Being turned down for a mortgage can be a real blow, especially when you’ve been planning to move or buy for some time. One of the most common reasons for a mortgage application being declined in the UK is a late payment showing up on your credit record. Whether it’s a missed credit card bill or a late mobile phone payment, lenders do take this seriously — but all is not lost.
In this article, we’ll break down why a mortgage may be declined due to late payments, what you can do about it, and how to improve your chances next time.
Why Do Late Payments Matter When Applying for a Mortgage?
Late payments are red flags for mortgage lenders because they show a potential risk. When you apply for a mortgage, lenders assess how reliable you are with money. Even just one recent late payment could suggest you may struggle to keep up with a mortgage in future — especially if you’re already juggling other debts.
Lenders access your credit file through agencies like Experian, Equifax, or TransUnion. These reports show any missed or late payments across loans, credit cards, phone contracts, car finance and more. If they see one (or more) late payments, particularly in the last 12 months, they may see you as too much of a risk.
Common Reasons for Late Payments on Your Credit Report
Not all late payments are the same. Some are honest mistakes, while others point to deeper money problems. Either way, lenders don’t always see the full story — they just see the mark on your file. Here are some of the usual culprits:
- Forgetting to pay a bill on time
- Changes to your bank details or direct debits
- Short-term financial difficulty (job loss, illness)
- Disputes with service providers
- Poor budgeting or relying too heavily on credit
It’s also worth noting that a payment reported as just a few days late may still count — especially if it was recorded as 30+ days overdue.
How Long Do Late Payments Stay on Your Credit File?
Late payments stay on your credit report for six years from the date they were missed. However, their impact reduces over time. A single late payment from five years ago is much less of a concern than one that happened last month.
Recent late payments are often the main reason a mortgage is declined. So if you’ve had issues in the last year, this could explain why your application didn’t go through.
Can You Get a Mortgage with Late Payments?
Yes — it’s possible to get a mortgage with late payments on your record, but it might take a bit more work.
Some high street lenders are very strict, especially with recent missed payments. However, there are specialist mortgage lenders and adverse credit brokers who deal with people who’ve had late payments, defaults, CCJs or other credit issues.
What helps your case:
- Older late payments (2+ years ago)
- A clear explanation — especially if it was a one-off
- A good deposit (15% or more helps)
- Stable income and employment
- A clean recent payment history
Steps to Take If Your Mortgage Was Declined
If your mortgage application has been turned down due to late payments, don’t panic. You’ve got a few options:
- Check your credit report – Get a copy from all three agencies and look for late payments. Make sure the information is accurate.
- Speak to a mortgage broker – A broker who specialises in bad credit mortgages can point you towards lenders more likely to say yes.
- Explain your situation – If there’s a valid reason for the late payment (e.g. illness or bank error), a broker may be able to present this to lenders.
- Work on your credit profile – Stay on top of bills, clear any debt you can, and avoid new credit applications for a few months.
- Wait and reapply – If you can hold off for 6–12 months, lenders will view your file more favourably once you’ve built up a better recent history.
FAQs
Yes, especially if the late payment is recent or happened within the past 12 months. Many high street lenders use automated credit scoring systems that may decline an application based on a single late payment. However, some specialist lenders are more flexible
No, not all lenders treat late payments the same. Some lenders are very strict and decline applications outright, while others may accept late payments if they are older, isolated, or have a reasonable explanation behind them.
Late payments on credit cards, personal loans, car finance, or other regulated credit agreements tend to carry more weight than, say, missed utility or mobile phone bills. Lenders are especially cautious about payments missed on financial commitments.
Yes. A late payment usually refers to a payment made after the due date but within 30 days. A missed payment is often classified as 30+ days overdue and may trigger a default if unresolved. Missed payments carry more weight with lenders.
Clearing the balance helps, but the late payment will still appear on your credit report. Lenders care about your payment history, not just your current balances. However, paying off the debt shows responsibility and may help in some cases.
Yes. Mortgage brokers with experience in adverse credit cases can recommend lenders who are more likely to approve your application. They understand which lenders are flexible with late payments and how to present your case.
It’s not advised. Multiple mortgage applications in a short space of time can damage your credit score further. Instead, find out why you were declined, check your credit file, and speak to a broker before applying again.
It depends on your situation, but waiting 3–6 months can improve your credit standing, especially if you’ve built up a record of on-time payments in that period. Use the time to reduce debts and avoid new credit where possible.
In the UK, late payments usually stay on your report for 6 years and can’t be removed unless they’re recorded in error. If you believe a payment was wrongly marked as late, you can raise a dispute with the credit reference agency or the lender.
Yes, it can. In a joint mortgage application, both applicants’ credit histories are reviewed. If one has recent or repeated late payments, it can affect the outcome, even if the other person has a perfect credit record.
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