Struggling to pay your mortgage can feel overwhelming – especially if your payments have gone up or your income has changed. But falling behind doesn’t automatically mean you’re out of options.
We’ll talk through what usually happens, the support that may be available, and the steps you can take – so you can see where you stand and decide what to do next.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What happens if you can’t pay your mortgage?
If you miss a mortgage payment, things usually follow a set process rather than escalating immediately.
Here’s what typically happens:
- You miss a payment. Your lender will usually contact you to flag it and ask what’s changed.
- You fall into arrears. Being in arrears simply means you owe missed payments on top of your usual monthly amount.
- Contact increases. Your lender may send letters or call to explain what you owe and discuss possible support.
- Formal action becomes possible. If arrears continue with no agreement in place, legal steps can eventually follow.
It’s rarely instant – and it’s usually more structured than it feels.
What this can affect
Repeated missed payments can affect your credit file, which lenders use when assessing future borrowing. If you want to understand this better, our guide on what credit score you need for a mortgage explains what lenders actually look at.
What your lender should tell you
If you’re in arrears, your lender should clearly explain:
- how much you’ve missed and what’s outstanding
- any charges or interest being added
- what your next payment is, and when it’s due
- what options may be available
A quick reality check
Repossession is generally a last resort. Most lenders will look at ways to help you manage payments first – especially if you engage early and explain what’s changed.
Immediate steps to take if you’re struggling to pay
If you haven’t missed a payment yet, you’re in the strongest position. And even if you have, taking action early can still make a real difference.
These are the first things to focus on:
Contact your lender right away
It might feel uncomfortable, but speaking to your lender early is one of the most important steps you can take. Most lenders have specialist support teams for customers who are struggling – and asking for help alone doesn’t harm your credit file.
When you speak to them, explain what’s changed and whether the issue is short-term or ongoing. You can also ask what support options might be available.
Some lenders offer charter-style support, which can include things like temporarily switching to interest-only payments or extending your mortgage term to reduce monthly costs.
Not every lender offers the same options, and eligibility varies – but it’s reasonable to ask what flexibility exists in your situation.
The key thing is to keep communication open. Silence makes things harder; conversation usually creates options.
Assess your finances and budget
Before or alongside that conversation, take a clear look at your finances so you know what you can realistically afford.
It helps to check:
- how your income has changed (or might change soon)
- your essential monthly outgoings
- what you can pay now, even if it’s less than usual
If this is a temporary squeeze, knowing your numbers makes it easier to agree on a short-term plan. And if money is tighter for longer, it helps you avoid promising payments you can’t keep.
It’s also worth quickly checking whether you have any insurance – like mortgage payment protection – or whether you might qualify for benefits that could help in the short term. You don’t need to solve everything at once, but flagging these early can reduce pressure.
Your mortgage payment options
If your payments feel unmanageable, there may be ways to reduce them – either temporarily or longer term.
Refinancing or remortgaging
Remortgaging means switching to a new mortgage deal, either with your current lender or a different one, to try to lower your monthly payments.
If you’re already in arrears, this can be harder and may involve fees or early repayment charges. Some people start with a product transfer – switching to a new deal with their existing lender – which is often quicker and involves less paperwork than a full remortgage.
If you want help weighing up whether remortgaging is realistic in your situation, Habito can help you explore your options.
Habito is authorised and regulated by the Financial Conduct Authority (FRN 714187).
Extending your mortgage term
Extending your mortgage term spreads what you owe over a longer period, which can reduce your monthly payments.
The trade-off is higher total interest over time. In some cases, lenders may allow this as short-term support, with the option to review or reverse it later – depending on the lender and your circumstances.
Switching to interest-only payments
With interest-only payments, your monthly payments cover just the interest, not the amount you borrowed. This can significantly reduce payments in the short term.
It’s usually used as a temporary arrangement, because you’re not reducing the balance you owe – meaning payments may rise later.
You’ll still need a clear plan to repay the full mortgage balance at the end of the term.
Government help with mortgage payments
If you’re struggling to pay your mortgage, there may be government support available – depending on your circumstances and where you live. This help won’t suit everyone, but it’s worth checking what applies to you.
