Mortgages are
priority debts - this means your mortgage should be the first
bill you pay every month.
If you are having difficulty paying your mortgage, and you think
that your mortgage provider may evict you, it’s important that
you talk to them as soon as you start getting into arrears. The
earlier you speak to them the more chance you have of avoiding
losing your home.
Many mortgage providers have options to help you avoid
repossession. They can reduce your payments for a set period, move
you to an interest only mortgage or give you a payment holiday.
If you have lost your job or you are too ill to work, check
whether you have got mortgage protection insurance - this may cover
your mortgage payments.
It is also worth finding out whether you are entitled to
benefits such as working tax credit, child tax credit or council
tax benefit.
Get independent advice
You can get free independent advice about managing your debts
from a number of organisations. These organisations can deal with
the people you owe money to as well as your mortgage provider. They
will also help you with budgeting.
You can get advice from:
If you have had advice but are still at risk of repossession,
there is further help available:
Homeowner mortgage support scheme
This is for people who have experienced a temporary fall in
income. The scheme allows lenders to reduce the monthly mortgage
payments, with the deferred payments being paid at a later date
when your financial circumstances have improved.
The scheme is voluntary and subject to eligibility criteria. You
should contact your mortgage company and ask whether they are
providing this scheme.
If you took your mortgage out after 31 October 2004
The Financial Services Authority regulates most mortgages taken
out after this date. Under their rules, lenders must treat you
fairly and send you regular statements to keep you informed about
your current arrears position. There are also rules covering what
the mortgage company must do if they intend to repossess your
home.
Mortgage Rescue Scheme
Due to a reduction in funding, West Lancashire Borough Council
is no longer able to offer this scheme.
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