Money, Debt and Benefits Help Centre | Mortgage Arrears Explained

Mortgage Arrears Explained

Mortgage arrears occur when you fall behind with your mortgage payments.

If you miss one or more mortgage payments, it is important to act quickly. Mortgage arrears are considered a priority debt because failing to address them could put your home at risk.

The sooner you seek help, the more options are likely to be available.

What Are Mortgage Arrears?

Mortgage arrears occur when you do not pay all or part of your monthly mortgage payment by the due date.

Arrears can build up if:

Your income has reduced.
Household bills have increased.
You have experienced illness or unemployment.
You have unexpected expenses.
Your mortgage payments have increased.

Even a small arrears balance should be addressed as soon as possible.

What Happens If I Miss A Mortgage Payment?

If you miss a mortgage payment, your lender will usually contact you to discuss the situation.

They may:

Write to you about the missed payment.
Contact you by phone.
Ask about your financial circumstances.
Discuss options to help you get back on track.

Ignoring correspondence can make the situation more difficult, so it is important to respond to your lender.

What Should I Do If I Can't Afford My Mortgage?

1. Contact Your Mortgage Lender

Speak to your lender as soon as possible if you are struggling.

They may be able to discuss options such as:

Temporary payment arrangements.
Reduced payments.
Extending the mortgage term.
Other support measures depending on your circumstances.

2. Review Your Budget

A household budget can help you understand:

Your income.
Essential living costs.
Other debts.
What you can realistically afford.

3. Check Your Benefit Entitlement

You may be entitled to financial support that could improve your situation.

Depending on your circumstances, support may be available through:

Universal Credit.
Pension Credit.
Personal Independence Payment (PIP).
Other benefits and grants.

4. Seek Advice Early

Getting advice early can help you explore your options and prevent arrears from increasing.

Can My Home Be Repossessed?

Mortgage lenders cannot usually repossess your home without following the proper legal process.

Repossession is generally considered a last resort, and lenders will often expect borrowers to engage with them and discuss the situation before legal action is considered.

If court action begins, it is important to seek advice immediately.

What If I Receive A Letter From My Lender?

Do not ignore correspondence from your lender.

Read all letters carefully and:

Respond promptly.
Keep copies of all communication.
Make a note of any agreements reached.
Seek advice if you are unsure what the letter means.

The earlier you respond, the more options may be available.

What If Court Action Has Started?

If your lender starts court proceedings:

Do not ignore the paperwork.
Read the documents carefully.
Attend any court hearings.
Seek advice as soon as possible.

Even if court action has started, support and options may still be available.

Can I Get Help With Mortgage Payments?

Depending on your circumstances, you may be eligible for support.

Help could include:

Universal Credit housing support in certain circumstances.
Support for Mortgage Interest (SMI).
Benefits and additional financial support.
Debt advice and budgeting support.

An advisor can help you understand what assistance may be available.

How Can I Prevent Mortgage Arrears From Getting Worse?

You may be able to improve the situation by:

✅ Contacting your lender early
✅ Prioritising mortgage payments where possible
✅ Reviewing your household budget
✅ Checking your benefit entitlement
✅ Seeking advice as soon as difficulties arise
✅ Keeping lenders informed about changes in circumstances

Common Myths About Mortgage Arrears

"Missing One Payment Means I'll Lose My Home"

Missing a payment is serious, but lenders usually follow a process before considering legal action.

"There's No Point Speaking To My Lender"

Many lenders have support options available and may be able to help if you contact them early.

"I Should Ignore The Letters Until I Can Pay"

Ignoring correspondence can make the situation worse and reduce the options available.

"Help Isn't Available For Homeowners"

Depending on your circumstances, there may be financial support and advice available.

Need Help?

Our advisors can help you:

Understand your mortgage arrears.
Create a realistic household budget.
Check your benefit entitlement.
Explore available support and options.
Access free, confidential debt and money advice.

Contact our team for free, confidential advice and support.

Was this article helpful?

0 out of 0 liked this article

Still need help? Message Us