Help in challenging times
Before the year end, a significant amount of mortgages are due to mature and many homeowners are expected to face higher monthly repayments as the cost of borrowing has increased from record low interest rates.
This coupled with the current cost of living crisis is causing worry for many and, if this affects you, it’s important to speak to your lender to find out what support is available to you.
Talk to your lender
Talking to someone about money worries may feel daunting, but opening up about your finances is an important first step to help you regain control of them. If you feel like you’re struggling, don’t wait to contact your lender. The sooner you notify them, the quicker they can work with you to resolve any payment difficulties.
It’s also really important to keep all parties that are named on the mortgage up to date with your difficulties, including any guarantors.
Steps to consider
If you’re struggling to meet your financial commitments, you should prioritise your essential bills such as your mortgage, any loans secured against your property, utility bills, insurances, council tax and housekeeping. These bills should be paid before making any payments to credit cards or loans. We also strongly recommend avoiding short term solutions such as payday loans.
Many providers, including ourselves, have free resources such as letter templates that you can use when contacting your credit card or loan companies. They range from templates for holding letters, which can be used to ask creditors to hold off for a short period while you work out your budget and get advice, to a request to write off your debt. Visit your provider’s website or get in touch with them to find out what resources are available to you.
It’s also really important to check you’re getting all of the support you’re entitled to. You can reach out to organisations such as Citizens Advice Bureau, Stepchange Debt charity, Payplan and National Debtline for free information and advice.
