Content Writer
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If you've spotted a late payment on your credit file, it's natural to worry that it'll stop you getting a mortgage. The good news is that, in most cases, it won't.
At Echo, we speak to people every day with late or missed payments on their record. Often it was a one-off: a direct debit that bounced, a bill that got lost during a house move, or a tough few months after an illness or redundancy. Lenders see this all the time, and many are far more understanding than you might expect.
In this guide, we'll explain how lenders view late payments, how long they stay on your credit file, what deposit you might need, and how our specialist brokers can help you find a lender who'll say yes.
Can you get a mortgage with late payments?
Yes, you can. A late payment is one of the least serious types of adverse credit, and plenty of lenders will consider you, including some high street banks.
What matters most is the detail behind the marker. Lenders, particularly specialist lenders who use human underwriters, will usually look at:
How recent it is: A late payment from four years ago carries far less weight than one from last month. Most lenders focus on the last 12 to 24 months
How many you have: A single late payment is viewed very differently from a pattern of them across several accounts
How late it was: Being one month behind is much less serious than being three or four months in arrears
The type of account: A late mobile phone or utility bill is treated more leniently than a missed mortgage, rent or secured loan payment
Whether you're now up to date: Lenders want to see that the account has been brought back on track and run smoothly since
The reason behind it: Life events such as illness, bereavement, divorce or redundancy are often taken into account
What if you only missed one payment?
In many cases, yes. If you have a single late payment that's more than 12 months old, has been cleared and the account has been well managed since, many high street lenders may still consider you on their standard rates.
If the late payment is very recent, it can trip the automated credit scoring that mainstream banks use. In that case, it may be worth either waiting a few months or applying to a lender that reviews cases manually.
Check if you're eligible for a mortgage with late payments
Late payments vs missed payments vs defaults: what's the difference?
These terms are often used interchangeably, but they mean different things on your credit file, and lenders treat each one differently.
- Late payment: A payment that's made after the due date. If you pay within a few days, many lenders won't report it to the credit reference agencies at all, although you may still be charged a late fee. Once a payment is around 30 days overdue (a full payment cycle), it's usually reported.
- Missed payment (arrears): When a payment isn't made in that month's cycle, the lender records it on your credit file as a status marker. A '1' means one payment behind, a '2' means two, and so on. These markers stay on your file for six years.
- Default: If you fall further behind, the lender may close the account and register a default. Under guidance from the Information Commissioner's Office (ICO), this usually happens once you're three to six months in arrears. A default is more serious than a late payment, and you can read more in our guide to [getting a mortgage with defaults].
How long do they stay on your credit file?
Late and missed payment markers stay on your credit file for six years from the date they were recorded, even if you've since caught up. After six years, they drop off automatically.
If a late payment is genuinely accurate, you usually can't have it removed. However, if it's wrong, you can raise a dispute with the lender and the credit reference agency. If it's accurate but there was a good reason behind it, you have the legal right to add a Notice of Correction (up to 200 words) to your file explaining what happened.
How late payments affect your mortgage options over time
It's a common myth that high street banks won't touch anyone with a late payment. In reality, many mainstream lenders will consider older, isolated late payments. It's recent or repeated arrears that tend to trigger an automatic decline from their credit scoring systems.
The older your late payments are, the more lenders will be available to you. Most lenders look back over a set window, usually the last 12 to 24 months, so your options improve noticeably once a late payment moves outside of that period.
The table below gives a general idea of how lenders tend to view late payments at each stage:
The late payments timeline
Age of late payment | Lenders likely to consider you | How lenders view your application |
Within the last 6 months | Mainly specialist lenders | A very recent late payment is still a live concern. Specialist lenders with human underwriters can help, particularly if it was a one-off and you're now up to date, but expect a larger deposit and higher rates |
6 to 12 months | Specialist and near-prime lenders | Many more doors begin to open. A single, cleared late payment in this window is often acceptable to near-prime lenders, though multiple recent markers will still point you towards specialists |
12 to 24 months | Most near-prime lenders and some high street banks | A real turning point. Many high street lenders will consider one or two older, cleared late payments, especially on accounts like mobile phones or utilities |
2 to 6 years | Most high street lenders | Older late payments have little impact if your recent credit history is clean. You may be able to access standard rates and lower deposit requirements |
6+ years | The whole market | A clean slate. The late payment will have dropped off your credit file completely |
Please note: Lending criteria change frequently, and the number, type and severity of your late payments will all affect which lenders can help.
How much deposit will you need?
Not necessarily a huge one. Because late payments are a relatively minor credit issue, you may still be able to access 5% or 10% deposit mortgages, particularly if your late payments are more than 12 months old.
