Difficulty paying your mortgage

If you are experiencing financial difficulties we strongly recommend you seek advice as soon as possible. Here’s a list of free money advice agencies that can offer you help and guidance in relation to controlling your debt.

Please note that this list is not exhaustive and there are also debt management companies who may charge a fee for managing your debt.

Some companies may have misleading names that sound like free money advice organisations, but are actually businesses who charge you for their services.

Details of free debt agencies (PDF)

Spending some time considering your spending habits will help you see if you can save money anywhere. To help see where you can save cash, have a look at your outgoings in relation to what you have coming in then divide spending into essential and non-essential items.

Cutting back spending on non-essentials

Budgeting is essential if you’re struggling to meet outgoings. Here are just a couple of ways to cut back:

• Look at the Direct Debits that go out of your account each month
  Things like gym membership and magazine subscriptions. Now think about whether you’re getting value for money out of all of them. If not, cancel them.
• Try listing the smaller non-essential items you buy each day
  Such as take-away coffees or drinks after work. Put them in order of priority. Pick off the lower priority items first and cut them out one at a time.

Cutting back spending on essentials

For things like food and regular commitments, try shopping around to get a better deal elsewhere however think carefully before you cut back on insurance, especially life insurance.

Ask yourself whether spending a small amount on the premium is better than the risk of not having a pay-out should you die or paying thousands of pounds of your own money if anything were to happen to your home.

Do you have insurance cover?

Mortgage Payment Protection Insurance, also called Accident, Sickness and Unemployment insurance, can help with your mortgage repayments if your income has fallen because of redundancy, accident or sickness.

If your property is an investment/a Buy to Let and you took out Landlord insurance you should speak with the insurer as the policy may cover voids.

You might have taken it out when you got your mortgage – look through your mortgage paperwork and double check with us or the broker who you used when you took out the mortgage.

Are you eligible for help with your mortgage payments?

Depending on your circumstances you might be eligible for certain benefits and/or for government help towards your payments.

The consequences of not paying some debts can be more serious than others. You should consider this when prioritizing your debts and making arrangements for payment. Your mortgage is a priority debt along with council tax and utility bills, which means there could be more serious consequences if you do not pay these debts

Consider seeking free confidential debt advice on how to manage your money better.

Details of free debt agencies (PDF)

Speak to a free debt advice service before resorting to any of these options.

• Taking out an additional loan to pay your debts - these loans can be very expensive and are often secured on your home, so putting it at greater risk.
• Handing back the keys - you’ll still be responsible for the mortgage repayments before your home is sold, and possibly the outstanding balance if the money raised by selling your home isn’t enough to pay off what you owe.