As growth in the UK housing market continues unabated, the rate of repossessions in the UK has fallen to its lowest level in 6 years. This predates the Great Recession, and suggests that Britain may finally be laying the foundations for a robust and long-term recovery. This is underpinning rising levels of consumer confidence in the UK, especially among secure homeowners.
The longevity and sustainability of this recovery has been question by some economists, however, especially those who believe that is founded on heavy and subprime borrowing. With this in mind, it is unwise to get too carried away concerning the falling rate of repossessions, as there remain a core demographic of homeowners who may still be struggling to meet their monthly repayments.
Avoiding the Threat of Repossession: 3 Steps for Home-owners
If you are struggling to repay your mortgage, it is important to adopt a proactive approach towards resolving this issues. Consider the following steps to help you achieve this aim:
Make Contact with your Lender
Whether you have already began to default on repayments or have pre-empted a potential issue, it is crucial that you engage with your lender as soon as possible. By maintaining open and honest lines of communication, it is possible to foster stronger relationships and establish some common ground. As a consequence of this, you may be able to negotiate a temporary payment holiday, or at least create an arrangement whereby you pay less each month until you are able to arrive at a more permanent solution. While not all lenders are created equal, the majority have been forced to operate a more empathetic service in the wake of the Great Recession.
Organise your Debts and Prioritise Individual Accounts
Ultimately, your inability to repay a mortgage may be a result of cumulative debt rather than irresponsible, subprime lending. If this is the case, it is worth evaluating your total debt and prioritising individual accounts, as this will enable you to develop a clear financial plan while also identifying opportunities to make savings. Secured debts relating to your home and car should be given priority, for example, even if this means cutting back on other, unsecured repayments or adopting a more frugal lifestyle. This process may enables you to repay your mortgage arrears over time, and provide an opportunity for you to retain your home and rebuild a positive credit score.
Make Plans to Sell your Home
If the issue has advanced beyond temporary measures, you may want to consider selling your home. While this may be easier said than done, however, there are firms that specialise in organising the quick and profitable sale of your home for a predetermined cash sum. Companies such as the House Buyer Bureau offer this service to struggling home-owners nationwide, and in some instances are able to complete a transaction within a seven day period. While this may seem drastic, sometimes it is the most effective way to settle your rising debt and make a fresh and uninhibited start.