Mortgage arrears query

Hi everyone 

In November 2021 I missed a mortgage payment. It was the only missed payment and have made all payments since. I won’t go into huge detail about the reasons as I have posted lots on the debt free wannabe forum and I have been putting plans in place for debts and ensuring I meet my mortgage and will always prioritise this moving forward.

barclays have since been notifying me every month by letter, text, email that I am in arrears. They want me to set up a repayment plan to clear the 1 months arrears or to pay it off in full- but even the repayment arrangement they want it over 4-5 months so it’s an extra £100 a month which is a lot considering we’re trying to reduce debts atm. 

What are the implications if I simply do nothing? Obviously if anything serious could happen then I’ll do whatever I can to pay it asap. A concern is will it affect my ability to switch products online in November when my current fix finishes. I won’t be looking to move lenders or remortgage as my credit file is shot at the moment but I want to ensure I can enter into a new fixed deal. 

Do I really need to clear this at £100 a month or will they just simply add it on to the mortgage balance if I don’t? 

Thanks 😊

Comments

  • enthusiasticsaver
    enthusiasticsaver Posts: 15,447
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    They won’t add it on to your mortgage and it will show persistently in arrears if you don’t clear them. That will affect your credit record. Can’t you contact them and tell them you cannot afford £100 per month and ask for an affordable plan? You should be prioritising your mortgage over other debts. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • Newmum92
    Newmum92 Posts: 108
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    They won’t add it on to your mortgage and it will show persistently in arrears if you don’t clear them. That will affect your credit record. Can’t you contact them and tell them you cannot afford £100 per month and ask for an affordable plan? You should be prioritising your mortgage over other debts. 
    Thank you, Jesus I wish I hadn’t buried my head in the sand for so long. I didn’t realise it would be persistent arrears I assumed it would just be a missed payment on the credit file and that was that, if only I’d checked this out sooner! 

    I have contacted Barclays and have set up a repayment arrangement and will also focus on getting this paid off quicker as well. Thanks for the help 
  • EssexHebridean
    EssexHebridean Posts: 21,202
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    What does your file with the relevant credit reference agency show on this? That should tell you how it's being reported. 

    Good plan to prioritise trying to pay the arrears down ahead of the payment plan if you can - this is definitely one you don't want lingering. 
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  • Newmum92
    Newmum92 Posts: 108
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    edited 30 March 2022 at 11:31AM
    What does your file with the relevant credit reference agency show on this? That should tell you how it's being reported. 

    Good plan to prioritise trying to pay the arrears down ahead of the payment plan if you can - this is definitely one you don't want lingering. 
    Hi, strangely the payments are all up to date on my credit file and no arrears are showing. Essentially I changed my direct debit date in December 2021 and was wrongly told that my next payment would go out in January 2022, but actually they still tried to take the direct debit in December and it bounced. I then spent about 3/4 hours trying to resolve things on the phone and gave up because I found it so stressful. But since then they keep reminding me each month that I am 1 payment in arrears. It seems to clear when I make my direct debit but then at the beginning of each month my account flags it again and the texts / emails come through to say I need to pay it. 

    Completely agree with you- don’t want to AP marker lingering especially as I’m trying to default quickly on my non priority debts ahead of starting my DMP. Also I am anxious that a repayment arrangement will affect my ability to switch fixed deals online?

    thank you x
  • swampduck
    swampduck Posts: 962
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    edited 31 March 2022 at 10:13AM
    It's worth mentioning to the Mortgage company that their repayment plan is beyond what you can afford and offer what you can realistically pay and then if you have an extra tenner to throw at the balance later in the month - then do so - as and when you can. But irrespective of that just start paying something rather than hope it will go away and it will chip away at the balance.

    Ultimately, even though you are trying to clear other debts - your mortgage should take priority so perhaps you could let them know that you will need to pay them less while you get back on track with the mortgage.

    It is horrible when you are being squeezed like this - so I hope it gets easier soon.
    Expect the worst, hope for the best, and take what comes!!:o
  • Newmum92
    Newmum92 Posts: 108
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    swampduck said:
    It's worth mentioning to the Mortgage company that their repayment plan is beyond you can afford and offer what you can realistically pay and then if you have an extra tenner to throw at the balance later in the month - then do so - as and when you can. But irrespective of that just start paying something rather than hope it will go away and it will chip away at the balance.

    Ultimately, even though you are trying to clear other debts - your mortgage should take priority so perhaps you could let them know that you will need to pay them less while you get back on track with the mortgage.

    It is horrible when you are being squeezed like this - so I hope it gets easier soon.
    Thank you very much, I hope so too. I spoke to them today and after going through my I&E have agreed to pay £66 a month and then I’m going to chuck any extra money I get towards it as well. At least I’ve spoken to them now and got things sorted. 
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,447
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    Well done on getting it sorted. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • london21
    london21 Posts: 2,089
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    Newmum92 said:
    swampduck said:
    It's worth mentioning to the Mortgage company that their repayment plan is beyond you can afford and offer what you can realistically pay and then if you have an extra tenner to throw at the balance later in the month - then do so - as and when you can. But irrespective of that just start paying something rather than hope it will go away and it will chip away at the balance.

    Ultimately, even though you are trying to clear other debts - your mortgage should take priority so perhaps you could let them know that you will need to pay them less while you get back on track with the mortgage.

    It is horrible when you are being squeezed like this - so I hope it gets easier soon.
    Thank you very much, I hope so too. I spoke to them today and after going through my I&E have agreed to pay £66 a month and then I’m going to chuck any extra money I get towards it as well. At least I’ve spoken to them now and got things sorted. 
    Best way forward.

    More peace of mind also. 
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