The first thing you should do if you cannot pay your mortgage is to contact your lender. They will always look to re-coup their money, therefore, they will want to give you options to help you meet your repayments. The realisation that you could lose your home is pretty scary. The good news is that many loan servicers are expanding options to borrowers. There are now some lenders who will give mortgages to people into their nineties, they are called Lifetime Mortgages.
Your lender will be able to discuss your options with you. They will inform you of other ways to repay, such as temporary payment arrangements, or lengthening the terms of your mortgage, and/or in some cases switching to temporarily to interest only repayments. They may offer to defer a payment or allow a payment holiday, (check with your lender).
In some cases, there may be a mortgage protection Insurance policy, (accident, sickness and unemployment insurance). Check through your mortgage paperwork and ask your lender or indeed the broker that set the mortgage up for you. It is surprising the number of people who do not realise that they have this type of insurance, think PPI.
Seek advice from an independently based charity, StepChange, National Debtline, Citizens Advice Line. They will give you advice on how to speak to your lender regarding repayments.
Perhaps for the interim period you could look at budgeting/cost cutting. Where does your money go to each week? Mostly on household bills, living costs, insurance loans and banking, travel, leisure. Check your bank account, look at all of your outgoings, when times are good we tend not to notice the none essential direct debits that go out of our accounts on a monthly basis. There may be some savings to be had. Switching energy providers can be a smart way of saving money, and really easy to do on the internet.
The need to prioritise debts is fundamental to help save your home from repossession. If your mortgage is your only debt, then this should still be at the top of your list, even if you have credit cards, loans etc. Keep up a minimum level of repayment if you can, even if it is less than agreed with your lender, (they will see that you are trying your best to make the payments).
Check if you can get some help with your mortgage repayments. Depending on the circumstances there may be some benefits, or government help towards your interest payments. There is a benefit calculator on the GOV.UK website.
There is also a national charity Turn2us that helps people in financial hardship gain access to welfare benefits, giving charitable grants and support services…
If you need to sell your house fast then please contact us on 0333 444 2001.