How To Get Home Insurance Quotes

For getting outstanding mortgage insurance quotes, it is very important that you choose a reputable home broker that has an honest Knowledge in the market like cheap home insurance quotes. Investing time in inquiring about and selecting an honest mortgage specialist is sure to end up with dividends. Furthermore, if you cannot trust a house broker or a house insurance lender, then you should not be able to show the complete and correct details about your money etc and hence you wouldn't be able to find the cheapest home insurance quotes.

Getting a house is not easy and more so when you are purchasing it with a mortgage loan. It's one of the most important choices of your life and must be considered with all seriousness. Once you have finished the beginning examination and brooding on whether you can and need to go for a mortgage loan, you reach the next stage e.g. hunting for the a loan that is correct for you with a cheapest home insurance quotes online. This starts with getting home insurance quotes. You could get the home insurance quotes through a home insurance broker or you can get house quotes straight from home insurance websites.

Before looking for mortgage quotes, you should be crystal clear about your wants (you do not want to mess this up by looking for the erroneous mortgage quotes due to you entering the wrong requirements). You could additionally receive mortgage insurance quotes through the Internet. There are a few websites that can find you many mortgage insurance quotes with no cost and within a short time period of time.

As a result, you will be a lot more comfortable in discussing the mortgage quotes (and additional options) with somebody you trust and respect. Once you receive the home insurance quotes, you could be able to understand the different terms and conditions for it. If you don't understand anything on the home insurance quote or if you have inquiries concerning the home quote, you need to get them clarified with your mortgage broker or mortgage insurance lender.

In order to ensure that you get the best house deal, you might always ask for and analyze many house quotes. Do not purchase the first home quote that you ask for. Look at your options with many mortgage insurance quotes. But, this doesn't signify that you ask everyone and anybody for house quotes. You must receive house quotes only from respected mortgage insurance brokers and home lenders, and consider only those home quotes that match your requirements and offers flexibility.

In the end, just go mortgage insurance shopping and ask your get a home coverage quote.

Stop Foreclsoure? There is a Chance!

In order to stop mortgage foreclosure during the first few months, you have to do something that many people are afraid to do...talk to your lender! Lenders today have new tools and loan options to help people to get into the right type of loan solution for them. They have programs in place to help you get out of mortgage foreclosure and even to help you to simply get caught up. If you are struggling with how to stop mortgage foreclosure during the first few months, there are several things you need to do.

First, in order to learn how to stop mortgage foreclosure you need to understand your lending situation. Has the lender of the loan turned the case over to a judge in your state? Is the lender still willing to work with you? Chances are good they do want to help if they are calling you. Do you know how much you need to pay to get caught up on your loan? Look at routes to take to help you avoid being in this position again. All of these concerns are important considerations for any loan, but for you, it has to be a personal process.

Again, the first thing you should do to learn how to stop mortgage foreclosure is to call your lender. Talk to them about your situation, letting them know what the difficulty is in terms of why you cannot pay the loan. Here are some solutions they can offer to you.

- One or two months behind: Make payment on the missing mortgage payments and get caught back up, fees may apply.
- Refinance the loan into a loan with longer terms giving you a lower interest rate, go with a fixed rate loan that you know you can pay monthly.
- If you are unable to keep up with payments, talk to the lender about selling your home or if there is a short sale option available to you. Additionally, work with your lender to learn how to stop mortgage foreclosure if the home's loan is taken over by an investor.

These are just of the ways that you may learn how to stop mortgage foreclosure from happening to you. There is no doubt that having the right information and resources are the greatest route to take. If you have put yourself in a position, in which your lenders is not talking with you, contact and work with an attorney to help in the function. They may help you find a solution to the problem and help you to learn what options are out there to stop mortgage foreclosure.

Assistance For People Who Own Homes - Refinance Mortgage

Homeowners with financial problems might want to refinance mortgage payments. It is a way to pay off an existing loan with a new secured loan, increase home equity, and obtain a lower interest rate. For individuals who seek to improve their financial situation and have a little more money in their wallet, debt consolidation loans are worth looking into.

