If you are in mortgage arrears, the priority is not to apply for another mortgage straight away. The priority is to understand the arrears, speak to your current lender, and work out which route is realistic before any new application is made.

Mortgage arrears can affect your credit file, your ability to remortgage, and in serious cases your risk of repossession. But arrears are not assessed in one fixed way. Lenders usually look at the dates, amounts, reason, current account conduct, affordability and whether the problem has stabilised.

This guide explains what to do before you apply for a mortgage or remortgage with arrears, what lenders may check, and when you should get mortgage, debt or legal help.

This information is for general guidance only and is not personal mortgage, debt or legal advice. Your options depend on your circumstances, your lender’s rules and the documents available.

Plain English: mortgage arrears are not just a yes-or-no issue. A lender will usually want to know what happened, whether it is still happening, and whether the mortgage is affordable going forward.

What does mortgage arrears mean in practice?

Mortgage arrears mean you have missed one or more mortgage payments, or paid less than the amount due under your mortgage agreement.

This might happen because:

• a payment was missed completely;
• a direct debit failed;
• you made a reduced payment;
• your payment arrangement did not cover the full contractual payment;
• fees or charges have been added to an overdue balance;
• your fixed rate ended and the new monthly payment became unaffordable.

A single missed payment is usually very different from several months of unpaid mortgage payments. Recent arrears are usually more difficult than older arrears, and active arrears are usually more difficult than arrears that have been cleared.

If you are already behind, do not wait for the lender to chase you. Contact your lender as soon as possible. The FCA’s mortgage rules require firms to treat customers in payment difficulty fairly, but you still need to engage with the process and provide honest information about what you can afford.

Useful sources include the FCA’s consumer information at fca.org.uk/consumers and public guidance on government help if you can’t pay your mortgage.

What should you do first if you are behind on mortgage payments?

The first step is to separate the urgent arrears problem from the longer-term mortgage strategy.

If you have received court papers, a possession hearing date, or notice that bailiffs may be involved, you should seek urgent debt or legal advice. A mortgage broker can help assess mortgage options, but cannot replace legal representation or specialist debt support.

Can a mortgage be paused?

Sometimes a lender may discuss temporary support, but you should not assume your mortgage can simply be paused.

Depending on your lender, circumstances and affordability, possible support could include:

• a temporary payment arrangement;
• a short-term reduction in payments;
• changing the payment date;
• extending the mortgage term;
• moving to interest-only for a period;
• switching to a new product with the same lender;
• capitalising arrears in some cases, where appropriate and agreed by the lender.

These options are not automatic. They can have consequences, including higher total interest, a longer mortgage term, changes to your credit file, or reduced future borrowing options. Always ask your lender how any arrangement will be recorded and what it means for your monthly payment, total cost and future choices.

The FCA mortgage conduct rules include requirements for firms dealing with customers in payment difficulty. You can read the relevant rules in MCOB 13.

How can you clear mortgage arrears?

There is no single best way to clear arrears. The right route depends on affordability, the arrears balance, the mortgage term, your income stability and whether the problem was temporary or ongoing.

Common routes include:

A lender may ask you to clear arrears over a particular period, but the plan still needs to be realistic. If you cannot afford the proposed amount, explain why and provide a budget. Free debt advice organisations such as Citizens Advice, StepChange and National Debtline can help with budgeting and arrears negotiations.

Do not rely on unsecured borrowing, credit cards or overdrafts to cover mortgage payments without advice. That can turn one mortgage problem into a wider debt problem and may make future affordability harder.

Can you remortgage when in arrears?

Sometimes, but it is often difficult and should not be treated as the default solution.

A new lender has to accept the full case: credit history, affordability, property value, loan-to-value, income, outgoings and the reason for the arrears. If arrears are recent, repeated or still active, many lenders may be cautious or decline.

A remortgage may be more realistic where:

• the arrears were historic rather than recent;
• the mortgage is now up to date;
• there has been clean conduct since;
• the reason for the arrears is clear and was temporary;
• income is stable and provable;
• the loan-to-value is acceptable to the lender;
• there are no serious wider credit problems.

A remortgage may be harder where:

• the arrears are still active;
• several payments have been missed recently;
• there are other defaults, CCJs or unsecured debt arrears;
• income is unstable or difficult to evidence;
• the remortgage relies on debt consolidation;
• the current mortgage is not affordable even after restructuring.

