What happens if you can't pay your mortgage UK?

Contact your lender immediately. Lenders must offer help before taking action. Options include: payment holidays, extending term, switching to interest-only, or reduced payments. Repossession is last resort and takes months. Don't ignore the problem.

Can I get help with my mortgage from the government UK?

Support for Mortgage Interest (SMI) loan available if on certain benefits. This covers interest only (not capital), is a loan secured on your home, and has strict eligibility. Mortgage Rescue Scheme ended in most areas. Limited direct government help.

How long before a house is repossessed UK?

Typically 6-12 months minimum. Lenders must follow pre-action protocols: send arrears letters, offer help, try to reach agreement. Court action takes months. Even after court order, you can often stop repossession by reaching agreement or paying arrears.

Will my lender help if I can't pay mortgage?

Yes — lenders are required to try to help. Contact them early. They may offer: payment holiday, reduced payments, term extension, interest-only period, or adding arrears to mortgage. They don't want to repossess — it costs them money too.

Can't Afford Mortgage Payment UK — What To Do | PocketWise

Can't Afford Mortgage Payment UK — What To Do

Help if you're struggling with mortgage payments UK. Your options, how to talk to your lender, and support available to avoid repossession.

By PocketWise · 23 March 2026 · 4 min read

Struggling with mortgage payments is stressful, but there’s help available. Act quickly for the best outcome.

Immediate Steps

What To Do Right Now

Priority	Action
1	Contact your lender immediately
2	Don’t ignore letters or calls
3	Get free debt advice
4	Review your budget
5	Know your options

Why Contact Lender First

Reason	Benefit
Shows good faith	They’ll work with you
Required by regulations	They must try to help
More options early	Before arrears build
Stops escalation	Delays formal action

Options Your Lender May Offer

Payment Holidays

Feature	Details
Duration	Usually 1-3 months
When offered	Temporary difficulties
Interest	Still accrues
Impact	Extends mortgage term

Reduced Payments

Option	Impact
Interest-only period	Lower payments, no capital repaid
Reduced payments	Pay what you can
Duration	Usually temporary
Review	After agreed period

Term Extension

Feature	Details
How it works	Spread payments over longer
Example	15 years left → 25 years
Monthly impact	Payments reduce
Total cost	Pay more interest overall

Payment Plan

For Arrears	Details
Spread arrears	Over time
Added to	Monthly payments
Manageable	Small extra amount
Condition	Stay current too

Example Solutions

If Temporary Difficulty

Situation	Possible Solution
Job loss (new one expected)	Payment holiday 3 months
Illness (recovering)	Reduced payments
Unexpected bill	Extend term to reduce payments

If Long-Term Difficulty

Situation	Possible Solution
Permanent income drop	Interest-only + term extension
Can’t afford at all	Consider selling (avoid repossession)
Equity available	Reduce and restructure

What Lenders Must Do

Pre-Action Protocol

Requirement	Details
Contact you	Try to discuss situation
Offer help	Before taking action
Consider proposals	You put forward
Give time	Seek financial advice
Last resort	Taking court action

Your Rights

Right	Details
Fair treatment	Regulations require it
Time	To seek advice
Alternatives	Must be considered
Communication	Clear information needed

If You Have Arrears

Arrears Building Up

Amount Behind	Situation
1 month	Early stage — act now
2-3 months	Urgent — contact lender
3-6 months	Serious — get advice
6+ months	Risk of court action

Clearing Arrears

Method	How
Lump sum	If you have savings
Monthly extra	Spread over time
Add to mortgage	Capitalise arrears
Help from family	If available

Government Support

Support for Mortgage Interest (SMI)

Feature	Details
What it is	Loan for interest payments
Who qualifies	On UC/Pension Credit etc
Waiting period	9 months (UC)
Amount	Covers interest, not capital
Repayment	Loan repaid when you sell

Eligibility for SMI

Qualify If	Details
On Universal Credit	9-month wait
On Income Support	After 39 weeks
On Pension Credit	Shorter wait
Capital limit	£16,000

SMI Limitations

Does	Doesn’t
Pay interest	Pay capital
Is a loan	Is a grant
Secured on home	Free money
Standard rate	May not cover all interest

Where to Get Help

Free Debt Advice

Organisation	Contact
StepChange	stepchange.org
Citizens Advice	citizensadvice.org.uk
National Debtline	nationaldebtline.org
Money Helper	moneyhelper.org.uk

What Advisers Can Do

Help With	Details
Budget review	Find money
Negotiate	With lender
Know options	Full picture
Support	Through process
Priority debts	Know what’s urgent

Court Process

If It Gets to Court

Stage	Timescale
Arrears letters	2-3 months
Pre-action protocol	Required first
Court claim	After protocols
Hearing	4-8 weeks after claim
Possession order	If granted
Eviction	Not immediate

At Court

Option	Outcome
Show you can pay	Judge may give suspended order
Reasonable proposal	May be accepted
Time to sell	Often granted
Can’t pay anything	Possession order likely

Even After Court Order

Possibility	Action
Suspended order	Keep to terms
Outright order	May still negotiate
Appeal	Time limited
Pay arrears	Can sometimes stop

Selling Your Home

Voluntary Sale Better Than Repossession

Selling Yourself	vs Repossession
Get market value	Lender sells quick/cheap
Control process	No control
Less stress	Very stressful
Time to plan	Forced out
Credit impact	Same or better

If in Negative Equity

Situation	Options
Owe more than value	Discuss with lender
Shortfall	May agree payment plan
Sale agreement	Need lender approval

Protecting Your Home

Budget Review

Action	Potential Saving
Cancel subscriptions	£50-200/month
Reduce energy	£50-100/month
Cut non-essentials	Variable
Increase income	Part-time work

Income Boost

Option	Impact
Benefits check	May be entitled
Part-time work	Extra income
Lodger	Rental income
Family help	Temporary support

Summary

Immediate Actions

Priority	Action
1	Contact lender today
2	Get free debt advice
3	Review budget immediately
4	Don’t ignore correspondence
5	Know your rights

Key Messages

Remember
Contact lender first	They must help
Early action	More options
Free advice available	Use it
Repossession takes months	Time to act
Selling better	Than repossession

Where to Start

Step	Contact
Your lender	Phone them
Free advice	StepChange: 0800 138 1111
Information	Money Helper
Don’t	Bury head in sand

Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.