27 Nov What should you do if you’re struggling to pay your mortgage
With the cost of living rising rapidly and interest rates going up, many people are seeing their monthly mortgage costs rocketing. It is quite likely that for many people, paying their mortgage could become significantly more difficult. If you think you’re going to have problems with paying your mortgage, then it is much better to take action sooner rather than later. If you get really behind with your mortgage, your lender could take action through the courts and you could even lose your home.
According to this recent report in The Guardian, there has been a significant rise in the number of people struggling to make their mortgage payments, so if this is happening to you, then you are not alone.
Practical steps to reduce outgoings
If you are having trouble with paying your mortgage, there are a few things you can do to ease the stress. First, you could look at reducing the cost of your mortgage. Perhaps there is a cheaper deal you can switch to. If you talk to your lender, you may be able to agree to a plan that enables you to make payments you can afford while keeping your lender happy. Your lender doesn’t want you to default and force them to initiate expensive legal action.
You could also look at your monthly outgoings. Perhaps there are unused gym memberships that can be cancelled or subscriptions to streaming services you no longer use. If you have issues with compulsive spending or gambling, then perhaps it is time to seek help. Insurance is a part of home ownership too, but by shopping around and comparing deals you may be able to save money on this.
Dealing with a build-up of debt
If you’ve been struggling with your mortgage for some time, then you may have accumulated significant debt and will need a way to deal with this. If you have debt to clear, then making extra payments can help with this. If you have a pension and you are at least 55, you may be able to withdraw funds from this to help pay for your mortgage.
Making extra payments is not always an option, and if you are in serious difficulty, then you will need to speak to your lender. If your lender is threatening court action, it may be time to get advice from the Citizens Advice Bureau.
Another option may be to sell your home or to perhaps organise a transfer of equity from a family member to help settle the debt. In this case, you will probably need conveyancers to help you with the legal aspects of this and you will want a reliable and trustworthy firm such as Sam Conveyancing to make sure every aspect of this is carried out properly. Skimping on proper advice regarding transfer of equity could see you facing serious issues that are costly to resolve down the line.
Struggling with your mortgage can be stressful. However, the important thing to remember is that advice is available and there are different options you can take. By reorganising your finances, you may be able to reach a solution that means paying enough to satisfy your lender and remaining in your home whilst you ride out the storm.