lenders. Lenders read the file line by line, and the dates, the amounts, the status codes and whether each account is now up to date decide which of them fit.

A [missed payment](https://mortgagelane.com/definitions#def-missed-payment) is the lightest entry in [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit). When a payment is not made as agreed, the lender reports the account to the [credit reference agencies](https://mortgagelane.com/definitions#def-credit-reference-agency) as being in arrears, with a status number for each month that rises as the arrears grow. It is a different entry from a [default](https://mortgagelane.com/definitions#def-credit-default), which a lender records when it treats the agreement as broken down, and from a [county court judgment (CCJ)](https://mortgagelane.com/definitions#def-county-court-judgment), which a court enters. If your history went on to a default or a judgment, our pages on [mortgages with defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) and [CCJ mortgages](https://mortgagelane.com/mortgages/ccj-mortgages) cover those cases. Lenders judge a missed payment on a mortgage or secured loan more strictly than one on a credit card, a phone contract or a utility bill.

A mortgage on a home you or a close relative live in is normally a [regulated mortgage contract](https://mortgagelane.com/definitions#def-regulated-mortgage), covered by the Financial Conduct Authority's mortgage conduct rules ([MCOB](https://handbook.fca.org.uk/handbook/mcob)), and the lender must assess [affordability](https://mortgagelane.com/definitions#def-affordability) as well as your credit history. Most [buy to let mortgages](https://mortgagelane.com/definitions#def-buy-to-let-mortgage) are not regulated by the FCA, apart from [consumer buy to let](https://mortgagelane.com/definitions#def-consumer-buy-to-let-mortgage), and lenders usually assess them on the rent.

Mortgage Lane helps buyers and homeowners get a mortgage with missed payments on file, for purchases and [remortgages](https://mortgagelane.com/definitions#def-remortgage), first-time buyers, joint applications where one applicant has the late payments, and buy to let. That includes a mortgage with late payments on credit cards, loans, car finance, phone contracts, utilities, a mortgage or a secured loan, whether there was one or several and whether they are recent or old. We also help where the file shows [arrangement to pay](https://mortgagelane.com/definitions#def-arrangement-to-pay) markers or payment holidays, or late payments alongside defaults, county court judgments or other adverse credit.

This page is about a new mortgage or a remortgage with missed payments on your record. If you are behind on your mortgage now, speak to your lender first. Under the FCA's rules a lender must deal fairly with a customer who has or may have payment difficulties on a regulated mortgage ([FCA Handbook, MCOB 13.3](https://handbook.fca.org.uk/handbook/MCOB/13/3.html)), and MoneyHelper explains the help available, including free debt advice ([MoneyHelper: help with mortgage payments](https://www.moneyhelper.org.uk/en/homes/buying-a-home/government-help-if-you-cant-pay-your-mortgage)).

## Missed payment mortgage rates

**Missed payment mortgage rates are set by each lender, and the price follows from how the lender places your history.** Where a lender's standard scoring and criteria accept it, the case can go on that lender's usual products, priced by loan to value like any other application. Where they do not, the case goes to a specialist lender, which sets its own price and maximum loan to value for the history. Specialist pricing usually steps up as the history gets heavier or more recent, and a late payment on a mortgage counts for more than one on a card. Pricing also depends on the loan to value, so a bigger deposit can open cheaper products and more lenders.

Lenders count late payments within set periods before the application, so the same file can move to a lighter tier as its late payments age, with a cheaper rate and a higher maximum loan to value. The timing of an application or a remortgage therefore matters, as does the length of a [fixed rate](https://mortgagelane.com/definitions#def-fixed-rate-mortgage). A fix that ends after the late payments have moved into an older period can open more lenders at the remortgage. An [early repayment charge](https://mortgagelane.com/definitions#def-early-repayment-charge) can apply if you leave a fixed rate early, so it is worth matching the end of the fix to the point where the history will look lighter. Our [fixed term mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) page explains how fixed rates work.

**Late payments on your file?** Get in touch with a full credit report from each agency, showing the month of each late payment, how far behind the account fell and which account it is on. We match lenders to those dates, accounts and amounts, and a late payment on a mortgage narrows the choice most.

## Missed payment mortgage criteria

**Each lender sets its own rules on missed payments and can change them at any time.** The rows below show what lenders look at and how their rules vary. The credit file rows come from the credit industry's published reporting principles, the Information Commissioner's Office (ICO) and MoneyHelper; the affordability and remortgage rows from the FCA's rules; the scheme row from HM Treasury's 2025 [Mortgage Guarantee Scheme](https://mortgagelane.com/definitions#def-mortgage-guarantee-scheme) rules; and the buy to let row from the Prudential Regulation Authority. The loan to value and income figures are Mortgage Lane's experience on the cases we arrange, not a market rule. Checked 8 October 2026.

## Missed payment mortgage criteria

*Missed payment mortgage criteria*

| Criterion | How it varies |
| --- | --- |
| Number and recency | The time since the most recent late payment is the main test. Lenders count missed payments within set periods before the application, such as the last 12, 24 or 36 months, and recent late payments weigh more than old ones. Some lenders count the accounts affected, others the months in arrears. Some accept none in the most recent period; others accept several at a lower loan to value. |
| Severity | The status number shows how many months behind the account fell. One month behind reads lighter than three months, higher status codes weigh more, and an account that went on to default is assessed under the lender's default rules. |
| Current status | An account brought back up to date reads better than one still in arrears, and the monthly record shows when it caught up. Some lenders want arrears that are still outstanding cleared before they lend. |
| Account type | Cards, loans and car finance are assessed under the lender's unsecured credit rules. Some lenders disregard phone and utility late payments; others count them. Some lenders set their own, stricter limit for mortgage and secured loan arrears. |
| Amount | Some lenders disregard small arrears on minor accounts, such as a phone or utility bill, below a level they set; others count every late payment. Lenders set their own limits. |
| Mortgage arrears | Some lenders set a separate limit on missed mortgage or secured loan payments within set periods. Some lenders accept none in recent years; specialist lenders that accept some limit how many months and how recently. |
| Arrangement to pay | Lenders differ on whether a current or recent arrangement counts as adverse credit, and for how long after it ends. |
| Loan to value | In our experience adverse credit usually means a 90% maximum loan to value. A 95% mortgage depends on the lender's scoring and criteria accepting the history, and heavier or more recent histories can mean a lower maximum set by the lender. |
| Affordability | On a regulated mortgage the lender must assess whether you can afford the payments before it lends, under MCOB 11.6.2R. Payments on current debts count against income; in our experience the standard is 5 times gross income less outgoings, up to 6 for professionals and specialist products. |
| Mortgage Guarantee Scheme | Scheme rule: a borrower who owed three months' payments or more on a mortgage or other loan in the two years before completion is credit-impaired and outside the scheme. |
| Other adverse credit | Defaults, CCJs, a debt management plan, an IVA or bankruptcy are assessed alongside the missed payments under the lender's full credit policy. |
| Joint applications | Both applicants' credit files are checked, and the lender applies its rules to the heavier history. |
| Remortgage | A remortgage to a new lender is assessed like a purchase. A product transfer with no extra borrowing and no change that matters to affordability needs no new affordability assessment under MCOB 11.6.3R. |
| Buy to let | Assessed mainly on the rent under the PRA's buy to let underwriting standards, with the lender's credit rules applied to the borrower. Some specialist buy to let lenders accept missed payment histories. |
| Disputed entries | A late payment reported in error can be corrected by the lender or the credit reference agency, and an entry under investigation is marked as disputed. A notice of correction of up to 200 words can explain an entry. |
| After six years | Negative information such as a missed payment usually stays on the credit report for six years, and each late month drops off in turn. |

