If you are currently facing mortgage arrears, it is understandable that you may feel overwhelmed and unsure of where to turn. Rest assured, however, that there are steps that you can take to help resolve the situation and get your finances back on track. Read on for an in-depth and detailed guide on what you should do if you have mortgage arrears.
Assess Your Finances
The first step in resolving mortgage arrears is to take a close look at your finances. This means calculating your income, expenses, and outstanding debts. It may be helpful to create a budget to get a clear understanding of where your money is going. By doing this, you can determine how much money you have available to put towards your mortgage arrears.
Contact Your Mortgage Provider
If you are struggling to make your mortgage payments, it is essential to contact your mortgage provider as soon as possible. Ignoring the situation will only make it worse, and it could lead to legal action being taken against you. By speaking to your mortgage provider, you may be able to negotiate a repayment plan that allows you to catch up on your arrears gradually.
You may also be eligible for government-backed assistance, such as the Mortgage Rescue Scheme or Support for Mortgage Interest (SMI). These programs can provide financial assistance for those who are struggling to meet their mortgage payments. Bear in mind, however, that there are eligibility criteria and it may take some time to process your application.
Consider Selling the Property
If you are unable to catch up on your payments, and your mortgage provider is not willing to negotiate a repayment plan, selling your property may be the best option. This will allow you to pay off your mortgage and any outstanding arrears, and start fresh with your finances. It is essential to act quickly, however, because if you fall further into arrears, it could be more challenging to sell your property.
Seek Professional Advice
If you are feeling overwhelmed and unsure of what to do, seeking professional advice may help. There are a variety of organisations and charities, such as Citizens Advice, Shelter, and StepChange, that can provide free advice and support for those facing financial difficulties. They can also help you negotiate with your mortgage provider and provide guidance on debt management.
In Conclusion
Mortgage arrears can be a daunting situation, but it’s important to remember that there are steps that you can take to resolve the situation. By assessing your finances, contacting your mortgage provider, considering selling your property, and seeking professional advice, you can take control of the situation and work towards a brighter financial future. Don’t hesitate to reach out for help if you need it, because there is support available to assist you.
