By Lucy Searle
4Homes Essentials
Property Search
UK Region Ratings
It's official... there MIGHT be a recession on the way. Note the 'might', as announced this morning on various news stations. However, for those of us struggling with mortgage renegociations, high fuel and food bills, whether the country is suffering in a wider sense is neither here nor there. So, what can you do if your financial problems are beginning to overwhelm you? Thanks to the The Council Of Mortgage Lenders, Citizens Advice and Shelter, I've got 10 tips to help you through the tough times.
Talk to your lender, your partner, and to a free, independent debt adviser. The earlier you tell your lender, the more options will be available to solve the problem. Your lender may consider extending the term of your mortgage, changing the type of mortgage you have or deferring interest payments for a short period, and treating the arrears as part of the original debt.
There are many organisations that offer free and independent money advice such as Citizens Advice, Shelter, National Debtline, and the Consumer Credit Counselling Service (CCCS). Their debt advisers can assess your situation and devise the best course of action for you.
If you are coming to the end of a fixed rate mortgage in the near future - say the next three to six months - start planning ahead for higher repayments and researching the best deals in the market now.
It will only make them worse - take positive action now to solve them.
Your mortgage is a priority debt - if you don't pay it, you could lose your home. Debt advisers can help you plan your budget and pay your priority debts first.
If you can't afford your full mortgage repayments, you should talk to your lender and still pay what you can afford.
Don't ignore letters or telephone calls from your lender; if you are not sure what they mean, ask your lender or a debt adviser. Open all mail that is addressed 'to the occupiers'; if you are a tenant this is how the mortgage lender will contact you if the landlord has a payment problem.
Always attend the court hearings yourself. Court proceedings do not mean that you will automatically lose your home. The court process acts as a final check to make sure repossession is the last resort. Some courts have advice desks which can provide last minute assistance.
If you are struggling with mortgage repayments you may be tempted to send the keys to your lender or abandon your property. Don't do this without advice. You could still be responsible for the debt on the property and may be pursued for it years later.
Selling your home and renting it back might seem like a quick fix to your debt problems. But many of these schemes offer very little security. They are also not regulated so you will not have access to the same protections as a mortgage holder.
The Council Of Mortgage Lenders
Citizens Advice
Shelter
For Free Advice
Citizens Advice
Consumer Credit Counselling Service (CCCS)
Payplan
Financial Services Authority
National Debtline
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