Mortgage arrears and shortfall

Repossession of your home is the LAST resort.

We don’t believe that any debt issue is more stressful than an issue with your mortgage debt. Let us start by assuring you that repossession of your home is the very last resort, so please do not stress.

You have options to prevent repossession

You may be thinking us saying "don't stress" is easy for us to say, but our objective is to make you understand why we say that. First of all, you have several options to tackle the situation without getting to the stage of repossession. These aren’t just options like selling your property, the mortgage company needs to provide suggestions that you may not know about already. The Financial Conduct Authority (FCA) guidance states that the mortgage company should do everything they can to help you get back on track or come to agreement that means you can still keep your property.

TRDG has your back on this as always with a dedicated article that talks about 7 steps to handle your mortgage arrears. it's in the purple box at the bottom of this page. This should help you to get back in control and avoid repossession. If you’ve already gone past this point i.e. your home has already been repossessed read on.

Shortfall after property repossession

You might be thinking “I could have done with this before my home was repossessed, now I have a shortfall”, we get that a lot. The great thing is we have you covered on this as well.

It’s important to understand the change in the type of debt you have when it’s a shortfall. It is no longer secured to an asset so that means, hopefully you’ve guessed, it's now an unsecured debt.

We don’t know how long you’ve had this shortfall but if it is unsecured and it's at least six years old, your first port of call should be to establish whether the debt or at least part of the debt is statute barred. If so, your debt can be tackled with one simple letter.

If you have had the shortfall for more than 12 years then there may be a chance that the whole debt is statute barred. You will find a purple box below where you can find out if your debt falls under this category.

If you find your debt isn’t statute barred, no stress, head straight over to our unsecured debt section where you will learn options to handle the shortfall.

The more knowledge you have the better

Your home is your security, we totally get it. That’s why it’s so important that you do all you can to protect it. Arm yourself with knowledge, it’s your best tool to protect yourself, your family and your home.

This site isn’t just for when you get into financial trouble, it’s designed to help you never get to that stage in the first place. Which is why we always encourage you to visit our Financial Education section to build your knowledge and protect yourself from serious financial difficulty.

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