If you are having problems with mortgage payments then it is essential that you seek advice as soon as possible. Mortgage arrears are very important and you must tackle them straight away, as if you do not keep up payment on your home then you are at risk of losing it.
You may have two types of mortgages on your home, which are known as a first and second mortgage.
The first mortgage will be the loan that you took out on your home. A second mortgage is a loan which is separate from your mortgage payment, such as a secured loan or debt consolidation loan.
If you have any loans then it is important that you know if they are a secured or an unsecured loan. A secured loan will be secured against your asset, most often your home, and these should be treated as a priority debt. If you are struggling with your debts then it is always important that you tackle the priority debt first or else you risk losing the asset which it is secured on.
If you are having problems with your mortgage payments then it is essential that you contact your lender. It is never to late or too early to contact them. So if you feel as though you may miss your next mortgage payment to your mortgage, contact them, or if you fear that you are so behind on your payments that you might have court action against you, contact them.
You may be able to reach a payment agreement with your lender about how you can begin paying mortgage arrears.
If you took out your mortgage on or after 31st October 2004, then the FSA (Financial Services Authority) will regulate your mortgage and lender. There is a set of rules to help those who are struggling with mortgage arrears and are finding it hard to make payment, and the FSA state that lenders must “deal fairly with any customer who is in arrears”.
The FSA states that there must be a written policy in place which is designed to help their customers who have fallen into mortgage arrears. They are not allowed to put too much pressure on you about your payments, through either calls or letters, but they can send you regular information about the arrears which are outstanding.
A mortgage lender can set up a payment plan between themselves and the customer who is in mortgage arrears. This must be a practical agreement to suit the circumstances of the borrower and will cover the rest of the mortgage term, where appropriate.
If you feel as though you are being treated unfairly by your lenders then you can lodge a complaint with The Financial Ombudsman Service.
See the One Advice Paying Mortgage Arrears page for practical information and advice about how to tackle your mortgage arrears.
Remember that mortgage payments are a priority debt and failing to deal with them could mean that your home is at risk of repossession. For expert advice and help about your repossession, please contact the One Advice repossession team on freephone 0800 048 1752.