New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > Mortgage Arrears > Mortgage Arrears

Mortgage Arrears

Mortgage arrears occur when a borrower cannot afford to meet mortgage repayments every month. Being in arrears is a difficult situation, because each month repayments are required and financial problems can swiftly arise.

As with any financial difficulty, communication between the mortgage lender and the borrower is essential. Consumers that contact their lender in advance of falling into arrears have the ability to jointly plan how to avoid payment difficulties before they occur. Mortgage lenders are interested in helping borrowers out of repayment difficulty, and are legally bound to consider your case and treat you fairly.

When a borrower is worried that they will fall into arrears and contacts their mortgage lender a plan of action should be agreed on. This type of payment arrangement will be designed to get the borrower out of payment difficulty, whilst ensuring the lender still receives payment. Each arrears case will be reviewed on an individual basis, with payment history and gravity of problem considered, and the lender may suggest one of the following solutions. All of these have financial implications.

  • Lowering repayment levels for a certain period of time
  • Switching your mortgage to interest only
  • Providing a ‘payment holiday’
  • Increasing mortgage term to spread out repayments over a longer period.

For those borrowers that are already in arrear, your mortgage lender should suggest a repayment plan to pay off the arrears alongside usual repayments. In some cases, if the borrower cannot manage this, the lender will allow a delay on these extra payments. This will depend on payment record.

A general rule of thumb when it comes to mortgage arrears is to pay as much as possible each month and keep up regular payments. A mortgage loan should be considered a priority, as failing to get out of arrears could lead to repossession of your home.

Mortgage protection insurance can help borrowers who fall into arrears because of sickness or unemployment, but the nature of the help will depend on the policy and the borrower. Some borrowers could be entitled to tax credits to aid their income.

For those in mortgage arrears, free and independent advice is provided on several fronts. These include the Citizens Advice Bureau, the National Debtline, the Consumer Credit Counselling Service (CCCS) and community legal advice.

For more information, see:

  • Government advice on mortgage arrears
  • Shelter on mortgage arrears

Receive Mortgage Advice from a Regulated Advisor

Mortgage advice

There is no better time to be seeking suitable mortgage advice from a Regulated mortgage advisor

Submit your details today for an obligation-free chat and a regulated mortgage advisor will call you back to help you find the mortgage that best fits your needs.

We will only provide your details to one regulated advisor.

Your mortgage

 * Help
 * Help
 * Help
 Help
 Help
 *

About you

 *
 *
 *
 *
 *
 *
 *

Questions marked with * are required

Please be aware that the advisor who contacts you will be a third party advisor who has no connection with us. There is no charge to you for using this service. We are paid by charging your assigned advisor a fee for this service. Any advice or assistance given to you by a third party advisor does not represent our advice or assistance and is not checked or endorsed by us. It is your decision whether or not you act on any advice or assistance you are given.

By clicking “Proceed” you confirm that:

  • You accept our Terms of use and
  • You would like to be contacted by a regulated third party advisor to discuss your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Financial Services Net Limited and other trusted 3rd parties would like to keep you advised via e-mail or telephone of products, services and other exciting offers we think may interest you. Please untick this box if you do not consent to us contacting you for further information.

news news rss
Mortgages News

Mortgage approvals up by 33% at mutuals

Leeds pulls lowest-ever 1.99% deal after less than a month

First direct slashes rates by up to 0.5%

       
Mortgage lenders
   

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter