If you’re struggling to pay your mortgage

Mortgage payments are often quite big, and it can be easy to fall behind. If that happens there are things you can do. It is important to approach your lender to tell them about your problems. There might be options for support. 

This summary does not deal with: 

• Interest only mortgages that are coming to the end of their term. 
• Interest only mortgages that have already ended. 

First steps

• If you are struggling to pay your mortgage, get some advice as soon as possible. It is important to look at your whole situation.  
• Contact your lender and talk to them about your situation. 
• Pay as much as you can. Even if you have not paid for a while or cannot afford the full amount each month. 

The Mortgage Charter

Most UK mortgage lenders have signed up to the Mortgage Charter. If they have, they should offer you support if you are finding it hard to meet your mortgage payments. 

From 26 June 2023, you should not be forced to leave your home within 12 months of your first missed mortgage payment unless you agree to do so or there are exceptional circumstances. 

From 10 July 2023, you should be allowed to lock into a deal up to six months before your existing fixed-rate deal changes. You should also be able to manage your new deal and request a better like-for-like deal from your lender, if available, right up until two weeks before your new term starts.

The FCA have also introduced guidance to make it easier for you to make changes to your existing mortgage. Your mortgage lender should make it easier to remortgage with a new lender and reduce your mortgage term if needed. The guidance should also make it easier to discuss your options with your mortgage provider. Speak to your mortgage provider to see if they can help you.

How can I get help?

There are lots of things you can consider if you need help to pay your mortgage.  

• If you are claiming certain benefits, you may be able to apply for a loan called Support for Mortgage Interest. 
• If you can afford your monthly mortgage payment, but have arrears, start paying your normal monthly instalment. You can then make an offer to the lender to pay off the arrears at an affordable rate based on your budget. Use My Money Steps to check your budget. 
• If you have an endowment mortgage, you may be able to change this to a repayment mortgage. Endowment mortgages include an insurance policy. If you have had this policy for a while, you may be able to cash it in and get a lump sum. 
• Switch to interest-only payments for a short time. 
• Extend your mortgage term to reduce your monthly payments.  
• Add the arrears to your mortgage. Usually, you can only do this if the value of your home is a lot more than the mortgage.