The cost of missed mortgage payments

Wednesday, January 30, 2008

The cost of missed mortgage payments could be costing you more than you think.

Depending on your lender you could be receiving a £50 charge for each missed mortgage payment but you must also factor in other additional costs.

In the event of missed mortgage payments it is likely the lender will want to address the situation early on. If you incur 3 or more months arrears the lender would be likely to instruct a councillor to discuss the arrears and set up an appointment at your property. This could cost anything from £150 to £370 which would have to be borne by you.

Borrowers who end up in this unfortunate position will face these arrears charges and will also incur charges for every call and letter the lender makes, when trying to recover the arrears.

It is therefore paramount that you give priority to your mortgage over any other debts and try to avoid any missed payments on your mortgage.

If you are struggling with your payments, speak to your lender early on and try and come to an arrangement to clear the arrears. If your lender is unwilling to help (which is unlikely) please feel free to contact Solution Mortgages on 0845 123 1260 or apply online at www.solution-mortgages.co.uk