The global financial crisis is set to be a continuing theme this year
and some people are finding it difficult to meet their mortgage
payments as a result.
If you are falling behind with your payments, or fear that you could if the recession is prolonged, do you know what to do?
Your first port of call should be your lender. All mortgage providers
are aware of the challenges facing many homeowners in the current
climate, and if you talk to your lender and explain the situation, you
may find that a solution can be found, such as:
a reduction in your payments for an agreed period
- a switch to interest-only if you have a repayment mortgage
- a payment holiday
- an extension of your mortgage term to reduce payments
To help people stay in their homes during these challenging days, the
government is launching two schemes for homeowners in difficulty:
Mortgage Rescue Scheme
This scheme aims to help those with the most serious difficulties with
mortgage repayments. It aims to help 6,000 people facing repossession
over the next two years.
Homeowner Mortgage Support Scheme
If you're having difficulty making mortgage payments as a result of a temporary fall in income, this scheme may be able to help.
For further information about these government initiatives, visit www.direct.gov.uk and click on the 'mortgage worries' link.
Help from Teachers Building Society
At Teachers, we are proud of our record of low numbers of arrears cases
and in recent years have only very rarely had to repossess a property.
We have always treated our members in a sympathetic manner and look for
the right solution to help them through difficult times. The launch of
the Homeowner Mortgage Support Scheme is welcome as it may enable us to
offer a wider range of options to home owners facing financial hardship
in the current financial climate.
Other organisations that can give information and advice about mortgage payment difficulties are:
Citizens Advice Bureau www.citizensadvice.org.uk
Consumer Credit Counselling Service www.cccs.co.uk
Teacher Support Network www.teachersupport.info
You can also find helpful information on the FSA website: