You’ve found your dream home. The paperwork is ready, and your deposit is in place, but then a thought hits you: “Will that missed payment affect a mortgage application?“.
It’s a question we hear all the time at HFA Mortgage & Protection. Many clients worry that a late payment, forgotten direct debit, or short-term financial hiccup could ruin their mortgage chances.
The truth is: a missed payment can affect your mortgage application, but it doesn’t always have to. What matters most is the context, how recent the missed payment was, and how lenders interpret your financial behaviour as a whole.
Let’s explore how this works in real life, what lenders look for, and what you can do to strengthen your application if you’ve had a financial slip-up in the past.
What Counts as a Missed Payment?
A missed payment usually refers to a scheduled repayment that wasn’t made on time. This could be for a credit card, loan, mobile phone, or utility bill. If it was more than 30 days late, lenders may record it as a ‘missed payment’ on your credit file.
There are degrees of severity:
- Late payments (under 30 days): These may not show up on your credit report unless reported by the lender.
- Missed payments (30+ days late): These appear on your credit history and can stay there for up to six years.
- Defaults or arrears: If payments are missed for several months, a default may be registered – more serious and harder to explain away.
But context is everything. One missed payment two years ago may barely make a dent. Multiple missed payments within the last six months, however, could raise red flags, so seek advice from a mortgage broker before making an application to ensure you have the right advice to move forward. If you’re worried about if that missed payment could affect a mortgage application, we’re here to help.
Rachel’s Missed Payment Story
Rachel came to us worried about a missed car finance payment from 14 months ago. She’d been on maternity leave at the time and forgot to adjust her direct debit. The payment was rectified within a few weeks, but the mark remained on her credit file. She feared the worst: “Will any lender accept me for a new mortgage?”
After reviewing her full financial profile, we reassured Rachel. The missed payment was isolated, historic, and her overall credit behaviour was sound. We matched her with a lender that looked at affordability and conduct over time, not just credit score. She was approved within weeks, and moved into her new home just three months later.
How Lenders View Missed Payments
Lenders want to feel confident that you’re a responsible borrower. Most understand that life happens, such as illness, job changes, and admin mistakes – all a part of the human experience.
Here’s what they tend to consider:
- How recent is the missed payment?
A missed payment last month carries more weight than one from three years ago.
- How frequent are they?
One slip-up may be forgiven. Repeated missed payments suggest a pattern of risk.
- What type of credit was missed?
Missing a credit card payment is one thing. Missing a mortgage payment, rent, or council tax may carry more weight.
- Was the account brought up to date quickly?
If you took responsibility and cleared the balance promptly, that works in your favour.
- What does the rest of your credit file look like?
A missed payment on an otherwise clean record may be overlooked. But combined with high debt, defaults, or payday loans, it could be problematic.
Different lenders apply different rules. High street banks may be stricter, while specialist lenders are more flexible – particularly if the rest of your application is strong.
Can You Still Get a Mortgage With Missed Payments?
Yes and in many cases, you won’t even need a specialist lender. The key is finding a mortgage provider who looks at your full story, not just your credit file.
At HFA Mortgage & Protection, we’ve supported countless clients who assumed they wouldn’t qualify due to:
- One-off missed credit card or phone bill payments
- Past defaults now settled
- Temporary financial difficulty due to illness or redundancy
- Miscommunications with creditors that were later resolved
If you can demonstrate financial stability, consistent income, and a realistic borrowing level, many lenders will still consider your application favourably.
How to Strengthen Your Application
If you’ve had missed payments, don’t panic. But do take steps to improve your profile before applying:
1. Check your credit report
Get a free copy from Experian, Equifax or TransUnion and ensure everything is accurate. Mistakes do happen.
2. Write an explanation
A well-written explanation of a missed payment, especially if it was due to a one-off situation, can help brokers and lenders understand the context.
3. Avoid new credit applications
Too many credit checks in a short time can hurt your score.
4. Pay everything on time going forward
Even small mobile phone bills matter. Build up a solid recent history.
5. Consider using a mortgage broker
Brokers like us know which lenders are more sympathetic and how to present your case in the best light.
HFA Mortgage & Protection’s Expert Perspective
One of the biggest benefits of using a mortgage broker is that we can take a holistic view of your situation.
We’re not here to judge, we’re here to help you move forward. Our role is to:
- Understand the story behind your credit history
- Identify lenders who will be receptive to your situation
- Present your application in a way that reflects your strengths
- Negotiate on your behalf where flexibility is possible
We’ve helped single parents, freelancers, and clients recovering from financial setbacks get on the property ladder. You’re more than your credit score and 99% of the time, we’ve already helped people in a similar situation to you.
Let’s Explore Your Options
If you’re thinking about buying your first home or moving up the property ladder, the best thing you can do is start with a conversation. Getting expert mortgage advice early ensures you’re ready to act when the time comes.
At HFA Mortgage & Protection, we’re proud to offer personalised, jargon-free mortgage advice tailored to your unique goals and circumstances. Whether you’re months away from applying or ready to go now, we’re here to help you prepare, plan, and find the most suitable mortgage with confidence.
Let’s chat about what’s possible for you: https://hfassociates.uk
Important Notice:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500, and this will be discussed and agreed with you at the earliest opportunity.
Your home may be repossessed if you do not keep up repayments on your mortgage.
