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
The IndependentGovernment to end Help to Buy mortgage guarantee schemeThe IndependentThe ISA effectively gifts people who have saved a deposit additional money and has been criticised for being potentially regressive. Theresa May has said she wants to close Britain's “homes deficit” and said housing will be one of her priorities ...Help to Buy mortgage guarantee scheme to close, says HammondAOL Money UKGeorge Osborne's flagship Help to Buy mortgage guarantee scheme shut down under Theresa MayMirror.co.ukGovt confirms Help to Buy will close at end of yearMoney Marketingall 23 news articles »
CalvinAyre.comUK dependency pushes ahead with plan to regulate digital currencyCalvinAyre.comBlockchain makes use of cryptography to create a distributed ledger system, which is often used to hold and spend money in a more open, transparent and flexible manner compared to the traditional bank or credit card companies. “The industry is hurtling ...and more »
The Guardian'This is just the start': China's passion for foreign propertyThe GuardianRich Hong Kong investors have been ploughing money into British bricks and mortar for decades, snapping up off-plan apartments at weekly property fairs that can then be rented, flipped, held as investments or used as second homes. “I have one [London ...and more »
Personal finance hard-pressed by the mediaFT AdviserI have been involved with Money Mail for more than half of its lifetime and I believe that it, and other personal finance supplements, have helped to shape a far more consumer-friendly investment, savings and borrowing culture in the UK. There have ...
The GuardianMortgage approvals fall as Brexit vote appears to subdue housing marketThe GuardianScott Bowman from consultancy Capital Economics said: “August's UK money and credit figures suggest that the housing market continues to cool, but appetite for debt hasn't taken much of a hit.” However, he pointed to other indicators, which suggest ...and more »
Have you met...
Latest Members:


lidolove201046


expert


SHIMAA222


reda21


hannamarin


nermine


ahmed

 

Factsheets

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