Once you fall off a horse, it’s hard to get back up. This statement rings true with mortgage payments. Once you have a problem keeping up with paying mortgage dues, or start incurring lapses in payment, it’ll only keep on getting worse. House repossession may not be far behind for you.
Talk to your mortgage lender. Once you start falling behind on mortgage payments or find that you can’t afford your mortgage dues anymore, contact and inform your lender immediately. Explain your situation and current financial standing. Be ready and open to discuss matters such as payment or repayment plans including repaying arrears over a long time, reducing payments, taking a payment holiday, changing the mortgage to interest only, or adding the arrears to the outstanding mortgage balance. You can also consider remortgaging. Do not hesitate to ask your mortgage lender which strategies can save you money and which options can help you avoid house repossession.
Apply for mortgage assistance from the government. Those who have lost their jobs or business, which is their primary source of income, cannot afford to pay their mortgage especially if they don’t have another source of income to back them up. If you find yourself in this situation, determine whether you’re eligible for a mortgage rescue scheme. A mortgage rescue scheme is a UK Government initiative to help eligible homeowners in danger of losing their homes. It works two ways: via a shared-equity loan, or a mortgage to rent scheme. The former is converting your mortgage into interest-only payment, which makes your monthly mortgage payments more affordable than before. The latter involves a housing association paying off your mortgage and renting your house back to you. Whichever solution you’ll be eligible for, you will also be provided ongoing advice and consultation to help you along the process.
Get expert advice. Aside from your mortgage lender, you can turn to a solicitor or debt adviser to help you with your mortgage issues and any other questions you’d want to ask. Some mortgage advisers provide their services for free. These experts in their field can provide you with much-needed financial advice or legal assistance. Check out http://www.ticfinance.co.uk/stop-repossession/ as they can also recommend options and solutions you can explore to solve your mortgage problems.
Cut down on your spending. Keeping your house should be your priority. This means cutting down on expenses, budgeting wisely, and setting aside as much money as you can to pay mortgage dues. Now is not the time for impulse buys or big purchases. Work a second job if you can. Sell some of your stuff or conduct a garage sale and put the proceeds to your mortgage payment.
Claim benefits. If you are entitled to certain benefits from the government, follow it up and claim your benefits to adding it to your mortgage payment.
Put your property up in the fast house sale market. Selling your property in the fast house sale market can be a last resort to avoid house repossession. To determine if it’s right for you to push through with this option, do your research first, know what you need to do, then weigh the pros and cons.