Can I Get a Mortgage with Arrears?

If you’re wondering, can I get a mortgage with arrears? you’re not alone. Having arrears on your credit record can feel like a major hurdle when buying your first home. But the good news is, arrears don’t automatically disqualify you from getting a mortgage. Lenders will look more carefully at your current financial situation and history to decide.

 

What Are Arrears and How Do They Affect Mortgage Applications?

Arrears mean you have missed payments on debts like loans, credit cards, rent, or even an existing mortgage. This can show up on your credit report and may affect your mortgage eligibility. Lenders will assess:

• The type of arrears (e.g., rent arrears, mortgage arrears, or unsecured debt arrears)

• How recent the arrears are

• Whether you’ve cleared or reduced the arrears

• Your current financial behaviour

 

Mortgage Lenders and Arrears: What You Need to Know

• Unsecured debt arrears (credit cards, personal loans) may be viewed more leniently if resolved.

• Rent or mortgage arrears are more serious because they suggest difficulty managing housing payments.

• Older arrears (more than 2-3 years ago) generally have less impact than recent missed payments.

• Clearing arrears before applying boosts your chances of mortgage approval.

• Lenders may require a larger deposit or charge higher interest rates for applicants with arrears.

• Some high street lenders may reject your application, but specialist mortgage lenders often offer more flexible options.

 

How Klink Can Help You Get a Mortgage Despite Arrears

Klink connects securely to your bank accounts and shows how lenders see your financial behaviour. With Klink’s Mortgage Readiness Check, you can:

• Track your spending and saving habits in real time

• Identify risky spending or missed payments

• Get personalised feedback on improving your mortgage readiness

• Set and monitor your Home Buying Goal to save for a deposit

These insights help prove to lenders that you’ve taken control of your finances, even if you’ve had arrears in the past.

 

Tips for Getting a Mortgage with Arrears

• Clear outstanding arrears where possible before applying.

• Maintain a consistent record of on-time payments after arrears.

• Save for a ****larger mortgage deposit to improve your application.

• Avoid applying for multiple credit products at once.

• Use tools like Klink to improve and track your financial health.

• Consider working with a mortgage broker who specialises in adverse credit.

 

Can You Buy a Home with Arrears?

Yes! While buying a home with arrears on your credit record can be more challenging, it’s not impossible. With patience, a clear plan, and support from services like Klink, you can improve your mortgage readiness and move closer to homeownership.