What can I do if I can’t pay my mortgage?

The cost of living crisis is the term being used to describe the difficulty many people in the United Kingdom face in affording basic necessities such as food and housing. The recent pandemic has exacerbated the crisis, which has seen job losses and pay cuts for many people. Mortgage payers in the UK have also been hit hard by the cost of living crisis. The average mortgage rate in the UK is currently around 4.74%, but many people are struggling to keep up with their payments. This is particularly true for those who have lost their jobs or had their hours reduced. The cost of living crisis has led to an increase in the number of people using food banks and other forms of emergency assistance. It has also put a strain on the NHS and other public services. 

Firstly, if you are struggling to pay your mortgage,  it's important to remember you are not alone. Secondly, you must reach out to your lender as soon as possible. Your lender will typically write to you within 15 days of a missed payment, but you shouldn't wait until then to speak to them.

Many lenders have programs in place to help struggling homeowners,  so you may be able to work out a payment plan or deferral. There are also a number of government programs, such as the Mortgage Rescue scheme, Support for Mortgage Interest, or other government benefits that can help you if you're struggling to pay your mortgage. Many lenders are understanding and have specialist support teams on hand to explain your options, if your household income has dropped because of events such as:

• a job loss or redundancy
• an illness or accident
• a death 

Before you talk to your lender, we recommend working out how much you can afford to pay towards your mortgage. If you have mortgage debt, you'll need to discuss with your lender how you will deal with it and how to afford the mortgage costs moving forward. To determine how much money you've got coming in and going out, we recommend this budget tool from citizens advice. 

The government has been criticised for not doing enough to help those who are struggling. The cost of living crisis is a complex issue with no easy solutions. It is clear, however, that something needs to be done to help those who are struggling to make ends meet. If you're struggling to make ends meet, there are a number of resources that can help you. Food banks, utility assistance programs, and other charities may be able to assist you, if you are in financial difficulties. 

If you are struggling with personal debt, we do offer a free initial consultation; please call us on 0345 260 0101 where we can provide expert debt advice and support nationwide from our offices in Croydon, Bromley and Leicestershire. 

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