Reviewing Repossession

04/10/2011

With the state of the economy we are seeing a lack of lending, bills getting bigger and job losses.

What would you do if you became one of the millions being made redundant across the globe? 

First step, its kind of obvious, but you cut back your spending and try to make your money last longer. You need to sit down and compare your earnings against your outgoings and cut what can be cut and be ruthless!

The problem for many people is the largest bill, which is usually the mortgage. It may be very tempting to think you can save more money by ‘putting off’ paying that one for a while, but think again!

‘Putting off’ paying unsecured debts such as credit card, phone, gas, electricity etc. are avenues you should explore before defaulting on your mortgage.

In Northern Ireland alone, there are 2,000 homes at risk of repossession. So you wouldn’t be alone if it was to happen, but what is the procedure if you have missed a payment?

Ideally you should let the lender know as soon as you are aware that you are likely to miss a payment or soon after this has occurred.

It is important to know if you have mortgage protection because this could be the answer to all your problems. If you want to know more about mortgage protection, feel free to contact us and we can discuss it in much more detail.

Asking a family member for a loan isn’t ideal, but is always an option and so are state benefits. If you have been made redundant, benefits may help ease the burden of a mortgage, so if you are eligible, take it!

The mortgage lender will take your reasons for missing a payment on board and it is in everyone’s best interest to renegotiate the payment plan, at least until you are back on your feet.

At Census Financial we provide a free financial health check. In this appointment we can assist you in organising your bills and use any investments you may have, to your advantage as well as discussing any other issues you may have.

If you stick your head in the sand and ignore letters and dodge phone calls, not only will you have this burden but should a court hearing come about and you do not attend, your home will automatically be repossessed and you will be put on the mortgage repossession register which will effect your chances of getting a mortgage in future. If you do attend and this is the first time you plead your case to the lenders, it is not the friendliest environment and they will not be as forthcoming with support as they would have been with earlier notification.

So if you are having financial problems for whatever reason, feel free to contact our team at Census Financial Planning for free & independent financial advice.

Paul Dixon
Chartered Financial Planner