If you’re struggling to make your mortgage payment, acting early gives you the most options. Here’s what to do before you miss a payment — and what help is available.
Step 1 — Don’t Ignore It
The worst thing you can do is nothing. If you contact your lender before missing a payment, they have far more options to help you. Once you’re in arrears, the situation becomes harder.
Lenders are required by the Financial Conduct Authority (FCA) to treat customers in financial difficulty fairly and sympathetically.
Step 2 — Review Your Budget
Before contacting your lender, understand your finances:
| Action | Purpose |
|---|---|
| List all income | Know your total monthly income |
| List all essential spending | Mortgage, bills, food, transport, childcare |
| List all non-essential spending | Subscriptions, dining out, luxuries |
| Identify what can be cut | Savings to put towards mortgage |
| Check benefit entitlement | You may qualify for help you’re not claiming |
Use a budget planner to identify any spare money.
Step 3 — Contact Your Lender
Phone your lender’s mortgage support team (separate from general customer service). Explain:
- Why you’re struggling (redundancy, illness, relationship breakdown, rate increase)
- Whether the difficulty is temporary or long-term
- What you can currently afford to pay
Options Your Lender May Offer
| Option | How It Works | Impact |
|---|---|---|
| Payment holiday | Pause payments for 1-6 months | Interest still accrues; total cost increases |
| Reduced payments | Pay less for a temporary period | Arrears build but at a manageable rate |
| Interest-only switch | Pay interest only, temporarily | Reduces payments significantly; capital not repaid |
| Term extension | Extend mortgage term (e.g., 25 to 30 years) | Lower monthly payments; more interest overall |
| Product switch | Move to a cheaper rate | If better deals are available |
| Capitalise arrears | Add missed payments to mortgage balance | Clears arrears but increases total debt |
Government Support
Support for Mortgage Interest (SMI)
Available if you receive:
- Universal Credit (after a 9-month waiting period)
- Pension Credit
- Income Support
- Income-based JSA or ESA
How SMI works:
- It’s a loan, not a grant — secured against your home
- Covers mortgage interest only (not capital repayments)
- Based on a set interest rate, which may not cover your full interest charge
- Must be repaid when you sell your home, transfer ownership, or stop claiming benefits
- Apply through DWP
Council Tax Reduction
If you’re struggling with all bills, check if you qualify for Council Tax Reduction — freeing up money for your mortgage.
Benefit Check
Use an online benefits calculator to check if you’re missing any entitlements:
- Universal Credit (even if working)
- Child Benefit
- Council Tax Reduction
- Energy bill support schemes
Free Advice Services
| Service | Contact | Specialism |
|---|---|---|
| StepChange | stepchange.org / 0800 138 1111 | Debt advice including mortgages |
| National Debtline | nationaldebtline.org / 0808 808 4000 | Free debt advice |
| Citizens Advice | citizensadvice.org.uk | General advice including housing |
| Shelter | shelter.org.uk / 0808 800 4444 | Housing and homelessness |
| MoneyHelper | moneyhelper.org.uk | Mortgage advice |
All are free and confidential.
What Not to Do
| Don’t | Why |
|---|---|
| Ignore letters from your lender | They’ll escalate to legal proceedings |
| Borrow to cover mortgage payments | Creates more debt at higher interest |
| Use credit cards for mortgage | Expensive and unsustainable |
| Agree to terms you can’t maintain | Be honest about what’s affordable |
| Pay other debts before your mortgage | Your home is your priority debt |
If You’re Already in Arrears
If you’ve already missed payments:
The Pre-Action Protocol
Before taking possession proceedings, your lender must:
- Contact you to discuss the situation
- Consider reasonable payment proposals
- Give you reasonable time to pay
- Tell you about government schemes and free advice
- Not start possession proceedings if you’re engaging with them
Arrears Timeline
| Stage | What Happens |
|---|---|
| 1-2 missed payments | Letters and phone calls from lender |
| 3+ missed payments | Formal arrears notice; more frequent contact |
| 6+ months arrears | Lender may begin court proceedings (if you won’t engage) |
| Court hearing | Judge considers your circumstances; may give you time to pay |
| Possession order | Court grants lender the right to repossess (usually suspended if you can pay something) |
| Eviction | Only after all other options exhausted |
Most lenders actively want to avoid repossession — it’s expensive for them too.
Longer-Term Solutions
If the difficulty isn’t temporary:
- Remortgage to a cheaper deal (if you have enough equity)
- Downsize to a cheaper property
- Sell before repossession — you control the sale and get a better price
- Shared ownership — sell part of your home to a housing association
- Equity release — if you’re over 55 (use cautiously)