Can You Remortgage With Missed Mortgage Payments?

Yes, potentially. Missing mortgage payments does not automatically stop you remortgaging, but it does reduce your options significantly.

Most high street lenders are very strict when it comes to recent mortgage arrears. Specialist lenders are usually far more flexible and may still consider cases the high street will decline.

You are not necessarily stuck, but you are unlikely to qualify for standard high street mortgage deals.

Does missing mortgage payments stop you remortgaging?

No, not automatically.

However, mortgage payment history is one of the most important things lenders assess. Recent missed mortgage payments are viewed more seriously than many other types of adverse credit.

The key factors are:

• How recent the missed payments were
• How many payments were missed
• Whether the account is now stable
• Whether the situation has improved or worsened

How recent were the missed payments?

Ideally, lenders want to see no missed mortgage payments within the last 12 months.

How many mortgage payments were missed?

Is the mortgage account now stable?

This is critical.

If your mortgage account is now fully up to date and has remained stable, your chances improve significantly.

Some lenders will accept historic arrears or status 1 to 2 arrears markers, provided:

• The account is now maintained properly
• The situation has not worsened
• There are no ongoing missed payments

If you are still missing mortgage payments currently, options become much more limited.

Real world remortgage examples

Example 1, one missed payment

One missed mortgage payment 8 to 12 months ago may still allow remortgaging up to around 85% loan to value with a specialist lender.

Rates will usually be slightly higher than clean credit cases.

Example 2, multiple missed payments

Two to three missed payments within the last 12 months will usually require specialist lenders only.

Example 3, ongoing arrears

If arrears are ongoing or worsening, immediate remortgage options become extremely limited and stabilising the account first is often the better route.

Case studies, real clients we’ve helped

Case Study 1, single missed payment

Client had one missed mortgage payment 9 months earlier following a temporary income drop.

• Mortgage now fully up to date
• Remortgaged at 85% loan to value
• Specialist lender used
• Slightly higher rate than high street

Case Study 2, multiple missed payments

Client had three missed mortgage payments within the previous 12 months.

• High street lenders declined
• Specialist lender approved
• Higher interest rate
• Avoided further financial pressure

Case Study 3, ongoing arrears

Client was still actively in arrears when they contacted us.

• No immediate remortgage options available
• Advised to stabilise payments first
• Review planned again within 6 to 12 months

Can you stay with your current lender instead?

Potentially, yes, and this is often the easiest option.

If your credit has worsened, a product transfer with your existing lender can sometimes avoid full credit scoring entirely.

• No full remortgage application in many cases
• No legal work
• Faster process
• Can avoid reverting onto a high standard variable rate

What rates should you realistically expect?

Let’s be realistic. If you’ve missed mortgage payments recently:

• You are unlikely to qualify for standard high street rates
• Most options will come from specialist lenders
• Rates are often around 1% to 2% higher than clean credit cases

However, securing a stable fixed rate can still be far better than falling onto a lender’s standard variable rate.

How much can you borrow?

This depends on the lender and the severity of the missed payments.

Typically:

• Up to around 85% loan to value may still be possible
• More recent arrears may reduce the maximum loan to value further
• Severe or ongoing arrears may require substantial equity

What can improve your chances?

• Keeping your mortgage fully up to date
• Avoiding any new missed payments
• Reducing unsecured debts where possible
• Checking your credit reports properly
• Maintaining stable income

It is also important to understand that credit scores themselves are often misleading. Lenders focus much more heavily on actual payment conduct.

When should you apply?

Timing matters more than most people realise.

Waiting too long can leave borrowers stuck on expensive standard variable rates. In many cases, it is worth reviewing options early before your current deal ends.

Why specialist advice matters

Adverse remortgage cases are far more specialist than people realise.

Many brokers focus mainly on standard high street lending and may incorrectly assume no options exist.

In reality, specialist lenders can sometimes help where mainstream lenders will not.

Further Reading

Can you get a mortgage in your 50s, 60s or 70s?

Yes, absolutely. A huge number of people wrongly assume that once they reach their late 50s or early 60s, getting a mortgage becomes impossible.

In reality, that simply is not true anymore. Many lenders are now far more flexible, especially specialist lenders.

At Honest Mortgages, we regularly help clients with:

• Mortgages into retirement
• Mortgage terms to age 75
• Mortgages to age 80 or even 85
• Mortgages using pension income
• Mortgages for applicants in their 60s and 70s
• Mortgages with adverse credit later in life

Can you get a mortgage in your 60s?

