I can’t pay my mortgage, what do I do?

Financial Issues

25th July 2025

15 mins

We Buy Any House

Falling behind on mortgage payments is a frightening experience. Whether it is due to job loss, rising living costs, or other financial pressures, the fear of losing your home is very real.

In this in-depth guide, we’ll explain what to do if you can’t pay your mortgage, how to avoid repossession, and why sometimes deciding whether to sell your house fast could be the best financial move you make.

The first step: Don’t ignore the problem

If you’re falling behind on your mortgage or expect to in the near future, time is of the essence. Ignoring the issue won’t make it go away; in fact, the longer you wait, the fewer options you’ll have.

Here’s what to do right away:

Speak to your lender

Your lender doesn’t want to repossess your home; they’d much rather work with you to find a solution. Contact them as soon as possible. They may be able to offer:

A short term payment holiday
A switch to interest only payments
A reduced payment arrangement
An extension of your mortgage term to reduce monthly payments

Be honest about your situation. Lenders will assess your finances and propose solutions that might help you stay in your home or at least avoid severe penalties.

What does it mean to be in arrears?

You are considered ‘in arrears’ once you’ve missed a full mortgage payment and your lender hasn’t received it by the due date. Arrears can accrue rapidly and may lead to legal action if not addressed.

However, being in arrears doesn’t mean it’s too late. Acting quickly, especially within the first month or two, can make all the difference.

How long will my lender allow me to miss payments?

This depends on your mortgage agreement and your lender’s policies. Typically, lenders will start formal proceedings if you miss three or more consecutive payments. However, with clear communication and a willingness to cooperate, many lenders will work with you before taking drastic action.

Options your lender may offer include:

Temporary payment holidays, typically up to 3-6 months
Switching to interest only repayments for a fixed period
Re mortgaging or restructuring your loan

Remember: Interest often continues to accrue even during payment holidays. Be clear on how this will impact your long term mortgage balance.

Government help: Will the UK Government pay my mortgage?

While the government won’t cover your entire mortgage, you may be eligible for Support for Mortgage Interest (SMI), a government loan scheme that helps homeowners who receive certain benefits.

What is Support for Mortgage Interest (SMI)?

SMI is a government loan that helps pay the interest on your mortgage. It’s paid directly to your lender and can reduce the amount you owe monthly, though you’ll need to repay it when you sell your home or transfer ownership.

Who is eligible for SMI?

You may qualify for SMI if you’re receiving:

SMI only covers interest, not the capital repayment or arrears. However, it can significantly reduce your financial burden while you stabilise your income.

Budgeting and income solutions

If government support or lender arrangements aren’t enough, or if you aren’t eligible, the next step is to maximise your income and reduce your expenses.

Cut back on non essentials

This might sound obvious, but many people don’t realise how much they spend unnecessarily each month. Start by tracking every expense, then cut:

Subscriptions (streaming services, gym memberships)
Takeaways and dining out
Non essential purchases like gadgets or home décor

Your mortgage should be the top financial priority; make all other spending as secondary as possible.

Boost your income

If you’re unable to reduce your mortgage payments enough through budgeting alone, generating extra income, even in small amounts, can make a big difference.

These earnings can help cover the shortfall in your mortgage or ease pressure on other bills, giving you the breathing room to stabilise your finances.

Here are some realistic ways to bring in your finances:

Take on temporary work or freelance gigs

Even if you’ve been made redundant, or are between jobs, there are often short term opportunities available. Thanks to gig economy platforms like Fiverr or TaskRabbit, many people are able to find quick, short-term income opportunities without needing to commit to full-time work.

Sell items you no longer need

Most households have unused items, consider selling:

Clothing, shoes and accessories
Electronics
Furniture or home décor
Books, games and DVDs

Utilise platforms like eBay, Facebook Marketplace, Vinted, or Gumtree to reach local buyers or national audiences. In many cases, you could raise hundreds of pounds simply by decluttering your home.

Rent out a room or storage space

If you have extra space at home, you can earn income by:

Renting out a spare bedroom
Listing your home on Airbnb
Offering driveway or garage storage for local residents

Taking in a lodger could earn you up to £7,500 a year tax free under the UK’s Rent-a-Room scheme, an excellent option if your property and personal situation allows it.

Debt charities and professional advice

If your mortgage arrears feel unmanageable or you’re juggling multiple debts alongside your housing costs, you don’t have to face it alone. Reaching out to a reputable debt charity can be a vital step in regaining control of your finances.

