Some homeowners run into problems paying their mortgage — the end of a relationship, the loss of a job, or unexpected expenses like having a baby can all play a part. If you're having financial problems, it's important to act quickly, even if the difficulty is only temporary. If you don't, you could risk losing your home.
Act quickly
If you're behind on your mortgage payment, or think you soon will be — for example because you've lost your job — contact your lender as soon as possible. Don't be put off because the situation feels hopeless; there's often a solution. If you haven't yet decided what to do, let your lender know you're seeking specialist advice about your options.
Pay as much as you can
Paying your mortgage has to be your top priority, even under pressure to pay other debts too. Losing your home through repossession would only make your debt problems worse, so it's essential to keep paying as much as you can afford. This helps stop your arrears rising too quickly, and shows your lender you're trying to tackle the problem.
Check your mortgage payment protection insurance
Do you have insurance that would keep up your repayments for a time if you couldn't work due to illness, accident, or redundancy? Some people take this out when they first arrange their mortgage and then forget it exists, since it may simply be included in the monthly payment. We offer this cover both at the outset of a mortgage and to existing customers, though certain time restrictions apply before a claim can be made.
Be cautious when remortgaging
If you have other debts alongside your mortgage, you may be tempted to take on a larger mortgage with another lender to clear them. We offer remortgage facilities to customers with a good credit history, but this route depends heavily on your individual circumstances.
Working through your options
The best way to sort out a payment problem depends on your circumstances. If you want to stay in your home, you'll need a way to stop arrears rising while keeping up with future payments, and to pay off what's already built up. Consider:
- Cutting back on non-essential spending
- Increasing your income — through extra work, welfare benefits, or renting out a room
- Reducing your mortgage and/or insurance costs
If none of these are possible, or you'd prefer to leave, you may decide to sell your home voluntarily and move somewhere more affordable. Handing your keys back to the lender is rarely the right move — it will likely increase your debts rather than resolve them.
Get advice
Working out your options can be complicated, and it's worth getting independent advice before deciding what to do. An adviser can help you negotiate with your lender, and free, specialist advice is available from housing aid centres and Citizens Information. Many agencies have advisers who can help you work out the best option for your situation.
