Mortgage arrears and repossession

You must not ignore any mortgage problems as your home could be repossessed. Mortgages are priority debts which means you should pay them first.

Contact your lender

Talk to your lender. Making early contact means that there are more options available to you which should help you to keep your home. Your home could be repossessed, so pay as much as you can.

Your lender might:

• Reduce your monthly payments for an agreed period
• Agree to extend the term of your mortgage to reduce the monthly payment
• Allow you to pay off the arrears gradually, alongside your usual payments
• Give you a payment holiday
• Charge you interest only (for a repayment mortgage)
• Add your arrears to the amount you borrowed
• Offer you a better rate
• Give you time to sell your home, instead of a repossession
• Suggest other help or government schemes

Many lenders have agreed to wait at least three months before taking action to repossess your home, but this should be a last resort. The law says that lenders must treat you fairly and take all of your circumstances into account.

Support for mortgage interest (SMI)

If you are a homeowner, you might be able to get help towards interest payments on your mortgage, or loans you have taken out for certain repairs and improvements to your home

This help is called Support for Mortgage Interest (SMI).

Repossession

If your home is about to be repossessed, you should get immediate financial advice from the housing options team. If you have a court hearing, you are advised to speak to the duty solicitor who will represent you. It is vital that you go to the court hearing. If you don’t go, the judge may have no option but to repossess your home. 

Please read how to avoid repossession which offers lots of useful advice for home owners.

Further support

• Step Change 0800 138 1111
• Money Advice Service 0300 500 5000
• Shelter: Get Advice
• Citizens Advice (CA) 0808 278 7873
• National Debtline 0800 804 4000 
• Debt Advice Foundation 0800 987 5682