When struggling to meet mortgage or other financial obligations it can make for an unhappy and stressful life.

It’s important to maintain perspective of course and then decide what you can do to improve matters. Sometimes there will be plenty - usually your options are limited.

If you are struggling to pay your mortgage, here are a few ideas to consider;

  • Examine your budget, set priorities and cancel direct debits. It’s worth scanning your credit card charges and direct debits periodically in any event. It is amazing how many monthly charges we accumulate over time. Cable TV subscriptions, unused gym memberships and suchlike.
  • Reign-in unnecessary daily spending. This might range from expensive indulgences like shopping sprees to addressing expensive bad habits like smoking, drinking or that daily cappuccino at the coffee shop on the corner. The family holiday might have to be sacrificed or scaled-down.
  • Shop smart! In today’s internet-based world there’s really no excuse for not shopping around, especially for big ticket items like household goods, holidays, etc.
  • Reduce expensive debt. Credit card debt and unsecured personal loans are usually very expensive. Consider using some of your savings to reduce this debt. However, keeping a cash float for emergencies and monthly shortfalls is also critical. If you don’t have debt other than your mortgage then consider reducing the loan amount. You should take advice on this first.
  • Consider options for extending the mortgage term or remortgaging. Extending the mortgage term will probably increase the amount of interest you pay but it will reduce your monthly repayments. Alternatively, if you are over 55 you might consider lifetime mortgages which will defer payments until your death. Again, this is a specialist area that requires specialist advice.
  • Consider downsizing. It might seem an extreme option but if you are finding it hard to maintain your current lifestyle and mortgage repayments it’s certainly better to remain in control of your finances and retain options. Failure to keep up your mortgage repayments will eventually put your home at risk and damage your credit file, thus making remortgaging harder when you eventually consider it.
  • Look for overtime opportunities or a second job. Sometimes increasing income is the only solution. Also, make sure you are claiming all the benefits and tax credits you are entitled to. This can make quite a difference to a struggling family.

Most mortgage providers recommend constant communication with them if you are having difficulty with mortgage repayments. Some lenders will consider granting you a repayment holiday to cover short-term difficulties but this will largely depend on the lender, your personal circumstances and the loan to value ratio on your home.

Perhaps most important of all, don’t fall into the trap of not reading mail and ignoring the problem. Talk to a trusted friend or family member and take professional advice. It’s never as bad as it seems and there are always actions you can take, even if sometimes those actions are sometimes undesirable or hard to implement.

If you are having problems meeting your mortgage requirements contact Mortgage Required for an initial, no-obligation, consultation.

Download our Free First Time Buyers Guide

Recent posts

The Equity Release Council has revealed that three in five UK homeowners are interested in releasing money from their property later in life.

The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen. 

We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.

Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.

Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy

Does the time of year make a difference in house purchases? The answer is, yes and no.

The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances. 

If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.

Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.