The option to refinance mortgage payments usually is available when an individual already has a mortgage and he or she would like to pay it off via another one. One of the keys to refinance mortgage payments, though, is to be certain that the situation is to save money, for people who are determined to g through with the process. Find out if the amount of interest saved on balances the normal fees associated with refinancing. To help in figuring out the math mortagage companies wil furnish a mortgage calculator.   

Once a person has decided to refinance mortgage payments, he or she may be in a position to have more cash while simultaneously lowering the amounts paid each month on the mortgage. Refinancing mortgage payments allows you to use some of the equity you have in your largest asset, your house.   

When first buying the house, several factors influenced how high or how low monthly mortgage payments would be. An individual's credit rating at the time has a great deal to do with it, as does the amount of down payment paid. The most influential factor was the interest rate at the time, though, but interest rates never stay the same. Due to this constant fluctuation, rates may be lower at certain points in time than when the house was first purchased.

If this is the case, refinance mortgage payments to take advantage of the lower interest rates. Depending on how low the Federal Reserve has allowed rates to go, homeowners may stand to decrease the amount paid out each month. Exchanging a high rate of interest for a lower one means saving money easily each month. A mortgage calculator will shed light on how much loans for debt can help save you.

There are several benefits to you if you refinance mortgage payments when interest rates are lower. The length of a mortgage can be shortened, saving a lot of money by eliminating several years' worth of interest. Keep monthly payments the same, though, rather than opting for a lower payment, and shave years off a mortgage. Homeowners can easily refinance mortgage payments to improve their financial situation, helping to keep some money in their pockets.

Homeowners who want to increase the equity of their home and put some money in their wallets might want to refinance mortgage payments. Use a mortgage calculator, determine the length of mortgage, and discover just a few of the benefits of refinance mortgage payments.

Debt consolidation is a means by which thousands of people have improved their financial situation. It simply means that you take all of your debts and combine them into one large debt. By doing this, you are able to simplify the process of debt payment. Instead of trying to remember all of your bills each month, you are only responsible for sending out one payment to your consolidating company. They then send your payment to each of your creditors. If debt consolidation sounds like something you could use to improve your finances, learn more about the process by clicking on the following link: Ultimate Debt Relief Guide and at Book On Debt Relief also Debt Relief For Single Moms

Debt Consolidation - A Means Of Freedom?

Debt consolidation is the process by which someone takes out one loan to pay off others. There are a number of reasons individuals choose this option, some of which include securing a lower interest rate, locking up a fixed interest rate, and creating the convenience of paying off only one loan. If you desire a greater sense of financial freedom, consider debt consolidation loans.

Typicall this type of process has to do with a loan that is secured with some tangible item that is considered as a means of collateral. For example, people often secure a mortgage against their house. The fact that there is collateral with the loan means that there is a lower rate of interest because the owner of the asset (in this case, a house) agrees to allow the forced sale of his asset to enable the repayment of the loan should he default on payments. With a lowered risk to the lender comes a lower interest rate for the borrower. Loans for debt are helpful in this way. 

People often turn to debt consolidation once they have accumulated an excess of credit card debt, due mainly to the extremely high interest rates often associated with credit cards. People often develop high levels of credit card debt because they have made a habit of spending more than they are making. Someone who is willing to use their house or car as collateral for debt consolidation loans will often end up with a lower rate of interest and only one payment to make each month, creating a better financial situation to manage money more effectively.

Debt consolidation is not a cure-all. Once an individual has taken steps to recover financially, reasonable and proper management of a budget and credit cards is vital. The habit of overspending must be broken, or the situation will simply repeat itself. Credit debt consolidation can help, but only if the individual acts responsibly and curbs the urge to spend indiscriminately. Self-discipline is key to remaining debt free.

The companies that offer the consolidation of debt are well aware of the mass appeal of their service. Due to this fact, they have created methods to make certain that the person who owes money will pay the loan back. Some of these methods are honorable, while a fair number of them are not. These companies make the bulk of their money by charging higher-than-usual interest rates, so be wary.

As evidence of their sometimes-tricky way of dealing with those who are in debt, some consolidation companies will often wait to intervene until a couple or family is close to losing their house or car. The individuals faced with debt will usually agree to pay any rate of interest - no matter how high - if it means that they can hold onto their valued assets.