Yes. This is probably one of the biggest misconceptions in the mortgage market.

Many people still think lenders automatically stop lending at retirement age, but that is outdated thinking.

Today, many lenders will consider mortgages well into retirement, provided the case is affordable and sustainable.

We regularly help clients in their late 50s, early 60s, mid 60s and even 70s in some scenarios.

How old can you be at the end of a mortgage?

This depends entirely on the lender. Typical maximum ages can include:

• Age 70
• Age 75
• Age 80
• Age 85

Some lenders are surprisingly flexible where pension income is strong and the case makes sense overall.

Mortgage to age 75 using employment income

One common misconception is that you must already be retired to take a mortgage later in life. That is not always the case.

We regularly help employed applicants in their early 60s secure mortgage terms extending to age 75.

Many lenders will assess current income, planned retirement age, pension provisions and affordability after retirement.

Can pension income be used for a mortgage?

Yes. Many lenders accept pension income, including:

• Private pensions
• Defined benefit pensions
• State pension income
• Drawdown income
• Annuities
• Investment income in some cases

Later life lending has changed massively over the last decade. Pension income is now widely accepted by many lenders.

Can you take a mortgage to age 80 or 85?

Potentially, yes. Some lenders will consider mortgage terms running into the applicant’s 80s where pension income supports affordability.

These are not always mainstream high street scenarios, but they can be achievable with the right lender.

Why are more older borrowers taking mortgages?

1. Property prices have increased

Many people need longer mortgage terms to keep payments affordable.

2. People are working longer

Retirement ages have increased, and many people remain in work for longer.

3. Pension income can be strong

Some retired borrowers have very stable incomes.

4. Divorce and separation later in life

Relationship breakdowns later in life are increasingly common and can require property restructuring.

5. Interest only mortgages ending

Many borrowers are reaching the end of older interest only terms and need solutions.

6. Moving closer to family

Some older borrowers want to move closer to children or grandchildren.

Can you get a mortgage later in life with bad credit?

Potentially, yes. Older borrowers do not always need perfect credit.

Some specialist lenders may consider:

• Defaults
• CCJs
• Debt management plans
• Historic missed payments
• Satisfied adverse credit
• Historic IVA or bankruptcy

This can be especially important for older borrowers who have experienced divorce, business issues, health problems, financial hardship or temporary income reduction.

What income can be used later in life?

Depending on the lender, acceptable income may include:

• Employment income
• Self employed income
• State pension
• Private pension
• Drawdown income
• Investment income
• Rental income
• Maintenance income in some cases

Do older applicants need a huge deposit?

Not necessarily. While larger deposits can help, age alone does not automatically mean you need a huge deposit.

The key factors are usually:

• Affordability
• Income sustainability
• Credit profile
• Property suitability
• Exit strategy where relevant

Common reasons older borrowers need a mortgage

• Downsizing
• Relocating closer to family
• Buying after divorce
• Repaying interest only mortgages
• Helping children financially
• Making a fresh start later in life

What do lenders look at?

Later life mortgage underwriting can be more detailed than standard lending.

Lenders may assess:

• Current age
• Retirement age
• Pension provisions
• Existing assets
• Affordability now and later
• Credit history
• Property type
• Future sustainability

Common myths about older borrowers

• You cannot get a mortgage after 60
• You must be mortgage free by retirement
• Pension income does not count
• Bad credit means automatic decline
• Only cash buyers can move later in life

None of these are automatically true. The right lender can make a major difference.

Advantages and downsides of taking a mortgage later in life

Potential advantages

• Longer terms may reduce monthly payments
• More flexibility to move or restructure finances
• Ability to move closer to family or into a more suitable home
• Potentially keeping savings invested

Potential downsides

• Fewer lender options
• More detailed underwriting
• Rates may be higher, especially with adverse credit
• Pension planning matters

How Honest Mortgages can help

Later life lending is one of the most misunderstood areas of the mortgage market.

At Honest Mortgages, we regularly help clients with:

• Mortgages into retirement
• Mortgages to age 75, 80 and beyond
• Mortgages using pension income
• Adverse credit mortgages
• Complex mortgage scenarios
• Downsizing and relocation mortgages

Every case is different, and lender selection is critical.

Further Reading

Can You Buy Your Rented Property Using Landlord Gifted Equity?

