Help With Your Mortgage Payments
If you’re struggling to pay your mortgage, there might be some support available to you. We’ve compiled a list of helpful tips and organisations to contact.
If you’re having trouble paying for your mortgage, your first step should always be to contact your lender. Many lenders have specialist support teams who can explain what options they have available.
They can discuss your options with you and can offer suggestions, including things like:
- Temporary payment arrangements
- Lengthening the term of your mortgage, or switching temporarily to interest-only repayments.
It would also be a good idea to contact a trusted Mortgage Advisor who can find out what you can afford and help you with options to pay off any debt on your mortgage.
Support for Mortgage Interest (SMI)
SMI is a loan that helps you pay for the interest on a mortgage or other eligible home improvements. If you own your home, you might be able to get help with these payments.
To check your eligibility, visit the GOV.UK SMI webpage >
Mortgage holidays
If you’re struggling to pay your mortgage, you might be able to apply for a mortgage payment holiday. This is an agreement with your lender that allows you temporarily to stop or reduce your monthly mortgage repayments. Usually, you're more likely to be accepted for a holiday if you've contributed overpayments on your mortgage, but this varies between lenders.
It's important to note that not all mortgages offer the option of a mortgage payment holiday. This depends on the terms and conditions of the mortgage.
There are positives to taking a mortgage holiday, like not having to worry about one of your largest outgoings and it can be very helpful if you've had a temporary change in income. But, it’s not suitable if you can’t afford your mortgage payments because your household income has been reduced permanently.
There are several important things to think about before applying for a mortgage holiday:
- While you’re not making mortgage payments, you’re still building interest on your remaining mortgage balance
- When the payment holiday ends, your outstanding mortgage balance and mortgage payments will be higher than they were before the holiday
- Even if your lender agrees to this temporary solution, your credit score will be affected. This could affect your ability to get credit in the future.
If you're unsure if you can take a mortgage holiday or not, contact the bank you have your mortgage agreement with or check your terms and conditions if you have them.
Overpayments
If you are able to, overpayments on your mortgage can be very beneficial in the long term. Overpayments refer to making extra payments on top of your standard monthly payment. It varies between lenders but usually, you can overpay up to 10% of the outstanding mortgage balance per year without any penalties for doing so.
Overpaying has several benefits:
- You're closer to being mortgage free
- You don't pay interest on the amount you are overpaying
- The money you'd save on interest often beats the returns possible by putting it in savings (due to low interest rates on savings accounts).
Money Saving Expert has a handy overpayment calculator if you want to know more.
Please check your mortgage terms and conditions, or contact the bank you have your mortgage with to know your limit for overpayments without incurring a fine.
Remortgaging to save money
When you first took out your mortgage, you might have signed up for a really good deal. But over time, the mortgage market changes, and new deals become available.
Remortgaging can save you money, but there are things you should be aware of to make sure you’re getting the best deal.
It's important to remember that if you’re ending your mortgage deal early (to replace it with another, better deal) there might be early repayment charges from your existing lender.
Money Helper has some great advice on changing your mortgage to cut costs >
If you want to check for mortgage deals, you might wish to use the following comparison sites:
Money Helper also have a mortgage affordability calculator to see what you could borrow.
Check if you have insurance
If you’ve lost your job or your income unexpectedly, check if your policy includes mortgage payment protection insurance. Mortgage protection insurance is a type of protection that will cover your mortgage payments if you're out of work due to an accident, sickness, or unemployment. This differs from life insurance as it would pay out when you die or if you've been diagnosed with a critical illness that's included in your policy.
Make sure you check the terms and conditions of your policy carefully to see if you’re covered.
Mortgage Rescue scheme
The Mortgage Rescue Scheme is available in Wales & Scotland for homeowners with financial difficulties who cannot pay their mortgage payments.
Wales
Some local authorities and housing associations in Wales operate mortgage rescue schemes (MRS) to help homeowners avoid repossession. Find out more on the Shelter Cymru website >
Scotland - Home Owners’ Support Fund
The Scottish Government provides some support to homeowners struggling to pay their mortgage through its Home Owners’ Support Fund.
The fund operates two schemes that homeowners could apply for. Find out more on the Scottish Government website >
Note, this scheme is no longer available in England.
Other support available
- Financial Wellness Group provides free advice and solutions for people struggling with money, debt and budgeting. Call 0161 518 8285 (Monday to Thursday 9am – 8pm, Friday 9:00am – 4:30pm).
- Citizens Advice UK have a debt helpline, call 0800 240 4420 (Monday to Friday 9am - 5pm).
Citizens Advice Debt and Money department (Wales)
Citizens Advice Debt and Money department (Scotland)
- Step Change have an online debt advice service available 24/7. Or you can call 0800 138 1111 (Monday to Friday 8am - 8pm and Saturday 8am - 4pm).
- National Debt Line has lots of advice on their website available for people in England, Wales and Scotland. They also give free and independent debt advice over the phone and online via a webchat function.
Call 0808 808 4000 (Monday to Friday 9am - 8pm and Saturday 9:30am - 1pm).
- Debt Advice Foundation offers free, confidential debt advice. They have debt calculators and other useful information on their website. Or call0800 043 40 50 (Monday to Friday 8 - 6pm).
Page last updated: November 2022.
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