For those laboring under a mountain of credit card debt, debt consolidation loans can be a viable solution. Although there are a few debt consolidators who are dishonest and want to take advantage of those in financial crisis, the majority of companies are legitimate. They offer valid solutions and plans to help people recover financially. If you are one of the many people dealing with unmanageable debt, debt consolidation might be for you.

As an attempt to improve their financial situation, many people pursue debt consolidation. The process entails the combination of one's debts into a single debt. It is often recommended for people who have dug themselves into a deep financial hole. Regardless of how you developed your debt - be it student loans or the misuse of credit cards - a debt consolidation can help you pull your head above the waters of bad credit and financial stress. There is no need to ignore the help that is out there. To find out more about how debt consolidation can help you, follow this link: Ultimate Debt Relief Guide and at Debt Relief Consolidation and at Debt Relief

Trying To Get Foreclosure Loans

You may be interested in finding some way to get some help if you see that you are starting to have trouble paying your mortgage company their monthly payments. There may be foreclosure loans out there that can help you get out of the hole that you have found yourself in, if you are in foreclosure or approaching a foreclosure sale.

Foreclosure loans should be avoided at all costs as these are generally high with the interest rate. So if there is any way to come up with the money to get yourself out of foreclosure without foreclosure loans, that is going to be the very best option for you.

If you do find that you have to go for the foreclosure loans, it is extremely important that you make sure to pay those loans back right away because they too can now come after your home if you fail to pay them back. In order to protect the money that they invested into you, foreclosure loans are allowed to place liens on your property. This is something that is done everyday, but it is something that is a real risk is you are not always financially stable. You could save your house this month only to find yourself back in foreclosure because of the foreclosure loans in a few months down the road.

Where To Find The Loans

You can always turn to your bank for a loan that can act as foreclosure loans, but your personal bank probably will not want to extend credit to you because of the damage that has been done to your credit already. If you are truly in need of foreclosure loans you are probably going to end up looking elsewhere. Be prepared too, because you are going to be paying out a lot in interest because foreclosure loans certainly do not come cheap.

Start looking for foreclosure loans on the Internet or ask your friends and family for a referral to a company they may know of that can help you. Make sure that when you are shopping for foreclosure loans that you are truly shopping around in order to make sure that you are getting the very best interest rate that your credit will allow for you to have right at the moment. In the end, if you are able to keep things on track, you will be glad that you took the time to do all of the needed research.

If you are in foreclosure or approaching a foreclosure sale, there may be foreclosure loans out there that can help you get out of the trouble that you have gotten yourself in. View more pieces of writing at www.foreclosures.jsgenterprises.com.

Bad Credit Consolidation - Only In America

Bad credit consolidation is something that everyone seems to go through at some point. Thousands of people in the United States have gone into debt due to their inability to stay on top of their bills. Some people fail to pay their student loans in a timely fashion, while others cannot keep up with their mortgage payments. The most common reason for bad credit consolidation, though, is the damage done by credit cards. Most bad credit that takes place is a direct result of people not being able to manage their credit cards effectively and within budget.

If you have ever encountered the demise of finances due to credit problems, you know that it is a slippery slope. It begins by missing one or two payments. Even if you are a day late on your payment, a late fee charge appears. In addition to this fee, there are always troublesome interest rates that accumulate as the unpaid balance lingers.

Credit debt can accumulate with alarming speed, and one can become quickly overwhelmed. Many people, when faced with unpaid  credit, react instinctively and  get another credit card to pay off the first.  This is a prime example of the cure being worse than the illness.  Using an additional credit card as a form of card debt consolidation is the equivalent of robbing the left hand to pay the right . It may be convenient and work for the short term, but inevitably the individual will become more mired in debt.  For these people, bad credit consolidation can be a way to eliminate debt.

After this cycle goes on for a while, a credit rating becomes awful, making it nearly impossible to get a loan for a car or house approved. Collection agencies may begin making harassing calls, intent on getting you to pay your debts regardless if you have the money or not!         

