How to deal with mortgage arrears
Work out priority and non priority debts
Your mortgage is your most important payment each month.
Prioritise your mortgage and arrears repayments over your other household costs and debts.
Priority debts
Priority debts are the most important. Lenders and other creditors have stronger legal powers to collect money for priority debts.
Priority debts include:
mortgage repayments
loans secured on your home
gas and electricity debts
council tax
TV licence
There are more serious consequences to not paying priority debts. For example, you can lose your home if you do not pay your mortgage.
Non priority debts
Non priority debts include:
credit card debts
payday loans
catalogues
water bills
unsecured bank loans
There are less serious consequences if you cannot pay these debts. They still affect your credit rating. You could still face legal action if you do not deal with them.
A non priority debt can become a priority if the company you owe money to gets a county court judgement and you do not pay.
They might apply for a charging order which could put your home at risk.
Get help with debt problems
A debt advisor can help you sort your priority and non priority debts.
They can also help you negotiate affordable repayment terms with your creditors.
Last updated: 18 July 2022
