Mortgage Arrears
If you cannot meet your mortgage repayments or you are worried you might fall behind, it is important to take action now – don’t put it off. We are experienced at advising on how to deal with financial pressure.
Mortgage Arrears Set To Go On Rising!
Rises in interest rates has caused a recent increase in mortgage arrears, according to NCI Resources, a firm providing mortgage arrears counselling services to lenders.
Borrowers are coming to the end of low fixed rate deals and having to replace them at higher rates.
Ultimately, this could lead to more repossessions – figures from the Council of Mortgage Lenders show that 6,230 homes were repossessed in England and Wales in the period January-December 2004.
Regents Court Financial has recently helped two families save their homes from repossession.
“One couple arrived at the office on Thursday, with an eviction order for the following Tuesday! It was panic stations to get a hearing at the local Court Office, and we eventually sat before the Judge on Monday – just one day before the family was due to be evicted.”
“Our Principal, Andrew Clothier, repossessed homes for mortgage lenders in the 1980’s, so he is very familiar with the Court system. If it’s not too late, the lender can be persuaded to suspend eviction while the arrears are paid off; otherwise we arrange a remortgage with a new lender and ask for time to complete the arrangements.”
“If the lender insists on eviction, we credit check the borrowers and the same day arrange an agreement in principle for a remortgage from a new lender. This enables us to identify the lender who offers the best terms, even if the borrower has a poor credit record, i.e. County Court Judgements, arrears, etc”.
“An application is then made to the Court for a hearing. We go to Court with the borrowers and talk about their financial situation, in an effort to get the eviction deferred. We have a pretty good idea of what the Judge will need to know and we are ready to answer detailed questions about the family’s finances plus a vital progress report on the remortgage.”
Under financial pressure, borrowers often talk to commercial debt agencies who advertise nationally. These schemes can be expensive and often involve their credit rating being unnecessarily compromised. The agency can’t usually deal with all the issues, which forces the borrowers to seek advice from a range of other organisations, some of whom may have their own agendas and priorities.
Andrew says, “It’s essential for homeowners who get behind with their mortgage, to keep their lender updated on their financial position, and if they can’t keep to an arrangement, let them know before they miss a payment.”
“We can help borrowers and urge them to contact us as early as possible – preferably before they miss a mortgage payment.”
We do not make a charge for an initial consultation.
