What to do when you can't meet your mortgage payments
Many homeowners have problems paying their mortgages, often when they lose a job,
split up with a partner or have unexpected expenses.
If you're struggling to pay, you need to act quickly - even if the problems are
only temporary.
3. Is any financial help available?
Insurance
If you can’t meet your mortgage payments
because of a loss of income or your income has
fallen (perhaps because you’re on long-term sick
leave), you should check whether you have any
mortgage payment protection insurance. If you
do, check whether your policy covers your
specific circumstances and make a claim
straightaway. If your claim is refused, and you
don’t agree with the refusal, you may be able to
take your case to the Financial Ombudsman
Service – see useful contacts. The
Financial Ombudsman Service provides
consumers with a free, independent service
for resolving disputes with financial firms.
Benefits
There may be benefits you could claim to
increase your income – contact your local
Jobcentre Plus office (details in the phone book)
or an advice agency for information.
If you claim Income Support or Job Seeker’s
Allowance, the local Jobcentre Plus office will
usually provide some help with your
mortgage payments. How much you get and
when it starts will depend on when you took
out your mortgage and how long you have
been receiving benefits. The local Jobcentre
Plus office can help only with interest
payments and these will be paid at a rate
set by the government.
If you, or your partner are aged 60 or over you may be entitled to Pension Credit. In certain cases you could get an extra amount of Pension Credit to cover mortgage interest payments. To found out more see the Pension Service's website at http://www.thepensionservice.gov.uk or get a copy of the leaflet PC1L Pension Credit from your Post Office.