Struggling With Mortgage Payments? Here Are Your Options
Behind on mortgage payments or worried about missing the next one? Learn what happens next, how to avoid repossession, and whether a fast house sale could help.
Struggling With Mortgage Payments? Here are Your Options
Struggling with mortgage payments can be one of the most overwhelming and emotionally draining situations a homeowner can face. Your home is not just a financial asset; it’s where you live, raise a family and feel secure.
When mortgage payments start to feel unmanageable, that sense of security can quickly disappear, replaced by worry, stress and fear about what might happen next.
Across the UK, thousands of homeowners are currently struggling with mortgage payments due to rising interest rates, increased household bills, and wider economic pressures. For many, a mortgage that once felt affordable has suddenly become a monthly burden that dominates every financial decision.
If you’re in this position, it’s important to know you are not alone, and there are realistic options available. Missing mortgage payments does not mean immediate repossession, and there are steps you can take to regain control before the situation escalates.
Why are so Many Homeowners Struggling With Mortgage Payments?
Mortgage payments are usually the single largest monthly outgoing for homeowners. When financial circumstances change, even slightly, mortgage affordability can be affected very quickly. Some of the most common reasons homeowners struggle with mortgage payments include:
Rising Interest Rates and Expiring Fixed Deals
One of the biggest drivers behind mortgage payment difficulties is rising interest rates. Homeowners coming to the end of a fixed-rate deal may see their mortgage payments jump significantly when they move onto a standard variable rate.
For some households, mortgage payments have increased by hundreds of pounds per month, without any corresponding rise in income. This sudden change can turn a previously manageable mortgage into a serious financial strain.
Reduced Household Income
Loss of income is another major reason people struggle with mortgage payments. This may be to do:
- Redundancy or job loss
- Reduced working hours
- Long-term illness or injury
- Self-employment income fluctuations
- Maternity or paternity leave
Even temporary reductions in income can make it difficult to keep up with mortgage payments, particularly if there is little savings buffer.
Rising Costs of Living
Higher energy bills, food prices, fuel costs, council tax, and childcare expenses have placed intense pressure on household budgets. When essential living costs rise, mortgage payments are often the expense that becomes hardest to meet.
Relationship Breakdowns
Divorce or separation often leaves one person responsible for mortgage payments that were previously shared. In many cases, the property simply isn’t affordable on a single income.
Unexpected Financial Shocks
Major home repairs, medical expenses, or the need to support family members financially can all disrupt your ability to meet mortgage payments, even if you’ve never struggled before.
Understanding the underlying cause of your mortgage payment difficulties is crucial, as it will influence which solution is most appropriate.
What happens if you miss mortgage payments?
If you’re already struggling with mortgage payments or worried you might miss one soon, it’s important to understand what typically happens next.
Missing Your First Mortgage Payment
After one missed mortgage payment, your lender will usually contact you by letter or phone. At this stage:
- Arrears will be recorded
- Additional interest may be added
- Late payment fees may apply
Although this can feel alarming, repossession does not occur after a single missed payment.
Falling into Mortgage Arrears
If mortgage payments continue to be missed, arrears will grow. Your lender may:
- Increase contact frequency
- Request a detailed income and expenditure review
- Offer short term payment arrangements
Your credit file will usually show missed mortgage payments, which can affect future borrowing.
Pre-Action Protocol for Possession Claims
Before starting repossession proceedings, lenders must follow the Pre-Action Protocol. This required them to consider reasonable alternatives to repossession, such as:
- Temporarily reduced mortgage payments
- Interest-only periods
- Extending the mortgage term
- Capitalising arrears
This stage provides an opportunity to resolve the issue, but only if you engage with your lender.
Repossession Proceedings
If no solution is reached and mortgage payments remain unpaid, the lender may apply to the court for possession. Repossession is always a last resort, but it is a real risk if action isn’t taken early.
Option 1: Speak to Your Mortgage Lender as Early as Possible
If you’re struggling with mortgage payments, contacting your lender should be your first step, even though it can feel intimidating.
Mortgage lenders are required to treat customers fairly and explore ways to help you stay in your home where possible. They may offer:
- A temporary payment holiday
- Reduced mortgage payments for a fixed period
- Interest-only payments
- Extension of the mortgage term
- Adding arrears to the mortgage balance
Pros of Speaking to Your Lender
- Keeps you in your home
- Prevents immediate escalation
- Shows willingness to cooperate
Cons
- Often increases the total cost of borrowing
- May only delay the problem if affordability doesn’t improve
Lender support is most effective when your financial difficulty is short-term.
Option 2: Government Support for Homeowners Struggling With Mortgage Payments
Some homeowners may be eligible for government assistance if they are struggling with mortgage payments.
Support for Mortgage Interest (SMI)
SMI is a government loan that helps eligible homeowners cover the interest portion of their mortgage payments. It is available to those receiving certain benefits, such as Universal Credit, Pension Credit or Income Support.