Credit file rows from the published reporting principles, the ICO and MoneyHelper; affordability and remortgage rows from FCA rules MCOB 11.6.2R and 11.6.3R; Mortgage Guarantee Scheme row from the 2025 scheme rules; buy to let row from the PRA's SS13/16. The 90% figure and the income multiple are Mortgage Lane's experience, not market rules. Each lender's current criteria and underwriting decide a case. Checked 8 October 2026.

## How the credit file records a missed payment

**Lenders that report to the credit reference agencies update each account every month, and a missed payment shows against that month as a status number counting the months the account is behind.** The credit industry's [Principles for the Reporting of Arrears, Arrangements and Defaults](https://www.cigb.co.uk/wp-content/uploads/2026/07/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-v2a.pdf), drawn up with the ICO, say that conduct outside the terms of the agreement is reported through status codes such as 1 and 2, based on the account's monthly performance. Arrears should generally rise by one month at a time, and the highest code is 6. The file records how late each payment was as well as when: a payment one month behind shows as 1 for that month, and an account three months behind shows as 3. If you catch up, the lower status shows in the next monthly update, and the earlier months still show what happened.

A default is a separate, later step. As a general guide, the principles say a default may be recorded once an account is 3 months in arrears, and normally by the time it is 6 months in arrears, after the lender has given at least 28 days' notice of its intention. Secured and long-term loans such as mortgages are an exception and may be defaulted later, so a mortgage can show several months of arrears with no default. The ICO's guide to credit files describes a default the same way, as normally occurring when an account is three to six months in arrears, and says a defaulted account can show for six years from the date of the default ([ICO: Credit explained](https://ico.org.uk/media2/migrated/1282/credit-explained-dp-guidance.pdf)).

Negative information such as a missed payment usually stays on your credit report for six years, and an accurate entry cannot be removed sooner ([MoneyHelper: how to improve your credit score](https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-improve-your-credit-score)). Each late month is its own entry, so a run of late payments drops away one month at a time. A closed account stays on the file for six years from the date it closed.

The three large credit reference agencies are Experian, Equifax and TransUnion, and MoneyHelper also lists Crediva as a fourth agency that provides a statutory credit report. The agencies hold separate files: the FCA's credit information market study found that some lenders did not share data with all three large agencies, and that the files the three held differed materially, including on the information that matters most to a lending decision ([FCA Credit Information Market Study, December 2023](https://www.fca.org.uk/publication/market-studies/ms-19-1-3.pdf)). A lender can therefore see a different history from the one on the report you checked.

## Types of late payment, and how each is assessed

**One late payment two years ago and three last winter are different cases, and a late payment on a credit card and one on a mortgage are different again.**

### A single late payment

A single late payment on an account since brought up to date is the lightest case. Lenders give it even less weight once it is more than a year old and the account has been paid on time since, because recent history counts most. A one-month late payment on a card or a phone contract a year or more ago may not change the outcome, and some lenders' scoring may accept a more recent one. One in the last few months can still fail a high street score, so check which account it sits on before you apply.

**Get in touch** with your credit reports from each agency.

### Several late payments on unsecured credit

Two or more late payments on credit cards, personal loans or car finance narrow the choice most when they fall in the last one to two years. Several in the last 12 months are more likely to fail a high street score and can place the case with a specialist lender at a lower maximum loan to value. Specialist lenders accept them more readily as they age. If the purchase can wait, each month of on-time payments moves the late payments further back into an older period.

**Get in touch** with the dates and the accounts.

### Late payments more than two years old

Late payments more than two years old, with on-time payments since, weigh less and fall within more lenders' limits, and each one leaves the file after six years. At this age anything that followed the late payments, such as a default or a CCJ, usually matters more to a lender, so check the whole report.

**Get in touch** with the full report, including anything that followed the late payments.

### Missed mortgage or secured loan payments

Lenders treat a late payment on a mortgage or secured loan as the most serious kind, because it shows difficulty with the same type of commitment as the loan you are applying for. They can assess it separately from unsecured credit, and more strictly. Some lenders accept no mortgage arrears within a set period before the application, and specialist lenders that accept them limit the number of months in arrears and how recent they are. Recent mortgage arrears can leave only specialist lenders, and some lenders want any outstanding arrears cleared before they lend. A bigger deposit widens the choice, because the lenders that accept recent mortgage arrears can set a lower maximum loan to value.

If you are behind on a mortgage now, contact the lender holding it first. MoneyHelper's debt adviser locator finds free and confidential debt advice ([MoneyHelper: help if you're struggling with debt](https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/help-if-youre-struggling-with-debt)).

**Get in touch** with your mortgage statements.

### Late payments on utilities, phones and other bills

Under the credit industry's reporting principles, phone and broadband contracts and gas, electricity, oil and water accounts can be reported to the credit reference agencies, while pay as you go products and prepaid meters generally are not. Lenders count late payments on these accounts, although some weigh them less than late payments on credit agreements and some disregard small amounts below a level they set. Bringing the account up to date reduces their effect, and the lender assesses an account that went on to a default under its default rules.

**Get in touch** with the accounts concerned.

### Late payments alongside other adverse credit

Where late payments led to a default, a county court judgment or an insolvency, the lender assesses them together with those entries under its full credit policy, and the more serious entry can decide which lenders fit. A [debt management plan](https://mortgagelane.com/definitions#def-debt-management-plan) is marked on each account it covers, and lenders assess an [individual voluntary arrangement](https://mortgagelane.com/definitions#def-individual-voluntary-arrangement) or a [bankruptcy](https://mortgagelane.com/definitions#def-bankruptcy) under their rules for formal insolvency. Our pages on [mortgages with defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults), [CCJ mortgages](https://mortgagelane.com/mortgages/ccj-mortgages), [IVA mortgages](https://mortgagelane.com/mortgages/iva-mortgages) and [mortgages after bankruptcy](https://mortgagelane.com/mortgages/bankruptcy-mortgages) cover each of those.

**Get in touch** with your full credit history, including anything that has since been settled or satisfied.

### Missed payments and a 95% mortgage

On the cases we arrange, adverse credit usually means a 90% maximum loan to value, so a 5% deposit and recent late payments are a difficult combination. A [95% mortgage](https://mortgagelane.com/mortgages/95-percent-mortgages) depends on the lender's scoring and criteria accepting the history, which is most likely with an isolated late payment that is more than a year old.

