Mortgage Repossession
Are you struggling to pay your mortgage?
A change in your circumstances such as losing your job, having your hours cut, becoming sick or seeing your other bills increase can lead to you struggling to pay your mortgage. The important thing is not to let your debt problems get on top of you and get the advice and help you need to prevent you from losing your home. The best thing you can do is to get advice about your options as early as possible by speaking to your mortgage lender (and any other lenders who have a loan secured against your home) or a debt advisor.
There are many websites with information about the options which may be open to you as well as agencies that you can contact to get advice and help. Shelter's offers a wide range of this information and there is a link to it in the box on the right of this page. There is also a link to the National Homelessness Advice Service booklet 'Are you worried about your mortgage?' This booklet gives a step by step guide to:
- the questions you need to ask yourself about your situation
- information on the options that may be open to you
- details of the advice agencies you may wish to contact for help and advice
The key things to remember are:
- Don't ignore the problem - if your lender writes to you or rings you about problems with your mortgage or loans secured against your home you must talk to them. The last thing they will want to do is repossess your home, so talk to them about the options they may be able to help with.
- Show that you are willing to pay what you can - if your lender knows you are trying your best to pay the mortgage they should give you more time to sort out your money problems.
- Check what other advice you can get - there are a number of agencies that are able to provide further advice and help who you can talk to. A full list of these are available in the NHAS booklet 'Are you worried about your mortgage?'. If you need debt advice as you cannot find a way of managing your debts then speak to one of the debt advice agencies.
- Check whether you qualify for help through any of the government schemes - a number of schemes have been introduced to help homeowners facing repossession. These are:
- Homeowner Mortgage Support Scheme - designed to help households whose income has dropped but can still manage to make reduced payments towards your loan. Speak to your lender to see whether they are able to help you through this scheme.
- Support for Mortgage Interest (SMI) - this is part of Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance or Pension Credit. It is for households that can get or are getting any of these benefits. Speak to your local Job Centre Plus to see if you qualify for this help.
- Mortgage Rescue Scheme - if after trying everything else you are not able to pay your mortgage and your lender is taking action to repossess your home then you may be eligible for this scheme. It involves either: a housing association buying your home and renting it back to you (called Mortgage to Rent); or a housing association providing a loan with a low monthly payment to reduce the amount you then have to pay to your mortgage lender (called Shared Equity). Speak to your local council about this scheme to see whether you qualify for help.
If you need advice about any of the options that may be open to you then contact the council's Housing Advice & Options team. You can speak to an advisor by calling 01480 388218. Alternatively, you can call into a drop-in session at Pathfinder House on St Mary's Street in Huntingdon, these are held 9.30 - 11.30 Tuesday to Friday. This is on a first come first served basis and numbers are restricted so it is advisable to arrive early to ensure you are seen.