Getting a mortgage with late payments

Getting a mortgage with late payments

When you’re looking for a mortgage after having had late payments, you may find it harder to find a lender who will be willing to lend. If you’ve already been declined at decision in principal stage, then don’t worry – there are certain lenders whose late payment criteria is more forgiving.

Late payments will stay on your credit file for 6 years, the more recent the missed payments the bigger impact this could have on your credit rating.

There are specialist lenders who will consider an application despite multiple missed payments. The advice from your whole of market mortgage expert will help you get the best rates for your circumstances.

Can I get mortgage with late payments on my credit report?

Yes. Your mortgage expert will need to see a copy of your credit report (as this is the same information that mortgage lenders see), as there are numerous other factors to consider and credit report will be a major part of this by confirming the following;

  • Credit account type – Was the missed payment on a mortgage or a credit card.
  • Number of missed payments – Is it a one off or a history of late/missed payments.
  • Credit report – any other issues, such as defaults, CCJ’s etc.
  • How recent were the missed payments – the most historic the better chances you will have.
  • Strength of case – including loan to value, affordability, property type.

A combination of the above will play a pivotal role submitting a mortgage application. Credit reports can be complicated and confusing to fully understand, our mortgage experts are fully experienced in this and will be able to quickly identify any issues that may have hindered a previous application.

To see your latest credit report click here

How easy is getting a mortgage with late payments?

Late payments can affect how easy or difficult an application is, with the more recent the missed payments the more difficult, especially if there are missed payments over multiple accounts. If there are multiple missed payment, it’s likely you will need to use a specialist lender. These types of mortgages are generally referred to as bad credit mortgages, adverse credit mortgages, or subprime mortgages.
In reality specialist lenders can assist for a number of reasons besides credit profile, such as;

  • Lender doesn’t credit score
  • Specific criteria
  • Flexible under writing
  • Property construction

The mortgage experts we work with will be able to guide you through the entire process, saving you time, hassle and stress.

I have missed mortgage payments.

Late payments on a mortgage account are considered to be very serious indeed. When people are in financial difficulty, the mortgage is normally the last account that is unpaid, so this tends to act as a warning sign of financial distress.

Factors the mortgage lender will need to consider when missed mortgage payments are present are;

  • How many missed payments the were (worst status)
  • Are the payments now up to date
  • When the missed payments were
  • Credit profile – any other issue on your credit file

If all payments are now caught up with your mortgage and recorded correctly on your credit file, the chances of being accepted are higher.

If you are currently in arrears with your mortgage, the chances of being accepted are small. Some specialist lenders would take a view of your case if for example you missed 2 mortgage payments 36 months ago, but since then all payments have been made on time and this was down to a life event such as.

  • Divorce/splitting from partner
  • Redundancy
  • Health issues

Some specialist lenders would see this as 36 months of mortgage payments made on time and be happy to lend on this basis.

Bad credit mortgage advisor

At Mortgage Experts Online we work with highly skilled advisors whose specialise in bad credit mortgages. They are whole of market and will be able to get you the best deal for your circumstances.

We often hear of people who have been told they can’t get a mortgage and then our expert brokers have placed them with the correct lender to get their application agreed.

Call us on 0300 1245655 or complete our quick enquiry form to speak to a mortgage expert.



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