What to do when you can't afford your mortgage: four steps that protect your home

Contact your lender as soon as you realise a payment will be missed. Lenders can offer payment holidays, reduced payments or temporary arrangements that stop arrears building up. Waiting until after a missed payment shrinks the options available and can lead to formal action. This guide from ABC Vac Sweep explains what to do immediately, what support your lender can offer, and where to get free advice when mortgage payments become unaffordable.

Ring your mortgage lender before the payment is due

Your lender needs to know the situation before the direct debit fails. Most have a dedicated team for customers in financial difficulty, and speaking to them early shows you are addressing the problem. They will ask about your income, what has changed, and whether the difficulty is short-term or ongoing.

Write down your monthly income and essential spending before the call. The lender will want to understand what you can afford. Have bank statements to hand if the amounts are not clear in your head.

What counts as a reason

Lenders do not judge why you cannot pay. Job loss, reduced hours, illness, relationship breakdown and other debts all qualify as reasons to ask for support. Gambling harm is another, and lenders are required to work with customers facing it. If that applies, say so — it does not disqualify you from help.

Ask what forbearance options your lender offers

Forbearance means the lender agrees to change the terms temporarily while you get back on your feet. The options depend on your situation and how long the difficulty will last. Not every lender offers every option, but most will have more than one.

Payment holiday

The lender pauses payments for an agreed period, often up to three months. Interest still accrues, so the amount owed grows. When payments restart, the term may be extended to keep monthly amounts manageable. This suits a short interruption to income where recovery is certain.

Reduced payments

You pay less than the contractual amount for a set time. The shortfall is added to the balance and paid back later. This helps when income has dropped but not disappeared.

Switching to interest-only

Your payments cover interest alone, not the capital. The balance stops growing, but you are not paying the loan down. Lenders often allow this for six to twelve months. When the period ends, payments return to the original amount or the term is extended.

Term extension

The mortgage is stretched over more years. Monthly payments fall, but the total interest paid over the life of the loan rises. This option works when income has permanently reduced but remains steady.

Steps to take this week

1. List every bill and debt you pay each month, with the amounts and due dates.
2. Work out what income is certain — wages, benefits, support from others.
3. Identify what can be reduced or paused: streaming services, memberships, non-essential spending.
4. Call your mortgage lender and explain the situation, asking which forbearance options they can offer.
5. Contact a free debt adviser if the shortfall is large or involves other debts beyond the mortgage.

Understand what happens if you miss a payment

A missed payment creates arrears. The lender will send a letter asking you to catch up, and the missed amount is added to what you owe. One missed payment does not threaten your home, but a pattern of missed payments can lead to possession proceedings.

After two or three missed payments, the lender may send a formal notice requiring you to pay the arrears within a set time. If arrears continue to grow and no arrangement is in place, the lender can apply to court for possession. Courts will not grant possession if you are engaging with the lender and sticking to an agreed plan.

Arrears stay on your credit file

Missed payments are recorded and affect your ability to borrow in future. The mark remains for six years. An arrangement with the lender shows on the file too, but it demonstrates you are managing the problem rather than ignoring it.

Know which debts take priority

Your mortgage is a priority debt because losing your home is the consequence of non-payment. Rent, council tax, gas and electricity, and court fines are also priority debts. Credit cards and personal loans are not — they matter, but they do not cost you your home or your liberty. If money is tight, priority debts are paid first.

When other debts are part of the problem

If you are struggling with the mortgage because other debts are taking too much of your income, the solution may involve dealing with all of them together. A debt management plan lets you make reduced payments to non-priority creditors while protecting essentials like the mortgage. Free advice services can set one up and negotiate with creditors on your behalf.

Where to compare forbearance and formal debt solutions

Breathing Space gives you sixty days

If creditors are pressing and the situation feels overwhelming, Breathing Space stops collection activity and freezes interest while you arrange help. It applies to most debts, including mortgage arrears. A debt adviser will apply for it on your behalf. The pause gives time to negotiate without the phone ringing.

Get free advice before deciding

Mortgage forbearance, payment arrangements and formal debt solutions all have consequences. The right choice depends on how much you owe, what income you have, and whether the problem is temporary or permanent. Free debt advice is available from organisations that are not trying to sell you anything.

StepChange Debt Charity offers free advice online and by phone. National Debtline provides guidance tailored to your situation. Citizens Advice has local offices and a website with tools to work out what you can afford. All three can speak to creditors on your behalf and help you set up a payment plan.

If gambling harm is involved

Debts caused by gambling often come with shame that stops people asking for help. The advice services above understand gambling harm and will not judge. Telling them allows them to recommend the right support and to explain your situation to creditors in a way that protects your interests.

GamCare provides free support at gamcare.org.uk and through the National Gambling Helpline on 0808 8020 133, which is free and open all day, every day. BeGambleAware has online tools and guides. GamStop is a free national self-exclusion scheme that blocks access to licensed gambling sites.

Gordon Moody offers residential and online treatment at gordonmoody.org.uk. Blocking software — Gamban at gamban.com (paid subscription) and BetBlocker at betblocker.org (free, works on multiple devices) — stops gambling sites loading before the urge becomes action.

Gambling is for people aged 18 and over. If someone in your household is under eighteen and has access to devices, parental-control software such as Net Nanny or Qustodio can restrict what sites are reachable.

#Arrears #Priority debt #Payment arrangement

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