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Mortgage Arrears

We get repossession stopped even if you have mortgage arrears

Mortgage arrears are classed as ‘Priority Debts’ and can result in you losing your home.

If you are struggling to pay your mortgage there are ways to ensure that you get as much help as possible.

Contact your lender:
Your mortgage lender will want you to clear your arrears and can offer assistance by reducing your payments for a period of time until your situation improves; giving you a ‘payment holiday’; extending your mortgage term to reduce your payments or suspending the capital element of your mortgage so you only pay the interest.

Seek independent advice:
Always seek out repossession help and advice from an independent company.

Pay as much as you can:It is vital that you pay as much as you can towards your mortgage. You must work out how much you can afford to pay by looking at your income and your outgoings. If you haven’t paid anything for some time it is imperative that you start paying a regular amount – even if this is not the full monthly payment.

Increase your income:There are ways to increase your income in order for you to manage your debts. You should ensure that you are receiving all the welfare benefits and tax credits that you are entitled to. With some benefits you will receive an allowance which will pay off some of your mortgage costs. If you have mortgage protection insurance you can make a claim on this. However, if these are not available for you, you could take in a lodger or move out of your property and let it with the permission of your mortgage lender.

If you cannot pay your arrears:
The courts will give your lender permission to evict you from your home and sell the property. If they do not make enough profit from the sale to cover your debts, you will be forced to pay the difference.
If you cannot clear your debts you may benefit from selling the property yourself as your mortgage lender is likely to get less for it than you would. Furthermore, properties that have been through a repossession sell for a lot less.