Falling behind on your mortgage payments can be stressful – especially when the cost of living is already high. If you’ve missed a payment or are worried you might soon, you’re not alone. Many people are in the same position and need help understanding what comes next.
In this guide, we explain what mortgage arrears are, what happens if you miss a payment, and how long it might take before your lender considers repossession. More importantly, we cover what you can do now to get support, look at the potential debt solutions available to you, and explore how to avoid things getting worse.
What does mortgage arrears mean?
Mortgage arrears happen when you fall behind on your monthly mortgage payments. If you miss one payment, you’re in arrears by that amount. Miss two payments, and your arrears double. The amount you owe keeps growing until you catch up.
Your mortgage is a secured debt. This means your home acts as security for the loan. If you can’t pay, your lender has the right to take your home to recover the money you owe. This makes mortgage payments a priority debt – one that should be paid before other debts like credit cards or personal loans.
What happens if you miss a mortgage payment?
Don’t panic if you miss one mortgage payment. Your lender won’t take your home straight away. Here’s what typically happens:
After one missed payment: Your lender will contact you, usually by letter or phone. They’ll ask why you missed the payment and when you can pay. You’ll be charged a late payment fee, which varies by lender but is often around £25-£50.
After two missed payments: Your lender will contact you more urgently. They may ask for a full explanation of your financial situation and want to know your plan to catch up on payments.
After three missed payments: Your lender will likely send formal letters warning about potential repossession action. They may also report your missed payments to credit reference agencies, which will damage your credit score.
Most lenders prefer to help customers get back on track rather than repossess homes. Repossession is expensive and time-consuming for them too. However, they will take action if you don’t communicate or make efforts to resolve the situation.
How many months mortgage arrears before repossession?
There’s no fixed rule about when repossession happens. It depends on several factors:
- How much you owe in arrears
- Your payment history
- Whether you’re communicating with your lender
- Your efforts to resolve the situation.
Generally, lenders may start repossession proceedings after three to six months of missed payments. However, some wait longer, especially if you’re working with them to find a solution.
The legal process for repossession takes time. Your lender must follow strict rules and give you chances to catch up. They’ll usually:
- Send default notices giving you time to pay
- Apply to court for a possession order
- Attend a court hearing where you can present your case
- Only repossess if the court grants permission.
From start to finish, this process often takes six months or more. You have rights throughout this time, and the court will consider your circumstances before making any decisions.
What can you do if you can’t pay your mortgage?
If you’re struggling with mortgage payments, acting quickly gives you the best chance of keeping your home. Here are the key steps to take:
Contact your provider immediately
Don’t hide from the problem. Contact your mortgage lender as soon as you know you’ll struggle to pay. Most lenders have specialist teams to help customers in difficulty.
Be honest about your situation. Explain why you’re struggling – whether it’s job loss, reduced income, illness, or rising costs. Many lenders offer temporary solutions like:
- Payment holidays (where you pause payments for a few months)
- Reduced payments for a set period
- Extending your mortgage term to lower monthly payments
- Switching to interest-only payments temporarily.
These options can give you breathing space to get back on your feet. However, remember that interest usually still builds up during payment holidays, so you’ll owe more overall.
Review your finances
Take a close look at your income and spending. List all your monthly income and expenses to see where your money goes. This helps you understand exactly how much you can afford to pay towards your mortgage.
Look for areas where you can cut spending. Cancel subscriptions you don’t use, shop around for cheaper insurance, or find ways to reduce household bills. Every pound you save can go towards your mortgage payments.
If you have other debts, remember that your mortgage is a priority debt. Focus on keeping your home before worrying about credit cards or loans. You can find more information about which debts to pay first in our guide to priority and non-priority debts.
Seek professional financial help
If you’re finding it hard to manage your money or are falling behind on other bills as well as your mortgage, it’s a good idea to speak to a financial expert. You don’t have to figure everything out on your own, and getting advice early can stop the situation from getting worse.
A financial expert can:
- Help you understand your full financial picture
- Work with you to create a realistic budget
- Explain your options if you’re behind on payments
- Support you in prioritising your most urgent debts.
At MoneyPlus, we can’t help with mortgage arrears directly – because mortgages are a type of secured debt. However, we can support you if you’re struggling with unsecured debts, such as:
- Credit cards
- Personal loans
- Store cards
- Payday loans.
Getting help with these other debts can make it easier to keep up with your mortgage. For example, a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) could lower your monthly debt repayments, helping free up money for essential costs like your mortgage payment.
You can also visit MoneyHelper for free, impartial advice on dealing with debt. Alternatively, if you’re worried about unsecured debts and how they’re affecting your ability to pay your mortgage, get in touch with us at MoneyPlus. We’ll listen to your situation and help you find the right debt management solution for your needs.
