What Can I Do If I Fall into Mortgage Arrears?
As interest rates rise, more and more people are falling behind on their mortgage. Once behind it can be difficult to catch up and get back on track. With the Financial Conduct Authority warning that 750,000 households in the UK are at risk of defaulting on their mortgage at some point in the next two years, more and more people are facing difficult choices. This guide looks will cover what you can do if you fall into mortgage arrears.
What are mortgage arrears?
Mortgage arrears occur when you have missed one or more payments on your mortgage. Thus, if you have outstanding mortgage repayments, you are in arrears. This can happen for a variety of reasons, such as a change in your financial circumstances or a change in your mortgage terms.
What can I do if I fall into mortgage arrears?
The first thing you should do if you fall into mortgage arrears is contact your lender. The quicker you do this the better. Your lender should be keen to help you and they can talk you through a plan. Remember, lenders have an obligation to their customers to discuss potential solutions to falling behind on payments. They must tell you how much you own and give you a fair time to make repayments. It is also worth seeking advice from a housing charity. Finally, you may have to consider cutting costs in other parts of your life in order to allow you to make your mortgage payments.
How many months mortgage arrears before repossession?
The number of months you need to be in arrears before a lender will move to repossess can vary. Lenders will not generally begin repossession proceedings until you have been in arrears for at least three months. Although some lenders may take action sooner if they feel that the situation is serious. Being communicative with your lenders about any problems in making mortgage repayments from the start gives you the best chance of prolonging the period of time before the lender seeks repossession.
Can I sell my house with mortgage arrears?
Yes, you can sell your house with mortgage arrears providing that the sale price exceeds the outstanding balance of the mortgage and your arrears. You should notify your lender of your intention to sell your house with mortgage arrears and work with them to ensure that the proceeds of the sale are used to pay off the arrears.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to pay back the debt you owe over a period of time. During this time, you make monthly payments to your creditors. This payment will be based on what you can afford to pay. An IVA must be approved by the court and creditors are obligated to abide by it. Once you have an IVA your lender should stop charging interest on your debt.
Can I sell my house when I have IVA?
Yes, you can sell your house when you have an IVA. However, you will need to get permission from your creditors before you can do so. You will also need to make sure that the proceeds from the sale are used to pay off your creditors. It is important to speak to a qualified financial advisor before making any decisions.
Does Gaffsy buy houses in mortgage arrears or houses covered by an IVA?
Yes, Gaffsy buys houses in mortgage arrears and houses covered by an IVA. We can purchase your property quickly and for cash, allowing you to pay off your arrears and move on with your life. We can work with your lender to ensure the mortgage is paid off and any arrears are covered. So get in touch today for a free no obligation cash offer for your property.
As interest rates rise, more and more people are falling behind on their mortgage. Once behind it can be difficult to catch up and get back on track. With the Financial Conduct Authority warning that 750,000 households in the UK are at risk of defaulting on their mortgage at some point in the next two years, more and more people are facing difficult choices. This guide looks will cover what you can do if you fall into mortgage arrears.
What is a CCJ?
A County Court Judgment (CCJ) is a court order that is issued when a creditor takes legal action against you for an unpaid debt. The CCJ will state how much you owe and when you must pay it. If you do not pay the debt, the creditor can take further action and often repossess your property.
Why should I avoid getting a CCJ?
You should avoid getting a CCJ because it can have a negative impact on your credit score. This can make it more difficult to get credit in the future, as lenders may view you as a higher risk. A CCJ can also stay on your credit record for up to six years,
Can I sell my house to avoid a CCJ going on my credit record?
Yes, you can sell your house to avoid a CCJ going on your credit record. However, you will need to make sure that the proceeds from the sale are used to pay off your creditors. It is important to speak to a qualified financial advisor before making any decisions. From a CCJ being issued you have 30 days to repay the debt before it goes onto your credit record.
Can Gaffsy help?
Yes, Gaffsy can step in and buy your property quickly before the CCJ comes into effect. As genuine cash house buyers we are one of the few companies that can step in and purchase your property well within the 30 days necessary to stop the CCJ, in fact we can buy your house in as little as 7 days. So, get in touch for a free no obligation cash offer today.
