Myths About Mortgage Arrears

Old ways, bad ways, chinese whispers....

Myths about mortgage arrears are many and varied. We've had all sorts of questions from the sublime to the ridiculous. Hopefully this page will dispel these mis-truths once and for all.

 

Will the state pay my mortgage if I can't ?

The safety net of the benefits system will be unlikely to cover your mortgage. It's very hard to receive and is pretty slow to get sorted.

Mortgages taken out BEFORE 2nd October 1995

• For the first 8 weeks you will receive no help from when your claim for Job Seekers or Income Support was awarded.
• From 8th-25th week you should receive half the calculated mortgage interest payment*
• From week 26 you should receive the full calculated mortgage interest payment*

 

Mortgages taken out AFTER 2nd October 1995

• For the first 39 weeks you will receive no help from when your claim for Job Seekers or Income Support was awarded.
• From week 26 you should receive the full calculated mortgage interest payment*

 

*Payment is not based on the interest rate you pay your lender but on a government calculation which may be substantially less than your regular payments.

 

Will my mortgage protection policy cover me?

Mortgage Protection Policy Insurance (MPPI) usually kicks in after about 3 months. The policy rules can be quite rigid and may not pay out if you have other income or may reduce the amount received. Always check to make sure you are adequately covered by any such policy and you are not engaged in activities that would nullify the policy.

 

Do Mortgage companies want to get rid of bad customers ?

There is no evidence to suggest this. It costs a lot of money to attract new mortgage custom. You probably weren't a bad customer at the start and few people have a smooth journey through life. If they help you, within the limits they have, and you get through this then the chances are you'll again be a profitable customer in the years ahead.

 

Mortgage companies don't want to hear about problems

On the contrary, mortgage lenders would like to know about any problems rather than be kept in the dark. They all have specialist advice units and should offer some constructive help.

Getting help from a mortgage lender

 

If I get into arrears the lender will take me to court straight away ?

The mortgage lender will only take you to court if all avenues to meet mortgage repayments and arrears have failed. Just missing one payment will not likely mean you will receive a court summons the next day.

 

Will I go to prison if my house is repossessed?

Unless you have committed serious fraud or a similar criminal offence, it is unlikely that would ever happen.

 

If I can't keep up repayments will the mortgage lender make me bankrupt?

Highly unlikely, although bankruptcy might be a viable option and a good solution to your general financial problems and you may still be able to keep your house. There is no longer a stigma attached to bankruptcy.

 

if you have mortgage debt problems , get in touch now.