If you are having difficulties with your mortgage it's essential to know the facts and not be frightened by the many myths that are out there. Knowing what to do is all about arming yourself with the most accurate information available. The most important misconceptions and facts are explained below.
My bank isn’t going to give me a chance to save my home
The facts: Mortgage lenders should only take possession action as a last resort. At least 116,000 households are now benefiting from arrangements with lenders, including for example agreements for reduced payments, extended terms for the loan or payment holidays.
If you are unhappy about how your lender has been dealing with you, you can complain to the Financial Ombudsman Service – at
www.financial-ombudsman.org.uk or by phoning 0845 080 1800.
I’m better off just giving up and handing in the keys
The facts: Handing in the keys doesn’t solve your problems – you will still be responsible for paying the loan and interest until it is paid off. If there is a shortfall after you or the lender sells your home, you will remain liable for the outstanding debt.
No one is actually getting help from government schemes
The facts: Over 200,000 households are benefiting from targeted financial support to help them stay in their home.
Hundreds of households have had repossession action against them frozen through Mortgage Rescue.
There’s no point in going to court – losing my home is a foregone conclusion
The facts: You should always attend a repossession court hearing. Everyone is eligible for support from a free court desk advisor and just showing up for the hearing can make a real difference to your chance of keeping your home.
In 78% of repossession proceedings where a household attended court and was helped by the Court Desk Advice scheme, immediate repossession was avoided and the client was able to remain in their own home after the court hearing.
Protections are in place so repossession is only ever a last resort - lenders have to prove to the courts they have exhausted every possible option before applying for a repossession order.
