This content applies to England only.

Housing laws vary between England and Scotland. Get advice relating to Scotland

If you're struggling to pay your mortgage, it's essential to stay focused on what's most important:

1. Speak to your lender as soon as possible to explain your situation – you may be able to negotiate terms which will allow you to keep your home.

2. See if your lender will allow you to:

   • take a temporary payment holiday

   • add your arrears to your mortgage loan, this is known as capitalising your arrears

   • pay off your arrears in instalments.

3. Your lender may agree to extend your mortgage term – this will allow you to make your payments over a longer period of time and will reduce your monthly repayments. But it will also increase the amount you have to repay in the long-run

4. Rent out the property – if you can, and rent somewhere cheaper. However, there is likely to be a term in your mortgage agreement preventing you doing this unless you get permission from your lender, which they may be unlikely to give. Another option could be to rent out a room in your home

5. Sell the property – if it is possible to sell the property to pay off the debt, this might be an option for you

6. Change your type of mortgage – you might be able to switch to an interest-only mortgage. This may reduce your monthly repayments. But it is only worth doing this if you are able to manage these new payments

7. Turn up to court – if your case goes to court make sure that you turn up – even if you think that your situation is hopeless, you may still be able to save your home

8. Don’t simply hand in the keys. This will not solve your financial problems, you will still be liable for the mortgage until your home has been sold, or any shortfall repaid
   

9. See if you are entitled to any benefits which may help you, such as support for mortgage interest. And avoid borrowing more money if you can, as this may only make your problems worse

10. Get legal advice – make sure that you seek advice well before you have to go to court. This will allow you to prepare for your case, and look at your finances in detail. Use our directory to find face-to-face housing advice services in your area.
    
    If you have not been able to prepare for your case in advance, a duty advice scheme operates in most courts, where advisers are able to offer you free representation. Make sure you turn up early to court, and bring all relevant documents with you – such as correspondence with your lender, and details of your income, which you will need to show in order to show the court what you can pay

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