It’s no secret that many mortgage holders have had a tough year.
Soaring interest rates, on top of other cost-of-living pressures, have put
pressure on household bills. Thankfully, there are three key reasons for
mortgage holders to stay calm…

Repossession is a last resort

If you’re worried about your mortgage payments, lenders can help with a
payment plan to get you back on your feet. In the first three months of this year,
only 750 homes and 410 buy-to-let properties were repossessed (1) . If you are
finding it hard to keep up with costs, the best thing to do is communicate with
your lender early.

Room for manoeuvre

In tough economic conditions, existing borrowers are finding new ways to
mitigate higher bills. Examples include extending the term of their mortgage.
This can reduce the burden now but will ultimately result in more being paid
back in total.

Job security and protection are key

The jobs market has remained resilient. Lenders say the most common reasons
for people falling behind on mortgage payments generally involve life-changing
events such as a job loss or serious illness, highlighting the importance of
protection policies such as income protection or critical illness cover.

Your home may be repossessed if you do not keep up repayments on
your mortgage

(1) UK Finance, 2023