Problems & fixes · Mortgages
What to do if you struggle to keep up with mortgage payments
Last updated 25 October 2026 · 2 sources listed · Reading time about 3 minutes
Short answer
Contact the lender before arrears build and ask about forbearance: temporary reduced payments, a term extension, a payment deferral or a switch to interest-only for a period. Each has long-term cost. Seek free debt advice, prioritise housing costs and understand the process lenders must follow before taking possession, which varies by jurisdiction.
Who this is for: A homeowner facing a drop in income or rising payments who is worried about missing a mortgage instalment.
What to evaluate
Early contact
Lenders have more flexibility before arrears accumulate.
How to check: Call or message the lender at the first sign of difficulty and record the response.
Type of relief
Deferral, extension and interest-only periods affect total cost differently.
How to check: Ask for the long-term effect of each option in writing.
Credit file consequences
Arrangements may be recorded and affect future borrowing.
How to check: Ask how the plan will be reported.
Legal protections
Many jurisdictions require lenders to follow steps before possession.
How to check: Check the regulator's or government's guidance for your location.
Whole-budget view
Mortgage trouble often coexists with other debts, and priorities differ.
How to check: Complete a budget with a free adviser.
Comparison
| Option | Good when | Watch out for |
|---|---|---|
| Payment deferral | Short, temporary disruption | Deferred amount returns later |
| Term extension | Payments need to fall durably | More total interest |
| Interest-only period | Short-term cash flow help | Balance is not reducing |
| Switch to a cheaper product | Equity and credit allow | Fees and eligibility |
| Voluntary sale | Payments are unsustainable long-term | Selling costs and timing |
Decision worksheet
Rate up to three options against this guide’s own criteria. It runs in your browser and saves only on this device. It is a thinking aid, not a recommendation.
1. Have you checked each criterion?
0 of 5 criteria checked.
2. Compare options (0 = fails or unknown, 3 = meets it well)
| Criterion | |||
|---|---|---|---|
| Early contact | |||
| Type of relief | |||
| Credit file consequences | |||
| Legal protections | |||
| Whole-budget view | |||
| Total (max 15) | 0 | 0 | 0 |
Questions to ask before you commit
- What forbearance options are available to me?
- How would each option change my balance and term?
- How will arrangements be reported to credit agencies?
- What fees will be added?
- What is your process if arrears continue?
- Can I speak to a specialist team?
- Where can I get free independent advice?
Typical trade-offs
Interest-only temporarily versus extend the term
- Upside
- Immediate payment relief.
- Downside
- Capital stays unpaid or the term lengthens.
Sell voluntarily versus fight to keep the home
- Upside
- Control over timing and price.
- Downside
- Losing the home is emotionally and financially significant.
Use savings to cover payments versus preserve them
- Upside
- Avoids arrears.
- Downside
- Leaves less buffer.
Common mistakes
- Ignoring lender letters, which hastens formal action.
- Borrowing at high cost to make mortgage payments.
- Paying fee-charging firms promising to stop repossession.
- Not seeking advice until after court papers arrive.
Related questions
Will my lender take my home straight away?
Possession is generally a last resort and usually requires following a legal process with notices, opportunities to propose repayment and often court involvement. The detail varies by country and by whether the loan is regulated. Engaging early, keeping to any agreed plan and responding to every letter significantly improves outcomes, because courts and lenders look at whether the borrower made genuine efforts to resolve the shortfall.
What is forbearance?
It is the lender's agreement to temporarily reduce or pause payments, or to alter terms, to help a borrower through difficulty. It is not forgiveness; deferred amounts normally still need to be repaid, possibly with added interest or a longer term. Ask for the terms in writing, including how the arrangement is reported to credit agencies and when normal payments resume.
Where can I get free help?
Independent charities and government-backed services in many countries provide free, confidential debt and housing advice. They can help you build a budget, negotiate with lenders and explain your rights in the possession process. Be wary of firms that charge upfront for services offered free elsewhere, and of anyone who offers to buy your home quickly or take over your mortgage without involving the lender.
Does missing a payment ruin my credit?
A missed payment is likely to be recorded and can lower your credit standing, with more severe effects for longer arrears. Agreed arrangements may be reported differently across systems, so ask how yours will appear. Rebuilding is possible with on-time payments afterward, but mortgage lenders may scrutinise the history closely in future applications.
Should I sell the property if I cannot keep up?
A planned sale can sometimes protect more equity than a forced one, because a voluntary sale lets you choose timing and price. Talk to the lender first about whether they would allow a sale for less than the balance and how any shortfall would be treated. Independent advisers can compare this with other options, such as extending the term, renting out part of the home or a temporary switch in repayment type.
Sources and further reading
These pages were reachable when we last checked. They informed definitions and rules referred to above; they do not endorse this guide. Where rules differ by country, check the authority for your location.
- Owning a home — Consumer Financial Protection Bureau, retrieved 27 October 2026
- Consumer information and guidance — Financial Conduct Authority, retrieved 27 October 2026
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