If your mortgage is not being paid, the money you owe is called ‘mortgage arrears'. Mortgage arrears are classed as ‘priority debts’ and the consequences of not dealing with these priority debts could mean there is a risk of you losing your home.
To avoid this happening to you, it is important that you get advice as early as possible.
If you are struggling to afford your mortgage payments, or your housing costs are not being met in full, you should contact your mortgage lender to discuss how to resolve the situation.
Steps you should take
You should take the following actions to help yourself and avoid losing your home:
- Make a list of all your debts and identify your priority debts, such as your mortgage, gas, water and electricity charges. You will need to tackle these debts first.
- Write down all your income and outgoings. Work out how much you can afford to pay each of the companies you owe money to, along with a personal household budget.
- Consider seeking advice from a debt advice agency, such as the National Debtline who provide free, independent debt support.
- Most importantly, talk to your mortgage company as soon as possible. You will need to reach an affordable agreement for paying off any mortgage arrears alongside your regular mortgage payment.
Help available to you
Get detailed advice and support on mortgage arrears and repossessions on the Shelter website.
There may be additional help available to you depending on your circumstances.
For advice and guidance on applying for benefits as a means of topping up your income to meet your mortgage payments, please visit:
- Lambeth Council benefits advice services for local providers who can offer housing advice.
- Lambeth Council Tax Support for financial help to pay your Council Tax.
- Citizens Advice to check what benefits you may be entitled to.
- Shelter for general benefits and housing advice.
- Citizens Advice for debt advice and counselling.
For advice and information on managing your finances, please visit:
- Help with mortgage arrears on Money Helper
- Help dealing with mortgage debts on Citizens Advice
- Step Change Debt Charity
Claim Support for Mortgage Interest (SMI)
You could get help towards your mortgage interest payments, and interest on loans taken out for repairs or improvements to your home, by claiming Support for Mortgage Interest (SMI) on Gov.UK.
To be eligible for SMI you should be receiving one of the following benefits:
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Pension Credit Guarantee
- Universal Credit (UC)
Support is in the form of an interest-bearing loan. This will need to be repaid if you sell the property or transfer ownership to someone else.
Find accommodation quickly
If your home is being repossessed you may need to find alternative accommodation quickly.
Alternatively, if you are planning on selling your home, it is important that you secure alternative accommodation as the council may not have a duty to assist you with housing.
You may want to consider private renting as a fast route to finding a new home.
Still need support?
Our Housing Advice Service may be able to help you.
If you are homeless or due to be homeless in the next 56 days, the council may have a legal duty to prevent or relieve your homelessness.