Your most important asset is your home and you should deal with mortgage issues immediately.
When you have money problems, you should contact your lender very quickly.
Most lenders are committed to helping homeowners who are struggling.
If your lender does not hear from you or does not know why you have not made a payment, they are more likely to start legal action for repossession of your home.
You can also contact our housing advice team. We can advise you of your rights and provide advice on the best option to take.
We can also talk to your mortgage lender on your behalf and help you to negotiate an affordable payment plan.
We can also attend court with you if you have a possession hearing.
Your mortgage advisor can advise you of the mortgage options available to you. You should always seek independent financial advice when dealing with mortgage payments.
Steps you can take if you are struggling with mortgage payments
We can help you look at options to increase your income and reduce your expenditure. We can also check you are claiming all of the welfare benefits you are entitled to.
We can work with you to help prioritise your debts by contacting the organisations you owe money to. This can help free up money to meet your mortgage payments.
Consider changing to an interest only mortgage. With an interest only mortgage, all you pay each month is the interest on the amount you borrowed. It is important you find out everything you need to consider before you apply.
A mortgage payment holiday is an agreement you can make with your lender that allows you to temporarily stop or reduce your monthly mortgage repayments.
This is only a temporary solution and interest for the period of non-payment may be added to the mortgage balance.
We can check with your lender to see if you are eligible to take a payment holiday and for how long.
You can ask your mortgage lender to increase the term of the loan, for example from 20 to 25 years. This could reduce your monthly payment which may free up some extra income to clear the arrears.
However, it is not advisable to extend the term of the loan beyond the date you retire, because your income is likely to go down at retirement age.
You will need to check with your lender to see if this option is viable.
You can ask your lender to add your mortgage arrears onto the mortgage. This will increase your monthly payment but will clear the arrears. This option will only be possible if you have equity in your property.
It may be possible to re-finance with another lender who may be able to offer a better rate of interest. Always get advice from an independent financial adviser first.
This works by an appointed Housing Association buying back your property at 90% of the market value. They will then rent it to you at an affordable rent, and you will become an Assured Shorthold Tenant.
If you have equity in your property it may be an option to sell your home and buy a smaller, cheaper property. You may decide to privately rent instead.