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
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Telegraph.co.uk'Expedia got my name right to charge my credit card £5000 – but wrong on the tickets'Telegraph.co.ukMartyn James, of complaints service Resolver, said: “The difference between the card name and the booking name should have flagged that there was a problem.” David and Mrs Pope's other son, John, began trying to resolve the problem. They have provided ...
Citywire.co.ukSunday Papers: Green plots sell-out to ChineseCitywire.co.uk... part ways with David Glasser, its chief operating officer. Mail on Sunday: The big four banks – HSBC, Barclays, Lloyds and RBS – banking bosses raked in £21 million last year in pay and benefits. The Sunday Telegraph: Mining giant Glencore is ...and more »
Mirror.co.ukSection 75 claims explained - the credit card super power to defeat dodgy tradersMirror.co.ukSection 75 claims explained - the credit card super power to defeat dodgy traders. When you buy goods on your credit card it can give you a very valuable protection, known as a 'section 75 claim'. This is what you need to know. Share; Comments. By ...
The TimesThe key to your new home could be snatched away by the surveyorThe TimesSo you have found the home of your dreams (or stretched your budget to afford more than a parking space), jumped through the hoops required to secure a mortgage and breathed a sigh of relief. You're on the final stretch, right? Not necessarily. Your ...
Have you met...
Latest Members:


shizu


nbammoak


allemande


abnegation


mmotanknba


inlineclosure


machri

 

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