If you miss mortgage payments it is important to act quickly. The consequence of not paying bills such as your mortgage or any other secured loans could be the repossession of your home.
Your mortgage lender will expect you to tell them why you have missed payments and to arrange repayment of the arrears. To clear the arrears you will need to pay your monthly mortgage payment and something towards the arrears each month.
How to repay your arrears:
Produce a household budget making sure that you list all of your income and expenditure. We suggest that you do not include your unsecured creditors, such as unsecured personal loans, credit cards or catalogues, in your expenditure. This is because the consequence of not paying your mortgage arrears is greater than that of not paying unsecured creditors. Unlike your mortgage, failure to meet the payments on unsecured creditors would not normally put your home at risk.
Any money left over will show you how much you can afford to pay to your mortgage arrears and other priority debts.
You may also find it useful to look into increasing your income or reducing your expenditure where needed.
Once you know how much you have left each month you need to contact your lender to arrange repayment. If they ask, you can also send them a copy of your budget to provide proof of your situation.
Do you need help?
If you would like help in dealing with your mortgage arrears, please call our Helpline on 0800 138 1111. Our advisors can give you specialised mortgage advice and help you to solve your mortgage payment problems.
To help you create a budget, visit our online debt counselling service.