Mortgage arrears: the 6 options your lender won't tell you about

Falling behind on your mortgage is terrifying. But repossession is a lengthy legal process, and you have many options before it reaches that point.

Your lender MUST help you first

Under FCA rules, your mortgage lender must treat you fairly and explore all options before seeking repossession. This is not optional — it's a legal requirement.

6 options to discuss with your lender

1. Payment holiday

A temporary break from payments (usually 1-3 months). Interest still accrues, but it gives you breathing space.

2. Reduced payments

Pay less than your normal amount for an agreed period. Often combined with an extended mortgage term.

3. Extended mortgage term

Spread your remaining mortgage over a longer period to reduce monthly payments. A 20-year mortgage extended to 25 years could reduce payments significantly.

4. Switch to interest-only

Temporarily pay only the interest portion. This significantly reduces your monthly payment but doesn't reduce the capital.

5. Capitalise arrears

Add the arrears to your total mortgage balance and spread them over the remaining term. This clears the arrears and returns you to normal payments.

6. Assisted voluntary sale

If you genuinely can't afford the property, selling it yourself gets a better price than a repossession sale. Your lender may agree to give you time.

The repossession process

Your lender cannot simply take your home. They must:

1. Write to you about the arrears

2. Explore all alternatives with you

3. Apply to the court for a possession order

4. Get a possession hearing (where you can make your case)

5. Get a bailiff warrant if you don't leave

This process takes **6-12 months minimum**. You have time to act.

Free specialist help

Contact your lender today. The sooner you engage, the more options you have.