If you have difficulty paying your mortgage (or think that you will have, for example because you have lost your job) it’s important that to talk to your lender as soon as possible. Don’t be put off because you think your situation is hopeless. There is often a solution. If you haven’t yet decided what to do about the problem, explain to your lender that you are taking action to put things right and are going to get specialist advice about your options.
Most lenders will expect you to come up with your own plans for paying off your mortgage, rather than making suggestions as to what you should do.
You can either email / write to your lender or make an appointment to discuss your situation in person. It would be helpful to:
- produce a detailed statement of your income, spending and debts – use this online budget planner to help you
- explain any plans you have to increase your income or reduce your spending (see below)
- explain any changes you would like to make to the mortgage and how the new arrangements will affect the future payments (see below).
Your lender will consider your proposal and decide whether to accept it. Your lender should respond sympathetically and constructively to any proposals but be prepared to negotiate further if they do not accept your first suggestions.
Negotiating with your lender can be complicated, especially if you are not sure what options are available. There are a lot of options but lenders can sometimes be reluctant to use them. You may want to get independent advice before you decide what to do. A specialist adviser can help you to look at all the options and put together a realistic and affordable proposal. Contact Shelter Cymru’s expert debt advisers who can help you.