Yes, potentially. If you are currently renting and your landlord has offered to sell you the property below market value, you may have more options than you realise.

Buying using landlord gifted equity is one of the most overlooked mortgage routes in the UK. It is a niche area of lending, and most lenders will not touch it, especially where adverse credit is involved.

However, a small number of specialist lenders may consider these cases, including applications up to 95% loan to value, where the landlord’s discount can be used as some or all of the deposit.

What is landlord gifted equity?

Landlord gifted equity is where a landlord agrees to sell their property to their tenant at a discount below its open market value.

The difference between the market value and the agreed purchase price is treated as gifted equity, which can effectively act as the buyer’s deposit.

In this example, the £10,000 discount may be treated as the deposit, depending on the lender and the overall loan to value.

Why would a landlord agree to this?

It might seem unusual, but landlords can have good reasons to sell below market value to an existing tenant.

1. No estate agent fees

Selling privately to a known tenant can save thousands in estate agent commission.

2. A faster, simpler sale

There are no viewings, no marketing, and often no chain. The landlord already knows the tenant.

3. Helping a long term tenant

Some landlords genuinely want to help a reliable tenant get onto the property ladder.

4. Avoiding void periods

A direct sale removes the uncertainty of finding a new tenant or leaving the property empty.

Why most lenders refuse landlord gifted equity

Most mainstream lenders are cautious about landlord gifted equity because they are concerned about:

• Artificially inflated property valuations
• Undisclosed arrangements between buyer and seller
• Potential mortgage fraud concerns
• No genuine financial contribution from the buyer
• Whether the buyer can sustain ownership costs

Many lenders also restrict gifted deposits to immediate family members only. A landlord usually falls outside those rules, which means the case can be declined before the credit profile is even considered.

This is why landlord gifted equity cases need specialist lenders and careful presentation.

Can you buy with no cash deposit?

Potentially, yes, with the right lender.

If the lender allows up to 95% loan to value based on the market valuation, this gifted equity may be enough to satisfy the deposit requirement.

You will still need money for buying costs

Even if the gifted equity covers the deposit, buyers will usually still need funds for:

• Solicitor fees
• Searches
• Survey or valuation fees
• Stamp duty if applicable
• Broker fees if charged
• Moving costs

Having around £2,000 to £5,000 available for costs is a realistic minimum to aim for.

Can you use landlord gifted equity with bad credit?

Possibly, yes. Some of the niche lenders who may consider landlord gifted equity are also more flexible around adverse credit.

Depending on the case, they may consider applicants with:

• Defaults
• CCJs
• Debt management plans
• Historic missed payments
• Discharged IVA or bankruptcy

The key factors are how recent the credit issues are, how severe they are, and whether the case is packaged correctly.

Why this combination is so rare

Very few lenders are willing to combine all three of the following:

• High loan to value lending, such as 90% to 95%
• Landlord gifted equity as the deposit source
• Adverse credit history

Many mortgage advisers will never come across this type of case, and their usual lender panel may not support it.

This is why the broker you choose genuinely matters.

How the property value is assessed

The lender will instruct an independent valuation to confirm:

• The property’s true open market value
• The agreed purchase price
• The gifted equity amount

The mortgage may be calculated against the market value, the purchase price, or whichever is lower. This varies by lender and can affect the maximum borrowing available.

What documents are usually needed?

From the buyer

• Photo ID and proof of address
• Payslips or self employed income evidence
• Three to six months bank statements
• Full credit report
• Proof of funds for buying costs

From the landlord

• Gifted equity letter confirming the discount
• Confirmation the discount is non repayable and unconditional
• Proof of ownership
• Sale agreement details

The solicitor will also need to verify the structure. An experienced conveyancer can make a big difference.

Can family members gift extra funds as well?

In some cases, yes. Certain lenders may allow a combination of landlord gifted equity and a separate family gifted deposit.

This can help where the landlord’s discount alone does not fully satisfy the lender’s requirements.

What property types can be considered?

This depends on the lender, but potentially:

• Houses
• Flats, subject to lease length and construction type
• Some ex local authority properties
• Standard construction homes

Non standard construction, high rise flats, or short lease properties may restrict options further.

