A missed mortgage payment can make remortgaging feel impossible, particularly when your current deal is ending and the monthly payment may rise. But the best remortgage routes for arrears are not limited to one lender or one outcome. The right route depends on what caused the arrears, whether they are cleared, how recent they were and whether your finances are now stable.
The key is to act before your fixed rate ends or your situation becomes more difficult. A specialist adviser can look beyond a credit score, explain the realistic options and help you avoid applications that are unlikely to suit your circumstances.
Start by understanding the type of arrears
Lenders do not treat every missed payment in the same way. Mortgage arrears will usually receive the closest scrutiny because they relate directly to a secured borrowing commitment. Recent rent arrears, secured loan arrears and missed payments on credit commitments may also affect the lenders available to you.
A one-off missed payment from several years ago, followed by a clean record, is very different from ongoing mortgage arrears or a pattern of missed payments across several accounts. Lenders will want to understand the story behind the credit file. A period of illness, a relationship breakdown, reduced self-employed income or an administrative error may be relevant, but evidence that the issue has been resolved matters just as much.
If you are still in mortgage arrears, your first priority should be speaking to your current lender. They have a duty to treat customers fairly and may be able to agree a temporary arrangement, such as changing the payment date or spreading arrears over an agreed period. Do not stop communicating with them while looking at a remortgage.
The best remortgage routes for arrears
There is no single best option for everyone. The most suitable route will balance your need for an affordable payment now with the cost and flexibility of the mortgage over time.
A product transfer with your existing lender
A product transfer means moving on to another deal with your current lender without switching provider. For some borrowers, this is the simplest way to avoid moving on to their lender’s standard variable rate when a fixed deal ends.
This route can involve less paperwork than a full remortgage and may not require a new property valuation or solicitor. In some cases, affordability checks are lighter than they would be for a new lender. However, eligibility is not guaranteed. Your lender may restrict new deals where arrears are recent, outstanding or subject to a repayment arrangement.
It is also worth comparing the deal properly. Staying put may be sensible when it protects affordability, but it should not be an automatic choice if a better-suited specialist option is available elsewhere.
A remortgage with a specialist adverse-credit lender
If your current lender cannot help, or its available rate is not workable, a specialist lender may consider your application. These lenders are used to assessing cases involving missed mortgage payments, defaults, CCJs, debt management plans and other complex credit events.
They will still assess affordability, your loan-to-value and the details on your credit report. Some may accept historic or satisfied arrears where a high-street lender would decline automatically. Others may consider more recent issues if there is a credible explanation and a clear return to stable finances.
The trade-off is that rates and fees can be higher than those advertised for borrowers with spotless credit. That does not automatically make the route unsuitable. The comparison needs to be based on the total cost, monthly payment, early repayment charges and whether the deal gives you breathing space to improve your credit profile. A two-year specialist fix can sometimes be a practical stepping stone rather than a long-term destination.
A further advance from your current lender
A further advance is additional borrowing from your existing mortgage provider. It can be relevant if you need funds for an essential purpose, including home improvements that protect the value of the property or, in limited cases, consolidating expensive unsecured debt.
This route is not suitable simply because it appears easier than a remortgage. Increasing a secured debt can lower monthly outgoings by spreading repayments over a longer term, but it can mean paying more interest overall. Where arrears are involved, lenders may also be cautious about lending more.
If debt consolidation is part of the plan, it should be considered carefully. It is only helpful where the new payment is genuinely affordable, the underlying spending issue has been addressed and you will not build up the cleared debts again.
A second-charge mortgage
A second-charge mortgage is a loan secured against your property alongside your existing mortgage. It can occasionally make sense where your current first-charge mortgage has a very low rate or large early repayment charge, making a full remortgage costly.
However, it creates another secured monthly commitment. It is not a quick fix for mortgage arrears, and it is usually unsuitable if affordability remains under pressure. You should understand the rate, fees, term and consequences of missed payments before considering it.
Time to stabilise before switching
Sometimes the best route is not an immediate remortgage. If arrears are active or very recent, agreeing a sustainable repayment plan with your lender and building a run of on-time payments may open more options later.
That does not mean ignoring the end of your current deal. You may still need to explore a product transfer or temporary arrangement to avoid a sudden payment shock. The point is to choose a route based on what is achievable now, rather than forcing an application that could lead to further declines on your credit record.
What lenders will look at
Specialist lenders assess the whole application, not just the presence of arrears. They will commonly consider how many payments were missed, the highest arrears balance, when the account returned to date and whether the arrears have been repaid.
They will also look at your current income, regular commitments, deposit or equity, property type and the size of mortgage you need. If you are self-employed, up-to-date accounts, tax calculations and bank statements can help demonstrate that income is reliable. If your income has improved since the arrears occurred, evidence of that change can be valuable.
Loan-to-value is particularly important. More equity in your home can give lenders greater comfort and may widen the range of available products. It is not a replacement for affordability, but it can affect rates and acceptance criteria.
Be prepared to explain the circumstances clearly and honestly. A concise explanation is better than trying to minimise an issue a lender can already see. The strongest cases usually show both what went wrong and what has changed: a new permanent job, lower outgoings, an agreed settlement, cleared debt or a sustained period of clean payments.
Steps to take before applying
Check your credit reports with the main credit reference agencies and make sure addresses, account balances and payment histories are accurate. If a missed payment has been recorded in error, raise a dispute before submitting mortgage applications where possible.
Gather recent payslips or self-employed income evidence, bank statements, your current mortgage statement and details of any repayment arrangements. Knowing your current balance, estimated property value and deal end date will make an initial discussion far more productive.
Most importantly, avoid making several direct applications in the hope that one will work. Each lender has its own policy on arrears, and a lender that is right for one borrower may be wrong for another. A targeted approach can reduce unnecessary hard searches and focus on lenders whose criteria are closer to your position.
When specialist advice can make the difference
Remortgaging with arrears is not about finding a lender that ignores the problem. It is about presenting your circumstances accurately to lenders that are willing to assess them fairly. That requires a clear view of your credit history, affordability and the available routes, including whether staying with your current lender is the safer short-term choice.
At Adverse Guru, we understand that arrears often come after a difficult period, not a lack of commitment to your home. Book an initial mortgage discovery call to discuss your situation confidentially and get clear, practical guidance on the next step. A well-timed conversation can turn a worrying remortgage deadline into a plan you can realistically afford.