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Mortgages After Late Payments

 
 
 
 

Need a mortgage, but have a history of late payments?

Our experts may have the answer.*

  • Award winning experts ready to help you.
  • Extensive experience helping clients like you.
  • Flexible lender panel who can help in complex situations.
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Mortgages After Late Payments

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
We are a loan broker Authorised and Regulated by the Financial Conduct Authority. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
*subject to criteria / conditions.

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The impact of late payments on your credit score

 
 
 
 

If you have had a history of late payments, you may be wondering if you can still get a mortgage. The short answer is yes, it may be possible. However, paying late can negatively affect your credit score, which may make it harder to get accepted.

A late payment will remain on your credit score for up to six years, so it could impact your ability to get finance for a while. However, the impact will diminish overtime, as long as you make future payments on time.

Some lenders are more relaxed with their criteria than others, so it is still possible to get accepted. Specialist lenders in particular take a more holistic view and try to understand the circumstances that may have caused you to pay late.

In addition, they may also take into consideration how late the payment is, the amount of money owed and if you have had multiple late payments.

Therefore, whilst it can be more challenging to get accepted, there are still solutions that could help you. However, the options may be more limited and you may be charged a higher interest rate to lower the risk for lenders.

We’re a specialist mortgage broker, who concentrates on supporting customers that are struggling to get accepted by the high street. So if you’ve been declined elsewhere, we may be able to help you.

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Specialist mortgages for borrowers with late payments

 
 
 
 

Specialist mortgages are designed for borrowers who have complex financial circumstances; making it difficult for them to qualify for a traditional mortgage.

These solutions are offered by specialist lenders who usually have more flexible criteria. Sometimes it can be difficult to access these lenders on your own, so you may need to work with a broker. However, using a broker may mean there are extra fees than if you went straight to a lender.

Each lender will have different criteria, and you may find that some will accept you while others won’t. They will look at your credit score, but they will also consider other factors, such as your employment status, income and deposit.

You may find that these lenders require you to put down a larger deposit, or pay higher interest on your mortgage. This is because they will be trying to mitigate the risk of lending to someone who may have a higher chance of defaulting on their loan.

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Improving your chances of getting a mortgage with late payments

 
 
 
 

If you have late payments on your credit file, you may find it difficult to qualify for a mortgage. However, there are steps you can take to try and improve your chances of getting approved.

Your credit score is one of the factors that a lender will consider when assessing your mortgage application. If you have a history of late payments, your credit score may have been badly impacted. Therefore, you should think about ways you could improve your credit score. This could include paying off debt, making future payments on time, keeping old credit accounts open, and registering for the electoral roll.

Another factor that can influence your application’s success is the size of your deposit. If you have a larger deposit, you will need to borrow less. This reduces the risks for lenders, meaning they may be happier about lending to you.

It’s good to be upfront about any financial issues you’ve had in the past, no matter how small or large. Lenders will complete a credit check as part of your application, so they will be able to see any issues you’ve had. If you can explain why a late payment occurred, you can help the lender understand your case better.

Finally, using a broker may improve your chance of success. Brokers have access to a range of different lenders, so they may be able to help you find lenders that are more willing to work with you. However, working with a broker will mean there are extra fees involved, compared to going directly to a lender.

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How do I apply for a mortgage with late payments?

 
 
 
 

If you are looking to get a mortgage and have a history of late payments, there may still be options available to you.

Our initial application process is fast. Plus, we are here to guide you every step of the way. Here's how it works:

1.  Enquire: Call us  to speak directly to an advisor, or use our online form above. You’ll need to answer some basic questions, so we get a clear understanding of your specific situation.

  1. It’s over to us: We will search our database of UK based lenders to find the best solutions we have available for your circumstances.
  2. Get your solution: If we find a suitable and affordable product, we’ll get in touch to talk you through it. Once we’ve talked it through, you decide whether you want to proceed. If you do, we can get the ball rolling on your application.

Before you take out a loan, it’s important to make sure you can comfortably afford the repayments. Otherwise, if you default on your mortgage, your property could be at risk of repossession.

If you’re struggling to manage your finances, it's a good idea to reach out to your current creditors for help. They may be able to offer support or arrange other repayment plans. It also could be worth speaking with a debt charity, such as MoneyHelper or Citizens Advice Bureau (CAB), who are able to offer you free support.

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Frequently Asked Questions - Mortgages after Late Payments

 
 
 
 
  • Can I get a mortgage if I have a history of late payments?

    Yes, it's still possible to get a mortgage even if you have a history of late payments. However, it may be more challenging.

    The lender also may charge higher interest rates to mitigate the risk associated with lending to you.

  • Can your mortgage be declined due to a late payment?

    Yes, your mortgage application can be declined, particularly if the late payment occurred recently or if there are multiple late payments on your credit report. Late payments can negatively impact your credit score and indicate to lenders that you may be at a higher risk of defaulting on a mortgage.

    However, having a history of late payments doesn't necessarily mean you'll be automatically declined. Working with a specialist mortgage lender or broker who can offer more flexible lending criteria may increase your chances of approval.

  • How far back do mortgage lenders look at missed payments?

    It can vary between different lenders. Typically, they will look at your credit history for the past 6 years. This includes missed payments on loans, credit cards, or utilities. Recent missed payments are more important than those from a few years ago, as they suggest you may be struggling to manage your finances right now. Due to this, taking on an extra loan could be a risk.

  • Will I need to pay a higher interest rate if I have a history of late payments?

    It's possible that you may need to pay a higher interest rate if you have a history of late payments. This is because it is more risky for lenders, so they may take steps to try and lower the risk.

  • How do I remove late payments from my credit report in the UK?

    Late payments will remain on your credit report for six years in the UK, unless they were added in error. If you believe there is an error, contact the credit reference agency to investigate. Otherwise, try to make all your future payments on time to rebuild your credit history and improve your score.

Useful guides and blogs

 
 
 
 
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