Advantages of buying from your landlord this way

• Potentially little or no cash deposit required
• You already know the property
• No open market competition
• A possible route forward for adverse credit applicants
• You can start building long term equity

Potential risks and downsides

• Very limited lender choice
• Potentially higher interest rates
• More intensive underwriting
• Property valuation issues
• Repair and maintenance responsibilities once you own the property

Common reasons these cases get declined

1. Poorly structured gifted equity

The discount must be clearly confirmed in writing and shown as non repayable.

2. Undisclosed side agreements

Everything between buyer and seller must be fully disclosed to the lender and solicitor.

3. Very recent or severe adverse credit

Even specialist lenders have limits.

4. Insufficient affordability

The mortgage still needs to be affordable under lender stress testing.

5. No funds for buying costs

Having no savings at all can still be a problem, even where the deposit is covered by equity.

How Honest Mortgages can help

At Honest Mortgages, we help with complex and niche mortgage scenarios that many brokers either cannot or will not handle.

• Landlord gifted equity purchases
• Adverse credit mortgages
• Debt management plan mortgages
• Shared ownership with adverse credit
• Right to Buy with bad credit
• Specialist and high street lender access

Many of the clients we help have already been told no elsewhere. That does not always mean no permanently. It often means the wrong lender was approached, or the case was not packaged correctly.

Further Reading

Can You Get a Bad Credit Mortgage in Northern Ireland?

Bad credit mortgages in Northern Ireland are still possible in many situations, although lender choice is usually smaller and deposit requirements are often higher.

Can you get a mortgage in Northern Ireland with bad credit?

Yes, potentially. Despite what many people believe, there are still lenders willing to consider applicants with adverse credit in Northern Ireland.

Depending on the situation, this may include:

• Defaults
• CCJs
• Debt management plans
• Historic missed payments
• Satisfied adverse credit
• Historic IVA or bankruptcy

However, Northern Ireland is treated differently by many lenders, and this is the part most people do not realise.

Why Northern Ireland is more difficult for bad credit mortgages

The biggest issue is lender availability.

Many specialist adverse lenders either:

• Do not lend in Northern Ireland at all
• Restrict lending there
• Lower maximum loan to value
• Apply tighter underwriting

This means the number of available lenders is much smaller than England, Scotland, or Wales.

In Northern Ireland, criteria, deposit size, lender choice and case packaging matter even more than usual.

You will normally need at least a 20% deposit

One of the biggest differences in Northern Ireland adverse lending is the loan to value restrictions.

Many specialist lenders currently cap lending at:

Maximum 80% loan to value

That usually means buyers need:

• A minimum 20% deposit
• Or 20% equity for remortgages

Can you remortgage with bad credit in Northern Ireland?

Potentially, yes.

If you already own a property and have enough equity, some specialist lenders may still consider:

• Historic adverse credit
• Defaults
• CCJs
• Debt management plans
• Missed payments

Again, equity is extremely important. Most lenders will want at least 20% equity remaining after the remortgage completes.

What types of bad credit may be accepted?

Defaults

Some lenders may accept defaults where they are:

• Older than 6 to 36 months depending on severity
• Satisfied
• Lower value
• Historic rather than recent

Some smaller communication defaults may even be ignored in certain cases.

CCJs

Depending on the lender, they may potentially consider:

• Older CCJs
• Satisfied CCJs
• Lower value CCJs
• Historic unsatisfied CCJs in some scenarios

Missed payments

Lenders often assess:

• Mortgage arrears
• Secured loan arrears
• Unsecured arrears

Generally speaking, recent mortgage arrears are treated most seriously.

Debt management plans

DMPs may potentially be acceptable where:

• They have been maintained satisfactorily
• Payments have been stable
• There is good recent payment conduct

IVA or bankruptcy

Some lenders may consider:

• Historic IVA
• Historic bankruptcy
• Satisfied arrangements
• Older discharged cases

Payday loans

Payday loans can reduce lender choice significantly. Some lenders may require no payday loan usage within the last 6 to 12 months.

What lenders look at beyond the credit score

Specialist lenders do not just assess the score itself.

They also look at:

• Deposit size
• Recent payment conduct
• Income stability
• Employment history
• Overall affordability
• Property type
• Reason for adverse credit
• Time since issues occurred

Why specialist advice matters in Northern Ireland

Northern Ireland adverse lending is much more niche than people realise.

Many advisers simply do not deal with specialist Northern Ireland lending regularly, and that matters because:

• Lender criteria changes frequently
• Not all lenders operate there
• Some lenders quietly restrict adverse cases
• Packaging is critical

Common reasons for bad credit

Many clients assume bad credit means they have failed financially, but usually the reasons are much more normal.

