Mortgage Payment Problems

Act early and talk to your lender

The most important step is to contact your lender as soon as you see a problem coming, rather than missing payments in silence. Lenders would generally rather find a workable solution than repossess a home, and reaching out early gives you the widest range of options.

Under the FCA’s Mortgages and Home Finance: Conduct of Business rules, a lender must deal fairly with a customer who is in payment difficulty, must consider the options you put forward, and must treat repossession as a last resort.

The Mortgage Charter

Lenders covering most of the UK mortgage market have signed the Mortgage Charter, which sets out extra support for borrowers. The available options depend on your circumstances and are agreed with your lender.

• A temporary switch to interest-only payments for up to six months
• Extending your mortgage term to reduce monthly payments, with the ability to switch back within six months
• A commitment that you will not be forced to leave your home within 12 months of a first missed payment, except in exceptional circumstances
• Tailored support such as capitalising arrears or agreeing a payment arrangement

Get free debt advice

You do not have to face this alone, and you should never pay for debt advice. Free, confidential and independent help is available from organisations such as MoneyHelper, StepChange and Citizens Advice, who can help you understand your options and deal with your lender.