MORTGAGE ARREARS
If you have been struggling to make your mortgage payments each month and have actually missed mortgage payments then you already have a mortgage arrears problem.
You need to act quickly to get this situation under control even if you think your current circumstances are just temporary. If you do not pay your mortgage you run the risk of actually losing your home.
The sooner you start to deal with your mortgage arrears situation the more options you will have for a solution and this will reduce the risk of losing your home. So take action now to pay off your arrears and tell your lender what you are doing. Always pay what you can.
Ensuring you keep up to date with your monthly mortgage payments should always be your main financial priority. Your mortgage is secured against your home so pay this first before any other unsecured loans or credit arrangements. If you can’t pay all of it then pay as much as you can.
However if you are still struggling and can’t catch up on payments you have missed there are still actions you can take to help you regain control of the situation.
We can Help You
By changing your UK mortgage it may be possible to release equity from your home to pay off all your arrears and clear your mortgage debt. There may even be potential to reduce your monthly payments as well by doing this. It all depends on your particular circumstances and the ability of a new lender to take this into account when you apply for a new loan.
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Our brokers have access to specialised mortgage lenders who are prepared to give you a mortgage despite your arrears.The deal you get will vary by lender and may be affected by the number of payments you have missed. So act now before it is too late if you think this might be for you. |
How to Stop Arrears?
The reasons that have made you miss your mortgage payments may not of your own making. Often circumstances beyond your control such as getting sick or losing your job might mean that that you just can’t earn enough money to pay all your bills.
It always makes sense to contact your mortgage lender as soon as you think you are going to have a problem and even before you miss your first payment. Always keep them updated with your situation. Lenders will appreciate this and they never like to be left in the dark. Doing this will also give them some reassurance as it indicates to them that you are not just ignoring the problem.
Depending on your lender you may be able to negotiate an arrangement that enables you to pay off your arrears over time. Some lenders may not be so helpful and may not be willing to work with you. Either way you need to make sure you try and pay off your arrears as quickly as you can. Always pay as much as you can.
If your lender is flexible see if they are willing to add your arrears to the total amount you have borrowed from them. This would increase your monthly payment for the rest of the term but you will not have to find a lump sum to pay off arrears.
Alternatively if you are now managing to make the monthly payments but not the arrears then you could ask your lender to postpone asking for the arrears until you get back on your feet. If you get agreement to this you must make sure that you really can pay the arrears on the date you agree with them.
Try getting your mortgage term extended. This would reduce your monthly payments but by the end of the term you would have paid more interest.
If you currently have a repayment mortgage and you think your current problems are only temporary you could also ask to change to interest-only payments for a while. This will reduce your monthly payments for the agreed period but after that you would still have to pay off the capital you did not pay during the period.
Mortgage Arrears