What Happens If You Miss a Mortgage Payment UK?

What happens when you miss a payment

Missing one mortgage payment puts you into mortgage arrears. Your lender must contact you to discuss the situation. They are required by FCA rules to treat you fairly and explore options before taking any enforcement action.

A single missed payment will appear on your credit file and can reduce your credit score by 50–100 points. However, it won't immediately trigger repossession proceedings. Lenders generally only consider repossession as a very last resort after all other options have been exhausted.

The arrears process

If you fall behind on your mortgage, the typical process is:

• Month 1: Lender contacts you by letter or phone to discuss the missed payment
• Months 1–3: Lender offers forbearance options (payment holiday, reduced payments, term extension)
• Months 3–6: If no agreement is reached, lender may issue formal arrears notices
• 6+ months: Lender may begin court proceedings for possession, but must demonstrate they've exhausted alternatives
• Court hearing: A judge will consider whether repossession is proportionate and necessary

Your options if you're struggling

Several options may be available depending on your circumstances:

• Payment holiday: Temporarily pause payments (usually up to 3–6 months)
• Reduced payments: Pay a reduced amount for an agreed period
• Term extension: Extend your mortgage term to reduce monthly payments
• Switch to interest-only: Temporarily or permanently reduce payments
• Capitalise arrears: Add missed payments to your mortgage balance
• Government support: Support for Mortgage Interest (SMI) loan if you're on certain benefits

Impact on your credit file

Each missed monthly payment is recorded on your credit file as an arrears marker. One missed payment will impact your score, but catching up quickly limits the damage. Consistent arrears over several months cause much more serious damage.

The missed payment record stays on your credit file for six years. However, its impact diminishes over time, especially if you return to making payments on time.

Free help and advice

Several organisations offer free, confidential mortgage debt advice:

• StepChange (stepchange.org) — free debt advice charity
• Citizens Advice (citizensadvice.org.uk) — face-to-face and phone advice
• National Debtline (nationaldebtline.org) — free phone and online advice
• Shelter (shelter.org.uk) — housing-specific advice and advocacy

If you're worried about affording your mortgage, a specialist broker can review your options including remortgaging to a more affordable deal. Get matched with a broker through Nesto — it's free.