Many people in today’s financial climate are finding it difficult to keep up with the many different bills. However, many people really want help with mortgage arrears. Our homes are our most valuable asset and so we want to ensure we can afford to pay the bill every month. If you need help with your mortgage arrears – we can help! If you are struggling to pay your mortgage or are in currently in arrears the worst thing you can do is to ‘bury your head in the sand’ and ignore it. Withholding a relationship with your mortgage provider is important as it shows them you are serious about paying your mortgage – you are just struggling. Don’t ignore communications from your mortgage lender or their legal representative. They are obliged by law, under the Code of Conduct on Mortgage Arrears (“the Code”), to keep in contact with you and to make every reasonable effort to agree an alternative repayment schedule with you before seeking repossession of the family home. Keep a record of all correspondence between you and your lender.At Refresh Debt Services, we can help. You can send us in all correspondence and we can advise you on what you need to do next. We can also go through an income and expenditure with you and see where you are spending excessively. By lowering your unsecured debt repayments we could try and free up more money that can be used to pay your mortgage arrears or help with day to day life.
Your lender can also suggest alternative repayment options to you. Before deciding on any option you should ask your lender what it will cost in the short, medium and longer terms and ask if you’re credit-rating will be affected. Examples of alternative repayment options include:
- To pay “interest only” for a period of time.
- Extend the term of your mortgage with the view of reducing your monthly payment.
- To put in place a payment moratorium (pause) for a set period of time.
If after all this you are still tempted to ‘hand back the key’ remember that you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs. At Refresh we would always advise you to get proper legal advice before considering this course of action.
Having mortgage arrears can seem daunting and scary, but just remember don’t panic! We can help with mortgage arrears and advise you. If You need help with this or any other financial matter then contact Refresh Debt Services today on 0800 121 48 63 or complete the call me back form on the side.
