Struggling with mortgage payments

If you are struggling to pay your mortgage, do not ignore the problem.

Reassess your finances:

  • Can you review your spending to pay towards your mortgage
  • You may be eligible for benefits to increase your income
  • Can you increase the amount you work?
  • Can you claim Support for Mortgage Interest (SMI)? - Some people on benefits are eligible for government help with their mortgage payments. This is known as support for mortgage interest (SMI), which'll pay some of your mortgage interest for you. It's paid directly to your lender, but for you it's in the form of a loan, which you'll eventually need to pay back.
  • If you have other debts you can seek out debt advice agencies such as the CAB - https://testvalleycab.org.uk/ or Christians Against Poverty - Home | CAP UK provide support locally.

Check if 'mortgage charter' support can help:

The Government has launched a mortgage charter, alongside the Financial Conduct Authority, which regulates mortgages. It's designed to enable lenders to offer flexible, short-term support if you're struggling with your current mortgage repayments.

- You can EITHER switch to interest-only payments OR extend your mortgage term.

- Neither option will have an adverse impact on your credit history.

Speak to your Lender:

Lenders can offer tailored support, under what's known as 'forbearance' rules. Some of the options they can offer are similar to those in the mortgage charter, but they can be longer-term but will impact your credit rating.

  • Reduced repayments. Where your payments are reduced from their normal monthly amount for a set time.
  • Repayment break. Where your payments are reduced to zero for a set time.
  • Switching temporarily to an interest-only mortgage. Here you are no longer paying off the actual loan itself, just the interest that's accruing.
  • Extending the term of your mortgage. By lengthening the term – from 25 to 30 years, for example – you spread the debt over a longer period, reducing the amount that needs repaying each month.

If you have exhausted the options available, you can book an appointment to see a Housing Options officer.  This can be done by calling 01264 368000.

For further information see relevant web page:

New free legal advice for people facing eviction or repossession - GOV.UK (www.gov.uk)