Key tips for homeowners worried about risk of repossession » Bill payments » 24dash.com

New figures have revealed the number of people struggling to meet mortgage repayments and at risk of repossession has risen by nearly a fifth.

Here are key tips from the Citizens Advice Bureau, Shelter and the Consumer Credit Counselling Service for those in danger of losing their home:

• If suddenly out of work or unable to work because of illness or injury, homeowners should check for any payment protection insurance they may have and get advice about benefits and other help they may be entitled to.
• Face up to the problem - the earlier someone at risk of losing their home seeks help, the more likely it is that their home can be saved.
• Speak to an organisation that can give impartial, independent advice, such as the Citizens Advice Bureau, Shelter, or the Consumer Credit Counselling Service.
• Speak to the mortgage lender as soon as difficulties making a payment arise. Lenders view repossession as a last resort, and would rather work to resolve problems if they can.
• Home-owners should take a good look at their financial situation. Shelter advises those having problems to put together a list of money coming in and going out each week or month, and show the list to the mortgage lender. This will enable the lender to see how debt can be addressed.
• If faced with a large mortgage payment, and a much smaller credit card payment, always prioritise the secured loan. Speak to the mortgage lender and offer to put however much money is available towards mortgage payments, even if it is only a small sum.
• Shelter advises people to avoid turning to debt management companies, which will probably charge large fees for their advice.
• The charity also says extra borrowing, including second charge loans and from debt consolidation companies, will not solve arrears problems, and will often lead people further into debt.
• Do not ignore court papers and court hearings - do attend court, but get advice first.
• Repossession is not inevitable. Options include converting to an interest-only loan, or negotiating an alternative repayment schedule.