The government's Mortgage Guarantee Scheme, permanently available from July 2025 for loans above 90% and up to 95% loan to value, has its own credit test. Under Schedule 2 of the 2025 scheme rules, a borrower who owed overdue payments equal to three months' payments on a mortgage or other loan, secured or unsecured, in the two years before completion is credit-impaired, and the loan is outside the scheme ([GOV.UK: 2025 Mortgage Guarantee Scheme](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme)). Arrears that reached that level because of an error by a bank or another third party do not count. A late payment that never reached three months' worth of arrears does not, on its own, make a borrower credit-impaired under the scheme. Each lender applies its own credit criteria on top.

A larger deposit, a [gifted deposit](https://mortgagelane.com/definitions#def-gifted-deposit) or a family springboard arrangement can bring the loan down to a [90% LTV mortgage](https://mortgagelane.com/mortgages/90-ltv-mortgages) or an [85% LTV mortgage](https://mortgagelane.com/mortgages/85-ltv-mortgages), where more products are open to a history with late payments. Our [family help mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) page compares the ways relatives can help.

**Get in touch** with your deposit and the dates of the late payments.

### Joint mortgage where one applicant has missed payments

On a [joint mortgage](https://mortgagelane.com/definitions#def-joint-mortgage) the lender checks both applicants' credit files and applies its rules to the heavier history, so one applicant's late payments decide which lenders fit. That leaves a joint application to a lender whose limits accept those payments, or a sole application by the applicant with the clean file, which works only if that income supports the loan on its own, as our page on [single person mortgages](https://mortgagelane.com/mortgages/single-person-mortgages) explains. Where the two of you share a joint account or have applied for credit together, the ICO says the credit file shows a [financial association](https://mortgagelane.com/definitions#def-financial-association), and a lender looking at it can also see financial information in the other person's name. On a [JBSP mortgage](https://mortgagelane.com/mortgages/jbsp-mortgages), short for [joint borrower sole proprietor](https://mortgagelane.com/definitions#def-joint-borrower-sole-proprietor), the lender also checks the credit of every borrower on the loan, so that route does not take the late payments out of the assessment.

**Get in touch** with both applicants' credit reports.

### Remortgaging with missed payments

A new lender assesses a remortgage as it would a purchase, including a fresh look at your credit file. A [product transfer](https://mortgagelane.com/definitions#def-product-transfer) to a new deal with your current lender, with no extra borrowing and no change that matters to affordability, does not need a new affordability assessment under the FCA's rules ([MCOB 11.6.3R](https://handbook.fca.org.uk/handbook/MCOB/11/6.html)). It can suit a borrower who has kept up the mortgage payments and whose late payments are on other accounts. Our page on [remortgaging with bad credit](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) compares a product transfer with switching lender. Extra borrowing to clear the accounts behind the late payments is [debt consolidation](https://mortgagelane.com/definitions#def-debt-consolidation), which turns unsecured debt into debt secured on your home, often over a longer term, so it can cost more overall; our page on [debt consolidation mortgages](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) covers how lenders assess it.

**Get in touch** with your current mortgage statement and the date your deal ends.

### First-time buyers with missed payments

A first-time buyer with a light history can use [shared ownership](https://mortgagelane.com/definitions#def-shared-ownership), the Mortgage Guarantee Scheme or family help with lenders whose scoring accepts the late payments. Heavier histories limit those routes to lenders whose criteria accept them, generally at a lower maximum loan to value. On the cases we arrange, shared ownership needs a minimum 10% deposit on the share, which is a 90% maximum loan to value on the share, as our page on [shared ownership mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages) sets out. The [first-time buyer mortgage guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) compares the schemes.

**Get in touch** with your deposit, any family help and your credit reports.

### Buy to let with missed payments

Buy to let lenders whose criteria accept the history may consider older or lighter late payments, and specialist buy to let lenders consider more recent ones, often at a higher rate and with a larger deposit. Lenders assess the loan mainly on the rent, under the Prudential Regulation Authority's [supervisory statement SS13/16](https://mortgagelane.com/definitions#def-supervisory-statement-ss13-16) ([Bank of England: underwriting standards for buy to let mortgage contracts](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss)), and the credit history sets the price and the maximum loan to value. They can apply their mortgage arrears limits to buy to let applications as well, so late payments on an existing mortgage, residential or buy to let, can weigh more than late payments on a card. Our page on [bad credit buy to let mortgages](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) covers landlords with adverse credit, and the [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) explains how rent and structure affect what a landlord can borrow.

**Get in touch** with the rent, the property and your credit reports.

For a 95% loan under the 2025 Mortgage Guarantee Scheme, falling three months' payments behind on a mortgage or other loan in the two years before completion makes a borrower credit-impaired; a late payment that never reached that level does not do so on its own.

## Why recency matters most, and how lenders assess missed payments

**A late payment usually stays on a credit file for six years, but its weight in a mortgage application falls with every month that passes.** MoneyHelper notes that the most recent information on a credit report has the most impact, because lenders are interested in your current situation, and Experian says a late payment's effect on a credit score reduces as the record ages ([Experian: late payments](https://www.experian.co.uk/consumer/guides/late-payments.html)). Lenders count late payments within set periods before the application, such as the last 12, 24 and 36 months, and each lender chooses its own periods and limits. One late payment four years ago and the same payment four months ago are different cases, even though both show on the file. An application made just after a late payment moves out of a lender's period can fit a lighter tier with that lender.

High street lenders run applications through automated credit scoring alongside their written credit policy, and a case that passes then goes to [underwriting](https://mortgagelane.com/definitions#def-underwriting). An isolated late payment from several years ago may make little difference to a score. A recent one can be enough to fail it on its own, and several in the last year are more likely to. Scorecards differ between lenders, so one lender can decline a history that another accepts. If a lender has already turned you down, our guide to a [mortgage declined due to late payment](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-due-to-late-payment) covers what the lender saw and what to check next.

Specialist lenders work from written limits, for example on the worst status reached and the number of late payments in each period, with a maximum loan to value and a price for each band. They consider histories that a high street score declines, and the rate and the deposit reflect that.

How the accounts have run since the late payments also counts. A record of on-time payments on every account since the last late payment is the evidence lenders look for, and the longer that record, the more lenders may consider the case. An explanation of what happened, for example an illness or a gap between jobs that has since passed, helps once an underwriter reads the file; automated scoring does not take it into account.

## Which late payments matter more

**The account a late payment is on changes how it reads, and missed payments on a mortgage or secured loan weigh most because they are the same kind of commitment as the loan you are applying for.** A mortgage is a priority bill, because falling behind on it can end in repossession, so a lender reads a missed mortgage payment as a sign that other commitments were already under strain. At the other end, some lenders disregard late payments on phone and utility accounts, or treat them more lightly than credit. The table sets out how lenders can weigh each kind of account.

