Can You Get a Mortgage With Missed Payments?
Yes, in many cases you can. Missed payments often look worse than they actually are, and are usually easier to work around than people think.
The biggest misunderstanding about missed payments
Most people focus on their credit score. They see a low number and assume they will be declined, need a big deposit, or have to wait years.
In reality, lenders do not rely on your score in the way people think. They look at your actual credit history and behaviour, not just the number.
What lenders actually care about
When it comes to missed payments, lenders usually look at:
- How recent they are
- What type of credit they relate to
- How many there are
- Whether things have improved recently
Not all missed payments are treated the same.
The type of missed payments matters
Revolving credit, more flexible
- Credit cards
- Overdrafts
- Store cards
These are often treated more leniently. Some lenders may even overlook missed payments on this type of credit depending on the overall case.
Fixed commitments, more serious
- Loans
- Car finance
- Mortgages
- Utilities
These are usually taken more seriously, especially if they are recent.
When you can still get a mortgage
You may still be in a good position if:
- The missed payments are on credit cards or overdrafts
- There are no recent serious issues
- Your income supports the application
- You have at least a 5% deposit
Many lenders will focus on the overall picture rather than penalising older or less serious missed payments.
When missed payments become a problem
You are more likely to struggle if:
- Missed payments are very recent
- They are on loans or car finance
- There is a pattern of ongoing issues
- There are multiple types of adverse credit
In these cases, timing becomes more important. Waiting and improving recent conduct can make a big difference.
Why some brokers say no too quickly
Some brokers look at a low credit score and assume the worst. That does not always reflect the real situation.
If the missed payments are on the right type of credit and the rest of the case is strong, there are often still options available.
Shared ownership with missed payments
Missed payments are usually one of the easier types of credit issues to place with shared ownership.
- More flexibility compared to defaults or DMPs
- Better outcomes when not recent
- Often possible with a 5% deposit
The housing association will still carry out their own affordability checks alongside the lender.
