Mortgage and Rent Difficulties and Debt

Remember: If you take action at the earliest opportunity you will have a much better chance of improving your situation.

Mortgage Difficulties

If you are experiencing difficulties with paying your mortgage or are worried about debt, then please don't ignore the problem. There is a lot you can do, and a lot of help available.  

If you're struggling to pay, you need to act quickly, even if the problem is only temporary. Mortgage arrears don't automatically lead to repossession but must be taken very seriously.

Keeping up with your mortgage payments should be your top financial priority. It may be possible to negotiate to reduce your monthly mortgage payments. Your options will depend on the type of mortgage you have.

If you have problems paying your mortgage, it may be possible to increase your income to make your mortgage more affordable.

Think carefully before signing up to a sale and lease back scheme. There may be major risks involved.

The Government recently announced new initiatives to help avoid repossessions. If you require information relating to the Mortgage Rescue Scheme, contact Oxford City Council's Housing Needs Team, see contact details in the 'Contact Us' menu at the top of the page.

If you are worried about your mortgage payments, please download the leaflets below for advice:  

Generally, you should:

• Contact your Lender
• Get Advice
• Attend Court (if required)
• Contact the Council if you are at risk of losing your home

Rent Difficulties

If you are struggling to pay your rent or are at risk of losing your home because you owe your landlord rent, you need to take action.

Debts relating to your home should always be your top financial priority.

It is always a good idea to tell your landlord if you are having trouble paying the rent. Your landlord will notice that you haven't paid and is more likely to take action if you ignore the problem. Telling your landlord and offering a practical solution may prevent her/him from trying to evict you, as it shows that you are making an effort to deal with the situation.

Tips and Ideas

• Think whether you can increase your income at all - Could you take in a lodger, for example?
• List all your household expenditure to see if there's any spending you can reduce.
• Check whether a better mortgage deal is on offer.
• Consider asking your lender to extend the term of your loan or capitalise the amount owed. (you should get Independent Financial Advice before committing yourself to any offer)
• Prioritise your debts and get advice from a qualified Money Advisor.
• Speak to all your creditors (like your mortgage lender or landlord) and make an offer of what is affordable to you to pay.
• Check to see that you are receiving all the benefits you are entitled to. Use the Benefits Calculator on our Tax and Benefits pages, and visit the Entitledto website.
• Explore all the options available to you? (see the Housing Needs team for help and advice) - For example, could you consider moving to a smaller home?

Organisations in Oxford That Can Help

• Citizens Advice Bureau, St. Aldate's, Oxford. Visit the Oxford Citizens Advice Bureau website for more details 
• Advice Centres in Blackbird Leys, Rose Hill and Barton. Visit our Advice Centres page for contact details.
• Visit the Debt Advice Foundation website
  
• Oxford City Council - Housing Duty Service - Monday to Friday 9am - 4.30pm - drop-in or contact us using the details in the 'Contact Us' menu at the top of the page.

More Information

Visit the Real Help Now section of the Directgov website for more information about dealing with financial difficulties. This section includes information on dealing with redundancy, keeping your home, managing your finances, debt and borrowing, and bankers, savers and investors.

You can also contact the following for more advice:

• Consumer Credit Counselling Service - Tel. 0800 138 1111
• National Debtline - Tel. 0808 808 4000
• Payplan - Tel. 0800 917 7823
• Shelter - Tel. 0808 800 4444
• Debt Advice Foundation - Tel. 0800 043 40 50
  

Page last reviewed 26 Jan 2010