Mortgage arrears advice

Mortgage Arrears - how to deal with it

This section covers what you can do if you have mortgage arrears, and how you can arrange to repay the arrears.

If you are having difficulties with your mortgage it's essential to know the facts and not be frightened by the many myths that are out there.

Knowing what to do is all about arming yourself with the most accurate information available.

Facing the prospect of repossession can be frightening, but it’s important to remember that you are not alone.

There is a lot of help available from government, from lenders and from advice agencies.

The information here will give you the tools you need to prevent your home being repossessed.

If you're struggling to pay, or are already in arrears

Depending on your payment history, your circumstances and whether your difficulties are likely to be long or short term, your lender might agree to:

• reduce your payments for a set period
• charge you interest only for a while if you've got a repayment mortgage (usually you pay capital and interest)
• allow you to pay off the arrears gradually, alongside your usual payments
• give you a 'payment holiday'
• extend your mortgage term to reduce your payments
• add your arrears to your mortgage and pay them back over the term
• let you stay in your home while you try to sell the property and find somewhere else to live
• suggest other assistance, such as one of the government schemes to help with mortgage difficulties

If you have other debts on top of your mortgage payment problem, you need to speak to one of our advisers. Simply call the team on 0800 36 88 133.

You may find that your best option is to agree to a reduced payment arrangement for any unsecured debts that you have, such as credit cards or personal loans.

This will then free up some of your money to pay more towards your mortgage.

Mortgage arrears help

It's very important that you don't ignore any payment problems. Mortgages are 'priority debts', which you should pay off first as your lender could go to court to try and repossess your home and sell it to get their money back.

If you have other debts you should seek advice on which are the most important, and how to negotiate with different kinds of lenders.

If you have a mortgage, and have fallen behind with payments or are being threatened with repossession, then you need to get professional advice as soon as possible.

• Last updated 21 April 2018

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