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Mortgage Arrears

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Domestic mortgage arrears (231KB)

For most people the most important priority is to protect their home.

If you are in arrears there are things you can do, but you should contact your lender first to discuss the options available. These will normally include:

instalment arrangements to pay a part of the arrears off each month (on top of the normal monthly repayment);
payment/capital holidays;
conversion from an endowment mortgage to a repayment mortgage;
adding the arrears to the mortgage, called ‘capitalising’ the arrears (more likely if the value of the property is a lot more than the total amount of your mortgage);
increasing the term mortgage term;
paying off the interest only. If you are on a repayment mortgage you could ask the lender to accept a monthly payment to cover only the interest part of the normal monthly repayment, usually for a temporary period;
increasing your income;
mortgage rescue schemes. Some lenders operate schemes where they buy back all or part of your home and allow you to remain there as a tenant or shared owner. Contact your lender to see if they run a scheme, or alternatively ask the Housing Corporation for details of local housing associations who may run a scheme, and ask your local council housing department.

If you are unable to afford your mortgage you will need to increase your income or may consider selling your home and seeking alternative accommodation. Phone us for advice.

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