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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
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Your mortgage chances will definitely take a hit - but by how much depends on what you missed your payment on, how long ago it was and how big a deposit you have.
There are two types of borrowing: secured borrowing, a loan that is linked to a secure asset like a mortgage or a car payment, and unsecured borrowing, such as a phone or utility bill, or a credit card.
Missed payments to unsecured loans are seen as less serious than delays with secured loan payments. If you have just one or two late payments to unsecured debts over the past six years, your mortgage application may be unaffected.
But, any more than that, you may be expected to put down a larger mortgage deposit or pay a higher mortgage interest rate.
A first-time buyer with a small deposit looking to get a 95% mortgage may struggle to borrow at such a high loan-to-value with a series of missed payments.
This is because the lender is already taking a risk by allowing you to borrow such a significant proportion of the property's value, and there's a risk that if house prices drop, you could fall into negative equity, and the lender may not be able to recover its loan.
Lenders prefer borrowers with small deposits to have a clean credit record to make up for this risk. Any blemish on your credit could negatively impact on your mortgage chances.
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Each lender will have its own rules and criteria, but generally, missed or late payments for utilities are the least serious, and missed mortgage payments are the most serious.
There are different types of marks that can go on your credit reports if you miss a bill.
You will receive a written notice advising you of the default, and you will be given 14 days to respond. The creditor can then close your account and demand all payments in full. This default will lie on your credit report for six years.
A late payment is one which missed the deadline but was satisfied within a month. Arrears are payments which start to add up beyond that month.
A late or missed payment can damage your chances of getting a mortgage, but there are steps you can take to keep on the path to property ownership.
If you've just missed a payment, it's best to get on the phone with your lender or creditor as quickly as possible, especially within a month of the payment being missed.
If you seek to rectify your error immediately, the lender may not mark it on your credit file. Paying a bill a couple of days - or even weeks - late may see you escaping a hit to your credit score.
If you have missed a bill, once you've paid it, make sure you phone or email to say it has now been paid.
A payment can take three working days to clear, and so, if your creditor has at least been told a payment is coming, it may sway them from marking your file.
Late payments stay on your credit history for six years, as do missed payments and defaults, but they appear differently on your credit report.
Lenders assessing them will see a small number next to each late payment to advise them how many months late the payment was - i.e. 1 month, 2, 3, etc.
A late payment might be ignored by lenders and have no or little impact on your credit score if it took place two to three years ago.
Missed payments and defaults are considered more serious. A mortgage lender will see the amount owed and the duration it took to pay off. The more recent they are, will affect whether mortgage lenders will consider you.
The biggest red flag for mortgage lenders is a missed payment on an existing mortgage.
If you had a single late payment several years ago, this might be overlooked, but it is pivotal that you are up to date with your current mortgage. If you are behind, you may not find many agreeable lenders, even in specialist areas.
Using a mortgage broker can help you explore your options.
It is possible, but entirely on the discretion of the lender or company you hold an account with, or you can prove they shouldn't be there in the first place.
You may be able to request a 'Goodwill Adjustment' if you are a long-standing customer of the lender and have previously had an immaculate payment record.
You can also dispute the late payment as inaccurate if you can prove it wasn't late or the wrong amount was requested. Some lenders may also remove a single historic late payment remark if you agree to sign up for automatic payments, such as a direct debit.
But you should take immediate steps to try and improve your credit rating, particularly if you have late, missed or defaulted payments.
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