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Mortgage arrears

Warning: Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

You will have seen this warning hundreds of times, it is there for good reason and you must take it very seriously.

There are many reasons why some people end up with mortgage arrears. In the majority of cases social issues such as marital split, unemployment, sickness and accident are the cause of mortgage arrears. However, it could simply be a case of unsecured debts taking priority to mortgage repayments. This is quite understandable as mortgage companies are often less likely to write or telephone you if you are late with, or have missed a repayment, as their debt is secured against your property.

On the other hand the companies with whom you have unsecured debts are extremely proactive if payments late or missed as they do not have the same security. Therefore, they are quick to send you letters and phone calls threatening you with extra interest or late payment charges and all sorts of collection or legal action if you don't pay.

It is therefore very easy to prioritise ones affairs incorrectly.

If you have current mortgage arrears, the first thing to do if you are not moving, is to contact your mortgage lender to discuss the arrears matter immediately. There is a code of conduct in place that lenders have to follow when dealing with mortgage customers having difficulty meeting their contractual mortgage obligations. They may well put forward a mortgage repayment proposal, called an arrangement to pay. This may well be a solution to your mortgage arrears problems.

However, if you any difficulty maintaining the arrangement, it is best not to let further mortgage arrears, costs, and penalties accrue. Don’t lose your house. Act quickly and give us a call. We can often help in such circumstances.

Do you have mortgage arrears? Do you want to move home or perhaps change your mortgage arrangements? Consolidate debts? Contact us today and speak to a specialist mortgage adviser.

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