If you are having difficulties paying your mortgage, here are some options:
You should contact your lender to discuss your situation and explore all the lender options. A lender can:
- Reduce your monthly payments for a certain period
- Cut the cost of being in arrears with your mortgage
- Extend the length of the loan
- Spread the payment of the total amount owed
- Offer a better loan rate
- Allow you time to sell your home (if that is your preference).
Mortgage lenders should only repossess your property as a last resort. Lenders should discuss and agree alternative arrangements to repossession and, if a case reaches court, they have to give details of what help and support they have offered.
Support for Mortgage Interest (SMI)
Support for Mortgage Interest can help if you:
- are in paid work for less than 16 hours a week or your partner is in paid work for less than 24 hours a week
- have a mortgage or other loans which are secured on your property
- qualify or are receiving any of the following benefits:
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance, or
- Pension Credit.
SMI contributes to the interest on eligible loans. Payments are calculated using the Bank of England average mortgage rate and are subject to change.
If you're making a new claim and are of working age:
- SMI can be paid on loans up to £200,000
- SMI is usually paid after 13 weeks.
If you receive Pension Credit:
- SMI can be paid on loans up to £100,000
- you can get help with your mortgage straight away.
If you are on benefits and are having difficulties paying your mortgage, for more information please contact:
- your local Jobcentre or visit the Jobcentre Plus website