Issues arising after falling into arrears with mortgages and the steps borrowers and lenders can take to resolve the situation.
Homeowners whose income has been affected by the coronavirus pandemic can contact their lenders to discuss options and request a payment break.
Borrowers facing difficulties to pay their mortgage should check their insurance and contact lenders who must act in compliance with rules on mortgage arrears.
Borrowers may reduce the cost of their mortgage by changing the original mortgage, which may involve paying fees or getting lenders’ consent.
Options and consequences for borrowers considering a voluntary sale after repossession, which is preferable for many borrowers facing an enforced sale.
Borrowers may have to pay the outstanding amount to the insurer or lender if the proceeds of sale are not enough to pay off the mortgage in full.