These organisations exist to provide free, impartial and confidential advice, no matter how bad your situation may seem. They can help you:

Assess your full financial position
Create a sustainable budget
Communicate with your mortgage lender or creditors
Access formal debt solutions, such as a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA) or even Bankruptcy Advice.

Whether you’re just starting to struggle or are already facing court action or repression threats, these charities can offer guidance tailored to your circumstances.

Trusted UK debt charities

StepChange Debt Charity

One of the UK’s largest and most respected debt advice providers.

Offers online and telephone based advice
Can help set up a Debt Management Plan (DMP)
Helps with mortgage arrears, rent arrears, utility bills and credit debts
Their online ‘60 second debt test’ quickly identifies what help you may need

National Debtline

A dedicated service for individuals in England, Wales and Scotland National Debtline is a free service advising on debt problems.

Offers free, independent advice via phone and webchat
Publishes practical guides and budgeting tools
Particularly useful for self employed or sole traders with fluctuating income

Shelter

Primarily known for helping those at risk of homelessness, Shelter offers targeted advice if your housing situation is under threat.

Helps people facing repossession or eviction
Offers legal guidance and tenancy rights information
Especially valuable for renters and homeowners at risk of losing their home

What to expect when you get help

Reaching out can be daunting, especially if you feel ashamed or overwhelmed, but debt charities are designed to help people exactly like you. Here’s what the process usually looks like:

Initial Assessment: You’ll discuss your income, outgoings, debts and assets.
Options Review: An advisor will explain what solutions you qualify for and how they work.
Action Plan: They’ll help you implement a personalised strategy, which could include negotiating with creditors, freezing interest or formalising a payment plan.
Ongoing Support: Many services offer regular check-ins or tools to help you stay on track.

These services are confidential, non-judgmental, and always free of charge. You don’t need to hit rock bottom before asking for help.

Seeking advice early can significantly improve your chances of avoiding repossession and preserving your long term financial wellbeing. Whether you ultimately decide to restructure payments, reduce debt, or sell your house fast, a debt charity can be a valuable ally in your journey to stability.

**Selling your home could be the fastest way to stop debt from spiralling. Discover how to sell your house fast.**

When keeping the house isn’t feasible

Despite your best efforts, there may come a point where it’s clear that staying in your home is no longer financially sustainable. This can be one of the hardest realisations a homeowner has to face, but it can also be the turning point towards a more stable, less stressful future.

Recognising the signs

You might be approaching this decision if:

Your income has dropped permanently, due to job loss, ill health or retirement
You’ve exhausted all repayment options with your lender
You’re consistently falling behind on mortgage or utility bills
The cost of living in your current home is causing anxiety or deteriorating your quality of life
You’ve accrued significant arrears and repossession proceedings have begun

In such cases, attempting to hold onto the property at all costs may only exacerbate your financial situation. Acting quickly and on your terms is crucial.

Why selling proactively is better than repossession

If you’re unable to pay your mortgage, voluntarily selling your home is almost always a better alternative to having it repossessed. Here’s why:

You stay in control

Selling before repossession allows you to:

Choose the timing of the sale
Negotiate terms that suit your needs, e.g. staying in the property until completion
Avoid the stigma and long lasting impact of a forced repossession on your credit file

You maintain equity

If your property is worth more than the amount remaining on your mortgage, a quick sale allows you to:

Pay off your debt
Avoid legal costs and interest piling up
Use the remaining funds as a deposit to rent or downsize to a more affordable home

Repossession, by contrast, often results in your home being sold at auction for less than its market value, leaving you with little to no equity, or even residual debt.

You reduce stress and uncertainty

The repossession process can be long, distressing, and emotionally draining. Choosing to sell your house fast removes that uncertainty and allows you to focus on planning your next chapter.

Is selling your house the right choice for you?

It’s worth considering a sale if:

You no longer have the income to support your current mortgage, and don’t expect this to change
You’ve been refused additional support or payment holidays by your lender
Debt charities and budgeting strategies haven’t resolved the shortfall
The property itself no longer suits your long term needs

This doesn’t mean you’ve failed; it means you’re making a smart, proactive financial decision.

What happens after the sale?

After selling, many homeowners:

Downsize to a smaller or more affordable property
Move in with family temporarily while getting back on their feet
Renting privately using leftover equity from the sale
Clear other debts with the funds released from the property

Even if the sale doesn’t leave you with a large surplus, walking away debt free, or with reduced obligations, can be a massive relief and a fresh financial beginning.

Selling your home in difficult circumstances is never easy, but in many cases, it’s the most responsible and empowering path forward. If you act early, you’ll retain more control, more options and more dignity than if you wait for the situation to spiral beyond your reach.

