Your mortgage is a serious, priority debt. If you miss mortgage payments, there is a genuine possibility that your home could be repossessed. Missing any form of debt payment is an issue in that it could affect your credit rating and make it harder to get access to affordable lending in the future, but your mortgage payments are some of the most serious ones, because the mortgage is secured on your home, and the lender can get a court order to take your property back from you if you fall behind on the payments. The good news is that there are things you can do to avoid losing your property, or to help yourself land on your feet – and have a roof over your head – if you do need to move out.
What To Do If You’ve Missed Your Mortgage Repayments
Firstly, don’t ignore the problem. If you silently fall behind on your payments, and don’t communicate with the lender, they will be more likely to simply go to court and you will be at great risk of losing your home.
- Call the lender and explain the situation to them.
- Write to the lender as well so that you know that there’s a record of what’s going on. Explain why you are behind on your payments, and that you are getting advice to get back up to date
- Even if you can’t clear the arrears right now, pay as much as you can as a gesture of good of will
- Speak to an adviser to get help with resolving the situation.
- Cut out as much discretionary spending as you can and put as much money as you can to the arrears
- If you are ill or you have been made redundant, see if your payment protection policy will help to cover payments.
- If your income has been reduced, you might be able to change the terms of the mortgage or pay it back over a longer period. It’s easier to do this when you aren’t in arrears, but as long as you have not had possession proceedings started yet, you will probably find that the lender is willing to help.
- If court proceedings have already started, then the situation is more serious, and if you want to remain in your home then you have fewer options. One possibility is selling your property to a landlord, then living in it as a tenant.
What Principal Homebuyers Can Do to Help
If you are facing repossession, and the lender wants to take you to court, then that is where Principal Homebuyers can help you. If you allow the lender to go to court and get an order for the repossession of your home, then you give all the power to them. They have no incentive to get a fast sale, and while they will want to get a decent price for the property, they aren’t going to be acting with your interests at heart. If the lender sells the property for less than it’s worth, or you are already in negative equity anyway, then you could end up with a substantial amount of debt at the Principal Homebuyers may be able to buy your property and offer you a better deal on it, giving you a chance to clear your debts. We have a network of landlords up and down the country that are interested in buying properties on a buy-to- let basis, and we will work to find one that will buy your property and then rent it back to you.
If you have been living in your home for a long time and are not in negative equity, then after the sale of the property you may have some money left over that you can use to clear other debts and get your finances back on track.
Note, however, that if you do follow this option and choose to become a tenant in a property that you once owned, you may find that it is harder for you to claim housing benefit. However, if you are confident that even on your reduced income you would be able to make rent payments, then you may want to opt for a sale. It is a good idea to seek professional advice before making any decisions.
Principal Homebuyers Take Pride in Being:
- Discrete – your neighbours will not know that you are selling the property unless you tell them. There will be no overt advertising in the local area, and there will be no ‘For Sale’ signs going up in front of the house.
- Impartial – Principal Homebuyers are not linked to any lenders, builders or estate agents. This means that we can work more quickly, and that we are just interested in getting the best deal for everyone involved.
- Prompt – The due diligence work that we carry out before making an offer does take time, but we take pride in working quickly to ensure that whenever possible we can support customers who are under serious time pressure because they are facing eviction, emigrating, or are a part of a broken chain.
We can typically offer payments of between 75 percent and 90 percent of the open market value of a property, and the price we offer is the price we pay. We do not charge anything up-front for our services, nor do we charge the homeowner for the legal fees, surveyor’s fees or any other costs associated with the sale. You are under no obligation to accept the offer we make, but if you do accept the offer any costs associated with the sale were already taken into account before the offer
Falling behind on your mortgage payments can be stressful, but help is available. If you act quickly and communicate with your lender from before that first missed payment, then you may be able to get on track, but even if things do make it to the court proceedings stage, you still have options and Principal Homebuyers are here to help.