Can no longer afford your home

Having debt may lead to rent arrears or problems paying your mortgage. You must do something about it. Debts won’t go away if you ignore them.

Rent or mortgage arrears

If you have a mortgage or rent arrears, you could lose your home (be evicted or repossessed) if you do not keep up with your weekly or monthly payments.

If you are evicted because of a shortfall in your rent or mortgage payments and apply to us for housing assistance we will conduct an affordability assessment and may find you intentionally homeless if you have not managed your finances appropriately. This will mean we will have no duty to assist your household with housing.

Talk to your landlord or lender

Talk to your landlord or mortgage company today. Whether the problem is caused by budgeting difficulties, loss of job, or a change in benefits. You can take some important steps to get yourself back in control and avoid eviction or repossession.

• Explain why you’re going to be late with the rent and ask for some extra time
• Be clear about what you’re doing to address the problem to help ensure it won’t happen again
• You may be able to negotiate reduced payments with your landlord or mortgage lender.
• Keep a record of any agreements you make.

Shelter UK has further guidance on how to deal with mortgage arrears.

Dealing with arrears and debt

Any housing debt should be a high priority.

1. Identify the problem and work out a plan - work out what the problem is (loss of job, spending more than you have, partner not contributing). Either way, you’ll need a plan. Try using a budget planner.
2. Reduce your monthly expenses - look at where you can cut back. It’s better than losing your home. Make sure you have the cheapest tariffs for everything gas, electricity, mobile phones, broadband. Switch to 0% credit cards if you have one. Think about what you really need and could do without.
3. Boost your income through work or benefits - ask for overtime, look for a higher paying job, maybe a partner could find work too. Make sure you are claiming all the right benefits, including things like Council Tax deductions and apply for funding like the Discretionary Housing Payment (DHP) or Support for Mortgage Interest (SMI).
4. Get help - ask for advice and support to get your debt back on track. Seek help immediately if you have an eviction notice or repossession letter. If you are a council tenant, our financial inclusion team can provide financial advice. 

For free help with debts:

• Housing Benefits Team: find out about housing benefits and how to make a claim
• Money Advice Service  0300 500 5000
• Citizens Advice (CA) 0808 278 7873
• National Debtline  0800 804 4000 
• Step Change 0800 138 1111 
• Debt Support Trust 0800 085 0226
• Debt Advice Foundation  0800 987 5682