Cant Afford Mortgage Payments?

Wednesday, September 8th, 2010 at 12:46 pm

More and more people in the UK and across the globe are falling behind on their mortgage payments. If you can’t meet your monthly mortgage repayments, the first thing you need to do is contact your lender immediately and try to agree some sort of repayment plan. Until you come to an arrangement you should pay as much as you can manage each month. This will show that you’re committed and your lender will probably be more likely to treat you sympathetically.

Although interest rates have plummeted in the UK, many people are still having trouble maintaining their mortgage payments. The recession in the UK has meant that many people have lost their jobs or have had to accept reduced working hours meaning less monthly income.

Mortgage lenders are actually very keen to help sort out any payment difficulties their customers are having. If you’re struggling to make the payments, they might be able to come to a payment arrangement with you.

Depending on your personal circumstances, your lender might agree to reduce your monthly payments for a period of time. Balancing the Accounts They may also offer you the chance to switch to an interest only mortgage for a set period. Other options include extending your mortgage to reduce the monthly repayments or even offering a payment holiday for up to 12 months.

If you’ve already fallen behind, your lender will most likely suggest a payment plan for the arrears as well as paying your standard monthly payments. If you are not in a positions to make extra payments, you may be able to add them to your loan or delay them for a while.

If you cannot agree a repayment plan with your lender they will normally take you to court to start the repossession process. Before they proceed in this manor, they have to follow a number of steps, such as talking to you about the reason for the mortgage arrears, working out a repayment plan and giving you notice that they will start court proceedings if you do not keep to a payment agreement.
If your lender has taken reasonable steps to assist you a court will normally give the lender permission to evict you from your property.

If you are having trouble paying your mortgage you should try and avoid taking out a loan to pay your debts. These loans can be costly and are usually secured on your property. Another thing you should try and avoid is handing back the keys. Remember that you will still be responsible for keeping up with the mortgage repayments before the property is finally is sold. You should also keep in mind that you will be liable for any outstanding balance if your home sells for less than your remain mortgage balance.

If you have no other option but to hand back the keys you should inform your lender that you will not longer be in a position to pay and that they should initiate their procedure to procure the sale of the property. You should also as for a Voluntary Surrender Form which will confirm that you have agreed to voluntarily leave your property so repossession action can commence. By completing a voluntary surrender form, it will likely make the repossession process much quicker and put a stop to arrears calls and letters from your lender.