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Community Money Advice . Finance Blog

Missing a Mortgage Payment

Since a mortgage is a loan that is secured on your home, it’s really important that you keep up with your payments. The easiest way to ensure that you payment is made on time each month is to set up a bank direct debit or standing order from your bank. In fact many mortgage lenders insist on this as part of the agreement when they set up the loan. However, it’s always possible that the borrower can cancel the direct debit or standard order or simply not have enough funds in the account so that the payment effectively doesn’t get made.

If for any reason you miss a payment, it is wise to contact your mortgage lender  immediately to tell them why. It could simply be a matter that you have changed banks and that one months payment has been missed accidentally. If you miss a payment you may find that your lender makes a one off charge for this. You will need to check your mortgage agreement.

If you find that you are in financial difficulties and that you are unable to meet your monthly payments then it is much better to contact your mortgage lender immediately to talk through the problem with them. Your home is at risk if you don’t keep up the payments that are due, but you will find that most lenders are sympathetic and will try to help you to reschedule. It’s in their best interests to help you over a sticky patch so that you remain a long term customer.

The worst possible thing to do if you are struggling to make payments is to do nothing! The problem won’t go away if you try to ignore it! Worse still it will be nagging away at the back of your mind. The best thing is to confront the problem head on and know that at least you’re doing something about it. As well as approaching your mortgage lender, you should take a radical look at your expenditure and see if there are non-essential expenses that you can cut out. For many people a few less evenings out, more home cooking instead of takeaways and resisting that impulse buy in the shops can all add up to a difference.

If when you see your mortgage lenders they can see that you are attempting to get your spending under control and are tasking responsibility, this will be a good sign to them that with their help you can get through this tricky patch.