Obtaining secured loans for missed mortgage payments

If you are falling behind in mortgage arrears you may think opting for secured loans for your missed mortgage payments is the best option. However, you should carefully consider your options before taking out another form of finance against your home; if you are struggling to meet mortgage repayments and additional loan will only put your in more debt and risk your home being repossessed.

In many cases it's not possible to get secured loans for missed mortgage payments because of how lenders tend judge your application. When looking at applications for a secured loan, the lender will take into account:

  • Missed payments on your mortgage as well as missed payments on other secured loans
  • The most recent missed payments. Older payments may be taken into account but recent arrears are normally taken into consideration in most cases
  • Your current credit profile, including all other loans
  • Whether your arrears are up to date. Some lenders won't accept applications from homeowners who have not paid off their arrears

Most of the time a missed payment will be recorded if you fail to make a payment of 75% of the payment within a month of the amount being overdue.

Secured loans for missed mortgage payments, like any other loan, judge applicants on their "high risk" factor. The more missed payments and defaults you have on your credit profile will flag you as a high risk customer. A lender may not be willing to offer a loan to high risk customers, or will increase the APR considerably.


Secured loans for missed mortgage payments can be obtained if your secured asset is a vehicle or a mortgage-free home. Adding additional finance to a home with miss mortgage payments isn't the best option, so you should opt for securing your finance on other items instead. You should also consider unsecured loans, credit cards and additional bank overdrafts to help cover the cost of arrears.

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