Finally, this is the point where many people choose to pursue a bad credit consolidation. Card debt consolidation simply means that you combine all of your debts, the ones that have snowballed out of control, into one big debt. The benefits to doing so are numerous. For one, you gain the knowledge that someone is helping you pay your debts. All you have to do is make one monthly payment to the consolidation company and they distribute the payments to your creditors.

There are many benefits to bad credit consolidation, and debt consolidation shouldn't necessarily be a last resort for debtors. Consolidation of debt reduces monthly payments to one, thereby making payments more manageable. The consolidation company distributes payments amongst the debtors.  In addition, interest rates are low and fixed. The debtor also has the added reassurance of knowing he or she is receiving assistance with managing their debt, thereby gaining a little peace of mind. Card debt consolidation is not a cure all, and the debt must still be paid. However, it can be an invaluable tool in restoring good credit and gain a little breathing room.

Debt consolidation is a means by which thousands of people have improved their financial situation. It simply means that you take all of your debts and combine them into one large debt. By doing this, you are able to simplify the process of debt payment. Instead of trying to remember all of your bills each month, you are only responsible for sending out one payment to your consolidating company. They then send your payment to each of your creditors. If debt consolidation sounds like something you could use to improve your finances, learn more about the process by clicking on the following link: Ultimate Debt Relief Guide and at Tax Debt Relief and at Bad Federal Debt Relief

Government Home Foreclosure May Offer Best Deals

Possibly some of the best deals on real estate are available with a government home foreclosure, as most entities are more willing to sell the property for any amount of money it is owed on the home. Past due income taxes, property taxes, bankruptcy and even court fees and fines can be grounds for a government home foreclosure as they take possession of the property in order to recoup money owed to the government. One of the goals in home sales of this type, is still selling homes at near the fair market value.

Reading the classified ads can often give details about government home foreclosure sales, typically performed at a public auction. The property is also usually open for inspection prior to the home foreclosure auction and enough time is given for potential buyers to research the true value of the property as well as adjacent properties before bidding. It pays to thoroughly research the property as, in some instances, there may be costs hidden in purchasing from a government home foreclosure sale that do not come apparent until after the deal is made.

There have been many movies in which the land owner was able to come up with the taxes they owed just as the property was going to auction and with government home foreclosure properties, this is an accurate depiction. The owner has until the time of the sale in which to make good on their debt to remove the property from the auction block.

Reasons Vary For Homeowners' Loss

There are a variety of reasons a government home foreclosure sale will take place and the reason for the sale will also help determine any minimum bid accepted for the property. If there is no mortgage on a property that has been put up for auction, based on past due taxes, usually the government only wants that amount, plus the administrative costs of the government home foreclosure and sale.

In these instances, homes can be purchased sometimes for pennies on the dollar of value while the homeowner's debt is settled with the government. Some government agencies may have guaranteed the loan to a lender and once the property is foreclosed upon, the government will pay the lender the guaranteed amount and put the property up for sale at a government home foreclosure auction, with the minimum acceptable bid being what is owed. Typically, these properties will not sell for less than two-thirds of the home's value.

Perhaps some of the best deals on real estate are available with a government home foreclosure, as most entities are more willing to sell the property for any amount of money it is owed on the home...

Little Known Tips For Avoiding Credit Card Debt Problems

pay off credit cards

Many people probably have considered a variety of options of how not to pay your credit card debt. In other words, they are looking for ways to get out of debt without having to pay off credit card bills. If you are looking for ways how not to pay your credit card debt that will get you out completely without damaging your credit, you are out of luck.

If you want to get rid of debt while maintaining the best credit rating possible, you will have to pay the debts; there is no other choice that will keep your credit score intact. 

Ways to Keep from Paying Credit Card Debt while Protecting Your Credit Score from Serious Damage

If you have no other options, there is a way to keep from paying your credit card bills in order to be able to afford other essential monthly bills.  This will only work if, despite your best efforts, you are not able to pay your credit card bill and care for other financial obligations simultaneously.  This method should only be used for a very short period of time.

First, pay for the absolute essentials.  This means food, transportation, child support, rent, and anything else that you have choice but to pay on a monthly basis.  When it comes down to paying your rent or mortgage payment or your credit card bill, choose the one that you have to pay in order to live.

