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Arrears

If you miss mortgage payments and are in arrears 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.

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Arrears FAQs

My landlord won’t accept my arrears payment, what should I do?

If you have offered your landlord something towards the arrears each month and they won’t accept it, you should first look through your budget to see if you can afford to pay any more towards the arrears. Make sure you are not paying your unsecured debts rather than your arrears. If you cannot afford to pay any more towards the arrears, show your landlord a copy of your budget to demonstrate that you are paying all you can afford.

If your landlord still will not accept the payment, keep paying it anyway. This will show that you are trying to do all you can to sort the arrears out.

Can I get Government help towards my rent?

If you are struggling to pay your rent you may be entitled to some Government help. If you have a low income or receive certain benefits you may be able to claim Housing Benefit or Local Housing Allowance. Depending on your situation this may pay all or part of your rent.

To check what benefits you can claim you could visit Turn 2 Us, a website with a benefits calculator. If you are struggling with other debts and would like to speak to someone about what benefits you can claim please call our helpline. One of our specialist advisors will be able to help you.

How do I find out what type of tenancy agreement I have?

If you are not sure what type of tenancy agreement you have you should contact your landlord or check your tenancy agreement. All landlords have to supply a tenancy agreement to their tenants and this will say what type of tenancy you have.