With the cost of living crisis, many people are struggling to make ends meet, including mortgage payments.
If you find yourself in this situation, don’t worry; there are options available to you. Continue reading to find out more.
10 things to do if you’re struggling with mortgage payments
Here are 10 things you can do if you’re struggling to pay your mortgage:
1. Speak to a financial advisor
Financial advisors are among the greatest people to talk to regarding money and your overall financial status. If you’re having trouble paying your mortgage or anticipate having trouble soon, contact a financial advisor to help you manage your money and build a strategy.
2. Consider how much you can afford
Consider how much you can truly afford to pay toward your mortgage. This way, when confronted with options, you’ll be aware of your limitations and what you can and cannot do.
3. Speak directly to your mortgage lender
Speaking with your lender is one of the best things you can do if you’re having trouble paying your mortgage.
Depending on the lender, they may have some support alternatives in place, such as mortgage holidays, which allow you to go without paying your mortgage for a period of time until you’re back on track.
You can make an offer to your lender in some instances, but you must be prepared if you do so.
4. Check your insurance
Check your insurance coverage carefully! If you’re struggling because of unemployment or illness, for example, you may be eligible to some financial assistance through your insurance.
5. Explore your budgeting options
Consider your financial status. Is there anything else you might do to save money? Could you cancel some subscriptions? Or can you lower any other bills?
If you’re reading this, you’ve probably already done this and can’t cut enough things to make it work, but it’s always worth double-checking.
6. Look at government support options
Unfortunately, in England, there are no schemes currently available from the government to help with mortgage troubles (at the time of writing.)
In Wales, some authorities and associations have mortgage rescue schemes available. In Scotland, the government provides some support to homeowners struggling to pay through its Home Owners’ Support Fund
7. Consider a different mortgage
Consider a different mortgage if you are about to remortgage or if the fees for leaving your present mortgage are manageable. If you can secure a mortgage with a lower interest rate, you might be able to afford the payments.
8. Think about the possibility of renting your home out
Consider renting out your property for a period of time if you have somewhere to stay, such as your parents or friends. You’d be lowering your monthly expenses while still paying off your mortgage.
9. Extend your mortgage term
Some lenders may be willing to extend your mortgage term, resulting in cheaper monthly payments. This will not be a choice for everyone due to age and other factors, but you can chat with your lender to learn about your possibilities.
10. Know there is support from debt charities
If you’re getting into debt and worried about your money, keep in mind that there are debt relief charities and organisations that can support you:
- StepChange
- National Debt Line
- PayPlan
- Citizens Advice
- Chrstian Against Poverty
- The Debt Advice Foundation
- Business Debtline
Final thoughts
Being unable to pay your mortgage is difficult and can create a great deal of anxiety. We hope that this article has helped you in understanding your options and feeling supported during this difficult time.
If you’re looking to remortgage and need help, get in touch today!