Missed a mortgage payment? Here’s what it means, how it can affect you, and what steps you can take to get back on track. Acting early can help protect your credit and your home.
Missing a mortgage payment can feel overwhelming, but understanding what happens and how to act quickly can make all the difference. Whether it’s a one-off oversight or signs of a deeper financial issue, the earlier you take steps, the more options you’ll have.
One missed payment: what to expect
If you miss a mortgage payment, most lenders offer a short grace period, typically between 7 and 15 days, where you can make the payment without facing a penalty. If you still haven’t paid after that time, a late fee will usually be applied, and the missed payment may be reported to credit agencies.
This can impact your credit score, making it harder to secure future loans, credit cards, or even rental agreements.
Two or more missed payments: you’re in arrears
Once you’ve missed two payments (or the equivalent of two months), you’re considered to be in arrears. At this stage, the consequences become more serious:
- Your lender is legally required to contact you within 15 working days to explain the situation clearly:
- How much you owe
- Which payments you’ve missed
- The total outstanding mortgage balance
- Any fees or charges applied
This information is designed to help you understand where you stand, and to encourage you to get in touch.
What happens if you don’t act?
If no action is taken and the situation continues, your lender may classify your mortgage as in default, typically once you’re 90 days behind. This is when repossession proceedings can begin, meaning you could ultimately lose your home.
But it’s important to stress: repossession is a last resort. Lenders are required to treat you fairly and consider any reasonable proposals to help you get back on track.
What to do if you’re struggling with payments
Talk to your lender early
The worst thing you can do is ignore the problem. As soon as you realise you might not be able to pay your mortgage, contact your lender. Most will be open to working with you to find a short-term solution.
You might be able to agree to:
- A temporary payment plan
- A forbearance agreement, pausing or reducing payments temporarily
- Switching to interest-only payments for a period
- Extending your mortgage term to reduce monthly repayments
These changes can make things more manageable, but they will be recorded on your credit file, just like missed payments.
In some cases, remortgaging could reduce your monthly payments and make things more manageable. Explore your remortgage options to see what’s possible.
Get independent advice
In addition to speaking with your lender, you can also seek support from a mortgage advisor or a trusted debt advice charity like Citizens Advice. They can help you understand your rights, assess your options, and communicate with your lender if needed.
Final thoughts
Falling behind on mortgage payments is stressful, but it doesn’t mean you’re out of options. Lenders are obliged to treat you fairly, and help is available, but it all starts with being proactive.
At Lendese, we help people every day who are worried about missed payments or remortgaging. If you’d like tailored advice, speak to one of our advisors, we’re here to help.