I am experiencing severe problems with paying my mortgage as my working hours – and salary – have been reduced by half. What can I do to ensure I don’t lose my house?
With increasing unemployment a consequence of the current economic conditions, more and more people will experience difficulties in meeting their mortgage repayments. The critical point to bear in mind is to ensure you approach your Lender immediately you are experiencing difficulties as there are various options open to both you and them in addressing short-term problems.
Sadly, the majority of people, probably due to the stress of the situation, stick their heads in the sand and do nothing, allowing arrears to build up over a period of months. Inactivity and the reluctance to meet the problem head on will cause more problems than it solves, as your Lender will become sceptical as to your genuine willingness to find re-employment or resolve your financial problems.
By contacting your Lender immediately you can discuss the various options available. Depending on the extent of mortgage involved your Lender may be able to offer you a “payment holiday” period while you find re-employment or get yourself back on your feet or maybe transfer a repayment product on to an interest free arrangement temporarily depending on what you can afford.
Do not pretend that there isn’t a problem. Meet your problem head on. You may be relieved to hear there may be short terms solutions for your predicament.
* Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email firstname.lastname@example.org