Stockton-on-Tees Borough Council

Do you need advice about mortgage payment problems?

If you are a homeowner and struggling with financial difficulties you could benefit from a free service provided by the Council.  Whether you have experienced a change in circumstances, such a redundancy or relationship breakdown, or an increase in your mortgage payments you do not have to go through it alone.

There is a Specialist Homeowner Officer at the Housing Options service who can provide information and guidance to all homeowners, regardless of income.  Examples of assistance that can be given are:

• Maximising income and reducing outgoing costs
• Assessing options regarding short / long term affordability of the mortgage
• Negotiating with lenders
• Advising regarding court procedures and providing representation where applicable

You can be seen at any stage of your problems, whether you are not yet in arrears but are anticipating difficulties making your next payment or have received notification of a court hearing and you do not know what your options are.

Don't delay

If you fall behind on your payments or receive a letter or phone call from your mortgage lender, never ignore it. It is important to act quickly, as the earlier you deal with it, the more options you will have. You should seek advice on the issue as soon as possible. You can contact Housing Options for advice or an advice agency such as Citizens Advice Bureau (Stockton District Advice & Information Service) or Shelter.

Sort our your debts

If you are struggling to pay your mortgage, you need to look at what you are spending your money on. You will need to look at ways of reducing your outgoings and ensure that you are receiving all the money you are entitled to. A debt advisor will be able to help you prioritise your debts. It is important to take all relevant information relating to your income and your outgoings when you see an advisor.

Talk to your mortgage lender

It is important to talk to your mortgage lender immediately if you are having problems paying your mortgage. A lender is more likely to start legal action to repossess your home if they don't hear from you and don't know why you are not paying. You should come up with a payment plan to repay the arrears and present this to your mortgage company. It is important to continue to make payments you can afford to show that you are willing to pay. It is essential to pay as much and you can afford to stop your arrears from rising too quickly, but don't commit yourself to a repayment plan that you won't be able to stick to. Speak to your lender about available options to prevent you from losing your home, for example:

• increase the term of your mortgage
• make reduced payments in the short term
• add the debt to the mortgage
• take a 'payment holiday'
• switch to a different mortgage

The best solution will depend on your circumstances and the type of mortgage you have.

Court

You can only be evicted if the court makes an order telling you to leave. When the lender applies to court for possession, the court will write to you to tell you when the hearing will be. Before the hearing, it is very important to get advice. Some courts may have advisors on duty on the day of the hearing, but this can not be guaranteed. It is essential that you attend court so that you can explain your situation to the judge. It may be possible to stop the proceedings at any stage, therefore it is important to seek advice urgently.

For more advice on mortgage arrears or repossession, you can contact:

• Housing Options
• Stockton District Advice & Information Service
• Shelter

Web Links

Stockton Council is not responsible for the content of external websites.

• National Homelessness Advice Service
• Shelter UK
• Citizens Advice - Stockton & District Advice & Information Service Bureau