## Which late payments matter more

*Which late payments matter more*

| Account type | On the credit file | How lenders can weigh it |
| --- | --- | --- |
| Mortgage or secured loan | Reported monthly as status codes; a mortgage may be defaulted later than unsecured credit | Most heavily, as the same type of commitment as the new loan. Some lenders set a separate, stricter limit and accept none within a set period. |
| Personal loans, car finance and credit cards | Reported monthly as status codes | Counted under the lender's unsecured credit rules; recent or repeated late payments weigh most. |
| Buy now pay later and catalogue accounts | Missed payments can be recorded, depending on the provider | Counted like other unsecured credit. The weight varies by lender, and repeated missed payments across several accounts count against an application. |
| Mobile phones, broadband and utilities | Contract and subscription accounts can be reported; pay as you go products and prepaid meters generally are not | Some lenders disregard late payments on them or small amounts below a level they set; others count them as unsecured credit. |
| Student loans | Student Loans Company loans do not appear on credit reports; private student loans do | Repayments on income above the plan threshold, through payroll or Self Assessment, can count in affordability. A private student loan is read like any other loan. |

How lenders can treat each kind of account, in general terms, not any lender's rule; each lender's criteria decide a case. Credit file column from the credit industry's reporting principles and Experian's guides to buy now pay later and student loans. Checked 8 October 2026.

The FCA has regulated deferred payment credit, often known as buy now pay later (BNPL), since 15 July 2026 ([FCA: buy now pay later](https://www.fca.org.uk/consumers/buy-now-pay-later)). Experian says that, depending on the lender, missed payments on BNPL accounts can be recorded on your credit report and seen by other lenders, and that some BNPL purchases appear on it too ([Experian: buy now pay later](https://www.experian.co.uk/consumer/loans/guides/buy-now-pay-later.html)). Several BNPL accounts with late payments read like repeated late payments on other unsecured credit.

A [student loan](https://mortgagelane.com/definitions#def-student-loan-repayment-plan) from the Student Loans Company does not appear on a credit report, although lenders may ask about it when you apply for a mortgage ([Experian: student loans and your credit score](https://www.experian.co.uk/consumer/guides/does-your-student-loan-affect-your-credit-score.html)). For an employee, the repayment is taken through payroll as a percentage of pay above the threshold for their repayment plan and shows on the payslip, which is how it enters the affordability assessment, as our page on [mortgages for teachers](https://mortgagelane.com/mortgages/mortgages-for-teachers) explains. A self-employed borrower repays through Self Assessment instead ([GOV.UK: how to repay your student loan](https://www.gov.uk/repaying-your-student-loan/how-you-repay)). A private student loan from a bank or another lender is reported to the credit reference agencies like any other loan, and late payments on it count in the same way.

## Arrangements to pay, payment holidays and Breathing Space

**An arrangement to pay, a payment holiday and a [Breathing Space](https://mortgagelane.com/definitions#def-breathing-space) are each recorded differently from a missed payment, and lenders read each in its own way.**

### Arrangement to pay

An arrangement to pay is recorded when you and a lender agree a temporary reduced payment, and the record has to show that the account is on special terms. While you keep to it, arrears may still be calculated against the original terms, but a default will not normally be recorded. An arrangement shows that the full contractual payment could not be met, and lenders differ on whether they treat a current arrangement as adverse credit, how long after it ends they will lend and at what maximum loan to value. An arrangement that ended some years ago may weigh little. Finishing it and returning to the full payment before you apply can widen the choice, and a lender will want the dates it started and ended.

### Payment holidays

A payment holiday agreed with the lender is not the same as a missed payment, but lenders may ask about it. Payment deferrals agreed under the FCA's coronavirus guidance, which covered deferrals up to 31 July 2021, were not to be reported as a worsening status on the credit file, although the FCA noted that lenders may take other information into account in future lending decisions ([FCA: payment deferral guidance, November 2020](https://www.fca.org.uk/publication/finalised-guidance/mortgages-coronavirus-payment-deferral-guidance.pdf)). Other payment holidays are reported according to the lender's terms. Under the reporting principles, a payment holiday or a temporary switch to interest only that is not part of the product's own terms can be recorded as an arrangement, in the same way as an arrangement to pay. Our guide to a [mortgage declined due to a payment holiday](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-due-to-payment-holiday) covers how lenders have treated them.

### Breathing Space

Breathing Space, the Debt Respite Scheme in England and Wales, gives someone getting debt advice legal protection from most creditor action for up to 60 days, with most interest and charges on the debts frozen; a mental health crisis breathing space lasts for the crisis treatment plus 30 days. A debt adviser applies for it, and the Insolvency Service keeps a private register of people in one, which is not published. Starting one should have no automatic effect on the credit file and leaves no flag once it ends, but lenders that report payments can keep doing so, and payments not made during it can still show as late. You have to keep up ongoing liabilities, such as a mortgage on your home, if you can ([GOV.UK: Breathing Space guidance for creditors](https://www.gov.uk/government/publications/debt-respite-scheme-breathing-space-guidance/debt-respite-scheme-breathing-space-guidance-for-creditors)). A mortgage lender then assesses any late payments from the period in the usual way, by recency and severity.

Scotland has its own moratorium. Once accepted, it gives six months' protection from creditors arresting your bank account, freezing your wages or applying to make you bankrupt; it does not stop interest and charges, and it appears on the public Register of Insolvencies ([mygov.scot: apply for a moratorium](https://www.mygov.scot/apply-for-moratorium)). The Breathing Space regulations apply to England and Wales only, so they do not cover Northern Ireland. Mortgage Lane does not give debt advice; MoneyHelper's debt adviser locator lists free advisers.

Breathing Space in England and Wales protects someone getting debt advice from most creditor action for up to 60 days and leaves no flag once it ends, but any payment missed while it runs can still appear as late on the credit file.

## What helps before you apply

**The late payments already on the file are fixed, but the months before an application can still change which lenders fit.**

- **Check every agency's file.** Experian, Equifax, TransUnion and Crediva each give a free statutory report, and lenders use one or more of them, so it is better to find a late payment you have not seen before a lender does.
- **Bring accounts up to date.** An account still in arrears weighs more than one that was late and is now up to date, and the lower status shows in the next monthly update.
- **Correct errors.** You can dispute an inaccurate late payment with the lender that reported it and with the agency, as set out below.
- **Explain a genuine reason.** A notice of correction can explain an accurate entry, such as late payments during an illness or after a bank error.
- **Time the application.** Where the purchase can wait, apply once the latest late payment has moved out of the period counted by the lenders that suit your case.
- **Avoid new credit and further late payments.** MoneyHelper says too many [hard credit checks](https://mortgagelane.com/definitions#def-credit-search) in a short space of time can harm your credit score, and a new late payment becomes the most recent one lenders count.

