How Missed Payments Are Recorded on Your Credit File
When you miss a payment on any credit agreement, the lender reports it to the credit reference agencies. Payments are typically recorded as being one month late, two months late, and so on. Even a single missed payment stays on your credit file for six years from the date it occurred.
Missed mortgage payments are treated more seriously by lenders than missed payments on credit cards, personal loans, or utility accounts. This is because a mortgage is a secured debt, and lenders expect you to prioritise it above other commitments. A history of missed mortgage payments raises particular concerns about your ability to manage a new mortgage.
How Different Lenders Assess Missed Payments
Mainstream lenders generally require a clean payment history for the past 12 to 24 months for their best products. However, some are more flexible than others:
- One missed payment over 12 months ago — many mainstream lenders will still consider you, though you may not qualify for their lowest rates
- Two or three missed payments — you will likely need to approach specialist lenders, particularly if the missed payments are recent
- Missed mortgage payments — even a single late mortgage payment within the last 12 months will rule out most high-street lenders
- Multiple recent missed payments — specialist adverse credit lenders will still consider you, but rates will be higher
The pattern of missed payments matters too. A cluster of late payments during a specific difficult period (such as illness or job loss) followed by a clean record is viewed more sympathetically than a sporadic pattern of missed payments over several years.
Practical Steps Before Applying
Start by obtaining your credit reports from all three UK agencies — Experian, Equifax, and TransUnion. Check exactly what is recorded and when. Sometimes payments are incorrectly marked as missed, and disputing errors can significantly improve your position.
If possible, allow as much time as you can between your last missed payment and your remortgage application. Every month of clean payment history works in your favour. If your current deal is not expiring imminently, consider waiting until your record has been clean for at least six to twelve months.
Bring any arrears fully up to date before applying. If you have fallen behind on your existing mortgage, your current lender is unlikely to agree to a product transfer, and a new lender will be very cautious about taking on a borrower in active arrears.
Product Transfers as an Alternative
If you have missed payments on accounts other than your mortgage, a product transfer with your current lender may be the simplest route. Product transfers generally do not involve a full credit check or new affordability assessment, so missed payments on credit cards or loans may not prevent you from switching to a new deal.
However, if you have missed payments on your actual mortgage, your current lender will be aware of this regardless of a credit check. Some lenders will still allow a product transfer in this situation, particularly if the arrears have been cleared and recent payments have been made on time.
Contact your lender directly to ask what options are available. They are required by FCA rules to treat you fairly and consider your circumstances.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.