What happens if I miss a mortgage payment?
Missing your first mortgage payment is a terrifying moment. You worry about losing your home and your credit score being destroyed.
But here is the truth: You are more protected today than ever before. New rules called the Mortgage Charter mean your lender cannot force you out of your home within 12 months of your first missed payment (for most residential lenders). They are legally required to help you find a way to stay.
Use the tools below to see exactly where you are in the escalation timeline and what options (like Interest-Only switches) are available to you.
1 The Typical Timeline
If you take no action, this is the standard statutory process. Timescales are approximate but typical for 2026.
Missed Payment
Your lender will write to you. They will charge a 'missed payment fee'. They will ask you to call them. **Do not ignore this.**
Arrears Notice
If you miss a second payment, you get a formal 'Notice of Arrears'. This is required by law and includes info on debt advice.
Formal Demand
Lenders must prove they tried to help you using the 'Pre-Action Protocol'. They should offer Interest-Only or Term Extensions.
Repossession Threshold
Under the Mortgage Charter, lenders generally agree NOT to enforce an eviction within 12 months of the first missed payment.
2 Free Calculators & Checks
Step-by-step through the legal journey.
Arrears Escalation Timeline
Understand the journey from a missed payment to legal action.
The First Missed Payment
Notice of Arrears
Pre-Action Protocol
Solicitors & Court
Repossession Threshold
**MORTGAGE CHARTER PROTECTION:** If your lender signed the 2023 Charter, you are generally safe from actual eviction for **12 months** from your first missed payment, giving you a massive window to fix your finances.
How likely are they to sue you this month?
Lender Action Probability
How likely is your lender to start legal action this month?
You are currently in the safest communication tier.
Compare Interest-Only vs SMI vs Term Extensions.
Lender Forbearance Explorer
Click an option to see how it works and the impact on your credit.
Select an option above to compare
Always speak to a debt advisor at Citizens Advice or StepChange before committing to a plan.
The 12-Month Repossession Rule
If your lender signed the Mortgage Charter, they have agreed that households will not be forced to leave their home within 12 months of their first missed payment without a court order, and they won't even seek that order until 12 months have passed in many cases.
What is Forbearance?
Forbearance is the legal word for 'help'. Lenders MUST offer you options like:
- Payment Holidays: Stopping payments for 1-3 months.
- Interest-Only Switch: Only paying interest (not the loan balance).
- Term Extension: Spreading the debt over more years.
Summary of Options
Call Your Lender
Ask about the 'Mortgage Charter' Interest-Only switch. It can cut your payments by 50% for 6 months with NO credit impact.
Check for SMI
If you are on benefits, the government can pay your mortgage interest for you via Support for Mortgage Interest (SMI).
Attend Court
If it goes to court, ALWAYS attend. Judges prefer keeping families in homes if they can make *any* regular payment.
Common Questions
Will one missed payment ruin my credit?
It will show as a '1' on your credit file. If you fix it within 30 days, most lenders won't report it. If it stays unpaid, it will impact your score, but it's not as bad as a CCJ or Bankruptcy.
Can they repossess me for £500 in arrears?
Technically yes, but practically no. Courts consider it 'unreasonable' to repossess for small sums. Judges will almost always suspend the order if you offer to pay the arrears off over time.
Can I sell the house to stop repossession?
Yes. This is called a 'Voluntary Sale'. It is almost always better than a 'Distressed Sale' by the lender, as you will likely get a higher price and keep more of your equity.
Official Sources & References
Related Situations
Other guides accurately explaining what happens next in housing .
What happens if I receive a Section 21 notice?
A Section 21 'No Fault' notice is the start of a long legal process, not the end of your tenancy. You do not have to leave on the notice date, and many notices are legally invalid.
What happens if I stop paying my energy bills?
Stopping energy payments triggers a series of escalations from the supplier, including forced prepayment meters and potentially CCJs. However, there are strict protections for vulnerable people.
What happens if my landlord sells the property?
A landlord selling does NOT mean you have to leave immediately. You often have the right to stay as a 'Sitting Tenant' until your contract ends.