What if I Struggle to Repay my Mortgage?

By: Chris Haycock | Posted on: 23 June 2015

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Many people find that mortgage repayments eat up a considerable part of their regular outgoings. Sometimes they struggle to meet this expense. If you are one of these people and you find that you cannot meet your monthly mortgage repayments, do not dispair, as there are many ways to get back on track.

Talk About It

It is very important for people to face the mortgage problem and not to ignore it. Ignoring the problem will only make matters worse and if people miss a repayment, the lender will take action to pursue the debt immediately.

Their credit rating may be damaged and the lender may take steps to consider proceeding with repossession of the property. So, it is best to contact the lender and let them know they have trouble in making the repayment.

Most lenders will help people to cope with the situation by letting them take a holiday period or by extending the mortgage term, so that the amount to be repaid becomes smaller and more manageable. Letting the lender know about the situation is better than missing the payment. Mortgage lenders do want to help as it is in their best interests to do so.

Get Help

When people struggle to meet their monthly mortgage payments, they can feel comfortable that they are not the only ones who face this problem and they can get help if they are ready to tackle the mortgage problem.

Free Advice

Another step people can take when they have trouble paying making their repayments is to get advice. There are several free and independently-based debt charities that give free advice.

In addition to helping people plan and manage their financial budget, they can also show how to tackle mortgage problems, give advice to talk to the lender about the repayments and show them the options available.

Whatever the kind of debt they have taken, it is better to talk about the repayment problem and find a solution. Keeping silent will only build up the debt further and cause more financial worries and stress.

Contact The Mortgage Lender

When people contact their lender, they are most probably able to come to an agreement with the lender, which will help relieve them from the tension of repayment problems and allow them to think clearly until they get back on their feet financially.

The lender might agree to:

* Extend the period of the loan, which can bring down the amount to be paid every month.

* Take smaller payments in the short term.

* Stop payments for certain period.

Government Schemes

If people have serious problems paying their mortgage and if they are on the verge of losing their home, there are some government schemes that might help them:

Homeowners Mortgage Support - This scheme is based to help people to cope with some unexpected, short-term fall in household income. It may allow people to defer their interest payments on their mortgage for a maximum period of two years and this helps to cut down their monthly payments.

Support for Mortgage - Interest - This scheme helps people on state benefits, like Income Support, income - related - Employment and Support Allowance, income-based Jobseeker's Allowance and Pension - Credit. This scheme helps people to make monthly payments on loans they have taken to buy or improve their home.

Draw A Budget

It is vital for people to examine their income and produce a household a budget that they will be able to follow. It is important for people to follow a budget whether they are facing problems in making repayments or not, because a budget will help them to have a control over their money.

This will help them control their spending and put the extra money into meeting their mortgage repayments.

Prioritise Debts

People should take a look at the outstanding debts they have. If the mortgage is their only debt then they can concentrate on this by putting the extra cash to meet a repayment.

However, if they have other debts, like loans, credit card payments or an overdraft on their current account, it is better to put the mortgage repayment on the top of the list as it is more important to have a roof to cover their heads.

This does not mean that they should ignore their other debts, but they must do everything they can to face the demands of their low-priority debts as well.

Continue To Pay

It is important to keep paying at least a minimum level, even if it is not equal to the originally agreed amount with the lender. This will show the lender that they have good intentions and are trying to make the payments, and should make the lender behave more leniently.

It is really tough to struggle with financial obligations, but paying at least a small amount on their mortgage shows they are committed to paying and this is more beneficial.

When people are dealing with mortgage problems, their first instinct should be not to panic. By facing the problem head-on people can find a solution. By ignoring it the problem will only get worse.


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