There are a lot of ways someone can solved their mortgage arrears problems but knowing exactly which solution is correct may require a financial adviser.
Mortgage Arrears Solutions
These are the three main ways to deal with mortgage arrears however there maybe more and other solutions may be more suitable for your circumstances.
Sometimes changing your mortgage deal can make it cheaper, more manageable and in some cases releases equity tied up in the property.
If the mortgage arrears are substantial the current lender may be reluctant to allow you to re-mortgage until the arrears are cleared.
Before trying to re-mortgage it’s important to seek financial advice from one of our mortgage experts who will assess your best route to re-mortgaging.
Change to Interest Only:
An interest only repayment plan will allow you to only pay the interest on the mortgage loan each month until, although the loan will remain outstanding.
This shouldn’t be considered a long term solution unless you are expecting a lump sum of money before the term of the loan ends.
A mortgage is a priority debt and because it’s secured against the property it cannot be included into certain debt solutions such as bankruptcy, IVA or protected trust deed.
Often people who are struggling with mortgage arrears also have unsecured debts which they are making payments to each month but aren’t clearing.
Dealing with these unsecured debts could free up money for your mortgage and therefore give priority to the secured debt instead.