Missed Mortgage Payments:
Having missed mortgage payments makes if very difficult to be approved for a mortgage, particularly if they are fairly recent.
Most high Street lenders will only consider a mortgage application if the arrears are over 3 years old with no other credit issues on your credit file.
The good news is that adverse lenders are more forgiving with mortgage arrears. Many of these lenders will accept missed mortgage payments over 2 years old and some will ignore missed payments over 12 months. More recently some lenders will even allow missed payments as long as they are over 3 months old.
When lenders assess missed payments they take into account of the number of consecutive missed payments. For example, if you miss 2 months in a row it will show as a status 2 on your credit report, miss 4 payments in a row and it will show a status 4.
While lenders might accept a missed mortgage payment as above, anything over a status 1 in the last 12 months will seriously hamper your chances of obtaining a new mortgage.
Overall, a couple of missed mortgage payments in the last few years should stop you obtaining a mortgage, missing a lot will make it very difficult. Paying your mortgage on time should obviously be a priority.
If you need any help obtaining a great mortgage contact us today on 01604 328 091.