Important things to know:
- SMI doesn’t cover the full mortgage payment
- It is a loan, not a grant
- It must be repaid when the property is sold
- There can be a waiting period before payments begin
While SMI won’t solve long-term affordability issues, it can provide short-term relief.
Option 3: Remortgaging or Changing Your Mortgage Deal
If your credit score is still in good shape and you have sufficient equity, refinancing may help with mortgage payments.
This could involve:
- Switching to a fixed-rate mortgage
- Extending the mortgage term
- Consolidating other debts
However, if you are already in mortgage arrears, remortgaging may be difficult. Early repayment charges may also apply.
This option is best suited to homeowners whose mortgage payments increased due to interest rates rather than long-term income problems.
Option 4: Increasing Income or Reducing Outgoings
Some homeowners manage to stabilise mortgage payments by adjusting their household finances. Possible steps include:
- Taking in a lodger
- Renting out a spare room
- Negotiating utility bills and subscriptions
- Seeking free debt advice
While helpful, these measures may not be enough if mortgage payments are fundamentally unaffordable.
Option 5: Selling Your Property on the Open Market
Selling your home through an estate agent can allow you to repay mortgage arrears and potentially release equity. However, traditional sales can be risky when you’re struggling with mortgage payments:
- Sales can take several months
- Chains can collapse
- Mortgage payments continue during the sale
- Price reductions may be needed
If time is critical, this option can add pressure rather than relieve it.
Option 6: Selling Your House Quickly to Resolve Mortgage Payment Problems
For many homeowners facing serious financial pressure, selling quickly can be the most practical and stress-free solution. A fast house sale allows you to:
- Stop missed mortgage payments from escalating
- Clear mortgage arrears
- Avoid repossession and court proceedings
- Protect your credit file
- Move on with certainty
If you’re struggling with mortgage payments and need a guaranteed outcome, We Buy Any House offers a fast, chain-free alternative to the traditional property market.
How Selling Quickly can Protect Your Credit and Mental Health
Struggling with mortgage payments is rarely just a financial problem. The ongoing pressure of unpaid bills, lender letters, and fear of repossession can take a serious toll on your mental health and emotional well-being. Many homeowners report that mortgage stress affects almost every part of daily life, from sleep and work performance to family relationships and overall health.
Selling your property quickly can help break this cycle and provide both financial and psychological relief.
Protecting Your Credit File
Your credit history plays a crucial role in your future financial options. Continued missed mortgage payments, arrears and repossession proceedings can leave long-lasting marks on your credit file, making it harder to rent, secure loans, or obtain another mortgage in the future.
A fast house sale can:
- Prevent mortgage in full (where equity allows)
By resolving the situation early, you limit long-term financial damage and give yourself a stronger foundation to build.
Reducing Stress, Anxiety and Uncertainty
Uncertainty is one of the most daunting aspects of mortgage stress. Not knowing whether a buyer will pull out, how long a sale will take, or whether court action will proceed can prolong anxiety for months.
Selling quickly offers certainty. With a clear timescale and guaranteed outcome, homeowners often experience immediate relief once a sale is agreed. The constant worry about letters, deadlines and missed payments is replaced with a clear plan and an end date.
A fast sale can:
- Stop legal letters and court proceedings
- Remove the fear of sudden repossession
- Provide clarity when time is critical
- Reduce emotional strain on individuals and families
Improving Sleep, Focus and Relationships
Chronic financial stress is closely linked to poor sleep, irritability, difficulty concentrating and relationship conflict. When mortgage payments dominate every conversation and decision, it can place enormous strain on partners and family members.
Many homeowners report that once a quick sale is agreed:
- Sleep quality improves
- Work performance stabilises
- Tension within the household reduces
- Decision-making becomes clearer
Removing the immediate threat allows space to think rationally about next steps, rather than constantly reacting to financial pressures.
A Chance for a Genuine Fresh Start
Selling your home under financial pressure can feel like a failure, but in reality, it is often a proactive and responsible decision. Choosing to sell before arrears escalate or repossession occurs demonstrates control, not defeat.
For many homeowners, a fast sale becomes a turning point:
- Debts are cleared or reduced
- Financial stability is restored
- Stress levels decrease significantly
- Future planning becomes possible again
Rather than being defined by the struggle with mortgage payments, selling quickly allows you to close a difficult chapter and move forward with clarity, dignity and peace of mind.
How to Decide Which Option is Right for you
The best solution depends on:
- The size of your mortgage arrears
- Whether your income is likely to recover
- How much equity do you have
- How urgent your situation is
Short-term issues may be resolved with lender support. Long-term affordability problems often require selling.
Don’t Ignore Mortgage Payment Problems
If you’re struggling with mortgage payments, taking action early gives you the most control and the widest range of options.
Whether you choose to negotiate with your lender, apply for government support, or sell your property quickly through We Buy Any House, addressing the issue at head on can help you avoid repossession and move forward with confidence.
You are not alone, and there is a way through this situation.