Tips To Help You If You Are Struggling Mortgage Repayments

Are your mortgage repayments making it hard for you to get back on track financially? Is the issue keeping you up at night worried about losing your home? Below are some viable solutions and ways you can find the assistance you need to handle the situation.

 

Step 1  –   Get in touch with your mortgage lender

Step 2  –   Check the status of your insurance cover

Step 3  –    Take measures that help to cut costs

Step 4  –    Contact a free debt counseling service

Step 5  –    Find out what help you can get for your mortgage payments

 

In as much as being repossessed is your most significant worry, selling your home should be a last resort. In light to that, below are some insights on what to do and not to do.

  1. Contacting Your Lender

Talk with your mortgage lender about your situation. According to Moneyexpert.com most creditors are keen on ensuring they get their money’s worth; thus your lender may take you through the open options you can consider. Your creditor will make attempts to streak a deal with your which may involve a change in how and when you make payments.If you are behind payments within 15 days, your mortgage lender must:

  • Notify you of your total arrears
  • Give you a list of missed payments
  • Inform you of the outstanding amount under your mortgage
  • Grant you reasonable time to make any shortfall payments
  • Notify you of charges incurred due to missed payments
  • Allow repossession to be the last resort reached if the mentioned attempts fail to resolve the situation, and should give you notice in advance before taking that action.
  1. What You Might Agree On

When discussing your options with your mortgage lender, you should try to offer to pay the much you can. It would be better to be able to still make some payments rather than not making any repayments, yet you have outstanding mortgage arrears. The lender also may make suggestions such as extending the mortgage term, but this depends on your financial circumstances. Coming to an agreement that reduces your monthly mortgage repayments may even come to you as a surprise.

  1. Check You Insurance Cover

It is wise to get a mortgage payment protection cover soon after securing your mortgage to help you with the repayments. The cover, also known as Accident, Sickness and Unemployment Insurance, will be helpful in the event that you cannot make payments because you are sick, injured or due to redundancy.

It is important to look through the mortgage paperwork and then confirm the same with your lender as you also reassess your insurance cover.

  1. Cutting Costs

You can use our online budget planner to analyze and understand your income and expenditure. Reassess your spending so that you can see how and where you can make some savings.  Check how much you spend, putting it against your income so that you can make better decisions based on the essential and non-essentials.

Less spending on non-essentials will be paramount if you are to honor your efforts of repaying your mortgage, and this is subject to having a solid budget that addresses the following:

–           To get value for your money in your expenditures in comparison to your income. For instance, you can opt to cut back on direct debits on your magazine subscription or gym membership, or just cancel them.

–           Make a list of small non-essentials such as drinks to and after work, coffees, and burgers, that you buy daily and priorities them according to importance cutting out these with the lowest priority, one at a time.

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