Remortgaging with missed payments on your credit file is often possible, and late payments are usually viewed as less serious than defaults or CCJs. It depends on how recent they are, how many there have been, which accounts they were on and whether you are fully up to date now. A single late card payment three years ago paints a very different picture from several missed payments in the last few months, and no lender has to say yes.
This page explains how missed payments are recorded, what lenders tend to focus on and what can help before you apply. Missed payments on your mortgage itself are treated differently, and we cover those on our page about remortgaging with mortgage arrears.
On this page
In short
- Late and missed payment markers stay on your file for 6 years from when they were recorded.
- Lenders tend to look most closely at the last 12 to 24 months.
- A one-off slip is often viewed differently from a repeated pattern.
- Missed mortgage or secured loan payments usually count more than a late phone bill.
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 show on your credit file?
Each month, lenders and many other providers report whether your account is up to date. If you miss a payment, that month shows a marker, and if you fall further behind the marker shows how many payments you are in arrears. Each marker stays for 6 years from when it was recorded, even after you catch up.
| Pattern | Jan | Feb | Mar | Apr | May | Jun |
|---|---|---|---|---|---|---|
| One-off late payment | OK | OK | 1 behind | OK | OK | OK |
| Repeated late payments | OK | 1 behind | OK | 1 behind | OK | 1 behind |
| Falling further behind | OK | 1 behind | 2 behind | 3 behind | 4 behind | Default |
For illustration only. Each credit reference agency displays payment status in its own way, often as numbers or colour codes, and the point at which an account defaults varies.
The score shown in a credit app is not what a lender uses. It sees the underlying history and applies its own scoring, which our page on remortgaging with a low credit score explains.
Do lenders care more about recent missed payments?
Usually, yes. Lenders tend to look most closely at the last 12 to 24 months, because recent conduct is the best guide to how a new mortgage will be paid. A missed payment four or five years ago, followed by a clean record, often carries little weight. Several in the last six months may lead some lenders to decline, or limit you to specialist products, which often have higher rates than the high street.
One-off slip or ongoing pattern?
Pattern matters as much as timing. One payment missed during a house move or a change of bank is easy to explain. Repeated late payments, or an account that falls further behind each month, suggest pressure on your budget, and lenders will look at affordability more carefully as a result.
Does it matter which account the payments were missed on?
It does. Mortgage lenders weigh up the type of account as well as the missed payment. As a general guide:
- Mortgage or secured loan: usually treated most seriously, because it is the same kind of borrowing.
- Credit cards, loans and car finance: looked at closely, as they show how you handle regular credit commitments.
- Mobile phones, utilities and buy now pay later: some lenders treat these as less significant, though they still show on your file.
If missed payments carried on long enough for an account to default, the default is recorded separately and usually matters more. Our page on remortgaging with defaults explains how those are treated.
What can you do before applying to remortgage?
The most useful step is usually to bring every account up to date and keep it there. Each clean month after a missed payment adds to your record, and a direct debit for at least the minimum payment stops a busy month turning into a new marker.
- Check all three credit reports, as not every provider reports to every agency.
- Make sure the dates and details of any markers are correct.
- Avoid new credit applications, as hard searches are visible to lenders.
- Check you are on the electoral register at your address.
- Note when your current deal ends, as a new one can often be arranged 3 to 6 months ahead.
If your deal is ending soon and your missed payments are recent, compare a product transfer with your current lender. Where you are not borrowing more, lenders can switch existing customers without a full affordability assessment, although each lender decides what it offers.
What if you agreed reduced payments with a creditor?
If you agreed to pay less than the contractual amount for a while, the account may show an arrangement to pay marker rather than a string of missed payments. It shows you contacted the creditor, which is better than payments simply going unpaid, but lenders may still ask about it. Several arrangements at once may amount to a debt management plan, which is assessed a little differently.
If payments are being missed because your budget does not stretch far enough, free and confidential advice is available from MoneyHelper, StepChange and National Debtline. Getting help early can stop late payments turning into defaults.
Can a remortgage help if the missed payments came from too much debt?
Some people look at releasing equity to repay the debts that led to the missed payments. This can cut the number of payments you manage each month, but it turns unsecured debt into debt secured on your home, and a longer term can mean paying more in total. Missed payments already recorded also stay on your file for the full 6 years. Read about debt consolidation remortgages and the risks before going down this route.
