4 Ways That Help With Mortgage Arrears

Mortgage arrears occur due to your inability to pay your mortgage on time. If you are not able to pay your mortgage timely then you can be in danger of losing your property as the bank may take legal recourse to recover his mortgage losses and arrears. The first step in this situation should therefore be to go for debt advice immediately as you see signs of financial difficulty. Here are five ways from which you can get help with mortgage arrears and save your house from repossession.

• Debt Advice and Mortgage Counselling
 

Try to take independent debt advice and mortgage counselling as soon as you see signs of financial difficulty. The counselor can advice you on different ways you can save money and making more money. This will help you come up with a detailed and step by step plan to avoid repossession.



• Lower Mortgage Interest Rate

You can go for remortgage at a lower interest rate. If you have your mortgage at a standard variable rate (SVR), you can go for fixed mortgage rate which will be lower than SVR. This will help you save bucks and this can prove the difference between being able to afford your mortgage payments or accumulating arrears.






  • Get Extension On Your Mortgage Term

Getting your mortgage term extended will result in paying more interest by you, but it will also help in reducing your monthly payment amount. This will enable you in being able to afford your monthly payment by spreading your mortgage cost over a longer period of time.

• Quick House Sale

Selling your property is one of the popular options to avoid mortgage arrears. 

This is a major move, however, and should be considered cautiously before being executed. Selling your house may help you pay off not only your mortgage, but all your debts as well. It might even get you some profit along the way. However, this approach requires the guidance of a broker and some business savvy.