Your credit card account will not be considered delinquent until thirty days have passed without payment from the due date.  That means that credit reporting agencies and collection agencies will not be aware of your situation right away.  This way, you will be able to continue paying for the vital things in life, even though failing to make payments on your credit card bills is sure to lead to increased interest rates and extra charges.

This should only be used as a way to buy time to get your financials in order and you should make a payment, the late and the current payment as soon as possible on your credit card in order to avoid collections action.

The very limited effects prioritizing your bills in this manner will bring to your credit score are nothing compared to the damage inflicted by charge offs and filing for bankruptcy.

Should You Buy

The slump that the housing market has seen in the past several months has created a lot of confusion concerning whether the current real estate environment presents a great opportunity to purchase homes or is better left alone until it picks up economic momentum. Expert investors are very contested on the issue, with groups forming sides that correspond to both sides of the question, "Is now the right time to buy?"

The issue revolves around the recent mortgage crisis that has caused a surge of foreclosures which have managed to flood the market with new homes. With a swelling number of homes available for sale, property values have dropped significantly and continue to do so while more people struggle with meeting their mortgage payments. Despite the negative elements and provided you have access to various mortgages, this situation is like a cloud with silver lining; the dropping prices of homes means that, for a lot of people -- especially those new to the real estate scene or young couples looking to possess their first home -- buying a home now is cheaper than it has been in years.

However, with the loan businesses wary during these troubling times, securing a loan to afford a home now can be a very tricky or outright difficult effort, especially if you don't have the greatest credit. So, with these conflicting aspects of the real estate landscape, when would be a good time to finally go out and buy that new home?

The optimistic experts believe that the current circumstances present a great opportunity to find outstanding property at rock-bottom prices. If you possess good credit and you plan to stay in a home for a few years, then purchasing a home now is a wonderful way to take advantage of the low costs of ownership while maintaining a solid investment that will pay off for years to come. Although the prices may drop lower in the future, they believe that, over time, the differences in price won't make much of a difference when you consider just how much you are saving already. Furthermore, if you can manage to find and establish a low interest rate right now, then you'll be able to save a considerable amount of money when house values climb again.

The more skeptical experts don't agree with that assessment, however. Many of them believe that the current circumstances are only the beginning of the slump that has defined real estate for 2008, and that these financially downtrodden times will only continue to lower the value of homes, a possibility that will make buying a home in the future a remarkably better deal.

In fact, they believe that home prices are still relatively high. The housing boom of the past several years has contributed to doubling or even tripling the value of homes, creating an environment of extremely expensive, valuable properties that can stand to lose plenty of value before becoming a truly good deal.

Prices are also still adjusted to what people expect their homes to sell for based on the values given a couple of years ago. As these people realize that their homes aren't  going to sell for their initial estimates, they'll be more willing to drop the prices even further and present an even remarkable opportunity to find a home at a fantastic deal.

Whatever the differences may be between the experts, one thing they all agree on is that while homes are cheaper than they've been in years, loans are harder to obtain and there are stricter requirement for getting a mortgage. Buying a home now may be cheap, but it may not be easy.

Small Business Realities - Three Common Mistakes Business Owners Make

If you're a home business owner and feel like you're priorities are scattered and you can't focus on anything. Then you're not alone. Many business owners feel the same way. Business owners are responsible for things that are above and beyond their offering. That's just the reality of a small business. One thing you have to make sure of that you focus on the right things and avoid making mistakes. Here some common mistakes some business owners make.

 

They don't incorporate their business. This is imperative for any small home business owner. Incorporating seperates your business and personal assets. This is critical when it comes to limiting your business liability. If you maintain the corporation correctly, your liability is limited to your business assets and you have a better chance of saving your personal assets.

 

Another mistake many new business owners make is they don't have any focus for their business offering at all. When some people start their own business, they have a mind set that you can be everything to everybody. This is a horrible mindset to have you must avoid that thought process at all costs. In other words, do one thing and do it well. For example, if you perform data conversions on medical data, then your offering should include database and reporting services for medical providers. Offering other services may saturate your business offering to the point where prospects don't know what you're business offers. Opyimally, the best time to offer more services is after your business is makinmg steady money.