A product transfer with your current lender may sometimes be simpler than moving to a new lender, because it may not involve the same level of underwriting. But this depends on the lender’s rules and your account status. You should check early, especially if your fixed rate is ending.

If you are considering a remortgage with arrears, speak to a broker before applying. The useful question is not just “who has the lowest rate?” It is “which route, if any, fits the arrears history and affordability evidence?”

Example scenario: trying to remortgage before the arrears position is stable

A homeowner’s fixed rate ends and the monthly payment rises sharply. They miss one full payment, then make two reduced payments while trying to catch up. The arrears balance is not huge compared with the mortgage, and there is equity in the property, so their first instinct is to remortgage quickly to a cheaper deal and clear the arrears at completion.

The practical problem is timing. To a new lender, this is not just a pricing issue. The mortgage account is currently in arrears, the last three months’ conduct is disrupted, and the bank statements show the household budget was already stretched before the higher payment started. Even if the property value is strong, the lender still has to be comfortable that the new mortgage is affordable and that the missed payments were temporary rather than a sign the borrowing is no longer sustainable.

A more sensible first step may be to gather the exact arrears figure, speak to the existing lender about support or a product transfer, and build a realistic budget showing what payment can be maintained. If the arrears can be cleared and several months of clean conduct follow, the remortgage conversation may look different.

The broker judgement point is this: equity does not cancel out recent mortgage arrears. Before applying, check:

• whether the arrears are active or cleared;
• how the missed or reduced payments are shown on the credit file;
• whether the current lender will offer a product transfer;
• whether the new payment is genuinely affordable;
• whether debt advice is needed before taking on any new mortgage commitment.

How might lenders assess mortgage arrears?

Lenders do not all treat arrears in the same way. Criteria can change, and underwriters may look at the overall pattern rather than one isolated fact.

The FCA’s mortgage framework requires lenders to assess affordability and suitability where regulated mortgage advice is given. GOV.UK also explains that lenders assess affordability as part of the mortgage process: preparing to buy a home.

If your arrears were caused by higher payments after a fixed rate ended, the lender will still want to know whether the new payment is sustainable. The Bank of England’s Bank Rate influences the wider interest-rate environment, but individual mortgage rates depend on lender pricing, product type, loan-to-value and risk.

Which documents make arrears easier to assess?

Before speaking to a broker or lender, gather as much of the following as you can:

• latest mortgage statement;
• arrears letters or online account messages from your lender;
• current arrears balance;
• dates and amounts of missed or reduced payments;
• details of any payment arrangement;
• evidence of payments made since the arrears began;
• recent bank statements;
• payslips, accounts, pension income, benefits or other income evidence;
• current credit report;
• list of debts, monthly payments and balances;
• property value estimate;
• current mortgage balance;
• current mortgage product details and any early repayment charge;
• a short written explanation of what caused the arrears and what has changed.

A clear explanation helps, but it must match the documents. If the bank statements, credit file and mortgage statement tell a different story, the case becomes harder to place.

Who is mortgage arrears advice relevant for?

This guidance may apply if:

• you have missed one or more mortgage payments;
• you have paid less than the full monthly amount;
• your lender has written to you about arrears;
• you are on a payment arrangement;
• your fixed rate is ending and the new payment may be unaffordable;
• you want to remortgage but have arrears on your credit file;
• you want to borrow more but your mortgage conduct has not been clean;
• your income changed because of redundancy, illness, separation, self-employment, maternity leave or reduced hours;
• you are thinking about debt consolidation;
• you are worried about repossession.

It can also apply if you are not yet in arrears but can see a problem coming. It is usually easier to discuss options before payments are missed than after the account has already fallen behind.

Mortgage arrears are not always caused by poor money management. They often follow a life event: relationship breakdown, job loss, business cash-flow problems, illness, bereavement, or a sharp increase in monthly payments. Lenders may still need to assess risk, but the context matters.

When is a mortgage broker not enough?

A broker can help you understand mortgage routes, lender criteria and application risk. But some situations need specialist debt or legal help as well.

You should consider free debt advice if:

• you cannot afford the normal mortgage payment;
• you are using credit to cover essential bills;
• you have council tax, utility, loan or credit card arrears as well;
• you are considering an IVA, bankruptcy, debt relief order or debt management plan;
• your budget does not leave enough to maintain the mortgage;
• you feel pressured to agree a payment plan you cannot afford.

