What to do if you are struggling to pay your mortgage
August 28, 2016 by Brendan O'Neill
Advice & Tips
There are many reasons why you may find yourself struggling to pay your mortgage, including redundancy, illness and breakdowns in relationships. Financial difficulty can strike at any time, but what action can you take if you find yourself in this situation?
The first thing you should do is speak to your lender, so that they are aware of your circumstances. The terms of your mortgage may allow you to take a payment break for a specified period, usually around three months. Although the missed payments will be added on to the mortgage amount, you will have some breathing space so that you can sort out your finances.
You may be able to extend the term of your mortgage, so that monthly payments are reduced to an affordable amount. You may also be able to switch your repayment mortgage to an interest only product for a temporary period. However, the overall amount owed on your mortgage will increase.
If you have a spare room, you may be able to rent it out so that you have some extra income. The rent a room scheme allows you to receive rent up to £7,500 annually before you pay any tax. If you are struggling to make ends meet due to a divorce or relationship break up, consider selling your home and buying something smaller to reduce costs.
If you find yourself in difficulty, you could also speak to a mortgage adviser, as they take a CeMAP course to ensure they have the required knowledge of all aspects of a mortgage.
Written by
Brendan O'Neill
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