Missed mortgage payment: what to do next

Missing a mortgage payment can feel alarming, but what matters most is what you do straight away. The earlier you take action, the more options you’re likely to have to prevent the situation escalating.

This guide explains what typically happens after a missed payment, how it may affect your credit file, and the kinds of solutions lenders may consider.

Act quickly: the first days matter

After your payment due date, many lenders allow a short period to receive the money before they treat it as late. During this window, the aim is simple: try to clear the missed amount as soon as possible.

If you can’t pay the full amount immediately, don’t wait for the problem to grow. Contact your lender as early as you can to explain what’s happened and what you can realistically do next.

Expect your account to be marked as being in arrears

If the payment isn’t received within the lender’s late-payment window, your mortgage account is likely to be recorded as in arrears. At this stage, the impact can start to show on your credit file.

Credit reporting doesn’t always happen instantly, but once it does, it can make it harder to borrow in the future and may affect the terms you’re offered.

Understand how delays can lead to further action

Mortgage arrears often follow a timeline. While each lender’s process can vary, a common pattern is:

• After a missed payment, your account may be treated as late and then in arrears.
• If arrears continue, the lender may issue formal notices.
• If the situation doesn’t improve, the lender may consider more serious steps.

The key point is that escalation is usually linked to how long the arrears continue and whether you engage with your lender.

Keep communication open with your lender

When you miss a payment, lenders generally want to know:

• why the payment was missed
• what your current financial position is
• whether you can make a partial payment
• what you can commit to over the next few months

Being upfront can help your lender decide on the most suitable support. It can also reduce the risk of misunderstandings or delays.

In the UK, lenders are expected to treat customers fairly and consider requests in a reasonable way.

Possible options lenders may consider

Every mortgage is different, but lenders often have a range of approaches for borrowers who are temporarily struggling. These may include:

1) Paying interest only for a period

In some cases, a lender may allow a temporary change so you pay interest only rather than the full monthly repayment.

This can reduce your monthly outgoings in the short term, but it usually means the overall balance and/or future payments may be higher than they would have been otherwise.

2) Extending the mortgage term

Another approach is to extend the term of the mortgage. Spreading the remaining balance over a longer period can reduce the monthly payment.

This may increase the total interest paid over the life of the loan, but it can help you stabilise your budget.

3) A payment holiday (where available)

Some lenders may consider a payment holiday in certain circumstances. This typically allows you to pause payments for an agreed period.

It’s important to understand what happens after the holiday ends—whether payments resume at the same level, whether arrears are added to the balance, and how the arrangement affects the overall mortgage.

4) A repayment plan to clear arrears

If you can’t catch up immediately, a lender may agree a structured plan to repay the arrears over time alongside your normal payments.

A workable plan is usually one that matches your realistic income and expenses.

What to avoid

When you’re under pressure, it’s tempting to ignore the problem or hope it resolves itself. Common mistakes include:

• Waiting too long before contacting your lender
• Missing further payments while you’re trying to catch up
• Assuming there’s only one option (there are often multiple ways to restructure payments)
• Taking on additional secured debt without understanding the risks to your home

How this can affect your future borrowing

A missed mortgage payment can have longer-term consequences, particularly if arrears continue or a default is recorded. Even where you later recover, the history on your credit file may influence how lenders assess risk.

Taking early action and agreeing an arrangement can help demonstrate that you’re managing the situation responsibly.

If you’re worried about repossession risk

Repossession is not something that happens overnight, but it is a serious risk if arrears are not addressed. The most protective step is to engage early, follow through with any agreed plan, and keep your lender informed if your circumstances change.

Important considerations

• Your home may be repossessed if you do not keep up with your mortgage repayments.
• There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances.
• Think carefully before securing other debts against your home.

If you’ve missed a payment, the best next step is to focus on stabilising the position: communicate early, understand what your lender can offer, and choose an option you can realistically maintain.

Useful information (external):

• Financial Conduct Authority (FCA): https://www.fca.org.uk/consumers/mortgages
• MoneyHelper (support if you’re struggling with mortgage payments): https://www.moneyhelper.org.uk/en/housing/buying-a-home/mortgage-arrears-and-what-to-do