Arrears

wicooke02

Hello,


So I already have a mortgage with Nationwide and I am in arrears of £1500 which I know seems small. However I can only afford to pay off £25 pcm at a stretch. They have now asked my to do an affordability form again. I am worried that they will think that I cannot pay off the remainder of the mortgage/arrears and take the house from me, which at the moment is the only good thing I have going.


Does anyone have any pointers about the consequences/bad outcomes of these?


Any help would be very much appreciated, thank you!

[Deleted User]

Be honest in your figures.

wicooke02

My figures will be honest!


Basically the house with the mortgage I am having tenants evicted from, I live in a rental property. To solve the issue I will be moving into my actual house once the tenants are evicted. Will they take this into account? Or do you think they will try to force a sale?


If I move back into my own property I will be able cover the mortgage and bills etc. but only by roughly £50.

[Deleted User]

wicooke02 wrote: »

Or do you think they will try to force a sale?

Lenders aren't falling over themselves to repossess houses.

Certainly not for £1500.

Thrugelmir

Be frank, honest and pragmatic. The last thing the lender wishes to do is to reposess the property if they possibly again. Cut something out of your budget and find another £10.

If you are struggling financially how will you cope with higher interest rates in the future?

Is selling up an option, in order to resolve your financial issues.

obay

What is your monthly mortgage payment amount? What is the interest rate, how long is it fixed?

How long left on the mortgage term
How long left until fix is over (if any).

silvercar

Most likely they are looking to see if you can afford more, in order to clear the arrears quicker.

ACG

Even if they do decide to repossess, they still have to go to court and get an eviction order. That can take months, at which point you could have made a lump sum payment towards the arrears anyway.

£1500 is not a massive amount of arrears.

baggybreeches

I was in a heck of a mess with mortgage arrears a few years ago. My mortgage provider (BoS) made me see a mediator who went through my finances with me and that was honestly the biggest relief ever. He told me who was a priority who I should pay first, who to pay a token amount to and how to write to them. At the time his advice was that you can't be repossessed for non payment of arrears if you are paying the contractual monthly payment. Make sure your income and expenditure are accurate and offer the mortgage company whatever you feel comfortable with of any surplus (if you say that is only £50 then offer them £10 per month). Set up the arrangement for 6 months at a time and if anything changes in your finances then let them know asap and if you can make overpayments do it.
Keep talking to them.