• Relationship breakdown
• Cost of living pressures
• Temporary income reduction
• Business difficulties
• Illness or injury
• COVID related issues
• Rising interest rates
• Job changes

Life happens. Specialist lenders understand that not every applicant has a perfect history.

Can first time buyers still get approved?

Potentially, yes.

However, first time buyers with adverse credit in Northern Ireland will usually need:

• Strong affordability
• Stable income
• A minimum 20% deposit
• Clean recent conduct where possible

Generally, the larger the deposit, the stronger the options become.

Common mistakes to avoid

• Applying directly to high street banks first
• Multiple credit searches
• Hiding adverse credit
• Assuming it is impossible

Many clients are declined elsewhere before eventually succeeding through specialist lending.

How to improve your chances

• Maintain recent payments
• Avoid unnecessary new credit
• Keep bank statements clean
• Build a larger deposit
• Get proper advice early

Further Reading

The honest version most sites will not tell you

Getting a mortgage with bad credit in 2026 is usually less about your credit score and more about your story. Lenders look at what happened, how recent it was, and whether your finances now look stable and predictable.

At Honest Mortgages, we specialise in helping people who have been told no elsewhere. A quick chat early on can save months of stress and avoid wasted applications.

What counts as bad credit for a mortgage?

Lenders do not all use the same definition, but bad credit usually includes one or more of the following:

• Missed or late payments
• Defaults
• CCJs (County Court Judgments)
• Debt Management Plans (DMPs)
• IVAs
• Bankruptcy
• Payday loans (recent)
• Thin or imperfect credit history

Not all bad credit is treated equally. A single missed payment three years ago is very different from multiple recent defaults. Context matters more than labels.

Can you actually get a mortgage with bad credit?

Yes. Every year, thousands of UK buyers successfully get mortgages with:

• Defaults still on file
• CCJs under £1,000
• Historic IVAs or bankruptcy
• Less than perfect credit histories

High street banks are often rigid. Specialist lenders can be far more flexible, especially when the case is packaged properly.

What lenders really look at, this matters more than your score

Forget the myths. In most bad credit cases, lenders focus on these five things:

1. How recent the credit issue was

• Under 12 months, harder, but not always impossible
• 1 to 3 years, many specialist options open up
• 3 years plus, criteria is often far more flexible

2. Severity and pattern

• One off issues vs repeated problems
• Size of defaults or CCJs
• Whether issues are satisfied

3. Deposit size

• 5 percent deposits are rare with bad credit
• 10 to 15 percent opens more doors
• 20 percent plus can improve rates and choice significantly

4. Income and stability

• Permanent employment usually helps
• Self employed income typically needs 1 to 2 years evidence
• Consistency often matters more than the headline amount

5. The overall story

Lenders want to know why it happened and why it will not happen again. Job loss, divorce, illness, and Covid disruption can be viewed very differently to unmanaged debt.

What deposit do you need for a bad credit mortgage in 2026?

Typical expectations are:

The bigger the deposit, the more choice you will usually have.

Are interest rates higher with bad credit?

Yes, usually. But this does not have to be permanent.

Many clients:

• Take a specialist mortgage initially
• Improve their credit over 2 to 3 years
• Remortgage onto high street rates later

The first mortgage is often a stepping stone, not the final destination.

Common myths that cost people years

• My credit score is too low. Scores do not lend money, lenders do.
• I need 5 years of perfect credit. Many lenders work with 12 to 24 months clean conduct.
• One missed payment ruins everything. Pattern and recency often matter far more.
• Online calculators tell the full story. They usually only show vanilla options.

How a specialist broker actually helps

This is not about filling out a form and hoping for the best. A specialist bad credit broker will:

• Match your exact credit profile to the right lenders
• Avoid unnecessary credit searches that damage your file
• Package your case correctly from the start
• Explain issues in lender language, not credit report jargon
• Build a plan to move you back to high street rates over time

Bad advice costs people years. Good advice can save them.

Should you apply now or wait?

This depends on:

• How recent the issue was
• Whether debts are satisfied
• Your deposit position
• What your bank statements look like right now

Sometimes waiting 3 to 6 months improves outcomes massively. Sometimes acting now is the right move. You need a proper review, not guesswork.

Further reading