Can You Get a Mortgage If You Have Late Payments?

Updated: 24 September 2025

Yes, it is often possible to get a mortgage even if you have late payments on your credit history. While some mainstream lenders may be cautious, many specialist mortgage providers are open to applications where there is evidence of stable income, affordability, and responsible financial behaviour since the late payments occurred.

What you can expect is more scrutiny around when the late payments happened, how many accounts were affected, and whether the debts have been resolved. Recent late payments (within the last 12 months) can make borrowing more restrictive, whereas older issues may carry less weight.

To prepare, it helps to check your credit file, gather supporting documents such as payslips and bank statements, and build a strong deposit where possible. Mortgage brokers, such as Manor Mortgages Direct, can guide you through suitable options and explain how different lenders approach late payments.

The key is demonstrating to lenders that your finances are now stable, and that you have taken steps to manage credit responsibly going forward.

What Counts as a Late Payment?

A late payment is usually logged when you miss the scheduled due date on any form of credit, such as:

• Credit cards

• Loans

• Mobile phone bills

• Utility bills

• Car finance

• Mortgages

Credit reference agencies in the UK (Experian, Equifax, TransUnion) mark accounts as “late” if payments are missed or made beyond the agreed timeframe. Even one missed payment can show up on your record, which can surprise many people who believed a small delay would go unnoticed.

Key fact: Late payments stay visible on your credit file for up to six years, even if the debt has since been settled.

Do Late Payments Mean You Cannot Get a Mortgage?

No, late payments do not automatically block you from getting a mortgage. The impact depends on recency, frequency, severity, and context.

• Mainstream lenders tend to be stricter, preferring a clean payment record.

• Specialist lenders may consider applications with late payments, especially when there is evidence of recovery and financial stability.

Borrowers are often surprised to learn that late payments are not the same as defaults, CCJs, or insolvency. They sit lower down the “adverse credit” scale, which means there is usually a pathway to borrowing.

How Long Do Late Payments Stay on Your Credit File?

Late payments remain visible for six years, but their influence diminishes over time:

• Within the last 12 months: Strongest impact, may limit mortgage options.

• 1-3 years old: Still relevant, but some lenders become more flexible.

• 3-6 years old: Often less significant, especially if you have maintained perfect conduct since.

Why the Type of Credit Matters

Not all late payments are equal. Lenders tend to weigh them differently:

• Unsecured debts (e.g. a missed credit card bill) are sometimes seen as less serious.

• Secured debts (mortgage arrears or car finance) carry more weight, as they suggest risk of repossession.

• Utilities and mobile contracts are often overlooked if isolated.

A borrower who missed a mobile phone payment three years ago may still be able to access near-mainstream rates, while repeated missed mortgage payments in the last year would restrict choices heavily.

How Timing of Late Payments Changes Your Options

The timing of late payments is critical.

• Recent issues: A mortgage application made immediately after missed payments is far harder, as lenders see it as a sign of ongoing financial strain.

• Historic issues: Problems from several years ago may have little effect, particularly if you can demonstrate consistent on-time payments since.

Case study example:

• Applicant A missed three credit card payments two years ago, but has been up to date since. With a 20% deposit and stable employment, specialist lenders may accept them at a competitive rate.

• Applicant B missed two mortgage payments in the last six months. Even with a large deposit, options will be more limited until at least 12 months of clear conduct is shown.

  
  

What Do Lenders Consider Beyond Late Payments?

Lenders take a holistic view. Key factors include:

• Deposit size: Larger deposits reduce lender risk. A 15-25% deposit can offset past issues.

• Income stability: Regular employment or consistent self-employed income is crucial.

• Affordability: Lenders use affordability calculators, considering all debts, household expenses, and dependants.

• Credit history as a whole: Late payments may be balanced by years of otherwise good conduct.

• Reason for late payments: Illness, redundancy, or short-term cashflow problems can sometimes be mitigated with explanation.

  
  

What Types of Mortgages Might Be Available with Late Payments?

