Remortgaging while you are currently behind on your mortgage is difficult, and for many people it is not the right first move. Most lenders want to see a clean recent payment record, so an outstanding arrears position usually narrows the field to a small number of specialist lenders, and typically only where there is enough equity to make the numbers work. Before you look at a new mortgage, contact your current lender. It must treat you fairly and consider ways to make your payments more manageable, and that conversation often matters more than any application made elsewhere.
If you are struggling to keep up with payments, free and confidential help is available from MoneyHelper, StepChange and National Debtline. This page looks at what is realistic while arrears are outstanding and why your lender and a debt adviser usually come first. For arrears you have already cleared, see cleared mortgage arrears.
On this page
This page covers
- Credit issue
- Mortgage arrearsUsually stays on your credit file for 6 years from the date recorded.
- Status
- Not yet settledOutstanding balances usually narrow the options, and some lenders may expect them to be cleared as part of a remortgage.
In short
- A live arrears position is usually the hardest situation for a new mortgage application.
- Your current lender must treat you fairly and consider forbearance before you look elsewhere.
- A small number of specialist lenders may consider an application, usually where there is meaningful equity.
- There is no fixed number of months of arrears that leads to repossession, but getting free advice early matters.
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.
Why is a live arrears position so hard to place?
A satisfied CCJ or an old default tells a lender about something that has already been resolved. Current mortgage arrears tell a new lender that you are behind on a mortgage right now, on the very product they would be assessing you for. That is a harder story to tell, which is why many mainstream lenders will not consider an application until payments are back on track.
Arrears often point to an affordability problem, so a new lender needs to be satisfied the cause has genuinely passed and the new payment is affordable. Equity tends to matter more here than in most other credit situations, since it gives a lender more room if things go wrong.
What might a specialist lender want to see?
A small number of specialist lenders may still consider an application while arrears are outstanding, usually where the arrears would be cleared at completion and there is reasonable equity. This is not common or guaranteed, and it means adding the arrears to a larger loan.
| Question | Why it is asked |
|---|---|
| How many months are you behind, and by how much? | Shows the scale of the position, not just the total owed |
| Will the arrears be cleared as part of the remortgage? | Affects how much needs to be borrowed and the loan to value |
| What caused the arrears, and has that changed? | Lenders need reasonable confidence the cause will not repeat |
| What is the property worth now? | Sets the loan to value and how much flexibility there may be |
General illustration of the kind of questions asked, not a checklist any specific lender uses.
Why contact your lender before you apply elsewhere?
Your current lender must treat you fairly and consider forbearance, meaning ways to make the situation more manageable. Our main page on mortgage arrears sets out the kinds of arrangement on offer, and asking about these is usually quicker and more realistic than a new application while you are behind.
- Ask for any arrangement to be confirmed in writing, including how it will be recorded
- Keep a note of every call and letter, with dates
- Ask what would need to change before a product transfer became possible
- Tell your lender about any change in circumstances as soon as it happens
What if the arrears have led to court action?
Lenders must follow set pre-action steps and treat repossession as a last resort. There is no fixed number of months of arrears that leads to a claim; it depends on your lender, your circumstances and whether a workable arrangement is in place. If you receive a letter about court action, respond and get advice straight away.
National Debtline, StepChange and MoneyHelper can help you prepare, and free advice may be available on the day. A remortgage is very unlikely to happen quickly enough to change a hearing date, so it should not be your only plan.
Should you wait, or start exploring your options now?
For most people, getting the mortgage back on track, through your own budgeting or an arrangement with your lender, is the more realistic first step, and it improves what a lender may consider once cleared. See cleared mortgage arrears and remortgaging to clear mortgage arrears for what tends to change from here.
It can still help to speak to an adviser now, even if only to understand what evidence you would need later. Being open about a live arrears position from the first conversation tends to make it more useful.
What may affect an application while arrears are outstanding
| Factor | Why it matters |
|---|---|
| Whether you have contacted your lender | Shows you are actively dealing with the position rather than letting it continue. |
| How many months behind | Lenders look at the number of missed payments, not only the amount owed. |
| Any agreed arrangement | A payment arrangement you are keeping to is viewed differently from arrears with no plan in place. |
| Whether arrears would be cleared at completion | Some specialist lenders may only consider it if the arrears are cleared as part of the remortgage. |
| Cause of the arrears | Whether the cause has genuinely passed matters more than the arrears themselves. |
| Equity and loan to value | More equity generally gives a lender more room to consider a harder case. |
| Income and affordability now | Evidence that the new payment is affordable going forward. |
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.
- Recent mortgage statements showing the arrears and how they built up
- Any letters or arrangement details from your current lender
- A short, factual explanation of what caused the arrears
- Evidence of your current income and regular outgoings
- An estimate of your property’s value
- Details of any other credit issues on your file
Frequently asked questions
Can you remortgage while you are still behind on your mortgage?
It is possible in some cases, usually only through a small number of specialist lenders with enough equity, often with the arrears cleared as part of the remortgage. Speaking to your current lender first is usually more realistic.
Does asking for an arrangement affect my credit file differently to missing payments?
An arrangement is often recorded differently to unexplained missed payments, and many lenders view it more positively. It will still be visible on your file.
Is there a set number of months of arrears before repossession starts?
No. There is no fixed timeline that applies to everyone. If you are worried about how far things might go, get free advice as early as you can.
What should I do if I have already been sent a repossession claim?
Respond to every letter and court paperwork, and get advice immediately from National Debtline, StepChange or MoneyHelper. Keep talking to your lender, since there may still be an arrangement the court could consider.