Mortgage Arrears

Act as early as you can

If you are worried about keeping up your mortgage, contact your lender before you miss a payment if possible. Lenders regulated by the FCA must deal fairly with customers in arrears and consider a range of options — such as extending the term, moving to interest-only for a period, or agreeing an arrangement to clear the arrears gradually.

The earlier you talk to your lender and get free debt advice, the more options are usually available. Ignoring letters removes choices and brings court action closer.

Repossession is a last resort

Your lender cannot simply repossess your home. Before applying to court it must follow the pre-action protocol, which requires it to make reasonable efforts to agree a way of repaying the arrears and to consider alternatives to repossession. It should not repossess unless all other reasonable attempts to resolve the situation have failed.

If your lender knows you are getting debt advice or money guidance, it should give you reasonable time to do so before starting court action. Even if a case reaches court, judges have powers to suspend a possession order if you can make an affordable arrangement.

Help if it reaches court

If your case is listed for a possession hearing, free help is available on the day through the housing possession court duty scheme at many courts, where an adviser can represent you. Get free debt advice well before then so your circumstances and any offer of repayment are properly presented.