Mortgage arrears and repossessions

• If you can’t pay your mortgage or think you’ll have problems
• If your lender intends to repossess your home
• Things to avoid
• If you’re struggling to repay other debt

• Speak to your lender as soon as possible
  They should talk through other possible repayment options with you. For information on some possible options read our Problems paying your mortgage printed guide. You can download it or order a free copy online at Publications. Make sure you understand the different options so you make the right choice for you.
   
• Check if you have insurance cover
  Mortgage Payment Protection Insurance (MPPI) or Accident, Sickness and Unemployment insurance (ASU) can help with your mortgage repayments if your income has fallen because of redundancy, accident or sickness. You may have taken it out when you got your mortgage – see MPPI.
   
• Work out your budget
  Be realistic – you may have to cut back on some other spending. Use our Budget calculator to help you work out how much you have coming in and how much is going out.
   
• Check if State benefits can help
  If you’re on a low income or out of work you may be able to get some help with your mortgage repayments. Use Directgov’s online Benefits adviser, contact your local Jobcentre Plus office or speak to an advice agency to check – see Get more help.
   
• Talk to a free money advice agency
  Get free and independent advice to help you sort out your problems. Use Shelter’s advice agency directory to find various free local advice agencies, including Citizens Advice Bureaux – see Get more help. Your lender may offer a debt advice service, but it may charge you upfront or add the charges to your mortgage debt. You don’t have to use it.
   
• Pay what you can
  Only agree to pay back what you can afford. By continuing to pay back some money, you may be able to reduce your arrears.
   
• Check what government help is available
  Find out whether you’re eligible for a government-backed mortgage assistance scheme (it may allow you to stay in your home) – see 'Get help from government schemes' on the Directgov website. Money advice agencies can help you work out whether you’d be eligible for any of these schemes – see Get more help.
   
• Sell your home
  If you think your situation won’t change in the long term, think about selling your home yourself and renting or moving to a cheaper property. Ask your lender if you can stay in your property until you sell it and make sure you have a place to live before you move out. If this isn’t possible, as a last resort you can sell your home to a company and rent it back from them. For information on the risks and what you need to check, see sale-and-rent-back schemes.
   
• Complain to your lender if you feel it is treating you unfairly
  See If things go wrong or our Making a complaint printed guide for tips. You can download it or order a free copy online at Publications.

• Speak to your lender as soon as possible
  If you’ve not tried to discuss possible repayment options with them, do so now. It may mean you can avoid going to court. For information on possible repayment options read our Problems paying your mortgage printed guide. You can download it or order a free copy online at Publications.
   
• Talk to a money advice agency
  They can help prepare your case and may be able to represent you. Use Shelter’s advice agency directory to find various free local advice agencies, including Citizens Advice Bureaux – see Get more help.
   
• Make sure you’ve worked out your budget before you go to court
  A judge will want to see how much you can afford to repay. Use a budget planner sheet from a money advice agency. National Debtline has a sheet for England and Wales and one for Scotland. And the Consumer Council has one for Northern Ireland – see Get more help.
   
• Go to court
  You should attend so you can put your case to the judge. You are more likely to keep your home if you go to a court hearing. These are normally held privately in the judge’s office, not in open court.
   
• Ask to see a duty officer at the court before your case starts, if you don’t have a money adviser or solicitor to represent you
  A duty officer can help you with your case and may be able to represent you. Their service is free.
   
• Make sure you understand the consequences of any arrangements your lender offers you outside the court room
  Only agree to an arrangement which you can reasonably keep to over the rest of the term of the mortgage. If you cannot keep to an arrangement you’ve made, you may find that it is easier for the lender to repossess your property. So if you’re unsure attend the court hearing.
   
• Continue to talk to your lender and still pay as much as you can
  By continuing to pay back some money, you may be able to reduce your arrears.

• Taking out a loan to pay your debts – these loans can be very expensive and are often secured on your home, so putting it at greater risk. Mortgage offers that promise to help you avoid repossession may also put you at greater risk – see Repossession mortgages.
   
• Handing back the keys – you’ll still be responsible for the mortgage repayments before your home is sold, and possibly the outstanding balance if the money raised by selling your home isn’t enough to pay off your debt.
   
• Selling your home without having a place to live – your local council may not help you find a place to live if they think you've made yourself intentionally homeless.