Mortgage arrears means that you have fallen behind with your payments to your mortgage lender. If you find yourself in this situation it is important that you contact your lender as soon as possible.
Mortgage arrears count as a priority debt. Therefore it is very important that you tackle mortgage arrears as soon as possible, as you could lose your home if you do not pay them off.
Sadly with the increasing costs of living and fixed-term mortgages coming to an end, more homeowners are finding it a struggle to make payments to their mortgage. These financial problems could also be due to losing your job, unexpected outgoings or the end a relationship meaning a reduced household income.
Whatever the reasons for your mortgage arrears it is vital that you act quickly. Even if your financial problems are only temporary, it is important that you made your lender aware of your situation. In the worst case scenario mortgage arrears could mean that you lose your home.
Your lender may be able to assist you if you find that you are struggling to make mortgage payments and have fallen into arrears. Continuing to miss your mortgage payment could mean that lenders will start repossession proceedings against you.
Most mortgage lenders are keen to help their customers deal with any financial difficulties and, as always, the key is to get in touch with them before the arrears get further out of hand. Your lender may be able to come to come kind of payment agreement with you, such as reducing your payments for a set time, granting a ‘holiday’ from your mortgage payments or allow you to pay the arrears alongside your standard mortgage payment.
The way that lenders deal with mortgage arrears are all dependant on the individual situation and whether your financial difficulties are short or long term. You should always honour any agreements that you have made with your lender, as failing to do so may lead to problems should you fall into financial difficulty again.
A Mortgage is a priority debt and you should always treat it as one, meaning that you pay this before your unsecured debts. Failure to make payments to your priority debts will mean that the service is cut off, such as losing your home if you do not pay your mortgage or having your electricity cut off if you do not pay the bill.
Therefore if you do find that you are struggling with debt, you should continue to pay your mortgage even if your unsecured creditors shout the loudest! Losing your home due to repossession is not worth the risk, and One Advice can help you with your unsecured debt problems.
If you find that your unsecured debt means that you cannot afford to meet your priority payments, then you need to seek help as soon as possible. One Advice have access to many different debt solutions, such as an IVA or debt management plan. Our advisors are fully trained to deal with all aspects of debt.
Please call today on 0800 048 1752 to see how One Advice can help with your debt.