Are Your Getting behind On Your Mortgage Payments

If you can’t meet your mortgage repayments, or you’re worried you might fall behind, it’s important to contact your mortgage lender as soon as possible. Lenders have procedures for tackling payment difficulties and they’ll try to help. You can also get free independent advice from other organisations.

Contact your lender and agree a plan
Mortgage lenders are keen to help their customers sort out any payment difficulties. Also, the law says they must treat you fairly and take your circumstances into account. They may be able to come to a payment arrangement with you.

If you're struggling to make the payments
Depending on your payment history and whether your difficulties are likely to be long or short term, your lender might agree to:

** reduce your payments for a set period
** charge you interest only for a while, if you've got a repayment mortgage (usually you pay capital and interest)
** give you a 'payment holiday'
** extend your mortgage term to reduce your payments

If you're already in arrears
If you've already fallen behind, your lender will suggest a way to pay off the arrears gradually, alongside your usual payments. If you can't meet the extra payments, you may be able to delay them for a while or add them to your loan. Again, it depends on your track record.

Always pay what you can
Pay as much as you can manage every month. Keeping up regular payments (even if they vary) shows that you're committed. Your lender's more likely to treat you sympathetically and you'll minimise the arrears charges too.

If you don’t keep up your repayments
It’s very important that you don’t ignore any payment problems. Mortgages are ‘priority debts’, which you should pay off first as your lender could repossess your home and sell it to get their money.

Working out how much you can afford
Your lender can help you work out how much you can afford, but you may prefer to do this yourself. A good starting point is to write down all your income and outgoings (apart from the mortgage) and see what you’ve got left. The Financial Services Authority (FSA) has an online budget calculator you can use.

Can I get financial help if you've lost your job or can't work because of illness?
If you've lost your job or you're too ill to work, check whether you've got 'mortgage protection insurance' to cover your payments. The insurance payments may not start straight away - so contact your insurer as soon as possible.

Benefits that might increase your income
It's worth checking if you're entitled to benefits such as Working Tax Credit, Child Tax Credit or Council Tax Benefit. They can make a real difference to your income and help with your mortgage payments.

Organisations that can give you free advice
You can get free independent advice about mortgage difficulties from several organisations. They'll help you work out what you can realistically afford. The Citizens Advice Bureau (CAB) offers free, confidential advice face-to-face or by phone. Most CABs also offer home visits and some give email advice.

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