A homeowner's guide to mortgage arrears

A guide to home loan arrears and what to do if you can’t afford your mortgage.

Navigating mortgage arrears

Mortgages are a significant financial responsibility and failing to make payments on time can result in mortgage arrears. This can be an extremely challenging situation, but it's crucial to deal with it promptly to minimise the negative impact on your financial security and to prevent the potential loss of your home.

To help you better understand the impact of missed mortgage payments on your future, we’ve pulled together this guide to navigating mortgage arrears. Here we’ve covered everything you need to know about mortgage arrears, including prevention and what to do if you find yourself in debt. But first, let’s cut through some of the mortgage jargon:

  • Forbearance: A temporary suspension of monthly mortgage payments.
  • Mortgage modification: Changing the terms of your mortgage, such as reducing the interest rate or extending the repayment period.
  • Repossession: The legal process of taking ownership of your property, due to missed mortgage payments.
Model house with key

What you need to know about mortgage arrears

What are mortgage arrears?

Mortgage arrears occur when you consistently fail to meet your monthly mortgage payments. It’s important to clarify that missing a single payment doesn't classify you as being in arrears. Generally, two consecutive missed payments are considered arrears.

What does ‘paid in arrears’ mean?

How can I avoid getting into mortgage arrears?

What can I do if I’m already in arrears?

What happens if I can't pay my mortgage?

How can I clear mortgage arrears?

How long do mortgage arrears affect your credit score?

How many months of mortgage arrears before repossession?

What are the short-term repercussions of mortgage arrears?

What are the long-term repercussions of mortgage arrears?

Can I sell my house with mortgage arrears?

Remember, mortgage arrears are not a sign of failure; they are a financial hurdle that can be overcome with proactive action. Open communication with your lender, seeking professional guidance, and adhering to agreed-upon repayment plans are crucial steps in resolving mortgage arrears and securing your financial wellbeing.