Raising Money to Pay Mortgage Arrears

Home Repossession >> Preventing A Repossession >> Raising Money to Pay Mortgage Arrears

Raising Money to Pay Mortgage Arrears

If you can show your lender or the court other ways that you can raise money to pay your mortgage you can help prevent your home being repossessed.

If you have a mortgage protection plan with an insurance company then you may receive help in paying your mortgage if you fall ill, become unemployed etc. You should also check such policies before allowing your payments to fall into arrears.

You may also be entitled to help from the DSS with payment of the mortgage interest if you are out of work or on a low income.

Rescheduling your loan by spreading it over a greater number of years may also help if you have problems meeting the instalment payments. This may involve extending the term of the mortgage or changing from a variable rate to a fixed, capped or discounted rate.

If you have a repayment mortgage it is worth asking your lender if they will accept an interest only payment until your financial situation improves.

If there is a lender who is offering a much lower interest rate than your own lender then it may be worth considering a remortgage. Lenders will not usually do this if there is a "negative equity". Be wary of any hidden charges including charges for paying off your mortgage early.

You might also consider taking in a lodger, though you should seek permission from the lender. You can earn a significant income from your lodger without having any tax liability on the income under the rent a room scheme.

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Home Repossession : information and advice on having your house repossessed and how to prevent it

Home Repossession >> Preventing A Repossession >> Raising Money to Pay Mortgage Arrears

Raising Money to Pay Mortgage Arrears