Home / Money Articles / Are you having problems paying your mortgage

Are you having problems paying your mortgage

Are you having problems paying your mortgage
Loading 

Written by:

The country as a whole might be over the worst of the economic crisis, but that doesn’t mean that everyone has money to spare. For lots of families it can still be hard to balance the monthly figures. The biggest regular expense for most households is their mortgage, which can put a strain on finances. Are having problems paying your mortgage? There is help available.

Don’t ignore the situation

The worst thing you can do if you’re having problems paying your mortgage is to hope the issue will go away. It’s important to keep up your repayments; otherwise you’re at risk of losing your home. However, there is support available for those in difficulties. The sooner you act the better chance you have of remaining in your home.

Talk to your lender

Your bank or building society can’t help if they don’t know there’s a problem. If possible, they want to find a way through the situation rather than resorting to repossession. Lenders have a duty to try and come to a new arrangement with you, but you need to contact them to discuss the options available. They can’t repossess until all other avenues have been explored and failed and they must provide you with adequate notice beforehand. They might be able to extend the length of your mortgage, which will reduce your monthly payments. When you speak to your lender, tell them what you can afford. This shows a willingness to pay and will limit any arrears.

Do you have insurance?

We often take out Mortgage Protection Insurance, but forget that we actually have it when it’s needed. Check the details with your lender, as this could help if you have been made redundant, had an accident or suffering from a long-term illness.

Reduce your costs

Whatever the reason for your financial difficulties, you need to look at reducing the amount you spend. Cutting down on your non-essential spending will help you pay the mortgage and other essentials. It also shows your lender you are trying to rectify the situation. Look through your statements and see what direct debits you could cancel, such as magazine subscriptions or gym memberships. You can even cut back on your essentials, by switching energy or other service providers.

Free debt advice

Are you having problems paying your mortgageWhen you’re struggling it often feels like you’re all alone and that there’s nobody who can help. However, there are charities that provide free and independent advice if you have money or debt issues. Contact Citizen’s Advice, National Debtline or StepChange, who can help you come to arrangements with your mortgage provider and other creditors.

Help through benefits

Depending on your individual financial circumstances, you could be entitled to benefits that will help with the interest on mortgage payments. Those who are in receipt of certain benefits might qualify for Support for Mortgage Interest, which will cover some of your monthly costs.

Selling your house

If there is no other option open to you, it might be necessary for you to sell the property. This will be a better choice than settling for repossession, but you need to make sure you have a cheaper or rented property to move to following the sale. Let your lender know your intentions and they should provide you with adequate time to complete the sale.

Financial problems, including mortgage difficulties, don’t have to mean the end of the world. As long as you deal with the situation calmly and in a timely manner, you can find the best solution for you and your family.

Share

Comments

About Catherine Stern

About Catherine Stern

Catherine Stern is a freelance writer with a background in marketing and PR. She currently writes web content on a range of subjects, from finance and business to travel and home improvements. As a working single mum of two young boys she understands the pressures that today’s working parents face and the topics they want to read about.

View all posts by