### Disputed entries and notices of correction

If a late payment is wrong, for example a payment you made on time, a Direct Debit the lender failed to collect or an account that is not yours, ask the lender or the credit reference agency to correct it. The ICO says the agency will normally need to ask the lender to investigate, so going to the lender directly can be quicker, and the lender has one calendar month to respond. While the agency investigates, MoneyHelper says the entry is marked as disputed and lenders should not rely on it. Under section 159 of the Consumer Credit Act 1974 an agency has 28 days to tell you whether it has removed or amended an entry or taken no action, and within 28 days of its reply, or of that deadline passing, you can ask it to add a notice of correction of up to 200 words ([Consumer Credit Act 1974, section 159](https://www.legislation.gov.uk/ukpga/1974/39/section/159)). If the lender and the agency will not correct an error, you can complain to the ICO ([ICO: credit](https://ico.org.uk/for-the-public/credit/)).

A notice of correction can also explain an entry that is accurate, such as late payments during an illness. MoneyHelper notes that it does not change your credit score and that lenders read it manually, which can slow an application, so correct any error before you apply. Our [low credit score mortgages](https://mortgagelane.com/mortgages/low-credit-score-mortgages) page covers what lenders see beyond the score, including the [electoral roll](https://mortgagelane.com/definitions#def-electoral-roll), credit use and searches.

## How a late payment mortgage is arranged

1. **Credit reports.** Reports from every agency, read line by line: the month of each late payment, the status it reached, the account it is on and whether it is now up to date, with any arrangement, payment holiday, default or CCJ, any error to correct first and a short explanation of what happened.
2. **Lender match.** The history set against each lender's limits on number, recency, severity and account type, including any separate limit on mortgage arrears, then the maximum loan to value and pricing for that history, with the deposit and income checked.
3. **Agreement in principle.** An [agreement in principle](https://mortgagelane.com/definitions#def-agreement-in-principle) from a matched lender with the late payments disclosed. Some lenders run it on a soft search first.
4. **Application with disclosure.** The full application with the late payments disclosed accurately, an explanation and evidence where it helps, then the valuation and underwriting.
5. **Offer, completion and the next step.** The offer and completion, with a product term chosen so the next remortgage falls after the late payments have aged past the periods lenders count.

We check the lenders' current criteria against your reports before an application goes in, and the lender makes the final decision.

## The same late payments over time: the arithmetic

**The same credit file moves through lenders' periods as its late payments age, so the timing of an application can matter as much as the history, and the deposit then decides which maximum loan to value you can work with.**

### Step 1. The file

An illustrative borrower missed two credit card payments and one mortgage payment during a period of illness, each one month behind, and all three accounts are now up to date. The most recent missed payment, the mortgage payment, was in October 2025. Lenders judge late payments inside rolling periods before the application, and the periods roll forward every month, so the same file reads differently as time passes. The table shows how lender rules can differ in each period.

## Step 1 figures: the periods lenders count

*Step 1 figures: the periods lenders count*

| Period before the application | How lender rules can differ |
| --- | --- |
| Last 6 months | The most recent history counts most. Some lenders decline any late payment here; a specialist lender may consider one at a lower maximum loan to value. |
| Last 12 months | Some lenders accept no late payments or one in this period. Specialist lenders may accept more, with the maximum loan to value falling as the count rises. |
| 12 to 24 months | Older late payments weigh less, and more lenders' limits may accept one or two, especially with on-time payments since. |
| 24 to 36 months | Some lenders still count late payments from this period; others do not look back this far. |
| Over 36 months | Late payments still show on the file until six years have passed, with less weight each year. Some lenders do not ask about them. |

How lender rules can differ, described in general terms; these are not any lender's published limits. Each lender's current criteria decide a case. Checked 8 October 2026.

### Step 2. The file as it ages

The table follows the borrower's most recent missed payment through four application dates. The credit card payments came earlier, so they pass each point sooner.

## Step 2 figures: the same file at four application dates

*Step 2 figures: the same file at four application dates*

| Application date | Time since the last missed payment | Where the file may sit |
| --- | --- | --- |
| October 2026 | 12 months | At the edge of the last 12 months, the period lenders weigh most. A missed mortgage payment this recent can mean a specialist lender, which may set a lower maximum loan to value. |
| October 2027 | 24 months | Past a 12 month period. Lenders whose limits look only at the last year may now consider it, and a wider choice of lenders and loan to value becomes more likely. |
| October 2028 | 36 months | Past 12 and 24 month periods. Lenders that count only those periods no longer see it there, and more lenders' limits are likely to accept it. |
| October 2031 | 72 months | Six years after the last missed payment, so each of the three entries has usually left the credit file. |

Illustrative file, not a lender decision: lenders set their own periods and limits, and these rows describe the general direction only. The six-year point is from MoneyHelper and Experian. Not an offer of finance. Checked 8 October 2026.

### Step 3. The account

Take a different history on three accounts: two late payments, each one month behind and each 18 months old. The count, the age and the severity are identical, and only the account changes.

## Step 3 figures: the same history on three accounts

*Step 3 figures: the same history on three accounts*

| History, each payment 18 months old | Account | How lenders can treat it |
| --- | --- | --- |
| Two one-month late payments on a credit card | Unsecured | Assessed under the lender's unsecured credit limits; at 18 months more lenders' limits may accept it. |
| Two one-month late payments on a phone contract | Telecoms | Some lenders disregard telecoms late payments; others count them as unsecured credit. |
| Two one-month late payments on a mortgage | Secured | Can be assessed under a separate, stricter mortgage arrears limit where the lender sets one. A lender that accepts no mortgage arrears in the last 24 months declines it; a specialist lender that accepts some may consider it. |

Illustrative history, not a lender decision. Each lender's criteria decide how an account is treated.

On the same count, age and severity, the mortgage late payments can fall under a stricter rule, and they can rule out lenders that would accept the same history on the card or the phone contract.

### Step 4. What the deposit decides

Take an illustrative £250,000 purchase with a £25,000 deposit, which needs a £225,000 loan at 90% loan to value. Each row applies a different maximum loan to value. The 90% row is the usual maximum with adverse credit on the cases we arrange; the 85% and 75% rows are illustrative lower maximums, not any lender's bands. The figures use the calculator's arithmetic.

## Step 4 figures: what the deposit decides

*Step 4 figures: what the deposit decides*

| Maximum loan to value | Where it might apply | Maximum loan | Deposit needed | Shortfall against a £25,000 deposit |
| --- | --- | --- | --- | --- |
| 95% | Only where a lender's scoring and criteria accept the history | £237,500 | £12,500 | £0 |
| 90% | The usual maximum with adverse credit on the cases we arrange | £225,000 | £25,000 | £0 |
| 85% | Illustrative lower maximum for a heavier history; each lender sets its own | £212,500 | £37,500 | £12,500 |
| 75% | Illustrative lower maximum for a heavier history; each lender sets its own | £187,500 | £62,500 | £37,500 |

Illustrative arithmetic on a £250,000 purchase: maximum loan is the price times the maximum loan to value, rounded down, and the deposit needed is the rest. The 90% row is the firm's experience that adverse credit usually means a 90% maximum; the 95% row applies only where a lender's criteria accept the history, and the 85% and 75% maximums are illustrative figures, not any lender's bands. Not an offer of finance.