 

Finally the last mistake most business owners make is that they don't have access to money. While we all know money is scarce, it's even worse for a small business owner. Here's an example.

 

Let's say you're a full time consultant and you get paid once a month from your client. Usually it goes like this. We pay our personal expenses (i.e. the mortgage, car payment, expenses and kids activities). Then we pay our business expenses and make purchases to support our projects. Unless you have access to a lot of money, you won't have money until your business gets paid again. What do you do if you need to make a critical purchase for your business? The answer is business credit.

 

Establishing good business credit increases your businesses purchasing power. It also helps you focus on providing service for your clients. Having access to money (whether it be cash or using a business credit card) eliminates the worry of unexpected purchases and allows you to focus on your clients. That is the most important thing for any successful business.

 

If you want to know how to establish good business credit, then go to our web site at http://www.buildingmybusinesscredit.com.  You'll learn all you need to know about how to build and establish good credit for small business.

How To Escape The Stress of Mortgage Arrears

If you have missed any payments on your loans you need to check if they are secured or unsecured on your home. If they are secured then they need to be dealt with urgently as the lender has the power to take possession of your property if they are not paid. We are going to discuss secured loans and what to do if you miss these payments.

Contact your lender

The first thing you do is you need to contact your lender to confirm the amount you owe and the steps you intend to take to pay them back. Many lenders would rather put in place a payment plan than go through a property repossession but there needs to be dialogue between the lender and the mortgage holder. It is very tempting (and common) for people in arrears to bury their heads in the sand rather than face up to the situation but the earlier steps are taken the better it will be. 

Most UK lenders are regulated by the Financial Services Authority (FSA) who have rules saying lenders must deal fairly with any customer who is in arrears. In practical terms each lender must:

• have a written policy on how to deal with customers in arrears;
  
• allow customers to set up a payment plans which is realistic
  
• send out regular information about the arrears;
  
• not put pressure on customers through too many calls or letters.
  

If you took out a mortgage before 31st October 2004 and you think you are being treated unfairly by a lender, you can complain to The Financial Ombudsman Service (0845 080 1800). If you took out a mortgage after this date, then FSA rules apply and it is best to contact them directly (0845 606 1234).

Help towards paying your mortgage

If you need help towards paying your mortgage then there are a number of options you can consider.

Check that you are not entitled to income support, child benefit, pension credit, jobseekers allowance, working tax credit or child tax credit. Contact your local Department for Work and Pensions office or local advice centre for more information.

Check to see if your mortgage has payment protection insurance. If it has but you are still refused this contact the national debt helpline.

Check to see if your lender will buy your home and rent it back to you (these are pretty rare and known as mortgage rescue schemes).

Check rent back schemes by private companies as they can buy your home and rent it back to you (similar to the mortgage rescue schemes). They can often offer you the option to buy back your home at a later date when you have overcome any debt problems. Please check below for links to one such specialist company.

Arranging to pay off the arrears

Do not arrange to borrow more money to pay off your existing debts as this will make matters worse in the long term. Switching all loans to a cheaper interest rate may be a sensible solution but increasing your debts is not.

In order to pay off arrears on secured loans you will usually have to pay extra monthly amounts to your lender. Lenders will sometimes ask for the arrears to be cleared over 12 to 24 months. Ask for a longer time to pay the arrears if you cannot afford to do this. If you cannot manage to clear the arrears as quickly as your lender wants, start paying the amount you have offered anyway and explain why you can only afford this, particularly if there are special circumstances (i.e. long-term illness, birth of a child, relationship breakdown or unemployment).

Other options to consider

• Change from an endowment mortgage to repayment/interest only mortgage
  
• Change from repayment mortgage to interest only to reduce monthly payments.
  
• Try and move onto a cheaper rate with your existing lender or move to a different lender.

What if I still can not afford my mortgage or arrears payments?

• Look for ways to increase your income (i.e. by renting out a room in the property) or reduce your other outgoings.
  
• Sell and rent back your home from a specialist rent back firm. Often the rent charged is less than previous mortgage payments.
  
• Sell your home and move to a cheaper home that you can afford.
  

What if they threaten to evict me?