Why selling fast could be your best option

In urgent situations, choosing to sell your house fast can protect your credit rating, preserve your remaining equity, and give you the fresh start you need, without the trauma of repossession.

The key benefits of a quick house sale

Avoid repossession and protect your credit file

Repossession stays on your credit report for six years and can severely impact your ability to borrow, rent or even secure a mobile phone contract. Selling fast before legal action is finalised allows you to settle your mortgage voluntarily, avoiding the long term damage associated with court proceedings or forced sales.

Clear your mortgage debt and stop arrears from growing

Every missed payment adds interest, late fees, and arrears, compounding your debt. A fast house sale lets you:

Pay off the mortgage in full
Avoid court costs or legal charges
Prevent further financial pressure from building

This can stop the cycle of debt and free you from daily money stress.

Access equity to start fresh

If your property is worth more than the outstanding mortgage, a fast sale allows you to unlock any remaining equity quickly. You can use this money to:

Pay for a deposit on a rental home
Cover moving costs
Clear other unsecured debts
Build a financial cushion while you plan your next steps

Even if the proceeds are modest, having access to funds can make a world of difference when you’re in financial difficulty.

Relieve stress and regain control

The uncertainty of financial hardship, endless phone calls from creditors, legal letters and sleepless nights can take a huge toll on your mental and physical wellbeing. A quick, guaranteed sale removes that pressure and allows you to focus on solutions instead of survival.

You don’t have to wait for the bank to make the first move. Taking action puts the power back in your hands.

Why a traditional sale might not work fast enough

Selling through an estate agent is a popular route for many homeowners, but it comes with major delays, especially in a market where buyers are cautious or mortgage approvals are slow.

Typical estate agent sales timelines:

2-3 weeks to list your property
2-3 months to find a buyer
4-6 + weeks for completion, if the sale doesn’t fall through

That’s 3-6 months or longer, and if you’re already in arrears, you may not have that kind of time.

Frequently Asked Questions: I can’t pay my mortgage, what do I do?

What happens if I miss a mortgage payment?

If you miss a payment, your account goes into arrears and your lender may charge a late fee, or report missed payments to credit agencies. If the problem persists, they may initiate repossession proceedings. Acting quickly by contacting your lender can help avoid this outcome.

How many missed mortgage payments before repossession?

Repossession usually begins after 3 or more missed payments, but lenders will often work with you beforehand to try and find a solution. The earlier you seek help, the more options you have to avoid losing your home.

Can I sell my house if I’m behind on the mortgage?

Yes, you can still sell your home if you’re in mortgage arrears. In fact, many homeowners choose to sell their house fast to avoid repossession. A quick sale allows you to clear the mortgage debt and avoid long term damage to your credit.

How can I sell my house fast if I’m in financial trouble?

The quickest way is to use a cash house buying company like We Buy Any House. We make a no obligation cash offer within 24 hours and complete the sale in as little as 3 days. This gives us your immediate funds and a clean financial slate.

Will I lose money if I sell my house fast?

Selling quickly for cash typically means accepting below full market value. However, the speed, certainty, and lack of fees can make it worthwhile, especially if repossession is looming or you need to avoid growing arrears and legal costs.

Will the government pay my mortgage if I lose my job?

The government won’t pay your full mortgage, but you may be eligible for Support for Mortgage Interest (SMI). This scheme helps cover interest payments if you receive certain benefits. It’s a loan, not a grant, and must be repaid when you sell the home.

Can I stop repossession once it’s started?

Yes, right up until the court date, or even shortly before eviction, you may be able to stop repossession by clearing arrears, negotiating with your lender, or selling the house quickly. It’s vital to act urgently and seek legal or financial advice.

How can I avoid getting into mortgage arrears in future?

To reduce risk:

Keep a realistic monthly budget
Maintain an emergency fund
Speak to your lender at the first sign of trouble
Consider income protection insurance
Avoid overextending your finances on loans or credit

Who can help me with mortgage debt?

You can speak to:

Your mortgage lender
Government support services, e.g. for SMI
Reputable debt charities like StepChange, National Debtline, or Shelter
Quick sale specialists if you’re looking to sell your house fast

The fast sale alternative

If you’re saying ‘I need to sell my house fast’, working with a professional cash house buyer, like We Buy Any House, may be your best option.

At We Buy Any House, we understand how stressful mortgage arrears and financial pressures can be. That’s why we make it simple to get a guaranteed sale, no estate agents, no hidden fees, and no delays.

Don’t wait for repossession or let debt spiral further out of control. Take back control today.