What Happens If You Miss a Payment Before Remortgaging?
- Christina Vassiliades
- Jan 2
- 5 min read
Updated: Jan 5
Yes, you can often still remortgage after missing a payment, but the impact depends on how recent, how severe, and how isolated the missed payment was.
A single late payment recorded as one month in arrears is viewed very differently to multiple missed payments or ongoing arrears.
Most mainstream lenders prefer a clean payment history in the 6 to 12 months leading up to a remortgage. If a missed payment is recent, some lenders may decline or reduce borrowing, while others, particularly specialist and intermediary only lenders, may still consider the case depending on the wider profile.
Key factors include whether the payment has since been brought up to date, whether it was a one-off issue, and whether there are strong compensating factors such as low loan to value or stable income. Acting early and understanding how lenders assess missed payments can prevent unnecessary delays or costly outcomes.
Last Updated: 2 January 2026
Table of Contents
Why This Question Matters in 2025
What Counts as a Missed Payment
How Missed Payments Appear on Your Credit File
How Lenders Assess Missed Payments When Remortgaging
Timing Matters, How Recent Is Too Recent
The Lender Acceptance Spectrum
Policy Exceptions and When They Apply
Case Study
Pros and Cons of Remortgaging After a Missed Payment
Myth vs Reality
What Underwriters Actually Look For
Impact on Rates, Fees and Choice
Timescales and Hidden Consequences
Common Mistakes to Avoid
Broker Insights, What We See Most Often
FAQ Section
Glossary
Checklist for Next Steps
Final Note
1. Why this question matters in 2025
With household budgets under pressure, more homeowners are experiencing short-term financial strain. Missing a payment, even once, can feel alarming, especially if you are approaching a remortgage date.
In 2025, lenders are more data-driven than ever. Even small blips on a credit file are visible, but not all missed payments are treated equally.
Understanding the difference can be the key to avoiding unnecessary rejection or higher costs.
2. What counts as a missed payment
Not all missed payments are the same.
Common classifications include:
Late payment: paid after the due date but within the same month
One month in arrears: payment missed and not caught up within the month
Multiple arrears: two or more consecutive missed payments
Arrangement to pay: an agreed reduced payment plan
Each is recorded differently and carries a different risk weight.
3. How missed payments appear on your credit file
Missed payments are usually marked as status codes, often from 1 to 6, showing how many months in arrears you are.
A single “1” marker indicates one month late. Multiple markers show sustained arrears. These markers can remain visible for up to six years, although their impact reduces over time.
A common mistake is assuming that paying the account back up to date removes the record. It does not, but it does help future assessments.
4. How lenders assess missed payments when remortgaging
Underwriters look beyond the headline marker.
They assess:
How recent the missed payment was
Whether it was isolated or part of a pattern
The type of account affected, mortgage, credit card, loan
Whether the account is now up to date
The explanation behind the missed payment
A single missed mobile bill two years ago is very different from a missed mortgage payment last month.
5. Timing matters, how recent is too recent
Recency is critical.
Last 1 to 3 months: many mainstream lenders will decline
3 to 6 months ago: limited choice, specialist options may apply
6 to 12 months ago: improving lender choice
12+ months ago: often less impactful if isolated
Missing one payment just before a remortgage can significantly limit options, even if your overall profile is strong.
6. The lender acceptance spectrum
Thinking in terms of a spectrum helps set expectations.
Strict mainstream lenders
Often require a clean record for the last 6 to 12 months
Balanced lenders
May accept one historic missed payment with explanation
Specialist and intermediary only lenders
More flexible on recency and severity, often at higher cost
Understanding where a lender sits can save time and stress.
7. Policy exceptions and when they apply
Exceptions may be considered where:
The missed payment was a genuine one-off
The account has been fully maintained since
Loan to value is low
Income and employment are stable
There is a clear, reasonable explanation
A broker can present this narrative to underwriters, rather than leaving the application to be assessed cold.
8. Case study
A homeowner missed one mortgage payment due to a banking error shortly before their fixed rate ended. Although the account was brought up to date quickly, one lender declined automatically.
By repositioning the application with a lender willing to consider explanations and showing six months of perfect conduct since, the remortgage proceeded, avoiding a move onto the higher variable rate.
9. Pros and cons of remortgaging after a missed payment
Pros
Avoids long-term exposure to a higher variable rate
Can consolidate finances
May stabilise payments
Cons
Reduced lender choice
Potentially higher rates or fees
Longer underwriting times
10. Myth vs reality
Myth: One missed payment means you cannot remortgage
Reality: Many borrowers still can, depending on context
Myth: Paying it back removes the credit mark
Reality: The record remains, but impact reduces
11. What underwriters actually look for
Underwriters focus on:
Behaviour since the missed payment
Whether the issue was resolved quickly
Overall financial management
Risk of recurrence
Patterns matter more than isolated mistakes.
12. Impact on rates, fees and choice
Even when accepted, missed payments may lead to:
Higher interest rates
Reduced incentives
Larger fees
This is why timing and lender selection are critical.
13. Timescales and hidden consequences
Applications involving adverse credit often take longer. Additional document requests are common, and valuations may be more conservative.
Hidden consequences include falling onto a lender’s variable rate if delays occur.
14. Common mistakes to avoid
Applying without checking your credit file
Using automated comparison tools only
Applying to multiple lenders and accumulating declines
Failing to explain the missed payment
Each decline leaves a footprint.
15. Broker insights, what we see most often
We frequently see clients panic after a missed payment and apply too quickly.
Over 120 clients in the last year successfully remortgaged through us despite minor adverse credit, by waiting the right amount of time and choosing lenders carefully.
16. FAQ section
Can I remortgage with a missed mortgage payment?
Often yes, depending on timing and severity.
Does a missed utility bill matter?
Usually less than a missed mortgage payment.
Should I wait before remortgaging?
Sometimes waiting improves options significantly.
Will specialist lenders cost more?
Often yes, but they may be a stepping stone.
Does loan to value matter?
Yes, lower LTV improves acceptance.
17. Glossary
Arrears: Overdue payments
LTV: Loan to value
Adverse credit: Negative credit history markers
18. Checklist for next steps
Check your credit report early
Bring accounts fully up to date
Avoid new credit applications
Gather explanations and evidence
Speak to a broker before applying
19. Final note
We are expert mortgage advisers with experience helping homeowners remortgage successfully after missed or late payments.
Get in touch today on 01275 399299
Written by Ben Stephenson, CeMAP-qualified Mortgage Broker, and reviewed by Mortgage Experts.
Manor Mortgages is FCA authorised (496907), has been established for nearly 30 years and is rated 4.9 stars on Google. We have helped thousands secure the right mortgage. We are Bristol based mortgage brokers, assisting clients nationwide.