Informing lender of mortgage repayment problem

If you are having trouble meeting mortgage payments, or you consider that there is likely to be a future problem, inform your lender straight away. Your lender is most likely to respond fairly and work collaboratively with you to seek a repayment solution.

Certain lenders have telephone help lines and debt counselling facilities to help you make contact. The sooner you make contact the better as that way who have a smaller debt to deal with.

Should you not be able to afford your entire mortgage repayments you can talk to your lender and pay what you can. This demonstrates to your lender that you wish to deal with the problem and makes them more likely to agree to this solution. There are certain options your lender can consider including:

  • Lowering your monthly mortgage payments by lengthening the mortgage term.
  • Putting a repayment mortgage onto an interest-only basis, given that you understand you are not going to pay anything off but the actual mortgage.
  • Adding on the arrears to the outstanding mortgage amount as opposed to seeking immediate payment.
  • Accepting lower payments for a short period of time until you can resume full payments and repay any build up of arrears as well.
  • Alter the way in which you make payments or the payment date.

The sooner you get in touch with your mortgage provider, the greater the number of options available for a solution to the problem. The above are short-term solutions; in the long-term the repayment problem is going to have to be resolved.