Missed payments on cards, loans or bills do not automatically stop you consolidating debt through a remortgage, but recent or frequent ones tend to make lenders more cautious about lending extra money for the purpose. How long ago the payments were missed, and whether the accounts are up to date now, usually matter more than the fact a payment was missed at all.
This page looks at what missed payments mean for a wider consolidation remortgage. For how missed payments generally affect remortgaging, see our remortgaging with missed payments hub, and for the basics of consolidation and its risks, our debt consolidation remortgage page.
On this page
This page covers
- Credit issue
- Missed paymentsUsually stays on your credit file for 6 years from the date recorded.
- Reason for remortgaging
- Consolidating debtsSecuring debts on your home carries extra risk and needs careful thought.
In short
- Recent missed payments across several accounts tend to concern lenders more than one older, isolated one.
- Accounts being up to date at the time you apply usually helps, even if there were missed payments before.
- Consolidating debts that were being missed does not erase the record of the missed payments.
- Bringing accounts current and waiting where possible can widen your options.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
How do missed payments affect a consolidation remortgage?
Missed payments are usually the first sign of the difficulty that later leads someone to look at consolidation, so lenders often see the two together. A card or loan with a run of missed payments, and no default yet, is generally viewed as less serious than a defaulted account, but a lender assessing a consolidation remortgage will still want to understand what happened and whether it is resolved.
Our guide on what is adverse credit? explains roughly how lenders group missed payments alongside defaults, CCJs and other credit issues.
Why timing and pattern usually matter more than the account itself
A single missed payment two years ago, on an account that has been up to date ever since, is generally treated very differently from several missed payments spread across the last 12 months. Lenders tend to look closely at your most recent 12 to 24 months of payment history in particular.
| Pattern | How it tends to be viewed |
|---|---|
| One missed payment, over a year ago, account now up to date | Usually the least restrictive of these examples |
| A short run of missed payments, since caught up | Generally viewed more cautiously, but often still workable |
| Missed payments in the last few months | Fewer lenders may consider the application until the accounts are settled |
| Missed payments on several accounts at once | Often looked at as a sign of wider financial strain |
A general pattern. Lenders apply their own scoring and criteria.
Consolidating debts you were behind on
Where the accounts with missed payments are the same ones you want to consolidate, clearing them through the remortgage brings them up to date and can stop the situation getting worse. Some lenders may want confirmation the accounts are now current, or ask for the debts to be cleared directly from the completion funds.
It is worth checking each account is genuinely up to date before you apply, since ongoing missed payments recorded during the application process can affect the outcome. Our guide on remortgaging with a bad credit history covers how lenders assess your file as a whole.
Moving cards, loans or bills onto your mortgage settles the missed payments, but the debt is then secured against your home. If the new mortgage payment is also missed, your home could ultimately be at risk.
What can help before you apply?
- Bring every account up to date where you can, rather than only the ones you plan to consolidate.
- Wait if you can, since a run of clean months since the last missed payment can make a real difference.
- Check all three credit reports with Experian, Equifax and TransUnion so nothing catches you by surprise.
- Get free advice from MoneyHelper, StepChange or National Debtline if you are still catching up on payments now.
What may shape consolidating debt with missed payments
| Factor | Why it matters |
|---|---|
| How recent the missed payments were | Payments missed in the last 12 to 24 months usually carry the most weight. |
| Whether accounts are up to date now | A current account generally matters more to a lender than the fact a payment was once missed. |
| Number of accounts affected | Missed payments spread across several accounts can suggest wider financial strain. |
| Whether any account has since defaulted | A default is usually viewed more seriously than a missed payment that did not escalate. |
| Whether the affected debts are being consolidated | Clearing the debts you were behind on can bring them current, but the debt is then secured on your home. |
| Total amount being consolidated | The combined balance sets how much extra you need to borrow. |
| Loan to value | Consolidating more debt raises your LTV, which can narrow your options. |
| Income and affordability | The larger mortgage still has to pass an affordability check and stress test. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- A list of accounts with missed payments, and roughly when they occurred
- Confirmation of which accounts are up to date now
- A list of the debts you want to consolidate, with balances and monthly payments
- Your credit reports from Experian, Equifax and TransUnion
- Your mortgage balance, deal end date and any early repayment charges
- Proof of income and a realistic monthly budget
Frequently asked questions
Can I consolidate debt if I missed payments a few months ago?
It can be harder while the missed payments are recent, and some lenders may prefer to wait until the accounts have been up to date for longer. A specialist adviser can tell you which lenders may still consider your circumstances now.
Do I need to consolidate every debt with missed payments, or just some?
Not necessarily. You can choose which debts to clear through the remortgage, though a lender may still look at accounts you are not consolidating when assessing your overall credit history.
Will clearing debts with missed payments improve my credit file straight away?
It can help over time, since the accounts are settled and your outgoings on those debts stop. The missed payment markers themselves stay on your file for 6 years from when they were recorded, regardless of when the debt is cleared.
Is it better to wait before consolidating if my missed payments are recent?
Waiting can widen your options, since lenders often look most closely at your most recent 12 to 24 months. If waiting is not realistic, a specialist adviser can still look at what may be available now.