A missed payment from the last 12 months is one of the things lenders look at most closely, because recent conduct is the best guide to how a new mortgage would be paid. It does not rule out a remortgage, but it usually narrows your choice towards specialist lenders, and the exact picture, how many payments, which accounts and whether you are up to date now, matters more than the fact that something recent happened.
This page looks at what counts as recent, why the last 12 to 24 months carry so much weight, and whether it is worth applying now or waiting for a cleaner record. For the wider picture on missed payments generally, see our main page on remortgaging with missed payments.
On this page
This page covers
- Credit issue
- Missed paymentsUsually stays on your credit file for 6 years from the date recorded.
- When it happened
- Registered in the last 12 monthsRecent issues tend to carry the most weight, so the choice of lenders is usually narrower.
In short
- Lenders tend to look most closely at the last 12 to 24 months of payment history.
- A recent missed payment usually points towards specialist rather than high-street lenders.
- Being up to date now matters more than the marker itself.
- Waiting has a cost too, especially if your current deal is ending.
What counts as a recent missed payment?
There is no fixed definition, but most lenders pay closest attention to the last 12 to 24 months of your credit history. A payment marked as missed within that window is generally treated as recent, while the same marker from three or four years ago, followed by a clean record, is usually viewed quite differently. If more than one payment has been missed recently, our page on remortgaging with mortgage arrears may be more relevant where the account is your own mortgage.
The marker itself will stay on your file for 6 years from when it was recorded, whichever account it was on. What changes over that time is not the record but how much weight a lender is likely to give it, which is why the same missed payment can matter a great deal this year and very little in three years.
Why do lenders focus on recent history?
A mortgage is a long commitment, so lenders try to judge how likely you are to keep up payments going forward. Your most recent conduct is the closest thing they have to a preview of that. A missed payment last month or last quarter raises the question of whether your budget is currently under pressure, which is why lenders tend to ask more questions, and apply tighter criteria, the more recent a marker is. This is closely tied to your wider credit picture too, which our page on remortgaging with a low credit score explains in more detail.
| When the payment was missed | What it can suggest | Range of options |
|---|---|---|
| In the last 3 months | Current pressure on the account | Often narrower, and may depend on the reason and whether it has been resolved |
| 4 to 12 months ago | A recent issue with some time to show recovery | Usually wider than very recent markers, especially with clean months since |
| 12 to 24 months ago | Growing distance from the event | Often broadens further, depending on the rest of the file |
| Over 2 years ago | Increasingly historic | See our page on missed payments over 2 years ago |
For illustration only. These are general patterns, not lender rules. Each lender sets its own criteria and scoring.
Should you apply now or wait for a cleaner record?
There is no single right answer, and it depends on your own timeline. Waiting a few more months adds clean payments to your record, which can widen your options and may bring better terms. But waiting is not free: if your current deal is coming to an end, you could move onto your lender’s standard variable rate, which is usually higher, while you wait.
When applying sooner may make sense
- Your fixed or tracker deal ends within the next 3 to 6 months.
- The missed payment was a one-off with a clear explanation, such as a change of bank account.
- You have plenty of equity, which can widen the range of lenders willing to consider your application.
When waiting may be worth considering
- You have several months left on your current deal.
- The missed payment is part of a wider pattern you are still working through.
- You would rather build a longer clean record before applying.
What can help while the marker is still recent?
You cannot remove an accurate marker, but you can put the strongest case together around it. Bringing every account up to date and keeping it that way is the single most useful step, since each clean month adds to the record a lender will see. If a payment holiday or reduced payment agreement is part of the picture, ask the provider how it will show, since our page on remortgaging with a debt management plan covers a related situation where several accounts are affected at once.
- Check all three credit reports, since not every provider reports to every agency.
- Set up direct debits for at least the minimum payment on every credit account.
- Avoid new credit applications in the meantime, as hard searches are visible to lenders.
- Have a short, factual explanation ready for what happened and what has changed.
- Ask about a product transfer with your current lender if your deal is ending soon.
What if your current deal is ending soon?
If your fixed or tracker deal is close to ending and you have a recent missed payment, a product transfer with your existing lender is often worth exploring alongside the wider market. Where you are not borrowing more, FCA rules allow lenders to switch existing customers without a full affordability assessment, though a lender can still decide what it offers you.
A specialist adviser who works across both the mainstream and specialist markets can compare a product transfer against a new remortgage and help you weigh up applying now against waiting a little longer.
What may shape your options with a recent missed payment
With a recent marker, lenders are usually trying to judge whether it reflects your situation now or is already behind you.
| Factor | Why it matters |
|---|---|
| How recent it is | A payment missed in the last 3 months is usually viewed more cautiously than one from 9 to 12 months ago. |
| Whether it was a one-off | A single missed payment with a clear cause is often easier to place than several in quick succession. |
| Whether you are up to date now | An account still behind when you apply is a bigger concern than one you have already caught up. |
| Which account it was on | A missed mortgage or secured loan payment usually counts more than a missed phone bill. |
| Other recent activity | Several recent hard searches or new credit accounts alongside a missed payment can add to a lender’s questions. |
| Property value and equity | More equity generally widens the range of lenders willing to look at a recent marker. |
| Income and affordability | Lenders will want to see the new payment is affordable now, stress tested against a higher rate. |
| Time left on your current deal | How soon your deal ends can affect whether it makes more sense to apply now or wait a little longer. |
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 account or accounts had the recent missed payment, and the month it happened
- Whether the account is up to date now, and since when
- A short explanation of what caused it
- 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
Frequently asked questions
How soon after a missed payment can I remortgage?
There is no fixed waiting period. Some specialist lenders will consider an application soon after a missed payment, particularly with a clear explanation and plenty of equity. Others prefer to see a longer clean run first. An adviser can tell you which lenders are likely to take your specific situation.
Will waiting a few months make a real difference?
It can. Each extra clean month adds to your recent record, and lenders tend to look most closely at the last 12 to 24 months. Waiting also has a cost if your current deal is ending, since you may move onto a higher standard variable rate in the meantime, so it is worth weighing both sides.
Does a recent missed payment rule out a product transfer?
Not necessarily. A product transfer is a decision for your existing lender, and where you are not borrowing more, FCA rules allow lenders to switch existing customers without a full affordability assessment. Your lender can still decide what it offers, so ask early rather than assuming either way.
Will a recent missed payment mean a higher rate?
It can mean being placed with a specialist lender rather than a high-street one, and specialist rates are often higher than mainstream rates. Your equity, income and the rest of your credit file also affect what is offered, so a recent marker on its own does not fix the outcome.