Getting a Mortgage with Missed Payments

Typically, the more historic a missed payment is, the better your chances. However, the more severe a missed payment is, the more weight it can carry. For example, if your credit history is purely an occasional missed payment you’re likely to find it easier to obtain a mortgage, whereas if you have a registered default or CCJ then the chances of success are decreased.

These factors will determine what size deposit or amount of equity you may require and the interest rate available.

Can I get a mortgage with missed payments?

For many, the usual response to this question is yes. As with any bad credit on your file, your individual circumstances need to be considered, for credit factors such as:

• How many missed payments are there?
• When did they occur?
• What do they relate to?
• Are they missed payments or classed as late payments?
• Are they in addition to any other adverse credit events?

Other elements of the borrower’s circumstances will also play a part:

• Size of deposit or amount of equity
• Current debt to income ratio
• Present financial conduct
• Loan to income ratio

How do I get a mortgage with missed payments?

Getting a mortgage with missed payments can feel like an uphill struggle at times. This is because many lenders shy away from individuals with a bad credit history.

However, all lenders differ in the way they make their assessment of potential borrowers. This means it’s still possible to obtain funds for a mortgage.

We would suggest you avoid applying for lots of different products in the hope that you’ll be accepted for one. Doing this can actually damage your chances even more.

The best course of action is to speak to a specialist mortgage advisor who deals with this type of lending. Their knowledge and expertise will enable them to assess your situation and determine the best path to take.

How old do missed payments need to be before I can apply for a mortgage?

The simplest way to answer this question is to say the more historic it is, the better. Although this is likely true in most circumstances, it’s not necessarily that straightforward.

Your chances of obtaining a mortgage will be determined by the type of missed payment and the deposit you have. Secured loan or mortgage payments are seen as the most important level of lending, so lenders typically require missed payments to be very historic before offering you a mortgage product. Furthermore, the larger your deposit in relation to the loan amount, the better your chances of being offered a product.

Our tables below show how the time passed since a missed payment can affect you:

Secured

None – Indicates no missed or late payments per credit agreement

Any – Permits any number of missed or late payments per credit agreement

Maximum Status 1 – This represents one missed or late payment per credit agreement

Maximum Status 2 – This represents 2 missed payments per credit agreement indicating arrears. The status recorded will increase consecutively with each missed payment.

What are the best mortgage rates if I have missed payments?

When arranging a mortgage, one of the highest priorities for people is the rate or product they are getting. If you have a range of choice for lenders, you’ll be able to choose the right option to suit your needs.

However, on occasion your choices may be reduced for a multitude of reasons. This could be due to factors such as affordability, amount of deposit or equity, and for some your credit rating. You may be forced to choose a deal with a slightly higher interest rate if these factors affect you. Furthermore, you may be required to provide a larger deposit or greater amount of equity.

If you have bad credit and you want to improve your chances of getting a better deal, we recommend looking to improve your record. Our complete guide can help you do so.

Who are the best mortgage lenders if I have missed payments?

When you have a blemished credit file you’ll want to ensure you’re getting the best mortgage for your needs. With every lender applying their own individual way of assessing, there’s no list of ‘best lenders’ that can be given.

The more severe your missed payment history, the lesser the choice of lenders available to you. However, with the right research, you can still find a competitive mortgage deal.

Using an experienced mortgage broker who specialises in this sector can massively improve your chances of success. They’ll be able to use their knowledge of the market to ensure you get a suitable deal. They can also give you a plan of action for your future requirements.

Why choose Just Mortgage Brokers for your Bad Credit Mortgage?

• This is our speciality – it’s what we do
• Direct access to lenders underwriters enabling us to discuss your situation in detail
• Exclusive deals available
• Broker only bad credit lenders available to us giving you greater choice
• Unlimited mortgage broker – giving a wide range of lenders at our disposal
• Great customer reviews