Mortgage Difficulties

Mortgage Difficulties

•          Unemployment
•          Illness
•          An increase in mortgage rates
•          Family breakdown/Separation
•          The arrival of a new baby
•          The loss of overtime - and several others.

YOU SHOULD:

• Contact your lender (building society, bank, mortgage company), explain your situation and discuss alternative arrangements. This could be making reduced payments for a short period, re-organising your debt by lengthening the repayment time or by re-mortgaging using part of your equity. Listen to what the lender says and pick the one that suits you.

• Contact your local Citizens Advice Bureau or Chesterfield Law Centre and ask if they can give you financial advice. They can provide FREE, CONFIDENTIAL advice. If you use financial advisors which are advertised on TV they will charge you, that is the way they make money….and pay for the adverts.

• When you contact the Citizens Advice Bureau (CAB) or Chesterfield Law Centre they will ask you to list your monthly income and expenditure. You will need to decide which items you do not need to buy and which you can buy less frequently.  The CAB has advice and information on-line including a debt self help pack at www.ned-cab.org.uk

• If you have multiple debts do not just pay the one who shouts the loudest. You will need to consider amongst other things, which debts are secured against your property and which are not.

REMEMBER:

• After being repossessed your ex-home will probably be sold at auction for less than it is worth and there will be nothing you can do. You could lose thousands of pounds.
• Any court costs in repossessing your ex-home will have to be paid by you. You could pay hundreds of pounds.
• You will have to pay to remove your furniture and you may need to pay for storage. You could pay hundreds of pounds.
• When you find somewhere new to live you will probably have to re-decorate, and pay for new carpets and curtains. You may also need to pay for services to be re-connected. You could pay hundreds of pounds
• If you have been repossessed you may not be able to raise another mortgage, and may have to rent privately. You could then be paying rent which may be less than your mortgage, but will increase over time; and you will not own the property.   

YOU SHOULD ALSO CONSIDER

• Losing your home can result in having to move away from work, from schools and from family and friends.
• Losing your home can affect your health and your children's.

•       NE Derbyshire Citizens Advice Bureau  (See details below)

•       Chesterfield Law Centre  (See details below)

•       Housing Options Team  (See details below)

REMEMBER, MORTGAGE PROBLEMS DO NOT JUST GO AWAY; ACT QUICKLY AND PREVENT LOSING YOUR HOME.