If you’re planning to apply for a mortgage in the UK, you may be wondering whether past late payments could come back to haunt you. It’s a fair concern, especially with rising living costs and tighter lending rules. The short answer is: yes, late payments can affect your mortgage application — but the impact depends on several factors.
Here’s what you need to know if you’re applying for a mortgage with a few missed payments on your credit file.
What Counts as a Late Payment?
A late payment is recorded when you miss the due date for a bill or loan — such as a credit card, phone contract, personal loan, or car finance. Usually, if you’re a few days late, it might not be reported to credit agencies straight away. But once you’re more than 30 days late, it’s likely to be logged on your credit report.
Late payments stay on your credit file for six years, but their effect can fade over time — especially if they were isolated incidents and you’ve been on top of things since.
How Do Lenders View Late Payments?
Mortgage lenders look at your full credit history, not just your credit score. They’re trying to assess whether you’re a risk.
Here’s how they might view late payments:
One or two late payments, a while ago – These are unlikely to stop you getting a mortgage, especially if you’ve since kept your accounts in good order.
Recent late payments – These could raise red flags, especially if they’re within the last 12 months.
Multiple missed payments – A pattern of missed payments could suggest you struggle with money management, which lenders won’t like.
Missed mortgage or rent payments – These are taken very seriously and could severely affect your chances.
Some lenders are stricter than others. High street banks usually want a clean credit history, while specialist lenders might consider applicants with credit issues — but at higher interest rates.
Can You Still Get a Mortgage After Late Payments?
Yes, you can — but it might take a bit more planning.
If your credit file shows only minor issues, you may still qualify for a standard mortgage. If your record is more chequered, you might need to look at:
Specialist bad credit mortgages – These are designed for people with missed payments, defaults or CCJs.
Bigger deposit – Putting down more money upfront (15% or more) can reduce the lender’s risk and improve your chances.
Mortgage broker advice – A broker can help match you with a lender that’s more likely to accept your application, based on your financial background.
What Can You Do to Improve Your Chances?
Before applying, take steps to tidy up your credit profile:
- Check your credit report – Use Experian, Equifax or TransUnion to see what lenders will see. Make sure all the information is correct.
- Pay everything on time – Even small bills can make a difference.
- Avoid new credit applications – Too many new accounts or hard searches can raise eyebrows.
- Reduce debt – The lower your credit utilisation, the better it looks.
- Register on the electoral roll – This helps lenders confirm your identity and address.
Don’t Panic if You’ve Had Late Payments
Late payments don’t automatically mean a mortgage is off the table. Lenders care about the bigger picture — your current financial behaviour, your deposit, your income stability, and how recent or severe the missed payments were.
With the right advice and preparation, many people with a few credit blips still go on to get a mortgage and buy a home in the UK. So don’t give up — just get informed, plan ahead, and speak to a broker if you’re unsure.
FAQs
There’s no fixed number, but more than two or three recent missed payments may limit your choice of lenders. Most high street banks prefer clean records, while specialist lenders may consider applications with multiple late payments — often at a higher interest rate.
Yes, they can. Even small accounts like mobile phone bills or broadband can appear on your credit file. Lenders might see consistent lateness as a sign of poor money management, especially if it’s happened recently.
Most likely, yes. Lenders typically focus more on your recent financial behaviour. If the late payment happened over five years ago and your credit has been strong since, it’s unlikely to be a major issue.
Possibly. An Agreement in Principle is not a guarantee. If a new late payment shows up during the full application process, it could change the lender’s decision — especially if it affects your credit score or shows financial instability.
Yes. If you apply for a mortgage jointly, both credit files are considered. A missed payment on a joint account affects both people’s chances, especially if it’s recent or part of a pattern.
Increasingly, yes. Many BNPL services now report to credit agencies. Missed or late payments on these accounts can show up on your credit report and could influence how mortgage lenders assess your reliability.
Yes, some lenders request up to six months of bank statements. They look for bounced payments, missed direct debits, or signs of poor budgeting, even if those issues don’t appear on your credit report.
Usually not. Student loan repayments are deducted automatically via PAYE and aren’t reported to credit reference agencies. However, if you’re repaying privately and miss a payment, it might show up if the debt is passed to a collection agency.
Some specialist lenders offer more flexibility and may overlook older or minor late payments. However, expect stricter affordability checks and potentially higher rates. A mortgage broker can guide you to lenders that suit your situation.
No. Paying it off stops further damage, but the record of the late payment remains on your credit file for six years. Over time, its impact lessens — especially if you manage credit well going forward.
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