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Tackling your debts

What can I do if I am struggling with my mortgage payments?

Posted 18 April 2013

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We've put together a guide to making your mortgage payments when you're struggling.

Your home is your space and it's meant to be somewhere you can relax.

But if you're struggling to keep up your repayments on your mortgage, the last thing you're probably feeling is relaxed.

It might not feel like it at the moment, but there could be a solution. There are different approaches you could take that could help you get back in control of your mortgage payments.

Pop the kettle on and spend a few minutes finding out how we may be able to help you make your mortgage payments.


Why am I struggling?

The first thing you need to do is work out why you're finding it hard to make repayments. For example:

•   Do you have other debts soaking up your income?

•   Has your employment situation changed?

•   Is your mortgage payment simply too high?

Once you're sure why you're struggling to pay your mortgage, it'll be easier to find a solution that's for you.


Talk to your lender

Before you get in touch with anyone, we'd recommend speaking with your mortgage lender.

If things have changed recently and you're expecting them to get back to normal soon, it's worth discussing this with them.

For example, if you have been made redundant, your mortgage lender may be able to freeze your repayments until you get back on your feet. Just make sure you understand what's involved before you agree to anything.


Consider remortgaging

Another thing you might want to consider is remortgaging your property.

You can speak to your current lender about this too, but you could also spend some time looking around for what other lenders are offering - you might get a better deal elsewhere!

What you also might also be able to do is lower your monthly payments by extending the term.

This would mean you're paying for longer (and probably paying more overall), but it could make your monthly payments much more affordable.


A debt management plan

Many people get themselves in a knot trying to juggle their mortgage alongside other debts.

We offer a debt management plan that could help you with your unsecured debts (credit cards, unsecured loans, overdrafts, etc.).

This can, in turn, help you repay your mortgage more comfortably. That's because your monthly payments towards your unsecured debts would be brought down to a level you can afford after you've paid for things like your mortgage.

If you can't make your agreed repayments to your unsecured lenders, you might be able to enter a debt management plan, as long as your lenders agree to it. This would mean:

•   Your monthly payments would be lowered

•   Interest and charges could be frozen (in many cases)

•   We'd deal with your unsecured lenders and distribute payments to them, so you don't have to deal with them directly.

Before entering into a debt management plan, you need to consider that it may take longer to repay your debts and it may affect your credit rating.

To talk to one of our advisers about debt management plans and other solutions, call us on 0161 605 4810 .

Debt management isn't for everybody, so it might be worth visiting our solutions page to find out what other solutions may be more suitable.

by Sarah Symons

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To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.