Feel you need help with mortgage payments, worried you can’t afford your payments?
If you’re concerned that you won’t be able to make your mortgage payments, contact your mortgage lender right away to find out about the various ways they can help you.
PLEASE NOTE – Your home could be at risk if you don’t keep up payments on your mortgage or other debts secured on it.
Why it’s important to contact your mortgage lender
If you’re feeling anxious about telling them that you have money worries, there’s no need – they’ll want to help you manage the situation so that you can avoid the serious consequences of missing mortgage payments. Here is some clarity about what those consequences are.
- Missing mortgage payments will affect your ability to borrow money from any lenders in future
- If you have a joint mortgage or a guarantor, they’ll be liable for the money you owe
- Continuing to miss payments means they may begin legal proceedings to recover the money you owe – that could, as a last resort, lead to them repossessing and selling your home
- And if the proceeds from the sale don’t cover what you owe, you’ll still have to repay the shortfall
If your mortgage came with a Mortgage Current Account, and you’ve used the reserve to borrow money (like an overdraft), you’ll need to include this repayment in your plans.
How they can help you
They can talk to you about different ways to make your mortgage payments, although this will depend on your circumstances. You may be able to
- Extend your mortgage term, so you can pay less each month but over a longer period of time
- Reduce your monthly payments for a set period of time, while you sort out your finances
It’s important to understand that while these arrangements would reduce your monthly payments now, they will increase the overall cost of your mortgage. That’s why they’ll give you time to consider the arrangement they suggest, so you can get impartial financial or legal advice before making any changes to your mortgage.
Get free and independent advice
There’s plenty of help on offer if you have worries about money. We recommend you contact one or more of the following organisations to see how they can help – but don’t forget to call your lender about your mortgage.
Remember that getting free and independent advice about your finances means you’ll have access to the widest range of ways to deal with your worries – from setting up a debt management plan to discovering if you’re eligible for any state benefits.
Avoid short-term answers
Some companies offer loans specifically to cover mortgage problems. They may even offer to buy your home and then rent or lease it back to you. But loans like these can be very expensive and are usually secured against your home, so you could be putting it even more at risk. We strongly recommend that you get independent advice before considering any arrangements like this.