Older or isolated late payments (12+ months ago): A standard deposit of around 5% to 10% may be enough
Recent or multiple late payments (within the last 12 months): You're more likely to need a specialist lender and a deposit of around 10% to 15%
Late payments alongside other credit issues: If you also have defaults or CCJs, some lenders may ask for 15% to 25%
A bigger deposit does help. It reduces the lender's risk, which can open up more lenders and better rates. However, it won't override a lender's credit criteria, so it's worth speaking to a broker before you spend months saving towards a figure you might not need.
Do late payments affect mortgage rates?
They can, but often by less than you'd think. If your late payments are older or minor, you may still qualify for high street rates. If they're recent or numerous, a specialist lender will usually charge a higher rate to reflect the extra risk.
However, a higher rate doesn't have to be forever. Taking a shorter fixed-rate mortgage of two or three years and making every payment on time actively rebuilds your credit file. By the time your deal ends, your late payments will be older, and we can help you remortgage onto a more competitive rate.
"We see late payments on credit files every single day, and they're very rarely the end of the road. A missed phone bill from two years ago is a completely different story to three months of arrears on a loan, and the right lender knows that. What matters most is what's happened since. If you've got back on track and kept things steady, we can usually find a lender who'll look at the bigger picture."
Lee Trett Getting a joint mortgage when one of you has late payments
If only one of you has late payments, applying together is still very much an option. Mainstream lenders will usually credit score both applicants, so a recent late payment on one file can affect the whole application.
Specialist lenders will look at your combined position. A partner with a strong credit history and stable income can improve your overall affordability and strengthen the application.
If a family member wants to help, a guarantor mortgage is another option, although these are now relatively rare. Many lenders instead offer joint borrower sole proprietor (JBSP) mortgages, where a parent or relative's income is added to the application without them going on the property's title deeds.
How to get a mortgage with late payments
If you have late payments and you're ready to buy or remortgage, here's how to give yourself the best chance:
- Check your credit report with all three agencies: Lenders may use Experian, Equifax or TransUnion, and each can show slightly different information. Statutory reports are free, and checking them won't affect your score
- Challenge any mistakes: If a late payment is recorded wrongly, contact the lender and the credit reference agency to have it corrected. If it's accurate but there was a good reason, consider adding a Notice of Correction
- Bring every account up to date: Lenders want to see that any arrears have been cleared. Ideally, aim for at least six months of on-time payments across everything before you apply
- Avoid new credit: Don't apply for new credit cards, loans or buy now, pay later products in the months before your mortgage application
- Get on the electoral roll: It's a simple step that helps lenders confirm your identity and address
- Avoid applying directly to the high street: If your late payments are recent, a decline means a hard search on your file, which can put off the next lender. A broker can check your eligibility first
- Speak to a specialist broker: We'll match you with lenders whose criteria fit your circumstances, so you apply in the right place first time
Falling behind on your existing mortgage payments
If you already own your home and you've started to struggle with your mortgage payments, contact your lender as early as possible. A missed mortgage payment is treated more seriously than a missed credit card or phone bill payment, because your home is secured against the debt.
Under Financial Conduct Authority (FCA) rules, lenders must treat you fairly and offer appropriate support. Through the Mortgage Charter, signed by lenders covering around 90% of the market, you may be able to:
Switch to interest-only payments for up to six months
Extend your mortgage term to reduce monthly payments, with the option to switch back within six months
Lock in a new deal up to six months before your current one ends
If you're up to date with your payments, these options are available without a new affordability check, and they won't affect your credit score. Charter lenders have also committed not to start repossession within 12 months of your first missed payment, except in exceptional circumstances.
These measures can provide valuable breathing space, but switching to interest-only or extending your term will usually increase the total interest you pay. If you're already in arrears, free, confidential debt advice from organisations such as StepChange or MoneyHelper can help. You may also find our guide to [mortgage arrears] useful.
Get specialist advice about your mortgage application
At Echo Finance, we know that late payments happen to all kinds of people for all kinds of reasons. We don't judge, we just focus on finding a way forward.
We work with mortgage applicants with late and missed payments every day, including those who've been turned down elsewhere. We know which lenders take a sympathetic view of your circumstances, and we'll take the time to understand your story so we can present your application in the best possible light.
Ready to find a lender who'll look past your late payments? Speak to a late payments mortgage expert today. There's no judgement here, and our initial chats are completely free.
No, there are specialist lenders who may be willing to approve your mortgage application, depending on the age of your late payment, and whether it's still outstanding.
If you're worried about your credit score, it's a good idea to check your credit report before you apply for a mortgage. This way, you can see exactly what information lenders will be looking at when they assess your application.
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