Missed a mortgage payment? Here is what happens.

Written by David BourneMortgage & Protection Adviser · Firm reference 988277

The first thing to do

Ring your lender before they ring you. Lenders are required to treat customers in payment difficulty fairly, and that starts with a conversation. Someone who calls to say "I am going to be short this month" is in a very different position from someone who goes quiet.

If the shortfall is because of something bigger — lost work, illness, a separation — say so. Lenders have a range of things they can consider, such as a temporary payment arrangement, and they cannot consider any of them until they know.

What normally happens after one missed payment

Your lender will usually write to you and try to make contact. Most charge an arrears fee, which will be set out in your mortgage terms. The missed payment is generally reported to the credit reference agencies, and it stays on your file for six years — although, as with any late payment, its weight fades long before that.

Repossession is a last resort, and the path to it is long. Lenders are expected to try other options first. That is not a reason to wait; it is a reason not to panic.

Arrangements show up too

If you agree a reduced payment or a payment holiday, that agreement is usually recorded on your file. Being recorded is not the same as being marked as a missed payment, and it is generally better than the alternative. But it is visible to future lenders, and it is worth knowing that before you agree to it rather than after.

Where to get free help

I am a mortgage adviser, not a debt adviser. If you are struggling with more than one bill, free, regulated debt advice is available from MoneyHelper and from charities such as StepChange and Citizens Advice. If things have gone as far as court action, GOV.UK sets out the process and where to get free legal advice. They will not charge you and they deal with this every day.

Where I come in

Later. Once the account is back up to date and has stayed there, a missed payment becomes something to explain rather than something that stops you. If you are coming to the end of a deal, or want to move, the question becomes which lenders accept that history — and that is what this page is about. If you are thinking of remortgaging to make the payments more manageable, talk to me before you sign anything with your current lender, and I will tell you honestly whether moving is realistic.