Missed mortgage payments and arrears

If a mortgage payment is missed, the loan goes into arrears and the lender will contact the borrower, usually by letter and phone. It may charge a fee and interest on the arrears. The missed payment is reported to the credit reference agencies, which makes new credit harder to get. Contacting the lender early gives the most options.

One missed payment is unlikely to lead to legal action if it is put right quickly. Lenders must treat borrowers in payment difficulty fairly and consider arrangements before taking further steps (FCA Handbook MCOB, accessed 20 Oct 2026).

Missed mortgage payments stay on the credit file for six years from the date they are recorded, even after the arrears are cleared (MoneyHelper, accessed 20 Oct 2026). The effect on future borrowing fades as the missed payment gets older, and many lenders look most closely at the last one to three years of history.

A record of arrears can make a remortgage or a new mortgage harder for a few years. Specialist lenders consider borrowers with past missed payments, usually at higher rates. How lenders treat adverse credit is explained in the adverse credit mortgages section, which covers missed payments, defaults and CCJs.

Lenders can offer several kinds of help to a borrower who has missed payments or expects to. These include reduced payments for a time, extending the mortgage term, switching part or all of the loan to interest only for a time, or adding arrears to the loan. Each option has costs and can affect the credit file.

A lender should explain the options and their effect before the borrower agrees to one. Asking for any arrangement in writing, with its end date and what happens to the arrears afterwards, avoids misunderstandings later.

If arrears build up and no arrangement is agreed, the lender can start court action to take possession of the home. Before doing so, it must follow the pre-action protocol, which requires it to give information, consider any reasonable proposal and treat repossession as a last resort. The court can order a payment plan instead of possession.

If a home is repossessed and sold for less than the debt, the borrower can still owe the shortfall. Acting early, by talking to the lender and getting free advice, reduces the risk of reaching this stage.

Free, confidential help with mortgage arrears is available from MoneyHelper, Citizens Advice, StepChange and National Debtline. Advisers can help draw up a budget, talk to the lender and explain options, including government support for mortgage interest for some people on benefits. Paying for debt help is rarely necessary, because good advice is free.

Once the arrears are cleared, rebuilding the credit file takes time. Keeping all payments up to date, and checking the file for errors, helps borrowers move back to mainstream rates when the deal ends. Options at that point are explained in the remortgages guide.