Your mortgage is likely to be the largest amount of credit you ever borrow in your lifetime. As this credit is taken over such a long period of time there are many obstacles that may arise over the period that you are not expecting such as redundancy, divorce or prolonged illness. These may not be things that we think about when we initially take out a mortgage but these factors should not be overlooked.
The problem is that if you miss payments on your mortgage you will find it more difficult to get credit in the future. If you do not keep up the repayments on your mortgage it could lead to your home being repossessed.
Mortgage lenders usually view mortgage arrears as follows:-
- A missed payment will be recorded if you fail to make 75% of the amount due in that given month
- Some lenders take into account missed payments on secured loans and your main mortgage
- More recent missed payments will be held as more relevant than older ones
- Some schemes require you to pay any arrears up to date before any further financial support is forthcoming
- The more payments you have missed the ‘higher risk’ you will be classified
Once you have incurred arrears on your mortgage it is unlikely that more traditional high street lenders will be willing to help you. This is due to the risk of default in the future.
At Solution Mortgages we have access to a range of specialist lenders who will consider applications from applicants who have incurred arrears on their mortgage. They will also consider applicants who have CCJ's, IVA's or been made bankrupt.
If you have arrears on your mortgage and are looking to remortgage, please feel free to contact Solution Mortgages on 0845 123 1260 or apply online at www.solution-mortgages.co.uk