Life is very unpredictable and various events could take place that lead to you not making your monthly mortgage repayments. If this happens, you will get into arrears and your lender may take action to repossess your home. There are government schemes that can help but they often result in increased debt.
The best thing to do in a situation where you can’t make your payments is contact your lender. It’s important to inform them of the problem as soon as possible. In fact, it would be ideal to let your lender know you won’t be able to make a payment before it’s even due. Lenders tend to consider repossession a final resort; more often than not, they will try and help the borrower by coming to an agreement, such as a payment holiday. You could also consider increasing your mortgage term, which would result in reduced monthly fees.
In cases where you have been made redundant or you have an illness/injury that prevent you from working, you may have insurance that can help with your mortgage repayments. If you’re unsure, check all of your paperwork and ask your lender. Although it’s only a short term solution, it will help get you back on track.
No matter what the reason, if you’re struggling to meet all of your outgoings then you need to put together a budget. You might have some monthly direct debits that you can cancel. For example, you may have magazine subscriptions or a gym membership that you rarely use. If you require some support, you might want to consider speaking to a financial advise. They can provide you with some professional guidance on how to manage your money.
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This post was written by Innermedia Ltd