What may affect your remortgage options
For missed payments, the detail of when, where and how often usually matters more than the fact they happened.
| Factor | Why it matters |
|---|---|
| Age of the missed payments | Payments missed in the last 12 months tend to carry more weight than ones from several years ago followed by a clean record. |
| How far behind you fell | Being one payment behind is usually viewed differently from being three or more months in arrears on the same account. |
| Whether you are up to date now | An account still in arrears when you apply is usually a bigger concern than one brought up to date months ago. |
| Number of missed payments | A single missed payment is often easier to explain than a pattern. Missed payments across several accounts can suggest wider affordability pressure. |
| Mortgage payment history | A clean mortgage record alongside a few late card payments can help. Missed mortgage payments are treated as arrears and weigh more heavily. |
| Property value | A current valuation sets your equity, and more equity can give lenders more comfort about recent missed payments. |
| Outstanding mortgage balance | Your balance, plus any extra borrowing, sets the new loan size and the LTV band you fall into. |
| LTV and equity | A lower LTV generally widens options. Our guide on how LTV affects a bad credit remortgage explains how the bands work. |
| Income and affordability | If missed payments came from a stretched budget, expect closer questions about your income, spending and the stress-tested new payment. |
| Employment type | Irregular income from self-employment or contracting can explain the odd late payment, but lenders will still want evidence of steady earnings. |
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.
- Which accounts had missed payments, and roughly when
- How many payments were missed on each, and the most you fell behind
- Whether every account is now up to date
- Any arrangement to pay or reduced payment agreements, past or present
- A brief explanation of what caused the missed payments
- A recent credit report from at least one agency
- Your mortgage balance, monthly payment and deal end date
- Recent bank statements and proof of income
Specific missed payment situations
More detail for particular circumstances.
Remortgaging with missed buy now pay later payments
Why some buy now pay later missed payments show on your credit file and others do not, and how using several plans at once may be viewed.
Remortgaging with missed car finance payments
How missed car finance payments are recorded, what happens if the agreement ends early, and how this compares with other missed payments.
Remortgaging with missed credit card payments
How missed credit card payments are recorded, why your balance and credit use can matter alongside them, and what to check before you apply.
Remortgaging after one missed mortgage payment
How a single missed mortgage payment is recorded, why lenders weigh it more heavily than other accounts, and what to do straight away if it happens.
Remortgaging with one missed payment on your credit file
What a single late payment marker shows, how its weight tends to fade over time, when it is worth challenging and how to explain it to an adviser.
Remortgaging with missed payments from over 2 years ago
Why a missed payment from over 2 years ago usually carries less weight, whether you still need to disclose it, and what tends to matter more by this point.
Remortgaging with missed phone or utility bills
Why a missed phone bill can show on your credit file in a way a missed utility bill often does not, and how small missed payments are generally viewed.
Remortgaging with a missed payment in the last 12 months
Why missed payments from the last 12 months carry more weight, and whether applying now or waiting a little longer usually makes more sense.
Frequently asked questions
Will one missed payment stop me remortgaging?
Usually not on its own. A single missed payment, especially one that was put right quickly and is more than a year old, is often viewed as a one-off. It still shows on your credit file for 6 years, so be ready to explain it briefly. What lenders want to know is whether it was an isolated slip or part of a pattern.
How long should I wait after missed payments before remortgaging?
There is no set waiting period, and each lender takes its own view. Many look most closely at the last 12 to 24 months, so every extra month of on-time payments can help. Waiting has a cost too: if your deal is ending, you may move onto your lender’s standard variable rate, which is usually higher. An adviser can help you weigh up applying now against waiting.
Do missed buy now pay later payments show on my credit file?
They can. Some buy now pay later providers report missed payments to the credit reference agencies, and some report on-time payments too. How these show, and how lenders view them, varies. Check your statutory credit reports to see what has been recorded, and treat any buy now pay later plan like other credit when you budget.
Can a late payment marker be removed if it was not my fault?
If the marker is wrong, for example because a bank error meant a payment was taken late, ask the lender to correct it and then check each credit reference agency has updated your file. If the marker is accurate, it will usually stay for 6 years, but you can add a short notice of correction explaining the circumstances.
Will a payment made a few days late show as missed?
Not always. Lenders usually report to the credit reference agencies once a month, so a payment made a few days late may or may not be recorded as missed, depending on the lender and when it reports. You may still be charged a late fee. If you are unsure, check your statutory credit report. Our guide on what counts as adverse credit explains what lenders look for.