If you can't pay your mortgage, your lender is legally required to treat you fairly and explore alternatives before pursuing repossession. Options include payment holidays, extending your term, switching to interest-only, or accessing government support.
Don't Panic — You Have More Options Than You Think
If you're struggling to make your mortgage payments, you're not alone. Rising interest rates, job losses, relationship breakdowns, and health problems all affect people's ability to pay. The most important thing is to act quickly and not ignore the problem.
Your lender is legally required to treat you fairly and explore every alternative before considering repossession. They genuinely want to help you find a solution — repossession is expensive and time-consuming for them too.
Step 1: Contact Your Lender Immediately
This is the single most important step. Call your lender's dedicated support team (not the general helpline) and explain your situation honestly. They'll ask about:
- Your current income and outgoings
- Whether the difficulty is temporary or long-term
- What you can realistically afford to pay
Under FCA rules, your lender must consider all the options below before taking any enforcement action.
Step 2: Understand Your Options
Payment holiday (1–3 months)
Temporarily stop or reduce payments. Interest still accrues, increasing your total cost. Best for short-term income disruptions.
Extend your mortgage term
Spreading payments over a longer period reduces your monthly amount. You'll pay more interest overall, but it keeps you in your home.
Switch to interest-only (temporarily)
Pay only the interest for an agreed period. Your balance won't reduce, but your monthly payments drop significantly.
Reduce your interest rate
If you're on your lender's SVR, you may be able to switch to a cheaper fixed deal — even with arrears. A fee-free broker can help.
Capitalise your arrears
Your lender adds the missed payments to your mortgage balance, spreading the cost over the remaining term.
Government Support Available
The UK government offers several schemes for homeowners in difficulty:
- Support for Mortgage Interest (SMI): If you receive certain benefits (Universal Credit, Pension Credit), you may qualify for a government loan to cover your mortgage interest payments.
- Mortgage rescue schemes: Some local authorities run schemes that can help prevent homelessness — contact your local council.
- Universal Credit: If your income has dropped, you may be eligible for Universal Credit, which can include support for housing costs.
How Repossession Actually Works (It's Not Instant)
Repossession is a last resort that follows a strict legal process:
- Arrears letters: Your lender writes to you about missed payments
- Support and negotiation: They must explore alternatives with you
- Pre-action protocol: Before court action, they must follow a formal protocol
- Court hearing: A judge reviews the case — you can attend and present your side
- Possession order: Even then, the court may give you more time to pay
- Eviction: Only happens after all other options are exhausted
This process typically takes 6–12 months minimum. If you engage with your lender early, it rarely gets this far.
Where to Get Free, Confidential Help
- StepChange: Free debt advice — call 0800 138 1111
- Citizens Advice: Free, impartial guidance on debt and housing
- National Debtline: Free debt advice — call 0808 808 4000
- Shelter: Housing advice and support — call 0808 800 4444
- Your mortgage broker: If you have one, they can negotiate with your lender on your behalf
Never pay for debt advice. Legitimate advice is always free. Be wary of companies that charge fees to "help" with mortgage arrears.
We're Here to Help — For Free
If you're worried about your mortgage payments, we can review your options at no cost. Whether it's remortgaging to a lower rate, negotiating with your lender, or exploring other solutions — our advice is always 100% fee-free.
Frequently Asked Questions
- Will I lose my home if I miss a mortgage payment?
- Not from one missed payment. Lenders must follow a strict process before repossession, including contacting you, exploring alternatives, and getting a court order. Missing one payment will affect your credit score, but repossession only happens after sustained non-payment and failed attempts to resolve.
- Can I get a mortgage payment holiday?
- Many lenders offer payment holidays (typically 1–3 months) if you're facing temporary financial difficulty. Interest still accrues during this period, so your total cost increases. Contact your lender directly to discuss eligibility.
- Will missing a mortgage payment affect my credit score?
- Yes. A missed payment is recorded on your credit file and stays there for 6 years. However, if you contact your lender and arrange a formal payment plan, this may be recorded differently than a simple 'missed payment'.
- Where can I get free mortgage debt advice?
- StepChange (0800 138 1111), Citizens Advice, National Debtline (0808 808 4000), and your own mortgage broker can all provide free, confidential advice. Never pay for debt advice.
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