Mortgage Arrears

Mortgages and mortgage arrears are classed as a 'Priority Debt' and can lead to you losing your home. It is very important that you try and sort out this problem as soon as possible by either contacting your lender or getting advice. It's also important that you keep paying something on a regular basis even if you can't afford the full amount.

First and Second Mortgages
It is possible that you may have a first and second mortgage.
The first mortgage is the loan you take out to buy your home.
The second mortgage may be known as a 'Secured Loan' which is secured on your home. You should check your documents or get some advice if you are unsure about the content of your agreement.
Secured Loans are treated as a priority debt. The lender can go to court to repossess your home if you don't make the repayments.
If you have any worries or concerns, call us.

Will my Mortgage Company Agree to Accept my Offer of Payment?
You will need to provide the lender (mortgage company) a full list of your income and expenditure.
The income and expenditure details that you provide will give the lender an overview of your current financial position.
You should also let the 'lender' know if your circumstances have changed such as death of a partner, marriage breakdown, unemployment, reduction in wages or benefits, illness, birth of a child, etc.
The 'lender' will want you to offer an extra sum of payment towards the arrears in addition to the contractual monthly instalment. Some lenders will request that the arrears be cleared over the next 12 to 24 months. If you cannot manage this ask for more time and start paying what you have offered.
Tell the 'lender' if your house is worth much more than the total mortgage as they may agree for you to repay the arrears over a longer period.

Lenders don't want people to lose their homes.

If you are unsure which step to take to solve your debt problems, CLICK HERE to ask the opinion of our professional debt advisers. This is a totally free and confidential service.