If you’re worried about your mortgage payments, lenders can help with a payment plan to get you back on your feet. In the first three months of this year, only 750 homes and 410 buy-to-let properties were repossessed*. If you are finding it hard to keep up with costs, the best thing to do is communicate with your lender early.
In tough economic conditions, existing borrowers are finding new ways to mitigate higher bills. Examples include extending the term of their mortgage. This can reduce the burden now but will ultimately result in more being paid back in total.
The jobs market has remained resilient. Lenders say the most common reasons for people falling behind on mortgage payments generally involve life-changing events such as a job loss or serious illness, highlighting the importance of protection policies such as income protection or critical illness cover.
*UK Finance, 2023
21 November, 2023