Mortgage arrears and repossessions – top tips
Are you having problems paying your mortgage, or worried you may have these problems soon? See our top tips to act now before it’s too late.
If you can't meet your mortgage repayments, or you're worried you might fall behind, contact your lender as soon as possible. All mortgage lenders regulated by the Financial Services Authority (FSA), the UK's financial services regulator, must have procedures for dealing with you fairly. You can also get free independent advice from other organisations or you may be able to get help with your mortgage from government schemes – see Related links.
If you can't pay your mortgage or think you'll have problems
Speak to your lender as soon as possible
They should talk through other possible repayment options with you. For information on some possible options read our Problems paying your mortgage printed guide. You can download it or order a free copy online at Free printed guides. Make sure you understand the different options so you make the right choice for you.Check if you have insurance cover
Mortgage Payment Protection Insurance (MPPI), also called Accident, Sickness and Unemployment insurance (ASU), can help with your mortgage repayments if your income has fallen because of redundancy, accident or sickness. You may have taken it out when you got your mortgage.Work out your budget
Use our budget planner to help you work out how much you have coming in and how much is going out. Also our Cut-back calculator can help you cut back on non-essential everyday items.Check if state benefits can help
If you're on a low income or out of work you may be able to claim benefits and get some help with your mortgage interest payments. Use the Directgov Benefits adviser, speak to an advice agency or contact your local Jobcentre Plus office (or Jobs and Benefits Office in Northern Ireland) to check.Talk to a free and independent debt advice agency
Get free and independent advice to help you sort out your problems. Use the Shelter advice agency directory to find various free local advice agencies, including Citizens Advice Bureaux. Your lender may offer a debt advice service, but it may charge you upfront or add the charges to your mortgage debt. You don't have to use it.Pay what you can
Only agree to pay back what you can afford when you discuss your options with your lender. By continuing to pay back some money, you may be able to reduce your arrears.Check what government help is available
Find out whether you're eligible for a government-backed mortgage assistance scheme (it may allow you to stay in your home). There are different ones for England, Scotland and Wales. Free independent debt advice agencies can help you work out whether you’d be eligible for any of these schemes.Consider selling your home on the open market
If you think your situation won't change in the long term, think about selling your home yourself and renting or moving to a cheaper property. Use a local estate agent or check online for property prices in your area. Ask your lender if you can stay in your property until you sell it and check if it offers help through an Assisted Voluntary Sale scheme, but make sure you have a place to live before you move out. If this isn't possible, as a last resort you can sell your home to a company and rent it back from them – see sale-and-rent-back schemes. But check whether you can sell your home to your council or a social landlord and stay there as tenant – see government help above.Check whether equity release is a suitable option
If you’re 55 or over you may be able to use equity release to raise money from your home and stay there. This is not the same as a sale-and-rent-back scheme.Complain to your lender if you feel it is treating you unfairly
See If things go wrong or our Making a complaint printed guide for tips. You can download it or order a free copy online at Free printed guides.
If your lender intends to repossess your home
Speak to your lender as soon as possible
If you've not tried to discuss possible repayment options with them, do so now. It may mean you can avoid going to court. For information on possible repayment options read our Problems paying your mortgage printed guide. You can download it or order a free copy online at Free printed guides.Talk to a free and independent debt advice agency
They will usually be able to explain the process and may be able to represent you. Use the Shelter advice agency directory to find various free local advice agencies, including Citizens Advice Bureaux.Make sure you've worked out your budget before you go to court
A judge will want to see how much you can afford to repay. Use a budget planner sheet from a debt advice agency. National Debtline has a sheet for England and Wales and one for Scotland. And Advice4debtNI has one for Northern Ireland.Go to court
You should attend so you can put your case to the judge. You are more likely to keep your home if you go to a court hearing. These are normally held privately in the judge's office, not in open court.Ask to see a duty officer at the court before your case starts, if you don't have a debt adviser or solicitor to represent you
A duty officer can help you with your case and may be able to represent you. Their service is free.Make sure you understand the consequences of any arrangements your lender offers you outside the court room
Only agree to an arrangement which you can reasonably keep to over the rest of the term of the mortgage. If you cannot keep to an arrangement you've made, you may find that it is easier for the lender to repossess your property. So if you're unsure attend the court hearing.Continue to talk to your lender and still pay as much as you can
By continuing to pay back some money, you may be able to reduce your arrears.
Things to avoid
Taking out a loan to pay your debts
These loans can be very expensive and are often secured on your home, so putting it at greater risk. Mortgage offers that promise to help you avoid repossession may also put you at greater risk – see Repossession mortgages.Handing back the keys
You'll still be responsible for the mortgage repayments before your home is sold, and possibly the outstanding balance if the money raised by selling your home isn't enough to pay off what you owe.Selling your home without having a place to live
Your local council may not help you find a place to live if they think you've made yourself intentionally homeless.
For more detailed information read our Problems paying your mortgage printed guide. You can download it or order a free copy online at Free printed guides.
If you're struggling to repay other debt
If you are struggling to pay your credit cards or personal loans, talk to those providers too. You should still try to come to an arrangement with them. Even if credit card debt or personal loans are not secured on your home, failing to pay them could put your home at risk. This is because the provider may ask the courts to allow it to secure the debt on your home. If this happens, then the provider may be able to repossess your property if you fail to keep to the terms of a repayment arrangement. See Dealing with debt for more information.