A history that needs a 75% maximum asks for £37,500 more deposit than one a lender accepts at 90% on the same purchase, and £50,000 more than at 95%.

Lenders check income as well. In our experience the standard is 5 times gross income less outgoings, up to 6 for professionals and specialist products. On an illustrative £50,000 income with no other credit, 5 times gives £250,000, so the 90% maximum binds first. With £500 a month of loan payments, the maximum on income falls to £220,000, £5,000 short of the £225,000 loan. At the illustrative 5.2% rate used across our guides, which is not a product rate, a £225,000 repayment mortgage over 30 years costs £1,235.50 a month.

### Step 5. What the timing means

A borrower who needs to move now borrows from a lender whose limits accept the file as it stands, and plans a remortgage for when the file reaches an older period. A borrower who can wait a year may fit more lenders, which can mean a cheaper rate and a higher maximum loan to value. For the file in Step 1, a two-year fixed rate taken in October 2026 ends in October 2028, when the last missed payment is 36 months old, so the end of the first product lines up with the next improvement in the file.

The same route works from any starting point: late payments that are 18 months old when a two-year fix starts are three and a half years old when it ends, with two more years of on-time payments on the file, so the history may fit more lenders' limits at the remortgage. Choose the first product with that exit in mind, including when any early repayment charge ends.

### What decides the case

The months, severity and accounts of the late payments are fixed once they are on the file. You control how the accounts run from now, the size of the deposit and when you apply. Read the dates on the file, match them to the periods counted by the lenders that suit your case, and choose a product term that ends when the history next improves. Check every agency's report first, including which account each late payment is on.

For late payments that went on to a default, and why a mortgage default counts for more, see [mortgages with defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults). Court judgments are covered on [CCJ mortgages](https://mortgagelane.com/mortgages/ccj-mortgages), an individual voluntary arrangement on [IVA mortgages](https://mortgagelane.com/mortgages/iva-mortgages), bankruptcy on [mortgages after bankruptcy](https://mortgagelane.com/mortgages/bankruptcy-mortgages), and the steps after a refusal on [declined mortgages](https://mortgagelane.com/insights/declined-mortgages).

## Related topics

- [2026](https://mortgagelane.com/mortgages/remortgage-with-bad-credit)Mortgage[Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit)Remortgage with bad credit: product transfers that may need no new affordability check, the Mortgage Charter, specialist lenders, arrears, CCJs and defaults.[Read more about Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit)
- [2026](https://mortgagelane.com/mortgages/low-credit-score-mortgages)Mortgage[Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages)Low credit score mortgages: why lenders look past the agency score, thin files, credit use, the electoral roll and searches, and what to fix before applying.[Read more about Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages)
- [2026](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages)Mortgage[Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages)Bad credit buy to let mortgages: how defaults, CCJs, missed payments and insolvency change the lender, deposit and rate for personal and company landlords.[Read more about Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages)

## Missed payment mortgage calculator

The calculator shows the deposit and loan at the highest loan to value a lender offers for your credit history, checked against the maximum loan on your income. The starting figures are the illustration on this page: a £250,000 purchase, a £25,000 deposit and a 90% maximum. Enter your own price, deposit, income and credit payments, and try a lower maximum to see what a heavier or more recent history would need.

Explore your borrowing

Start again

Enter your figures in pounds. Your estimate updates as you go.

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[Discuss your options](https://mortgagelane.com/contact)

Indicative estimate only, subject to lender criteria, affordability and valuation. The highest loan to value is a figure you enter, not a lender's limit for missed payments, and each lender decides how it treats your credit history. This is not a mortgage offer. Your home may be repossessed if you do not keep up repayments on your mortgage.

## Frequently asked questions about mortgages with missed payments

**Q: Can you get a mortgage with missed payments?**

faq-id: can-you-get-a-mortgage-with-missed-payments

You can get a mortgage with missed payments, and the history decides which lenders will consider it. Lenders look at how many late payments there are, how recent they are, how many months behind each account fell and whether any was on a mortgage. An isolated late payment from a few years ago may make little difference at a high street lender. Recent or repeated late payments often point to a specialist lender, which prices for the credit history and may set a lower maximum loan-to-value. In our experience adverse credit usually means a 90% maximum loan-to-value.

**Q: What counts as a missed payment on a credit file?**

faq-id: what-counts-as-a-missed-payment-on-a-credit-file

A missed payment on a credit file is a month in which an account was not paid as agreed, shown as a status number for how many months it is behind. Lenders report accounts to the credit reference agencies monthly, and under the credit industry's reporting principles the status generally rises by one for each further month of arrears, up to 6. A missed payment is not a default. A default is a separate entry a lender may record once the account is 3 months in arrears, and normally by 6, when it treats the agreement as broken down.

**Q: How long do missed payments stay on a credit file?**

faq-id: how-long-do-missed-payments-stay-on-a-credit-file

Missed payments usually stay on a credit file for six years, and an accurate entry cannot be removed sooner ([MoneyHelper: how to improve your credit score](https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-improve-your-credit-score)). Each late month is its own entry, so a run of late payments drops off one month at a time. A closed account stays on the file for six years from the date it closed, and a default for six years from the default date. Lenders give the most weight to recent history, so a late payment's effect on a mortgage application falls well before it leaves the file.

**Q: Can I still get a mortgage with a missed payment?**

faq-id: can-i-still-get-a-mortgage-with-a-missed-payment

You can still get a mortgage with a missed payment, and a single late payment more than a year old, with on-time payments since, is the lightest case lenders see. Lenders give the most weight to recent history, so one late payment in the last few months counts for more and can fail a high street lender's credit score on its own. A late payment on a mortgage or secured loan is assessed more strictly than one on a credit card, a loan or a phone contract.

**Q: Does one missed payment affect a mortgage application?**

faq-id: does-one-missed-payment-affect-a-mortgage-application

One missed payment can affect a mortgage application, and how much depends on its age and the account it is on. A single late payment more than a year old, with on-time payments since, may make little difference. One in the last few months can fail a high street lender's credit score on its own and point the case to a specialist lender. A single missed mortgage payment is usually assessed more strictly than one on a card, a loan or a phone contract, and some lenders apply a separate limit to mortgage arrears.

**Q: Does it matter how late the payment was?**

faq-id: does-it-matter-how-late-the-payment-was

Yes. The credit file records how many months behind the account fell, as well as the month it happened. Under the credit industry's reporting principles, an account one month behind shows status 1 for that month, and the status generally rises by one for each further month of arrears, up to 6. Lenders treat higher status codes as more serious, so a payment one month late weighs less than an account two, three or more months in arrears. An account that reached three to six months in arrears may also have been defaulted, which lenders assess under their default rules.

