Missed a mortgage payment? Why it could cost you thousands and stop you getting the cheapest mortgage rates

by Aaron Strutt

Oct 03 2026

Getting a Best Buy mortgage after missing payments can be difficult, particularly if you have missed mortgage repayments rather than credit card or personal loan payments. However, some banks, building societies and specialist lenders will still consider borrowers with a history of adverse credit.

Missing a single payment does not automatically prevent someone from getting a mortgage. The difficulty is that lenders have very different rules about missed payments, how recently they occurred and whether the borrower has subsequently brought their finances up to date.

Borrowers who have missed several mortgage repayments may find they cannot access the cheapest fixed or tracker rates. They could also need a larger deposit or face a significantly higher mortgage interest rate.

Are more people missing mortgage payments?

The financial pressures facing households have made keeping up with regular bills increasingly challenging.

Figures from UK Finance show that 77,940 homeowner mortgages were in arrears of at least 2.5% of the outstanding balance in the second quarter of 2026. Within the total, there were 27,100 homeowner mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). 

Although this was 1% lower than the previous quarter, it demonstrates how many borrowers are experiencing significant repayment difficulties.

There is also growing pressure on other household bills. Ofgem data shows the number of electricity and gas customers in arrears increased by 5% in the second quarter of 2026 compared with the previous quarter. Domestic energy debt has reportedly reached a record high of £5bn.

Missing credit card, loan or utility payments can also affect a borrower's ability to secure a mortgage or switch rates, depending on how the lender assesses their credit history.

Accord Mortgages changes its adverse credit rules

Accord Mortgages, part of Yorkshire Building Society, has announced changes to its residential mortgage decision-in-principle process.

The changes mean certain applications involving relatively small historic credit problems can now receive an automatic decision rather than being referred for further assessment.

Accord will now automatically consider applications with:

• Up to one County Court Judgment (CCJ) worth £300 or less within the last six years.

• Up to two defaults with a combined value of £250 or less within the last six years.

However, the lender has also tightened its treatment of missed secured credit payments.

Applications with two or more secured missed payments within the previous 24 months will now be automatically declined.

All applications remain subject to Accord's usual lending criteria and credit scoring.

The changes demonstrate how mortgage lenders can distinguish between relatively minor historic credit problems and more serious difficulties maintaining mortgage or other secured loan repayments.

Which mortgage lenders accept missed payments?

Research using the Knowledge Bank mortgage criteria system highlights significant differences between lenders.

Some mainstream lenders have strict rules and may decline borrowers with recent missed mortgage repayments. Others have more flexible policies, particularly where the borrower has a reasonable explanation and has maintained their payments since. For example, Leeds Building Society can potentially accept applicants with previous 'late payments' subject to underwriters' approval. For any missed payments, the lenders allows up to a maximum of status 1 on secured agreements within the last 12 months and up to a maximum of status 2 on all agreements within the last 24 months.

Specialist lenders, including Aldermore, Vida Homeloans, Atom Bank and Foundation Home Loans, offer products or criteria that may accommodate certain types of adverse credit.

For example:

• Aldermore has different lending levels depending on the severity and timing of missed payments. Certain products can consider historic mortgage arrears, although the available deposit requirements and products may change.
• Vida Homeloans can consider borrowers with multiple missed payments, subject to its product criteria and the customer's circumstances.
• Atom Bank offers near-prime mortgages and may consider historic missed payments, although its rules restrict recent mortgage arrears.
• Foundation Home Loans has different lending tiers that take account of how recently mortgage and unsecured credit problems occurred.

These examples demonstrate that borrowers with imperfect credit histories are not necessarily excluded from the mortgage market. However, lender acceptance does not guarantee approval or access to its most competitive rates.

Is missing a mortgage payment worse than missing a credit card payment?

Generally, yes.  Mortgage lenders tend to view missed mortgage repayments particularly seriously because they suggest a borrower has experienced difficulty maintaining payments secured against their home.

A single historic missed credit card payment may be acceptable to some lenders, especially when the account is now up to date. Repeatedly missing mortgage payments, particularly within the last 12 or 24 months, is likely to make arranging a new mortgage much more challenging.

Lenders may also distinguish between a payment made a few days late, a formally recorded missed payment, an account several months in arrears and a default. The more recent and serious the credit problem, the fewer mortgage options are generally available.

How much more could a mortgage cost after missed payments?

Borrowers with adverse credit may have to use a specialist mortgage lender charging higher rates than the most competitive mainstream banks.

There is no standard interest rate penalty for missing a payment. The amount depends on the lender, the seriousness of the credit problem, the deposit and the borrower's wider financial circumstances. Some big lenders have been dubbed "the biggest specialist lenders" because they have a reputation for assessing applicants on merit, which means they may accept someone who has had a credit blip and can demonstrate it is unlikely to happen again.

As an illustration, a borrower arranging a £300,000 repayment mortgage over 25 years could face substantially higher monthly payments if adverse credit means they cannot access a cheaper mortgage.

A higher rate could add hundreds of pounds to their monthly repayments and thousands of pounds over a fixed-rate period.

Borrowers may also face higher arrangement fees or be required to provide a larger deposit.

What should you do if you are worried about missing a mortgage payment?

The most important advice is to act before a payment is missed wherever possible.

Mortgage payments should be treated as a financial priority because maintaining a good repayment history can make a significant difference when moving home or remortgaging.

Borrowers should consider setting up direct debits, keeping sufficient money in their accounts and reviewing other spending before their mortgage payment falls due.

Anyone struggling with their repayments should contact their existing lender as early as possible. Banks and building societies can sometimes offer temporary support, including extending mortgage terms or changing repayment arrangements, depending on individual circumstances.

Simply contacting a lender to discuss financial difficulties will not damage a credit score, although some formal repayment arrangements may affect a credit record.

Trinity Financial comment

Aaron Strutt, Product and Communications Director at Trinity Financial, says: "Missing a mortgage payment can have much bigger consequences than borrowers realise, especially when they need to remortgage or move home.

"The cheapest mortgage lenders tend to have stricter credit scoring requirements, and even one or two missed payments can reduce the number of deals available. Multiple missed mortgage repayments can make arranging a new mortgage particularly difficult.

"Borrowers should do everything reasonably possible to maintain their mortgage payments and contact their lender before falling behind. It is far better to agree a suitable payment arrangement than to ignore the problem.

"The positive news is that specialist lenders are willing to consider borrowers who have experienced financial difficulties, particularly when their circumstances have improved. However, these mortgages can be more expensive, so maintaining a clean credit record wherever possible is extremely important because missing a payment or two can mean you end up paying more for years."

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage