Missed Mortgage Payments or Late with Mortgage Payment
A missed Mortgage payment is where you have been unable to make your regular Mortgage Payment.
This is different to being late with your Mortgage payment, which is usually resolved the same day and therefore doesn’t register as a missed Mortgage Payment.
One late or even missed Mortgage payment here or there is unlikely to create to much of an issue.
Where this is happening quite frequently though, for example every 6 or so months this could create more of an issue for you. For example negatively affecting your Credit worthiness or your relationship with your Lender.
Mortgage Arrears is where you owe outstanding Mortgage Payments to your lender.
For example, if you have recently missed 2 Mortgage payments, you will currently be in Mortgage arrears until these two payments have been paid back.
If you had missed mortgage payments from the past, say 3 years ago. This would would be classified as historic Mortgage arrears.
What happens if your miss a Mortgage Payment?
Your Lender will usually call and/or write to you to request this is paid as soon as possible.
If you miss more than one payment, this is where you’ll find the lender up’s the pressure and will contact you to see why this has happened and whether this is something that is likely to recur.
Help with Mortgage arrears and how to avoid missing a Mortgage payment
It’s important to contact your lender prior to you missing a payment if you know you are likely to do this.
For example, if you don’t and won’t have the money in your account.
You can then try to find an alternative to missing this payment. For example, the lender may approve you to have a Mortgage Holiday.
Which is a break on your repayments for 3 to 6 months. Usually 3 months.
If it’s too late and you’ve missed the payment already.
Give the lender a call and tell them realistically when you’re going to be able to repay this. Don’t make false promises you can’t keep to, be frank and clear that you want to resolve this.
If it’s unrealistic for you to make the payment. Ask them to spread the repayment over a longer period to help make the repayments of the missed payment more reasonable.
How many missed Mortgage Payments before Repossession?
It is a lengthy and costly process for the Mortgage Lender to repossess your property.
They can’t just throw you out of your home and you have rights and laws to protect you throughout the process.
How many Mortgage payments that can be missed before repossession proceedings varies and is dependent on a number of factors.
However for a general rule of thumb. If no payment or attempt has been made within the last 3 to 6 months, it is likely the lender will start proceedings during this time.
It’s not too late!
Even if the Lender has gone to court and won possession of your property. If you make a payment and clear the arrears, this can delay or even stop the repossession altogether.
Can you skip a Mortgage Payment?
It’s never advisable to do this.
If you need a break from paying your Mortgage, contact your lender and request a payment holiday.
Don’t take a payment holiday lightly. Save it for when you really need it.
Lenders won’t just keep approving these.
How late Mortgage Payments affect your Credit
Your Mortgage payment is the most important payment to make.
Missing a payment or multiple payments on your Mortgage are going to affect your score negatively.
The greater the number of missed payments. The greater effect this will have on your score.
Not only will this affect your score. It will also heavily affect the way lenders view an application from your for new credit.
Mortgage with Arrears or Remortgage with Mortgage arrears
It is still possible to Remortgage with Mortgage arrears and obtain another Mortgage with arrears.
Whether this is still possible will dependent on how old and how severe the Mortgage arrears is or was.
If you have had recent missed Mortgage payments of 2 or more in the last 6 months for example. It is unlikely you are going to be able Remortgage.
Or the Mortgages you will be eligible for are likely to be more expensive.
If you’ve had 3 or more missed Mortgage Payments more than 2 or 3 years ago, then your going to have many more options.
This is because Lenders will be able to see that you’ve managed to resolve what ever the cause of the Mortgage arrears was and will have some payment history evidence.
Mortgage Arrears Help
If you have Mortgage Arrears the best thing you can do is speak to your Mortgage Lender.
Ignoring Letters and phone calls will make matters worse as the lender will feel you are not prepared to get out of the situation you’re in.
Mortgage Lenders still have a duty of care to you, and still have to treat you fairly as they would any customer.
If you are looking for independent advice about moving away from your existing lender or releasing funds.
Speak to a Mortgage Advisor here. We can pass you over to an Advisor which specialises in your circumstances.
If you would like professional Mortgage Advice. Get in touch and let us know a bit about your circumstances and what you are looking to do.
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