**Q: How many missed payments can you have and get a mortgage?**

faq-id: how-many-missed-payments-can-you-have-and-get-a-mortgage

No fixed number of missed payments rules out a mortgage, because each lender sets its own limits. Lenders count late payments within set periods before the application, such as the last 12, 24 or 36 months, and give the most weight to the most recent. A high street lender's credit score may accept an isolated older late payment and fail several recent ones. Specialist lenders accept more, with the maximum loan-to-value generally falling as the number rises and the history gets more recent. Late payments on a mortgage can be counted against a separate, stricter limit.

**Q: How long after missed payments can I get a mortgage?**

faq-id: how-long-after-missed-payments-can-i-get-a-mortgage

Specialist lenders may consider a mortgage soon after missed payments, and the choice of lenders tends to widen as the late payments age with on-time payments since. Lenders count late payments within set periods, so a history inside the last 12 months is assessed more strictly than one that is two or three years old. There is no single waiting period, because each lender sets its own limits and its own maximum loan-to-value for each period. Each late payment leaves the credit file after six years.

**Q: Are missed mortgage payments worse than other missed payments?**

faq-id: are-missed-mortgage-payments-worse-than-other-missed-payments

Missed mortgage payments are judged more strictly than missed payments on unsecured credit. A mortgage is a priority bill, because falling behind on it can end in repossession, so a lender reads a missed mortgage payment as a sign that other commitments were already under strain. Some lenders apply a separate limit to mortgage and secured loan arrears, and some accept none within a set period before the application. Specialist lenders that accept mortgage arrears limit how many months and how recently. A larger deposit widens the choice of lenders.

**Q: Do missed phone or utility payments affect a mortgage?**

faq-id: do-missed-phone-or-utility-payments-affect-a-mortgage

Missed phone and utility payments can affect a mortgage, and lenders differ on how much weight they give them. Under the credit industry's reporting principles, mobile phone, broadband and other communications accounts paid under a contract or subscription can be reported to the credit reference agencies, and so can energy and water accounts, while pay as you go products and prepaid meters generally are not. Some lenders disregard late payments on these accounts, or small amounts below a level they set, and others count them as unsecured credit. Bringing the account up to date reduces their effect. Lenders assess a phone or utility account that went on to a default under their default rules, and a default weighs more than late payments.

**Q: Do buy now pay later late payments affect a mortgage?**

faq-id: do-buy-now-pay-later-late-payments-affect-a-mortgage

Buy now pay later late payments can affect a mortgage where the provider reports them to the credit reference agencies. Experian says that, depending on the lender, missed payments on buy now pay later (BNPL) accounts can be recorded on your credit report and seen by other lenders ([Experian: buy now pay later](https://www.experian.co.uk/consumer/loans/guides/buy-now-pay-later.html)). Mortgage lenders treat reported late payments like those on other unsecured credit, and the weight they give them varies by lender. Repeated missed payments across several accounts count against an application. The FCA has regulated this kind of lending, which it calls deferred payment credit, since 15 July 2026.

**Q: What is an arrangement to pay and does it affect a mortgage?**

faq-id: what-is-an-arrangement-to-pay-and-does-it-affect-a-mortgage

An arrangement to pay is a temporary reduced payment agreed with a lender, recorded on your credit file to show that the account is on special terms. It records that the full contractual payment could not be met, and lenders differ on whether they treat it as adverse credit while it runs and for how long after it ends. Under the credit industry's reporting principles a default will not normally be recorded while you keep to the arrangement, although arrears may still build up against the original terms. Ending it and returning to full payments before applying can widen the choice of lenders.

**Q: Do payment holidays count as missed payments?**

faq-id: do-payment-holidays-count-as-missed-payments

An agreed payment holiday is not the same as a missed payment, although it can still show on the credit file. Payment deferrals agreed under the FCA's coronavirus guidance were not to be reported as a worsening status on credit files ([FCA: payment deferral guidance, November 2020](https://www.fca.org.uk/publication/finalised-guidance/mortgages-coronavirus-payment-deferral-guidance.pdf)). Other payment holidays are reported according to the lender's terms, and under the credit industry's reporting principles one that is not part of the product's own terms can be recorded as an arrangement. Mortgage lenders may ask about any payment holiday, so keep the dates and the agreement to hand when you apply.

**Q: Does Breathing Space affect a mortgage application?**

faq-id: does-breathing-space-affect-a-mortgage-application

Breathing Space is not recorded on the credit file as a missed payment, but payments not made during it can still show as arrears. The scheme, also called the Debt Respite Scheme, applies in England and Wales, and the Insolvency Service records it on a private register. The government's guidance says starting one should have no automatic effect on the credit file, while lenders that report payments can keep doing so ([GOV.UK: Breathing Space guidance for creditors](https://www.gov.uk/government/publications/debt-respite-scheme-breathing-space-guidance/debt-respite-scheme-breathing-space-guidance-for-creditors)). Mortgage lenders assess any resulting late payments in the usual way, by recency and severity. Scotland has its own moratorium, which appears on the public Register of Insolvencies.

**Q: Do late payments affect how much I can borrow?**

faq-id: do-late-payments-affect-how-much-i-can-borrow

On a late payment mortgage, the late payments on your file mainly affect which lenders will accept you and the maximum loan to value they allow, rather than the income multiple. In our experience adverse credit usually means a 90% maximum loan to value, and a lender that accepts recent or heavier late payments may set a lower maximum, so the same loan can need a larger deposit. Income sets its own limit: in our experience the standard is 5 times gross income less outgoings, and payments on current debts reduce what income supports. On a £250,000 purchase, a 75% maximum needs a £62,500 deposit, against £25,000 at 90%.

**Q: Can I get a 95% mortgage with missed payments?**

faq-id: can-i-get-a-95-mortgage-with-missed-payments

A 95% mortgage with missed payments depends on the lender's scoring and criteria accepting the history, which is most likely with an isolated late payment over a year old. In our experience adverse credit usually means a 90% maximum loan-to-value. Under the 2025 Mortgage Guarantee Scheme rules, a borrower who owed three months' payments or more on a mortgage or other loan in the two years before completion is credit-impaired and outside the scheme, and each lender also applies its own criteria. A larger deposit or family help can bring the loan-to-value down to a level more lenders accept.

**Q: Will missed payments stop me getting a mortgage with a high-street lender?**

faq-id: will-missed-payments-stop-me-getting-a-mortgage-with-a-high-street-lender

Missed payments can stop a high street mortgage where they are recent or repeated, and an isolated older one may not. High street lenders use automated credit scoring, and because recent history carries the most weight, a late payment in the last few months or several in the last year are more likely to fail a score. Each lender's scorecard is its own, so one high street lender can decline a history another accepts. A history the high street declines can go to a specialist lender, at a higher price and a lower maximum loan-to-value.