You should seek urgent legal or housing advice if:

• your lender has started court action;
• you have received possession proceedings;
• you have a hearing date;
• bailiff or eviction action is being threatened;
• you are unsure how to respond to court papers.

For debt guidance, useful starting points include Citizens Advice, StepChange and National Debtline. Mortgage advice and debt advice can work alongside each other, but they are not the same thing.

What can make mortgage arrears harder?

The following issues can make a mortgage or remortgage application more difficult:

• arrears within the last 12 months;
• active arrears not yet cleared;
• repeated missed mortgage payments;
• failed payment arrangements;
• defaults, CCJs or other recent credit problems;
• high unsecured debt;
• gambling transactions or unexplained cash withdrawals;
• unstable income;
• self-employed income that has recently reduced;
• high loan-to-value;
• property valuation concerns;
• trying to consolidate debt without a sustainable budget.

None of these automatically means there is no route. But they do mean the case needs to be checked carefully before an application is made.

Common mistakes to avoid

Ignoring the lender

Mortgage arrears rarely improve if you avoid letters, calls or online messages. Early contact usually gives more room to discuss options.

Assuming a remortgage will fix everything

A remortgage may not be available, and it may not be suitable. A new lender still has to accept the arrears history, affordability and property.

Agreeing a payment plan you cannot maintain

A plan only helps if it is realistic. If it fails, the lender may view the case as higher risk.

Waiting until the fixed rate ends

If your rate is ending and you are worried about payments, act early. A product transfer or other lender support may take time to explore.

Applying to multiple lenders

A scattergun approach can create avoidable credit searches and declines. With arrears, it is usually better to check lender fit before applying.

Not checking your credit file

You need to know how the arrears are recorded. Check addresses, electoral roll information, linked accounts, defaults, CCJs, missed payments and balances. If something is wrong, raise it with the credit reference agency.

Consolidating debt without understanding the risk

Moving unsecured debts into a mortgage can reduce monthly payments in some cases, but it can also increase the total cost and puts your home at risk if payments are not maintained. It is not suitable for everyone.

Believing approval can be guaranteed

No broker, lender or online tool can promise a mortgage will be approved. The outcome depends on criteria, affordability, valuation, credit history and underwriting.

What could mortgage arrears look like in practice?

Example 1: One missed payment after a payroll issue

A borrower misses one mortgage payment because their employer changes payroll dates. They contact the lender, pay the arrears quickly, and the account is up to date the following month.

This may still appear on the credit file. The case may be stronger if income is stable, other credit conduct is clean and the explanation is clear. Some lenders may still be cautious if the missed payment was recent.

The sensible next step is to check the credit file and lender criteria before applying.

Example 2: Three months of arrears after redundancy

A borrower loses their job, misses three payments, then starts a new role. They agree a repayment arrangement with the lender and begin reducing the arrears.

A new mortgage application may be difficult while the arrears are active. A lender will want to know whether the new income is stable, whether the arrangement is being maintained and whether the mortgage is affordable.

The borrower may need to stabilise the current mortgage before considering a remortgage.

Example 3: Fixed rate ending with higher payments

A borrower’s fixed rate ends and the new payment is much higher. They have not yet missed a payment, but they are worried they will.

This is a good time to act. The borrower should contact the lender and review options before falling into arrears. They may also want broker advice to compare a product transfer with a remortgage, subject to affordability and criteria.

This is often more straightforward than waiting until payments are missed.

Example 4: Historic arrears now fully cleared

A borrower had arrears two years ago after a relationship breakdown. The mortgage has been up to date since, income is stable and there are no recent missed payments.

Some lenders may be more open to this than to recent arrears, depending on the full case. The age of the arrears, conduct since and loan-to-value may all matter.

A broker can help check which lenders may consider the history before an application is made.

Example 5: Arrears plus wider credit problems

A borrower has mortgage arrears, credit card arrears and a recent default. Their income is uncertain and they want to remortgage to consolidate debts.

This is a higher-risk situation. A remortgage may not be suitable or available. The borrower may need debt advice as well as mortgage advice before deciding what to do.

What should you check before deciding your route?

