What to do if you can’t pay your mortgage
Posted on 24th June 2022
The Building Society Association has joined forces with the Money Advice Trust to produce a valuable new resource giving straightforward guidance for homeowners concerned about making their monthly mortgage payments.
The rising cost of living is stretching many households’ finances, with some struggling to meet the increased costs of essentials, with little or no savings to fall back on. This can lead to some families having problems making their monthly mortgage repayments.
Despite what some people believe, telling your lender you are having problems paying your mortgage does NOT mean they will start to repossess your home. Lenders are very sensitive to the rising number of people facing a squeezed household budget, and if they know there is a problem they will do everything possible to help. The earlier your lender knows that you are facing financial difficulties, the greater the chance that you will be able to find a solution.
The booklet – What to do if you can’t pay your mortgage – covers information on the six steps you must take to ensure you don’t lose your home, what to expect when you contact a lender; the role of debt advisers; and a section on where to turn for further help and guidance.
Along with guidance on what you should do if you’re facing financial difficulties, it also dismisses some of the ‘urban myths’ associated with having mortgage repayment difficulties.
Kevin Gray, CEO at Bath Building Society, said: “Borrowers struggling financially should not bury their head in the sand. If they read this booklet, the guidance contained in it should ease their fears about the process. It should encourage them to contact their lender as soon as possible, with confidence to discuss the options available to them.”