Mortgage Arrears
One of the most pressing problems facing the economy today is the difficulty in getting mortgages at a reasonable, affordable rate. Not only does this mean the housing market is tanking, with first time buyers unable to raise finance without a large deposit, it means that many established mortgage holders are facing severe difficulty.
Remortgage Difficulty
Cheap fixed-rate mortgages are coming to an end for millions of people, and even considering the slashing of interest rates to more or less zero, many of these mortgage payers are having difficulty arranging a new mortgage at an affordable rate, and are seeing their mortgage repayment amounts soaring to unmanageable levels.
Add to this the rapidly worsening level of unemployment, and it's clear that a fair proportion of the UK's mortgage payers are in difficulty, and levels of arrears are rising.
Repossession
The worst case scenario for people who are behind on their mortgage is the threat of losing their home through repossession, but this doesn't have to be the inevitable outcome.
Speak to Your Mortgage Lender
It's vital to talk to your mortgage lender as soon as you start experiencing problems meeting your repayments. There may be some way to come to an arrangement regarding your debt, such as spreading the repayments over a longer term, or moving to an interest-only mortgage until the situation improves. Even if this isn't possible, keeping your lender informed will usually lead to a more sympathetic approach from them than simply ignoring the problem in the vain hope that it'll go away.
Pay at Least Something
Also, try to keep on making at least some level of payments, as this is a sign that you're at least trying to cope with the problem, which can count heavily in your favour if the worst comes to the worst and repossession proceedings reach court.
Free Help and Advice
However bad things may seem, there are sources of free, independent advice available from such organisations as Citizens Advice or the Consumer Credit Counselling Service. These bodies can be invaluable in helping you explore every option available to you in coping with your mortgage difficulties, and approaching them for help is also another point in your favour if it ever gets to the stage of a court hearing.
All information is for a general readership and doesn't constitute financial advice.
Consult with a qualified independent advisor for personalised debt help and advice.