Applicants with late payments may still access:

• Fixed-rate mortgages, which offer stability for lenders and borrowers alike.

• Tracker or variable mortgages, sometimes offered with more flexible criteria.

• Specialist adverse-credit mortgages, designed specifically for those with credit blips.

Often, products may carry slightly higher rates or fees, but these can improve after building a track record of timely payments.

Real-World Scenarios: How Different Profiles Are Treated

• Single, old late payment: Often overlooked, particularly if over three years ago.

• Multiple late payments across several accounts: Treated more cautiously, but still possible with specialist lenders.

• Recent late mortgage payments: Hardest category, but may still be considered after at least 12 months of recovery.

• First-time buyer vs. remortgage: Some lenders are more flexible with remortgages, particularly where equity is strong.

  
  

How to Strengthen Your Mortgage Application if You Have Late Payments

Practical steps to prepare include:

• Check your credit file.

• Dispute any inaccuracies immediately.

• Save for a larger deposit, which reduces risk to lenders.

• Reduce other debts (credit cards, loans) before applying.

• Provide an explanation: A clear, honest note on why payments were missed can help.

• Demonstrate stability: Showing consistent payments for at least 12 months is persuasive.

  
  

Role of Specialist Lenders and Intermediary-Only Products

Specialist lenders exist to serve borrowers who don’t fit the mainstream mould.

They often offer:

• More flexible criteria.

• Willingness to consider explanations.

• Options for complex income (self-employed, contractors, multiple income streams).

These lenders are typically available only through brokers, not directly. That means going about it alone may limit your choices significantly.

The Benefits of Using a Broker

A mortgage broker can:

• Access intermediary-only lenders.

• Compare criteria across dozens of providers.

• Present your case to underwriters in the best possible light.

• Save time and avoid wasted credit searches.

At Manor Mortgages Direct, we regularly work with clients who have late payments and help them secure suitable products tailored to their circumstances.

FAQs

1. Will my interest rate be higher if I have late payments?

   Often yes, especially with recent issues, but rates can improve over time once you maintain a clean track record. Specialist lenders may start you on higher rates with a view to remortgaging later once your credit file improves.

   
   

2. Do I need a broker to apply with specialist lenders?

   Yes, many specialist lenders only operate through intermediaries.

   
   

3. Should I wait until six years have passed from my missed payment?

   Not necessarily. With the right circumstances, mortgages may be available sooner.

   
   

4. If I missed a payment last year, can I still get a mortgage?

   Yes, it may still be possible. Lenders will look closely at when the late payment occurred and whether you’ve maintained a clean record since. A payment missed over 12 months ago is usually less serious than one within the last three to six months.

   
   

5. Do remortgage options exist if I have late payments?

   Yes. Many people remortgage despite late payments, but choices may be more limited if issues are recent. Having equity in your property helps. A broker can identify lenders who are open to remortgage cases with late payments.

   
   

6. How big a deposit do I need if I have late payments?

   Deposit requirements vary, but often you may need 15–25% if your late payments are recent. If issues were over two or three years ago, some lenders may accept 5–10%. Larger deposits always strengthen your application.

   
   

7. Can self-employed applicants with late payments still get a mortgage?

   Yes, but self-employed cases often involve more scrutiny of income. You will need at least 1–2 years of solid accounts and evidence of recovery since the late payments.

   
   

13. Final Thoughts

Late payments are common, and they do not mean the end of your mortgage hopes. While some lenders will be cautious, many others will consider your broader financial picture.

The key is preparation: know your credit file, save for a strong deposit, and work with a broker who understands the market.

At Manor Mortgages Direct, we are expert mortgage advisers with experience helping clients who have late payments secure the right mortgage.

Get in touch today on 01275 399299.

Written by Ben Stephenson, CeMAP-qualified Mortgage Broker, and reviewed by Mortgage Experts.

Manor Mortgages Direct is FCA authorised (496907), established for nearly 30 years, and highly positively reviewed (4.9 rated on Google). We have helped thousands secure the right mortgage. Based in Bristol, we work with clients nationwide.