Pay Your Mortgage Before Unsecured Debts.

We are getting more and more enquires from homeowners looking for repossession advice.
A typical situation is that they have built up mortgage arrears in order to keep up with unsecured loan repayments.

Our advice is always to prioritise debts - don’t risk losing your home by paying who shouts the loudest first.

We often see the case where a current account, overdraft, unsecured loan and mortgage are all with the same bank. Ahead of the mortgage repayments, the bank takes money owed for unsecured loan repayments from money held in the current account. This is called the right to offset. Banks are allowed to help themselves from money held in one account to make payments to another account held with themselves.

When this happens, too often, the client can’t afford the loan repayments so are hit with bank and missed payment charges. This makes the situation even worse such that mortgage payment are also missed.

The same bank then starts repossession proceedings while making sure they collect any unsecured loan repayments first.

We help people looking for repossession help in several ways, but always trying to ensure our clients keep their home.

We look at our client’s finances and see if a debt management plan or an IVA will help free up some more money each month so mortgage arrears payments can be made.

We arrange for representation of our clients at a repossession hearing so that a successful argument can be made to the judge to get an repossession order suspended, pending acceptable arrears repayments.

If you are worried about repossession, it is likely you will have more options available than the demands made by your lender. Please call us for free advice - it is never too late to seek help, even if the bailiffs are coming tomorrow.

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