If you are struggling to meet your mortgage payments you should be aware of how your current lender will view and act on the situation.
Anyone struggling with their mortgage payments must liaise with their current lender immediately to see if there is a way for the problem to be rectified.
Your lender will usually ask you to complete an income and expenditure summary form, which will help assess if there are any ways in which you can reduce your outgoings and use your income more effectively. You should also be advised to speak to the Citizens Advice Bureau or Consumer Credit Counselling Service for free and impartial advice.
The lender will also discuss your financial situation, including the payment method of your mortgage. It may be that if you have a capital repayment mortgage you could switch to interest only for a period while you get on top of your finances. The lender will be keen to try and attempt a short or long term solution appropriate to your circumstances.
If you are still unable to meet your mortgage repayments the lender will usually have a collections team who will call you to arrange what is called a true concession. This involves making an arrangement to collect a mortgage payment that is less than the sum you usually pay. This may provide a short term solution but the whole debt, including any shortfalls and arrears will still have to be repaid in the future.
Where you are struggling to meet your payments it is also useful to ensure you prioritise your liabilities to address and safeguard your individual and domestic circumstances.
Lenders do not want to see borrowers getting into arrears as it is in no ones interests. It is essential that if you start to fall behind on your mortgage payments you contact your lender as soon as possible. Communication is the key.