Mortgage payments are often the biggest financial commitment that you will make. Therefore if you find that you need help with your mortgage payments or you have fallen into mortgage arrears, it is often a very stressful time.
Mortgage lenders can be understanding to a degree, but until your mortgage arrears have been repaid or a plan has been put in place so you can repay them, the risk of repossession is always there.
One of the biggest reasons why many may need help with mortgage payments is because they are juggling too many repayments on a limited income.
Although all debt is important and needs to be repaid, it is important to remember that the ‘priority debts’ are the ones that need repaying first. You may think that the ones with the highest interest rate or the ones where you are getting consistent phone calls or letters from creditors need to be paid first, but this is not always the case as you must think about the overall consequences of not repaying the debt.
If you are in a situation where you cannot repay at least the minimum monthly payments on your debt, it is essential that you repay these in a priority order. Your mortgage repayment should be your biggest priority. This is because if your mortgage goes unpaid then your home could be repossessed by the mortgage lender. Additionally any secured debts should be repaid as a priority as they will be secured against one of your assets of value, most commonly your home.
If your income does not cover all your debt repayments then it is essential that you get in touch with your mortgage lender as soon as possible. Explain the situation to them, be honest and act fast. If you are at serious risk of repossession, time is of the essence but it does not need to be too late to take action.
Contact one of our team at our sister site – UKRepossessionHelpline.org. Even if you are just days or hours away from repossession, they could stop the repossession from going ahead.
If it is your unsecured debts which are holding you back from meeting your mortgage payments then there are ways that your payments can be reduced. The right debt solution for you is dependant on your personal circumstances, so please contact one of our One Advice debt advisors on 0800 048 1752 or take the 1 Minute Debt Test to discover your debt solution options.