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Missed Mortgage Payments
For homeowners and mortgage payers having missed mortgage payments can be a huge source of worry and stress and its easy to get caught up and feel completely overwhelmed as the mortgage lender pressures for the missed payments to be made up which often results in multiple mortgage applications being submitted in an attempt to obtain a remortgage to clear the mortgage arrears.
With that in mind we decided to do the research for you. We have listed below what you can expect in regards to loan to value (LTV) depending on how many missed mortgage payments are present.
Whilst we will endeavour to keep this list up to date we would still suggest contacting us to discuss your circumstances in person.
List last updated: September 2008
1 missed mortgage payment
Having only one missed mortgage payment may not sound too drastic but it can still effect what a mortgage lender is willing to borrow - the lenders allowing missed payments to be registered are normally called bad credit mortgage or adverse credit mortgage lenders, 1 missed mortgage payment can also be a sign that things are getting tight and may be a prelude to further missed payments.
In the current mortgage market its possible you would be able to obtain an mortgage up to 80% LTV if no payments were missed in the last 3 months. If you do have any mortgage payments missed within the last 3 months its likely you will be restricted to an 75% loan to value mortgage product.
2 missed mortgage payments
The difference between 1 and 2 missed mortgage payments can get blurred depending on which lender you are wanting to obtain a mortgage from. The reason for this is that some lenders will allow 2 missed mortgage payments on an 85% mortgage product although it is likely that the 75% LTV product allowing 2 missed payments will have a slightly higher interest rate than an 75% mortgage allowing 1 missed payment.
You should be able to apply for an 75% mortgage although certain lenders may state that the missed payments must not have been in the last 3 or 6 months - depending on the lender.
3 missed mortgage payments
Having 3 missed mortgage payments against you will start to restrict what is available as well as increasing the interest rate over and above what would be available with 1 or 2 missed payments.
In the current market you should be able to apply for an 70% LTV mortgage, it is very unlikely a lender would approve anything more than this in the current market.
More than 3 missed payments
If you have any more than 3 missed mortgage payments its likely you would be restricted to a maximum LTV of 70% or below depending on your individual circumstances you may be restricted to a maximum of 60% mortgage. This obviously causes problems when looking to remortgage as the equity available may not be sufficient to cover the lower loan to value being offered by the lender.
It stands to reason the lower the loan to value the better the odds of getting approved, anyone requiring a 50% mortgage will be in a very good position in the current mortgage market.
mortgage arrears? | missed payments? | late payments?
We would always suggest speaking to a mortgage professional as it would be impossible to cover every eventuality in this article - it may be possible to obtain more than we have noted above as we have adopted an across the board approach to give the general feel to what could be available to you.
If you have mortgage arrears and want to know what is available it is always best to speak to a mortgage broker who can assess your individual circumstances and requirements in person.
