Help for existing homeowners
What happens if you miss a mortgage payment?
An overdue mortgage payment needs attention promptly. Contact your lender to confirm what is outstanding and discuss how to deal with it, even if this is the first time.
By Count Ready · Updated
What should you do first?
Establish whether the payment is still being processed, was returned or was never made. If an amount due remains unpaid, ask your lender to confirm the arrears and the next payment expected. There is no universal grace period to rely on.
You can afford the missed payment
Confirm the lender’s payment instructions and whether a collection will be retried. After paying, check that the account has been credited correctly and find out whether anything remains due.
You cannot afford the full amount
Explain the shortfall rather than promising a catch-up date you cannot meet. Ask to speak to the team dealing with payment difficulties and prepare your income and essential spending figures.
The statement appears wrong
Keep the bank record, mortgage statement and relevant correspondence together. Ask the lender to trace the payment and explain the discrepancy. Continue discussing any amount that is genuinely outstanding.
The next payment will also be difficult
Tell the lender now. A plan that covers only the overdue instalment will not solve a continuing monthly gap. Consider free debt advice to help review your wider budget.
Have a useful conversation with your lender
You do not need a perfect budget before making contact. Start with what you know and ask how to supply any missing information.
- Describe the change. Explain whether the cause is a failed collection, reduced income, illness, separation or another circumstance.
- Ask for the account position. Request the arrears amount, next instalment and an explanation of any charges.
- Set out what is affordable. Include essential household spending and other commitments, not just the mortgage.
- Check the proposal. Ask what you would pay now, what you would pay later and when the arrangement would be reviewed.
- Keep written confirmation. Record the agreed dates, collection method and contact details for follow-up.
What support might be available?
The lender should consider your circumstances. Possible changes include more time to repay or a temporary reduction in payments. Availability and suitability depend on the account; a payment holiday is not an automatic entitlement.
Understand the later cost
Extending the term may lower a repayment mortgage’s monthly instalment while increasing the total interest paid. A temporary interest-only period leaves the capital outstanding and can mean higher repayments afterwards.
Ask for a written comparison showing the new instalments, total cost, remaining term and credit-file treatment.
Check benefits and existing insurance
Support for Mortgage Interest (SMI) may help eligible people receiving qualifying benefits with interest costs. It is a loan carrying interest, generally repayable when the home is sold or ownership is transferred; transfer to another home may be possible.
SMI does not pay missed mortgage payments. It should not be presented as an immediate way to clear arrears. Check eligibility and discuss the remaining shortfall with your lender.
What happens to your credit record?
A recorded late payment can affect future borrowing. Experian says it stays on the credit report for six years. Catching up changes the current account position but does not ordinarily erase accurate history.
Experian’s UK late-payment guidance (opens in a new tab)
Check the report against the lender’s records if something looks wrong. Our missed-payment correction guide (opens in a new tab) explains how to gather evidence.
A missed-payment marker is also different from a default. Read how missed payments can lead to a default (opens in a new tab) for that distinction; neither label provides a repossession timetable.
Take repossession correspondence seriously
Missing one payment does not mean your home is immediately repossessed. However, unresolved arrears can lead to possession action. There is no reliable “first month, second month, third month” timetable for every borrower.
Read the actual documents and obtain advice on the deadlines. Negotiations with a lender do not, by themselves, confirm that a hearing or other action has been cancelled.
In England and Wales, the Housing Loss Prevention Advice Service can provide free legal help when you receive written notice seeking possession. GOV.UK explains how to access help.
Could changing your mortgage help later?
A new deal may be worth assessing, but current arrears and affordability can restrict the options. Compare any suitable offer from your existing lender with the costs and requirements of moving elsewhere.
Do not rely on an unapproved remortgage to fund the next instalment. Deal with the current account shortfall while an adviser assesses any longer-term borrowing plans.
Remortgage advice with bad credit (opens in a new tab) · Mortgage options after late payments (opens in a new tab)
Questions after a missed mortgage payment
Should I wait for the lender to write to me?
No. Use the contact details on your mortgage statement or your lender’s official website as soon as you identify a problem. Explain whether the payment failed unexpectedly or you cannot afford it, and ask what you need to do next.
Can I pay manually after a Direct Debit fails?
Ask the lender how to make a catch-up payment and whether it plans to retry the Direct Debit. Confirm the account reference and the amount due before paying, so you can avoid an unexpected second collection. Keep the receipt and check that the payment has been allocated.
Does asking for help damage my credit file?
The FCA says that simply talking to your lender does not affect your credit file. A missed payment or an agreed change can have a different reporting outcome. Ask the lender to explain the reporting treatment of any support before you decide.
Will paying next month as normal clear the arrears?
Not necessarily. The next scheduled instalment and the amount already overdue are separate. Ask for a breakdown showing what will remain after your payment and agree how any shortfall will be addressed.
Should I cancel my Direct Debit while discussing support?
Do not assume that opening a support request changes your payment instructions. Ask the lender what it expects you to pay and whether any collection will change. If the scheduled amount is unaffordable, explain this promptly and obtain clear instructions.
Can a broker stop repossession by arranging a remortgage?
A remortgage cannot be promised and does not automatically pause legal action. Current arrears can restrict the available options. Obtain appropriate debt or legal advice about any proceedings, and treat a mortgage assessment as a separate discussion.
Planning your next mortgage decision?
Count Ready can discuss a purchase or remortgage once your circumstances are understood. For immediate arrears support, contact your current lender or a free debt-advice service.
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The initial mortgage consultation is free. Get the full fee details in writing before any chargeable work is agreed.
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Your home may be repossessed if you do not keep up repayments on your mortgage.