Sometimes repaying your mortgage becomes difficult because of events on which you don’t have control over such as losing your job, illness or relationship breakdown. This may lead you to mortgage arrears. If you don’t pay off the mortgage then it will have a negative effect on your credit rating. But no need to worry there are many ways that can aid you in paying off your mortgage.
Ways to help you out if your mortgage payments have fallen into arrears.
·Communicate with the mortgage lender. Explain all the circumstances that lead to arrears. Depending on your personal circumstances your lender may allow you
to repay the arrears over a longer period
give you a payment holiday
reduce your payments for a set period
charge interest only for a period of time
add up your arrears to the mortgage and allows you to pay them back at a later time
·There are many insurance policies which help you out in paying off your mortgage for the short period of time you are in difficulty. Look into any existing policies you may have on your mortgage that you can take advantage of.
·Check out whether you have any state benefits like child tax credit, working tax credit or council tax benefit. These funds entering the household make a lot of difference
·There are many schemes like the mortgage rescue scheme which help you out in paying your mortgages. You may be able to approach them to help you. Terms and conditions apply
·Getting secured loans like payday loans which give you instant cash may help you in paying off your arrears at your worse times. The loan is set against your earnings and the repayment date is usually on your next pay day.
·Remortgaging is another option which you can try. This helps you in releasing funds to pay off your existing mortgage payments and other outstanding arrears
·Selling your home in an ideal way such that you will be left over with enough money to deposit on another property is an excellent way to get rid of arrears.
·Increasing your income is another option to pay off your arrears. You can do it by lowering the cost of other bills like life insurance or content premiums.
·Refinancing with another lender by which you can still have control on your property and save your home from repossession can sometimes help.
These are only some of the options that could help but it is always advisable to contact your lender directly first as they may be able to advise you or come up with a repayment plan. It is better to think it over before investing in a property and make sure that you will be able to pay off the loan without any problem. Be cautious and try your best to avoid arrears.