Before choosing a mortgage route, ask:

• Are the arrears active or cleared?
• How many payments were missed?
• When did the arrears happen?
• What caused the arrears?
• Has the cause now been resolved?
• Is the normal mortgage payment affordable?
• Would a repayment arrangement be sustainable?
• Is your fixed rate ending soon?
• Would your current lender consider a product transfer?
• Are there early repayment charges?
• Are there other debts or missed payments?
• What does your credit file show?
• Is remortgaging realistic, or would it create more risk?

This is where advice can be useful. The strongest route is not always the one with the lowest advertised rate. It is the route that fits the arrears history, affordability and lender criteria.

When should you speak to a broker about mortgage arrears?

You should speak to a broker before applying if:

• the arrears are within the last 12 months;
• the arrears are still active;
• you are on a payment arrangement;
• your fixed rate is ending soon;
• you have other missed payments, defaults or CCJs;
• you are self-employed or your income is irregular;
• your lender has refused a product transfer;
• you want to consolidate debts into the mortgage;
• you are unsure whether to stay with your lender or remortgage;
• you need to understand what evidence a lender is likely to request.

At The Mortgage Blog, we would usually start by checking the arrears balance, payment history, reason for arrears, current affordability, credit file, property value, mortgage balance, current product and any early repayment charges.

We cannot promise a lender will approve a mortgage. What we can do is help you understand which routes look realistic, which look risky, and what evidence may be needed before you apply.

If your situation is not straightforward, you can speak to a mortgage adviser or make a finance enquiry.

How should you prepare before making an enquiry?

For an arrears-sensitive case, prepare a short summary covering:

• the current mortgage lender;
• property value estimate;
• mortgage balance;
• monthly payment;
• fixed-rate end date, if relevant;
• arrears balance;
• dates of missed or reduced payments;
• whether the arrears are active or cleared;
• the reason the arrears happened;
• what has changed since;
• income and employment details;
• other debts and monthly commitments;
• credit file issues;
• the outcome you want, such as product transfer, remortgage, further borrowing, sale, or simply understanding options.

It also helps to have your latest mortgage statement, bank statements, income evidence and credit report ready.

What could change the answer?

What should you read next?

• Steps to assess and improving your credit score
• How long does it take to get a mortgage?
• UK mortgage types
• Mortgage with no early repayment charge
• Property with a second mortgage
• Offset mortgage
• Finance hurdle in UK property

FAQs

What are mortgage arrears?

Mortgage arrears mean you are behind with your mortgage payments. This could be because you missed a payment, paid less than required, or have overdue sums including charges.

What happens when a mortgage is in arrears?

Your lender will usually contact you, ask about your circumstances and discuss how the arrears may be addressed. Missed payments may be recorded on your credit file. If arrears are not dealt with, the situation can escalate and may eventually lead to court or possession action.

Can I remortgage if I am in arrears?

It may be possible in some cases, but recent or active arrears can make a remortgage difficult. Lenders will look at the arrears history, affordability, credit file, property value and reason for the missed payments. Do not assume a remortgage will be available before you have checked the facts.

Is a product transfer easier than a remortgage with arrears?

Sometimes. A product transfer with your current lender may involve less underwriting than moving to a new lender, but this depends on your lender’s rules and the status of your account. You should ask your lender what is available and whether arrears affect your options.

How long do mortgage arrears affect me?

Missed payments can remain visible on your credit file for a period of time and may affect lender decisions while they are visible. Lenders also consider how recent the arrears were and how the account has been managed since.

Should I pay mortgage arrears before other debts?

Mortgage arrears are usually treated as a priority debt because your home is at risk if payments are not maintained. If you have several debts and cannot afford them all, seek free debt advice before deciding what to pay.

Can my lender repossess my home because of arrears?

Repossession is usually a last resort, and lenders must follow a process. However, serious or unresolved arrears can increase the risk. If you receive court papers or possession notices, seek urgent debt or legal advice.

Will a payment arrangement damage my credit file?

It may affect how your mortgage conduct is recorded and how future lenders assess you. Ask your lender how any arrangement will be reported and get advice if you are unsure.

Should I borrow money to clear mortgage arrears?

Be careful. Using credit cards, loans or overdrafts to cover mortgage arrears can increase your overall debt and may harm affordability. If the mortgage is no longer affordable, debt advice may be more appropriate than taking on more borrowing.

What is the strongest next step?

If you are behind, contact your lender first and gather the facts. If you are considering a mortgage application, speak to a broker before applying. If you cannot afford the mortgage or have court action, get specialist debt or legal help urgently.