Remortgaging with a late payment in your history

When a payment is missed, the lender you owe usually reports it to the credit reference agencies, and it stays on your file for a number of years. Paying the arrears doesn't remove the record, but the file usually shows that the account was brought up to date.

Lenders differ in how they treat past credit issues. Many look at:

• How recent it was. An older late payment often counts for less than a recent one.
• How many there were. A single late payment is usually viewed differently from several.
• What it was for. Many lenders treat a missed mortgage payment more seriously than a late payment on another account.
• Whether it was brought up to date. And how the account has run since.

Some lenders that consider a late payment may offer a different rate, or look for more equity in your home.

If your mortgage payments are up to date, your current lender may offer you a new deal as an existing customer, often with fewer checks than a new application. A broker can compare that with what other lenders may offer.

• Check your credit file. You can see what lenders will see, and ask for any mistakes to be corrected.
• Avoid several applications at once. A full mortgage application usually leaves a record on your file that other lenders can see.
• Have the details to hand. When the late payment was, what it was for, and whether it is now up to date.

We can't say in advance whether a lender will accept an application. A broker from our panel can tell you which lenders consider cases like yours, and what that may mean for the rate, before anything is applied for.