Help we are in arrears with our mortgage

blockhead4ever

We are behind with our payment have always kept in contact with mortgage company, for the last few months we have been paying more than our monthly fee to try and pay some of it off. We have filed in a budget income and expenditure form and they are quering a loan of £345 that my husband had he needed this to get his operators licence as he is a self employed mni bus owner / driver they want us to try and see if we can get this lowered, I have no problem in contacting them and asking. We are keeping up with council tax and utilities bills.

Should we be contacting the utility companies to see if we can pay them less and pay of the mortgage to get it up to date or continue as we are.

We are hoping to sort out an agreement with the mortgage company but I get the impresion they want us to have no extra money left over at the end of the month even a few hundered and pay it all to them

Beast

Please tell me you're not paying off unsecured loans on time whilst defaulting on your mortgage?

blockhead4ever

I dont know if it is secured or unsecured to be honest does it make a difference?

_Andy_

How can you not know?

InMyDreams

blockhead4ever wrote: »

I dont know if it is secured or unsecured to be honest does it make a difference?

Yes, it makes the world of difference. If you default on your mortgage (or any other secured loan) you risk losing your home. If you default on anything else you don't. What's worse... being repossessed or having your phone disconnected / electricity cut / whatever... ?

Annisele

You might be better off popping over to the Debt Free Wannabee board - some very helpful peeps over there.

In general it's a very bad idea to pay unsecured loans whilst defaulting on secure loans. Direct.gov gives some very brief information, but I think you should have a look at the stickies on the other board for places you can go for advice, and post there if you need more help.

blockhead4ever

The loan is unsecured and we havent defualted on the mortgage since March 2009. There are reason why which i wont go into on here.

We have been paying more than our actuall mortgage for the last 8 months , we only didnt pay the full amount for 4 months. But we advised them and paid half of what we should

LisaMarie1982

If they require you to fill out budget calculators etc, and this is a secured loan against your home, I would negotiate with the utilities bills and unsecured loans to free up some cash for your mortgage arrears. If you haven't defaulted since last year and are paying extra now, hopefully you aren't far off paying back the arrears, it makes sense to clear this as quickly as possible before worrying about the unsecured ones.
Contact the utility companies and the loan company and explain the situation. They should be flexible about repayments - after all, they'd rather get something than nothing, and should be reassured that once you've cleared your mortgage arrears and payments reduce to normal, you'll be able to increase the repayments again.

Radiantsoul

Do you have a long term problem or is this just a short term issue? This will make a difference to your exit strategy.
As said above no mortgage company is going to be happy to see you preferring unsecured creditors. If it is a bridging type issue I would even default on the council tax, it might take them a few months to notice.

blockhead4ever

it was a short term thing and everything is sorted out now. I had not thought about not Paying the council tax wouldnt they ask for it all in one go then. we dont like not payingand have never not paid anything. Hopefully the mortgage company will come back with an agreed figure

Ankatden

blockhead4ever wrote: »

it was a short term thing and everything is sorted out now. I had not thought about not Paying the council tax wouldnt they ask for it all in one go then. we dont like not payingand have never not paid anything. Hopefully the mortgage company will come back with an agreed figure

Oh council will ask for it but they want the money eventually and tend to be ok if they realise they will get it.