Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Arrears as it relates to mortgages in the UK. ArrearsWhen mortgage payments have not been paid on time or are not made at the correct amount you are said to be in arrears. Borrowers with a history of mortgage arrears will find it harder to get a new mortgage with their current lender or a new lender in the future. However, there are a number of lenders who will consider lending to credit individuals with bad credit, and some who specalise in it. You may find however that you will pay a premium fee for this specialist service. Payment made after it is due is in arrears. Interest is said to be paid in arrears since it is paid to the date of payment rather than in advance.
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