Change your mortgage type
If your current mortgage is not working for you, there may be an option to change it while remaining with the same provider.
For example, you may be able to move from a variable rate to a fixed rate product fairly easily. If you have a variable rate mortgage, your payments may vary month on month, as the interest you pay will depend on the wider economy and other considerations.
A fixed rate mortgage will see you paying the same amount every time, no matter what external factors may be at play.
Switching from a fixed rate mortgage to a variable product, on the other hand, is much rarer - and some providers do not offer this as an option.
Alternatively, you may be able to move from a regular mortgage to an interest-only option. However, you should tread carefully if you decide to take this route.
This product is precisely what it says on the tin - meaning you won’t be paying the off loan itself, merely the interest on that loan. As a result, you will still be liable for the full amount when your mortgage term draws to a close.
You will also be paying more interest than you would with a standard mortgage. Switching to a product of this kind may work well in the short term, but it is certainly not a long term solution.
If you are not currently in arrears, but you are concerned that you will struggle to make repayments under your current mortgage contract, you may instead decide to remortgage in order to find a better plan.
Capitalise your arrears
Some lenders will permit their clients to add their arrears to the amount they already owe.
This provides them with something of a “blank slate” in the short term, but, of course, it means that the final amount will be greater and that they will be paying more interest due to the loan’s increased value.
This may be a good option if you wish to get out of arrears, and, by suggesting this approach to your lender in writing, you will be able to use that communication as evidence of your willingness to cooperate and develop a plan should you need to attend court.
Ask for a payment holiday or a reduction in your monthly payments
Under some circumstances, a mortgage lender may permit a brief “payment holiday”. This term refers to a pause or temporary reduction in your mortgage repayments.
You can usually only make an arrangement of this kind if you are in credit with your provider. This means that you will need to have made an overpayment in the past.
Different providers specify different conditions when allowing a mortgage holiday. The most common qualifying circumstances include going on maternity or long term sick leave, or being made redundant.
It is important to check the particular conditions of your specific mortgage product to make sure that you are able to arrange a payment holiday. Again, upon asking your lender for this, you should keep a copy of all communications - as this may help you to fight repossession in court.