Introduction
If you have a mortgage or building society loan, you may experience financial difficulties at some point in your life. This may be due to job loss, unexpected expenses, or other reasons. Fortunately, there are ways to get support and relief from building societies and mortgage lenders.
1. Speak to Your Lender
The first step to getting support and relief from your building society or mortgage lender is to speak to them. Explain your situation and see if they can offer any solutions. They may be able to offer you a payment holiday or a temporary reduction in your monthly payments.
2. Check Your Insurance Policy
If you have mortgage payment protection insurance (MPPI), it may cover your payments in case of job loss or illness. Check your policy to see if you are eligible for a claim.
3. Seek Financial Advice
If you are struggling to make your mortgage payments, seek financial advice. There are many organizations that offer free debt advice, such as StepChange and Citizens Advice. They can help you create a budget and negotiate with your lender on your behalf.
4. Consider Remortgaging
If you have equity in your property, you may be able to remortgage to a lower interest rate or extend the term of your mortgage. This can reduce your monthly payments and provide some relief.
5. Apply for Government Assistance
If you are struggling to pay your mortgage due to COVID-19, you may be eligible for government assistance. Check the government website for information on mortgage payment holidays and other forms of support.
6. Contact a Debt Charity
If you are in serious financial difficulty, contact a debt charity such as StepChange or National Debtline. They can provide advice on dealing with creditors and managing your debts.
7. Know Your Rights
As a borrower, you have certain rights. For example, your lender must treat you fairly and consider your circumstances when making decisions about your mortgage. If you feel that your lender is not treating you fairly, seek legal advice.
8. Keep Records
Keep detailed records of all your communications with your lender, including phone calls, emails, and letters. This will help you if you need to make a complaint or seek legal advice.
9. Consider Selling Your Property
If you are unable to keep up with your mortgage payments, you may need to consider selling your property. This can be a difficult decision, but it may be the best option if you cannot afford your mortgage.
10. Don’t Ignore the Problem
If you are struggling to make your mortgage payments, don’t ignore the problem. Speak to your lender and seek advice as soon as possible. The longer you leave it, the harder it will be to find a solution.
11. Be Honest
When speaking to your lender, be honest about your situation. If you have lost your job or have unexpected expenses, let them know. They may be able to offer you a solution that works for you.
12. Check Your Credit Score
If you are struggling to make your mortgage payments, your credit score may be affected. Check your credit score regularly to ensure that there are no errors or fraudulent activity.
13. Consider Downsizing
If you are struggling to keep up with your mortgage payments, downsizing may be an option. This can reduce your monthly payments and provide some relief.
14. Check Your Mortgage Agreement
Check your mortgage agreement to see if you have any options for reducing your payments. For example, you may be able to switch to an interest-only mortgage or extend the term of your mortgage.
15. Seek Legal Advice
If you are in serious financial difficulty, seek legal advice. A solicitor can advise you on your rights and help you negotiate with your lender.
16. Use Budgeting Tools
Use budgeting tools such as spreadsheets or online calculators to help you manage your finances. This can help you identify areas where you can cut back on expenses.
17. Consider Debt Consolidation
If you have multiple debts, consider consolidating them into one loan. This can reduce your monthly payments and make it easier to manage your debts.
18. Apply for Benefits
If you are struggling to make your mortgage payments, you may be eligible for benefits such as housing benefit or universal credit. Check the government website for information on eligibility.
19. Talk to Your Building Society
If you have a loan from a building society, talk to them about your situation. They may be able to offer you a solution that works for you.
20. Consider Renting Out a Room
If you have a spare room in your property, consider renting it out. This can provide some extra income and help you keep up with your mortgage payments.
21. Check Your Payment Protection Insurance
If you have payment protection insurance, check the terms of your policy. It may cover your mortgage payments in case of illness or job loss.
22. Consider a Debt Management Plan
If you have multiple debts, consider a debt management plan. This can help you manage your debts and reduce your monthly payments.
23. Seek Help from Family and Friends
If you are in financial difficulty, seek help from family and friends. They may be able to lend you money or provide other forms of support.
24. Check for Payment Holidays
Check if your lender offers payment holidays. This can provide some relief if you are struggling to make your mortgage payments.
25. Check for Discounts
Check if your lender offers any discounts or special rates. This can help you reduce your monthly payments and provide some relief.
26. Consider Selling Your Property Yourself
If you need to sell your property, consider selling it yourself rather than using an estate agent. This can save you money on fees and commissions.
27. Check for Early Repayment Charges
Check your mortgage agreement for early repayment charges. If you can afford to pay off your mortgage early, this can save you money on interest.
28. Be Realistic
When seeking support and relief from your building society or mortgage lender, be realistic about what you can afford. Don’t agree to a solution that will leave you in financial difficulty in the long term.
29. Keep Communicating
Keep communicating with your lender throughout the process. Let them know if your circumstances change and keep them informed of your progress.
30. Conclusion
If you are struggling to make your mortgage payments, there are ways to get support and relief from your building society or mortgage lender. Speak to your lender, seek financial advice, and consider your options carefully. With the right approach, you can find a solution that works for you.