The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News whingeing, milennials, and look at the facts: you've never had it so more shocking: those starting work today are more likely to retire with a pension. For all the ... of their careers. To remove some of the emotion from the debate, Telegraph Money compared several key aspects of personal finance across the ...
Scottish Daily RecordBully killer forced him into life of crime, but pint-sized ex-crook says he's only interested in Bollywood nowScottish Daily RecordBilal “Billy” Choudhary told how the thug targeted him as a youngster and bullied him into committing credit card fraud and breaking into houses. The 31-year-old ended up forcing his way into properties and stealing cash and ... Bilal Choudhary said ... (registration)Money can really, really buy happiness, UK study (registration)Statisticians at the UK's Office for National Statistics have come to the conclusion that money can indeed buy happiness, after they combined data from surveys on household wealth and personal well-being. Even though this finding is not new, as the ONS ... guide to pensions, annuity and retirement | Personal retired people will be hopping mad at the Government's shock decision to block them from cashing in their annuities.and more » guide to the ever-changing world of Lansdown, the UK's largest annuity broker, had already announced it would not participate and Tom McPhail, head of retirement policy, says the risks outweighed the benefits: “Many would have struggled to get value for money or fallen prey to ...and more »
Have you met...
Latest Members:


walis monaim

Tisa smith







Email this story to a friend:

Can't pay the mortgage?

Mortgages come with a health warning - if you don’t keep up your agreed monthly payments your home may be repossessed by the lender14-05-2009
which means the court can order you to move out and give the lender the right to sell the property. (If you’re already at that stage see ’Facing Repossession’ fact sheet)

It’s a stark warning and the Government has told lenders they must use repossession only as a last resort. 13,161 homes were repossessed between September and December last year. The total number of households behind with repayments at the end of Dec 2008 was 340,000. The Centre for Policy Studies thinks as many as 145,000 households will be homeless by the end of the recession and another 245,000 will have repossession orders against them.
The Bank of England cut base rates to just 1% last week - the lowest interest rate ever. Some lenders passed on the cut to their borrowers making mortgages cheaper for many. But some didn’t because they need money coming in from savers and if they pass on interest rate cuts to borrowers they have nothing in the kitty to pay interest to savers. A bit of a catch 22!

And interest rate cuts are only part of the picture. If you’ve lost your job and qualify for help to pay your mortgage (see fact sheet) then you will probably be able to keep the roof over your head. But if the total income of the household is drastically reduced because of the loss of a job, yet still high enough to exclude you from claiming any help for the welfare benefit system you’re likely to struggle.

So what do you do?

Get the full picture. List all your income; your bills, credit, cards, loans; and work out in detail how much you spend on food, travel, household items down to the last toilet roll.

Look for ways you can make savings, cut spending or increase income (Take in a lodger? See fact sheet ‘Making Money out of your Home‘)

Contact the lender straight away and discuss the situation. Don’t wait until arrears have build up as it will be harder to get out of the debt.  

Work out what you can pay and try to come to an arrangement. The lender may be willing to restructure the mortgage so that you pay it off over a longer period or so that monthly payments are lower, or you may be eligible for the Homeowner Mortgage Support Scheme which allows the most vulnerable households to defer mortgage interest payments for up to 2 years.

If the lender refuses to help see a money adviser at your local CAB (find details in the phone book or online) or call National Debtline 0n 0808 080 4000. They offer free confidential help and advice. There are other organisations that can help. Check online to see what’s available in your area but don‘t delay - queues for help are building up.

The good news according to the Council Of Mortgage Lenders - is that because lenders are finding it difficult to sell properties - like other would-be sellers, they are considering ways of allowing people to stay in their homes - perhaps paying rent - until they can start paying a mortgage again.

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks