Impaired Credit: Getting a Mortgage After Late Payments

Life happens, and sometimes payments are made later than planned. If you’ve had late payments on your credit file, or you’ve been declined because of them, it can feel like the mortgage door has closed.

In practice, many lenders will still consider an application. The outcome usually depends on the pattern of late payments, how long ago they were, and how strong the rest of your application looks (income, affordability, deposit, and overall financial stability).

This guide explains the key differences between late and missed payments, how they’re assessed, and what you can do to put yourself in the best position.

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Getting a mortgage after late payments

Late payment vs missed payment: what’s the difference?

A late payment is a payment you made, but not on the due date.

A missed payment is a payment you haven’t made (or haven’t made in time), which can lead to arrears.

Lenders and credit reference data treat these differently because a missed payment can indicate a more serious repayment problem. Late payments are still a concern, but missed payments generally raise more questions about affordability and reliability.

Late and missed payments can remain visible on your credit history for several years. Mortgage lenders commonly review credit history over that period when assessing risk.

Can you get a mortgage with late payments?

Yes, it can be possible. A mortgage can also be declined because of late payments, but that isn’t guaranteed.

Late payments are a common credit issue, and many borrowers still secure a mortgage, particularly where the late payments are:

Older
Limited in number
Isolated rather than part of a sustained pattern
Followed by a period of improved payment behaviour

Where late payments are more recent or frequent, the range of lenders willing to consider you may be narrower. That doesn’t mean you can’t get a mortgage; it often means you may need a more tailored approach.

How do late payments affect your credit score?

Late payments can reduce your credit score because they suggest missed or delayed commitments.

A lower credit score can affect mortgage outcomes in a few ways:

It may reduce access to the most competitive mortgage deals
It can influence the deposit a lender expects
It may lead to more detailed underwriting checks

Importantly, lenders don’t look at your score alone. They also review the history behind it, including the number, timing, and type of late payments.

How will lenders assess late payments on your mortgage application?

Lenders will usually look beyond the headline credit issue and focus on risk. They commonly assess:

Number and recency of late payments, including how late they were
Account type (secured vs unsecured)
Consistency of payments since the late payment(s)
Your current affordability (income vs outgoings)
Deposit size and overall loan-to-value
Employment and income stability
Whether there are other credit concerns alongside late payments

Secured vs unsecured late payments

Late payments on secured debts (such as a mortgage or car finance) may be viewed more seriously than late payments on unsecured debts (such as credit cards or personal loans), because secured debts are tied to assets that can be repossessed if repayments fail.

Mainstream vs specialist lender approaches

Some lenders use automated decision systems that may be less flexible when they detect certain credit issues. Specialist lenders may be more willing to look at the wider picture, such as your current circumstances and how you’ve managed your finances since the late payments.

Many lenders may consider applications with late payments, but not all will treat every credit history the same way. The most suitable lender depends on your individual circumstances, including the pattern of late payments and your current financial position.

What happens if you miss a mortgage payment?

A missed mortgage payment can be more serious than a late payment because it can quickly lead to arrears.

If a payment is missed, the lender will typically expect you to act promptly. Delays in addressing the issue can increase the likelihood of escalation.

The account may enter arrears, fees and interest may be applied, and if the situation continues, the account can be recorded as a more severe credit event.

The key point is that communication and early action can help prevent the situation worsening.

Can you get a mortgage with missed payments?

It may be possible, but missed payments are usually viewed as a higher risk than late payments.

Whether a missed payment affects your application will depend on factors such as:

How long ago it happened
Whether it was repaid and how quickly
How many missed payments occurred
Whether there are any further arrears or defaults

In many cases, missed payments reduce the number of lenders willing to consider you, and you may need a larger deposit or a more carefully structured application.

How to improve your chances of getting a mortgage with late payments

If you’re planning to apply, the goal is to show lenders that the late payments were part of a past issue, not an ongoing repayment risk.

Check your credit file for accuracy

Errors happen. Reviewing your credit report helps you spot incorrect entries, duplicate accounts, outdated information, or wrongly recorded payment statuses. If you find errors, addressing them early can help ensure your application isn’t judged on inaccurate data.

For official guidance on credit reference files, see MoneyHelper’s guide to checking your credit record.

Build a track record of on-time payments

Lenders tend to value recent behaviour. Keeping all accounts up to date, especially credit cards, loans, and any existing finance, can help demonstrate stability.

Reduce other credit pressures

If you have balances on credit cards or other borrowing, paying them down where possible can improve your overall affordability picture.

Strengthen the rest of your application

Late payments may be easier to offset when other parts of your application are strong, such as:

A healthy deposit
Stable employment or reliable income
Clear, consistent outgoings
A property that fits the lender’s criteria

A larger deposit can reduce the amount you need to borrow and may help offset concerns a lender could have about credit history. If you have flexibility, choosing a property that requires a smaller loan amount may improve your overall position. Learn more about bad credit mortgages with a larger deposit.

Change any value and the other figures will update automatically.

Try an example: £250,000 home with a £25,000 deposit → 90% LTV

Property value

£40,000 £5,000,000

Changing the property value keeps the mortgage amount and recalculates your deposit or equity and LTV.

Deposit or equity

£0 £250,000

Mortgage amount

£0 £250,000

Loan-to-value

90%

0% 100%

Your loan-to-value

90%

A £225,000 mortgage on a £250,000 property.

90%

90% mortgage 10% deposit or equity

Search mortgages with these figures

Starts with a residential purchase. You can change the mortgage type and purpose in the search.

No mortgage borrowing needed

With these figures, the property value is fully covered by your deposit or equity. No mortgage borrowing is required.

Small mortgage amount

Fewer lenders offer mortgages below £25,000, so your options may be limited. Product and legal fees can also have a greater impact on the overall cost of a smaller mortgage.

Low property value

Fewer lenders offer mortgages on properties valued below £50,000. Minimum property values vary by lender and property type.

Buying to let?

If this is a buy-to-let purchase, most lenders cap borrowing at 75–80% loan-to-value, with some specialist options reaching 85%. This cap applies to buy-to-let mortgages only — residential lending typically extends to 95%.

High-LTV residential mortgage

Residential mortgages above 95% LTV have limited availability and often require a specialist mortgage product or scheme. Talk to your mortgage adviser about your options.

No deposit or equity buffer

You have no deposit or equity buffer. A fall in the property's value could leave you owing more than it is worth. No-deposit residential mortgages have limited availability and specific eligibility requirements. Speak to your mortgage adviser.

A larger £25,000 deposit on a £250,000 property would mean a £225,000 mortgage at 90% loan-to-value. The calculator illustrates the figures, not whether a lender would accept your credit history.

Extending the mortgage term can reduce monthly payments, which may support affordability. This needs to be weighed carefully against the total cost of borrowing.

Consider a broker-led approach

A broker can help identify which lenders may be more likely to consider your specific credit history and can help you avoid wasting time with applications that are unlikely to succeed.

Every case is assessed individually

There isn’t a universal rule for late payments and mortgage acceptance. Lenders weigh risk differently, and your overall circumstances matter.

If you’ve had late payments, the most effective approach is usually to understand what’s on your credit file, address any inaccuracies, and present a mortgage application that clearly demonstrates affordability and stability.