If you have been given a court order (via the post) you will normally have 28 days notice of the hearing date. This court order does not mean you will be evicted on the date of the court hearing.  This is just so the court can hear the case for and against your eviction.  In order to understand the court hearing and preparation required we suggest you contact your local citizens advice bureau or national debt helpline.

Being in mortgage arrears is an incredibly difficult time for those experiencing them but it is very important to take action at the first instance of arrears. Unfortunately, many people get evicted unnecessarily by ignoring their lenders threats due to the stress of facing up to the situation.

 

 

How To Escape The Stress of Mortgage Arrears

If you have missed any payments on your loans you need to check if they are secured or unsecured on your home. If they are secured then they need to be dealt with urgently as the lender has the power to take possession of your property if they are not paid. We are going to discuss secured loans and what to do if you miss these payments.

Contact your lender

The first thing you do is you need to contact your lender to confirm the amount you owe and the steps you intend to take to pay them back. Many lenders would rather put in place a payment plan than go through a property repossession but there needs to be dialogue between the lender and the mortgage holder. It is very tempting (and common) for people in arrears to bury their heads in the sand rather than face up to the situation but the earlier steps are taken the better it will be. 

Most UK lenders are regulated by the Financial Services Authority (FSA) who have rules saying lenders must deal fairly with any customer who is in arrears. In practical terms each lender must:

• have a written policy on how to deal with customers in arrears;
  
• allow customers to set up a payment plans which is realistic
  
• send out regular information about the arrears;
  
• not put pressure on customers through too many calls or letters.
  

If you took out a mortgage before 31st October 2004 and you think you are being treated unfairly by a lender, you can complain to The Financial Ombudsman Service (0845 080 1800). If you took out a mortgage after this date, then FSA rules apply and it is best to contact them directly (0845 606 1234).

Help towards paying your mortgage

If you need help towards paying your mortgage then there are a number of options you can consider.

Check that you are not entitled to income support, child benefit, pension credit, jobseekers allowance, working tax credit or child tax credit. Contact your local Department for Work and Pensions office or local advice centre for more information.

Check to see if your mortgage has payment protection insurance. If it has but you are still refused this contact the national debt helpline.

Check to see if your lender will buy your home and rent it back to you (these are pretty rare and known as mortgage rescue schemes).

Check rent back schemes by private companies as they can buy your home and rent it back to you (similar to the mortgage rescue schemes). They can often offer you the option to buy back your home at a later date when you have overcome any debt problems. Please check below for links to one such specialist company.

Arranging to pay off the arrears

Do not arrange to borrow more money to pay off your existing debts as this will make matters worse in the long term. Switching all loans to a cheaper interest rate may be a sensible solution but increasing your debts is not.

In order to pay off arrears on secured loans you will usually have to pay extra monthly amounts to your lender. Lenders will sometimes ask for the arrears to be cleared over 12 to 24 months. Ask for a longer time to pay the arrears if you cannot afford to do this. If you cannot manage to clear the arrears as quickly as your lender wants, start paying the amount you have offered anyway and explain why you can only afford this, particularly if there are special circumstances (i.e. long-term illness, birth of a child, relationship breakdown or unemployment).

Other options to consider

• Change from an endowment mortgage to repayment/interest only mortgage
  
• Change from repayment mortgage to interest only to reduce monthly payments.
  
• Try and move onto a cheaper rate with your existing lender or move to a different lender.

What if I still can not afford my mortgage or arrears payments?

• Look for ways to increase your income (i.e. by renting out a room in the property) or reduce your other outgoings.
  
• Sell and rent back your home from a specialist rent back firm. Often the rent charged is less than previous mortgage payments.
  
• Sell your home and move to a cheaper home that you can afford.
  

What if they threaten to evict me?

If you have been given a court order (via the post) you will normally have 28 days notice of the hearing date. This court order does not mean you will be evicted on the date of the court hearing.  This is just so the court can hear the case for and against your eviction.  In order to understand the court hearing and preparation required we suggest you contact your local citizens advice bureau or national debt helpline.

Being in mortgage arrears is an incredibly difficult time for those experiencing them but it is very important to take action at the first instance of arrears. Unfortunately, many people get evicted unnecessarily by ignoring their lenders threats due to the stress of facing up to the situation.