**Q: Can I remortgage with missed payments?**

faq-id: can-i-remortgage-with-missed-payments

You can remortgage with missed payments, either with a new lender or through a product transfer with your current one. A new lender assesses the case as it would a purchase, including your credit file. A product transfer with no extra borrowing and no change that matters to affordability does not need a new affordability assessment under the FCA's rules ([MCOB 11.6.3R](https://handbook.fca.org.uk/handbook/MCOB/11/6.html)), which can suit a borrower whose mortgage payments are up to date and whose late payments are on other accounts. Some lenders allow extra borrowing to clear the debts behind the late payments, which secures those debts on your home.

**Q: Can I remortgage if I have missed mortgage payments?**

faq-id: can-i-remortgage-if-i-have-missed-mortgage-payments

Remortgaging after missed mortgage payments is possible, but it is harder than with late payments on other credit, because arrears on the mortgage itself are the most serious entry for a mortgage application. A new lender looks at how recent the arrears were, how many months they reached and whether they are cleared. Arrears still outstanding narrow the choice furthest, and some specialist lenders consider arrears that are cleared and older. Once you are up to date, a product transfer with your current lender may be possible, and the Mortgage Charter supports switching for customers who are. A new lender's modified affordability assessment under FCA rules needs no payment shortfall in the last 12 months ([FCA Handbook: MCOB 11.9](https://www.handbook.fca.org.uk/handbook/MCOB/11/9.html)).

**Q: Can you get a joint mortgage if one person has missed payments?**

faq-id: can-you-get-a-joint-mortgage-if-one-person-has-missed-payments

You can get a joint mortgage when one person has missed payments, as long as the lender's rules accept that person's history. The lender checks both applicants' credit files and applies its limits to the heavier history, so the choice of lenders follows the applicant with the late payments. The alternative is a sole application by the applicant with the clean file. That works only if one income supports the loan. Where the two of you share a joint account or have applied for credit together, the credit file shows a financial association, and a lender looking at it can also see financial information in the other person's name ([ICO: Credit explained](https://ico.org.uk/media2/migrated/1282/credit-explained-dp-guidance.pdf)).

**Q: Can a first-time buyer get a mortgage with missed payments?**

faq-id: can-a-first-time-buyer-get-a-mortgage-with-missed-payments

A first-time buyer can get a mortgage with missed payments where a lender's rules accept the history. With an isolated, older late payment, the usual first-time buyer routes such as shared ownership, family help and high loan-to-value lending may still be open at lenders whose scoring accepts it. Heavier or recent histories limit the choice to lenders whose criteria accept them, generally at a lower maximum loan-to-value, and in our experience adverse credit usually means a 90% maximum. A larger deposit or family help can open lenders that a 5% deposit cannot.

**Q: Can I get a buy to let mortgage with missed payments?**

faq-id: can-i-get-a-buy-to-let-mortgage-with-missed-payments

You can get a buy to let mortgage with missed payments from lenders whose credit rules accept the history, often specialist buy to let lenders. The loan is still assessed mainly on the rent, which the lender tests against the mortgage interest at a stressed rate: banks and building societies do this under the Prudential Regulation Authority's underwriting standards for buy to let, and other lenders set their own tests. The credit history affects the price and the maximum loan to value. Lenders can apply their mortgage arrears limits to buy to let applications too, so missed payments on an existing mortgage can weigh more than late payments on a card or loan.

**Q: How do you get a mortgage with missed payments?**

faq-id: how-do-you-get-a-mortgage-with-missed-payments

You get a mortgage with missed payments by finding a lender whose rules accept your history and having the deposit its maximum loan-to-value needs. Start with your statutory credit report from each credit reference agency, and note the month, status and account of every late payment. Correct anything reported in error before you apply. If the purchase can wait, keep every account up to date, because each month moves the late payments further back. Then apply to a lender whose scoring or written criteria fit, with the late payments disclosed and a short explanation.

**Q: How can I improve my credit score before applying for a mortgage?**

faq-id: how-can-i-improve-my-credit-score-before-applying-for-a-mortgage

To improve your credit score before applying for a mortgage, start with your free statutory report from each credit reference agency. Then register on the electoral roll at your current address, bring credit card balances down ([Experian suggests below 25% of your limits](https://www.experian.co.uk/consumer/guides/credit-utilisation-ratio.html)), pay every bill on time, correct any errors and ask for old financial associations to be removed. Avoid new credit applications, because each one leaves a hard search other lenders can see. Most of these changes take a few weeks to reach the files. Late payments, defaults and judgments improve only with time: they stay on the file for six years, and lenders weigh them less as they age. The same steps apply whether you are buying, remortgaging or buying to let.

**Q: What if a missed payment on my credit file is wrong?**

faq-id: what-if-a-missed-payment-on-my-credit-file-is-wrong

If a missed payment on your credit file is wrong, ask the lender that reported it or the credit reference agency to correct it; the ICO notes that going to the lender first can be quicker. An agency must tell you within 28 days whether it has removed or amended the entry or taken no action, and within 28 days of its reply, or of that deadline passing, you can ask it to add a notice of correction of up to 200 words ([Consumer Credit Act 1974, section 159](https://www.legislation.gov.uk/ukpga/1974/39/section/159)). An accurate late payment cannot be removed. A notice of correction can give the reason, such as an illness, but it does not change your credit score. If neither will correct an error, you can complain to the ICO.

**Q: What is the difference between a missed payment, a default and a CCJ?**

faq-id: what-is-the-difference-between-a-missed-payment-a-default-and-a-ccj

A missed payment is a monthly entry showing an account is behind, a default records that the lender treats the agreement as broken down, and a county court judgment (CCJ) is a court order to pay a debt. As a general guide a default may be recorded once an account is 3 months in arrears, and normally by 6, after at least 28 days' notice. Each usually stays on the credit file for six years, and a CCJ in England and Wales comes off the record if paid in full within a month ([GOV.UK: county court judgments](https://www.gov.uk/county-court-judgments-ccj-for-debt)). In Scotland the court order is called a decree, and Northern Ireland has its own system for judgments.

**Q: What should I do if I am behind on my mortgage now?**

faq-id: what-should-i-do-if-i-am-behind-on-my-mortgage-now

If you are behind on your mortgage now, contact your lender as soon as you can. Under the FCA's rules a lender must deal fairly with a customer who has or may have payment difficulties on a regulated mortgage ([FCA Handbook, MCOB 13.3](https://handbook.fca.org.uk/handbook/MCOB/13/3.html)), and it can discuss options such as a temporary payment arrangement or a longer term. Free and confidential debt advice is available, and MoneyHelper explains the help you can get ([MoneyHelper: help with mortgage payments](https://www.moneyhelper.org.uk/en/homes/buying-a-home/government-help-if-you-cant-pay-your-mortgage)). Arranging a new mortgage with missed payments on file is a separate question from dealing with arrears on the mortgage you have.

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Published: 2026-10-06

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/mortgages/mortgages-with-missed-payments