Your priority bill should always be your mortgage and/or any loans secured against your property. To avoid any potential repossession you must ensure regular payments are maintained.
However in some instances a change in circumstances beyond your control such as redundancy or illness or even an increase in unsecured debt can lead to missed mortgaged or secured loan repayments.
If a remortgage is a possibility Debt Plan Direct can put you in touch with one of our trusted business partners who specialise in sourcing mortgages for individuals who have an adverse credit history including those with County Court Judgements.
The advisers at Debt Plan Direct will never try and influence your decision on how you want to clear your debt unlike other advisers who are paid a commission on certain debt solutions. Our advisers will only proceed with a solution when you are completely satisfied and all your options have been fully and plainly explained to you.
If you cannot keep up with your mortgage payments do not if you ignore the problem as it will become more difficult to control your debt and avoid repossession.
Working out your options can be complicated. But by getting the right independent advice before you decide what to do can help you to negotiate with your lender.
Debt Plan Direct have specialist advisers who can help you work out what option is best in your situation.
If You Know You Have a Problem Act Now
If you know or will be struggling with your mortgage payment you should act straight away as this will enable you to solve any problems quickly. There is less chance of you losing your home if you act immediately and it will also give you more options.
You should speak to your lender as soon as you know there is a problem or at the very minimum explain to your lender that you are seeking expert advice from a debt specialist about your options. There is always a solution no matter how grim the situation might seem initially.
Maintain Affordable Payments
You must maintain the payments o your mortgage as it is a priority debt even if you are under pressure from other creditors on your unsecured debts; losing your home through repossession would only make your debt problems worse.
Continue to pay as much as you can realistically afford thus stopping any further accumulation of mortgage arrears. It also shows the lender you are taking steps to remedy your problems.
Help With Your Mortgage Payments
Many people are unaware that mortgage help is available from income support or jobseeker's allowance if you have problems paying your mortgage. However, you can only get help with the
interest on your mortgage. You may also get help with interest on loans you have taken out for repairs.
Check for Mortgage Payment Protection Insurance
Check your mortgage for the payment protection insurance policy as you might have taken this policy out and will maintain your payments on your behalf if you are unable to work for the following reasons:
- Illness
- An accident
- Redundancy
If you do have the insurance policy you may:
- have to wait a few months before the policy will start paying your monthly payments
- only be covered for a year or two
- Your mortgage payment protection insurance may not cover you if you have a pre-existing illness. Mortgage payment protection insurance is different from a mortgage indemnity guarantee or life insurance.
Think Carefully Before Borrowing Further
Taking on a larger mortgage with another lender might sound a reasonable solution to your mortgage problems allowing you to clear your debts, but it can be risky. It can be difficult to afford a bigger mortgage even if the interest rate is lower. There may also be a fee to pay for switching your mortgage.
Get advice before deciding if you want to take on a new mortgage. Be aware that some mortgage advisers work on commission. These advisers may have a vested interest in encouraging you to remortgage.
If you are experiencing difficulties in paying your unsecured debt, there are many options available without remortgaging your property these include:
