Mortgage Arrears

Nobody would intentionally get into arrears with their mortgage payments. The reasons why people do are numerous, but the most common are because the interest rate has risen causing the mortgage interest rate to rise, making it difficult to afford both the mortgage payments and meet other bills as well, or because your circumstances have changed due to accident, sickness or unemployment. The latter reason can be catered for in advance by taking out an insurance policy.

What is the best thing to do if you get into mortgage arrears? Firstly, although it is the last thing you feel like doing, let your mortgage lender know your situation as soon as you know that there is a going to be a problem. Lenders do not like to reposess property and would rather resolve the problem with you. Ideally the best thing to do is to get back up to date with your payments, the second best is do not get any further into arrears.

If you are looking to re-mortgage or move house to release equity and you have missed one or more mortgage payment in the previous three months most lenders will look at you as a bad risk and will not be willing to give you a mortgage. Some lenders may consider you for a mortgage if you have missed payments within the past 3-6 months, however, this is likely to be a specialist lender who will charge you a higher rate of interest than you would be charged for a standard mortgage.

If you have mortgage arrears and would like to speak to a mortgage adviser about what to do and where you stand give us a call on 0800 011 20 21 or fill in the form below.