Payment Difficulties

By law, all lenders are required to print the following warning in all adverts and literature:

"Your home is at risk if you don't keep up repayments on a mortgage or loan secured on it".

This warning means exactly what it says, and if you overextend yourself financially and take on a larger mortgage than you can afford to pay, you run the risk of losing your home.

What You Should Do

If you run into any problems with your mortgage payments, you must discuss it with your lender straightaway. They may be able to help by reducing your payments, or, if your financial problems are only temporary, they may offer a payment holiday.

If you stop paying your mortgage without notifying your lender, or if you fall too far behind with your payments (six months to a year), steps will eventually be taken to repossess your home. It will be sold at auction, and if the amount recovered is less than that owed to your lender, you can be sued for the balance.

However, the good news is that in the last few years, repossessions have been at their lowest level for some 20 years.

If you are in trouble, take advice as soon as possible - you will only make the problem worse by ignoring it.

Payment Tips

One option would be to let out one of your rooms to help pay the mortgage, or even letting your entire home and renting a cheaper place for yourself. Whatever you do, try to avoid borrowing money from lenders who offer loans secured on your home - these loans are usually at exorbitant interest rates, and you are likely to make your situation worse.