If you are having difficulty meeting your mortgage repayments or are worried it may become a problem in the future, here is some information that can guide you through the process. It may even help you in understanding mortgages a little better.

If you are facing difficulty in paying your mortgage, then there are some steps that you can take to soften the financial blow. The first thing is to inform your lender as soon as possible; the lender may provide assistance to you at the earliest convenience. The next step is to get advice from organisations that offer financial tips. Check the options available to you as your repayments may be covered by an insurance policy or you might be eligible for state benefits. These options could increase your income and assist you with repayments.

If you are unable to make your full mortgage repayments, or you anticipate that this may be the case in the near future, you should tell your lender immediately. You should not worry that your lender will be unhelpful; lenders try to deal with all cases of arrears sympathetically and positively. Some lenders have telephone help lines or debt counseling facilities to assist making contact. The sooner you contact your lender the better.

If you can’t afford your full mortgage repayments you should talk to your lender and still pay what you can afford. This shows your lender you are committed to solving the problem and makes it easier for them to help you. There are several options that your lender may be able to consider. You could begin with reducing monthly payments by lengthening the term of the loan. On the other hand, you could try moving a capital repayment mortgage onto an interest-only basis, provided you understand you will not be paying anything off the actual mortgage. Another option is by adding arrears to the outstanding mortgage amount rather than seeking immediate payment.

Accepting reduced payments for a short period could also buy you some time until you are able to resume full payments and repay any arrears that build up as a result.
The earlier you make contact with your lender the more options there are available to resolve the problem. However, these are short-term solutions and in the long-term a repayment problem will have to be resolved. Your lender will wish to stay in regular contact with you to keep up to date with any changes in your circumstances.
Each lender has a policy setting out how they will treat borrowers when their mortgage is in arrears. Your lender should provide you with information explaining how you can expect to be treated by them. 

There are a number of organisations, which offer free and independent money advice. Their counselors can help you assess your financial problems and advise the best course of action to solve them. If you are worried about approaching your lender directly - or if you have multiple debts – these debt advice organisations can help you. Lenders may work with these organisations if they are acting on your behalf.

When taking out a mortgage ensure you check the options you have available to you. If you become unemployed, have an accident, or are too sick to be able to work, you should check whether you have a mortgage payment protection policy. This type of insurance would usually have been taken out at the same time as your mortgage. If you have an eligible claim, it will cover your mortgage repayments up to a period of 12 months or sometimes more. There are also state benefits available which could assist you. It is worth seeking advice on whether you are eligible for any of the options mentioned above.