Past missed payments can affect mortgage applications – however, having missed payments doesn’t necessarily mean you won’t get a mortgage. Lenders base their decision on a range of factors, and when it comes to missed payments they’ll look at:
- How long ago the missed payments were
- The amount of missed payments
- Type of credit owed
Having just one missed payment several years ago is unlikely to affect your mortgage application drastically. It’s likely to show up on your credit report (if within the last 6 years), but assuming you managed to eventually make the payment(s) and can demonstrate you’ve continued to make your payments on time it shouldn’t impact your application too much. You should still be able to apply for and get a mortgage.
If there are several, recent missed payments then you could struggle to find a lender that will accept your mortgage application. It’s still not impossible to take out a mortgage though, just more difficult and you won’t have access to the best rates or products.
Going to an expert mortgage broker is the best course of action for anyone applying for a mortgage with missed payments on their credit report, such as Clever Mortgages. Our specialist knowledge and access to hundreds of mortgage products, means we’re able to help more people who have missed payments in the past – so it’s worth speaking to us anyway