Mortgage Arrears

This section provides information on how best to cope with mortgage arrears.

Do:

Keep your lender informed at all times. You should tell your lender as soon as you start to get into difficulties making payments. If you are honest about your financial situation your lender is more likely to be flexible and you are less likely to lose your home.

Continue to make payments, even if you cannot afford the full amount. This shows the mortgage lender that you are doing everything you can to help the situation, and will also mean that you have less to pay back in the long term.

Don't:

Take out a loan to pay your debts. These loans can be very expensive and are often also secured against your home, putting it at greater risk. Do not take out a further loan without first talking to an independent advice agency from the list on page 6.

Hand back the keys. You will still be responsible for paying the mortgage until the house is sold. If the house sells for less than you owe, you will still be responsible for repaying the remainder for up to six years after the sale.

Sell your home and rent it back. These schemes may also be called ‘mortgage rescue’, ‘rent-back’, or ‘sell to let’ schemes. These schemes are not regulated. You may be evicted from your home if you fall behind with rental payments. Also, most firms offering these schemes will pay you less than the market value of your property.

For more information please download the leaflets below or contact any of the agencies listed below.

Contact

Housing Aid Centre
Islington Council
38 Devonia Road
London N1 8UY
Tel: 020 7527 2000
Fax: 020 7527 6307
Email: advice.housing@islington.gov.uk

Shelter
Tel: 0808 800 4444

Advice UK
Twelfth Floor
New London Bridge House
2 London Bridge Street
London SE1 SG
Tel: 020 7407 4070

Citizens Advice
Myddleton House
11–12 Pentonville Road
London N1 LZ
Tel: 020 7833 2181

Community Legal Service
To find a solicitor use the link on the right to visit the CLS directory
To get free initial advice call the helpline on 0845 3454 4345

Council of Mortgage Lenders
Savile Row
London W1S PB
Tel: 020 7437 0075

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Tel: 020 7066 1000
Consumer Helpline 0845 606 1234

HM Revenue and Customs
Local advice offices in many major towns, and advice available regionally by post and telephone see website (link on the right) for details.

Islington Law Centre
Provides free legal advice and assistance
161 Hornsey Road
London N7 6DU
Tel: 0207 607 2461

Law Centres Federation
Duchess House
18–19 Warren Street
London W1T LR
020 7387 8570

Mary Ward Legal Centre
Gives free advice and representation
26-27 Boswell Street
Tel:  020 7831 7079

National Debtline
Provides a free, confidential and independent telephone advice service
Tel: 0808 808 4000 (freephone)

Office of Fair Trading
The OFT is unable to advise individuals but has a lot of useful information, (including about bank charges), on its website (link on the right).