Paying off mortgage arrears

If you have mortgage arrears it is important for you to pay them off as quickly as possible, making sure that you don’t over financially commit yourself i.e. stretching your finances too far, ensure you commit to something that you know you can definitely afford to pay, even if you know it is going to take sometime.

It is always important to communicate with your mortgage lender whatever the problem and if you want to discuss mortgage arrears make sure you contact the right department and remember they are used to talking to people that are in a similar position as yourself, once speaking to one of their representative try to arrange realistic and affordable payments, on top of your existing mortgage payment. This will mean that the mortgage arrears are paid over a set period of time, at a realistic rate, not putting you in a similar position in a month’s time.

In some cases your mortgage company may go down the route of applying for a repossession hearing straight away. If this is the case you are still able to arrange over payments each month, the court will accept reasonable offers to pay the arrears.
 
If the court agrees to the arrangement they will suspend the repossession order which your lender applied for, this is called a ‘suspended possession order’, meaning no further action will be taken, as long as you continue to make the payments in addition to your normal monthly payment.

Please note that if you do not keep up with the monthly payments then the repossession order, is enforceable.

There are also a few schemes in place, designed to specifically to help mortgage holders who are struggling to make monthly repayments, which were set up by the government. An example of this is; your local council will pay the interest for you via benefits.

There is also another alternative to the above, which is a quick property sale of your home.  This allows you to sell your property quickly, before going into further arrears, and wipe the slate clean.  All of this means you can start a fresh and rebuild your credit record. 

Also see:

managing payments when you have arrears
late payments may not mean you are in arrears
mortgage arrears
checking your credit record

Contact us or apply online and see how our range of service may benefit you, when you are looking to pay off your mortgage arrears