Mortgage difficulties

If you are having difficulties paying your mortgage, here are some options:

Lender options

You should contact your lender to discuss your situation and explore all the lender options. A lender can:

  • Reduce your monthly payments for a certain period
  • Cut the cost of being in arrears with your mortgage
  • Extend the length of the loan
  • Spread the payment of the total amount owed
  • Offer a better loan rate
  • Allow you time to sell your home (if that is your preference).

Before repossession

Mortgage lenders should only repossess your property as a last resort. Lenders should discuss and agree alternative arrangements to repossession and, if a case reaches court, they have to give details of what help and support they have offered.

Support for Mortgage Interest (SMI)

Support for Mortgage Interest can help if you:

  • are in paid work for less than 16 hours a week or your partner is in paid work for less than 24 hours a week
  • have a mortgage or other loans which are secured on your property
  • qualify or are receiving any of the following benefits:
  • Income Support
  • Income-based Jobseeker's Allowance
  • Income-related Employment and Support Allowance, or
  • Pension Credit.

SMI contributes to the interest on eligible loans. Payments are calculated using the Bank of England average mortgage rate and are subject to change.

If you're making a new claim and are of working age:

  • SMI can be paid on loans up to £200,000
  • SMI is usually paid after 13 weeks.

If you receive Pension Credit:

  • SMI can be paid on loans up to £100,000
  • you can get help with your mortgage straight away.

If you are on benefits and are having difficulties paying your mortgage, for more information please contact:

External links