Mortgage arrears are becoming much more of a problem in the UK in 2008 due to the worsening credit crunch.
If mortgage arrears are causing you a problem, then you need to get help as soon as possible. Burying your head in the sand will not make the arrears go away, and you risk repossession of your property if you continue to do so.
You are not alone in this problem. Latest figures in the UK (December 2008) state that almost 45,000 homes are facing repossession in 2009 due to the severity of the mortgage arrears caused by the credit crunch taking it's toll across the UK.
As soon as you miss one payment to your mortgage, you are classed in arrears. If you miss 2 consecutive payments, then your mortgage lender is legally entitled to start the repossession process.
Contacting your mortgage lender is the best place to start, as they will be able to offer you a variety of options to help you with your mortgage including :
- A payment plan which is at a reduced rate for a set period of time to enable you to stop getting into mortgage arrears
- Change your payments to "interest only" if you have a repayment mortgage
- Possibly extend your mortgage terms, so you pay less of a monthly payment
Here are some useful resources which may help you if you are in trouble with your finances, and you need some support :
National Debtline | UK Government Mortgage advice | BBC finance news
If you've already fallen into mortgage arrears, your mortgage provider will suggest a way to pay off the arrears gradually, alongside your normal monthly payments. If you can't meet the extra payments, you may be able to delay them for a while or add them to your exisiting mortgage.