Talking to the bank about mortgage

bramble_psie

I posted under another thread but told here might be better.   A change in circumstance and income means mortgage payments are difficult to afford and we’ve burnt through savings.  We’ve a renegotiation coming up so with higher interest rates we are worried what the total monthly amount will be as it’s already too much for us. What will the bank say to me if I ask for lower payments.  What should I expect the banks to say or what options might they show us and how can we prepare for a meeting with them. 
no other debts.  

bramble_psie

Please help as I don't know where to start or what to expect.  I have had a change in circumstances and my wife and I have less income than we used to.  We have tried really hard to keep paying the mortgage and have used up a lot of our savings.   If we go to the bank, what will they tell us, what should we expect them to say and how do we prepare.  We know our outgoings and have looked at obvious ways to cut down expenditure.  We are scared the house will be lost.  Any advice on what the banks will tell us.  Mortgage is with a high street bank, we are on a fixed and its soon up for renewal, but can't afford it at the moment, and expect the interest will be higher.   What should my first steps be?

MWT

Many others have been exactly where you are right now, so you are not alone.

I would suggest that you'll get the best help over on a different forum:

https://forums.moneysavingexpert.com/categories/debt-free-wannabe

The people there will help you through the journey without judgement.

sammyjammy

Your mortgage, along with council tax should be the first things you pay.  Next is to feed and clothe and keep your kids warm if you have any.  Its not that simple but those should be your priorities, anything else  can be temporarily safely  remain unpaid.  Do you have unsecured debt as well?  

Mark_d

A number of years ago I was made redundant.  My mortgage lender wanted proof that I was made redundant and that I'd signed-up with the jobcentre, but then it was very straightforward to change my mortgage to interest-only, thereby reducing my monthly payment.

Hoenir

bramble_psie said:

If we go to the bank, what will they tell us, what should we expect them to say and how do we prepare.  We know our outgoings and have looked at obvious ways to cut down expenditure.  We are scared the house will be lost.  Any advice on what the banks will tell us. 

Firstly you need to be honest with yourselves. There's no silver bullet. Is the change in circumastances temporary or permanent? Is extending the mortgage term an option? To make the outgoing affordable. 

Brie

I'll ask this to be merged into the new posting on debt free.

Brie

I've asked for the other thread to merged into this one.

renegotiating mortgage repayment — MoneySavingExpert Forum

Meanwhile - can you post more details about the finances so we can better see what you're talking about?  Pick up the statement of accounts (SOA) from one of the top stickies and pop it back here so people can advise.

Lots of good advice available and there may be a way to make this more affordable than you think.

sourcrates

Not much advice on the other post, OP are you also paying out for unsecured credit debts or car finance etc?

What are your other outgoings, any that can be gotten rid of?

bramble_psie

Sorry can’t find the stickies for SOA but we have no other debt - credit cards all paid off and no other loans.   I think I’d just like to hear anyone’s experience of going to speak to the bank.  What info should I go in with and what do you think the options will be.  Is it short term or, preferably, I’d like something long term. 

jamiegutz

My experience with this is that you will find the bank to be extremely understanding and forgiving.  You will need to provide proof that you are struggling (bank statements and budget etc) but they will do what they can to help you. They will still want their money eventually but in terms of things like payment holdays, forebearance etc you will be pleasantly surprised. 

Your best bet is to open a line of communication with them as they will be far more helpful if you start communicating early.  It seems those that end up with reposessions are those that dont communicate or leave it too late.