Support for Mortgage Interest (SMI)
Support for Mortgage Interest (SMI) is a government loan that helps cover the interest on your mortgage – not the amount you originally borrowed.
SMI is usually available if you receive certain benefits, such as:
- Universal Credit
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Pension Credit
A few important things to know:
- SMI is repayable, with interest, when you sell your home or transfer ownership
- it only helps with interest payments, not capital repayments
- there’s usually a waiting period before payments start
Because it’s a loan secured against your home, the amount you owe can increase over time. It’s important to understand how it works before applying – but for some people, it can provide valuable breathing space.
Additional schemes in Wales and Scotland
If you live outside England, there may be extra support available – with different rules and eligibility criteria.
- Wales: The Help to Stay scheme offers shared-equity support to help eligible homeowners manage their mortgage payments.
- Scotland: The Home Owners’ Support Fund includes options like Mortgage to Rent and Mortgage to Shared Equity for people at risk of losing their home.
Availability and criteria vary by nation, so it’s important to check what applies where you live and whether the support fits your situation.
What to do if you’re already in arrears
Being behind on your mortgage payments doesn’t mean repossession is inevitable. If you’re already in arrears, the priority is to stabilize things and agree on a realistic plan.
Catching up on payments
If you can afford to pay something, even if it’s less than your usual amount, that’s often better than paying nothing. It shows your lender you’re engaging.
You may be able to agree to a repayment plan that spreads missed payments over time. When speaking to your lender, it can help to make a simple offer covering:
- why you’re struggling and whether it’s temporary
- what you can realistically afford now
- when your situation might improve
Be honest and practical – committing to payments you can’t maintain can make things harder later.
Your lender should also explain clearly what you owe, any charges being added, and how your payments are being applied.
Seek debt advice
If things feel overwhelming, free debt advice can help. Organisations like Citizens Advice or StepChange can review your finances, help you prioritise debts, and support you in dealing with your lender.
Getting advice doesn’t lock you into a decision – it helps you understand your options before things escalate.
Could selling your home be an option?
Selling your home is usually considered a last resort, but in some situations it can be a way to avoid further arrears or forced action by the lender.
If you have enough equity – the portion of your home you own outright – selling voluntarily may allow you to repay your mortgage in full and avoid the additional costs and stress that can come with repossession.
That said, selling isn’t right for everyone. It can involve moving costs, timing pressures, and the risk that your home sells for less than expected. It’s important to weigh these factors carefully and get advice before deciding.
If selling is something you’re considering, acting early gives you more control over the process than waiting for formal action to begin.
How to avoid repossession
Repossession is usually the final step in a longer process, not an immediate outcome.
If payments continue to be missed, things can move from reminders and arrears letters to formal notices and, in some cases, court action. Ignoring letters or court paperwork can make the situation worse, so it’s important to respond and attend any hearings.
If no agreement is reached, it’s important to understand the risks involved.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Many lenders will look at alternatives before taking this step – especially if you’re communicating and making payments where you can.
If court action does begin, free help may be available. In England and Wales, the Housing Loss Prevention Advice Service offers free legal advice and, in some cases, representation at court for people at risk of losing their home.
Final tips for staying on top of your mortgage
Once things feel more stable, a few simple habits can help you stay on track and reduce the chance of problems cropping up again.
- Review your deal regularly. Rates and products change, so it’s worth checking whether your current mortgage still suits you – especially when a fixed rate is due to end.
- Build a small buffer if you can. Even a modest emergency fund can help cover payments during short-term income gaps.
- Consider protection carefully. Mortgage payment protection insurance (MPPI) can help cover payments if you can’t work due to illness, injury, or unexpected changes to your work situation. It’s optional and not right for everyone, but it can offer reassurance.
- Get help early if things change. If payments start to feel tight again, speaking to someone sooner usually opens up more options.
If you’re weighing up different routes and want help understanding what’s realistic, speaking to a mortgage broker can make the process feel a lot more manageable. Read more about what a mortgage broker does here.
Frequently asked questions
What happens if I can’t pay my mortgage?
If you miss a payment, your lender will usually contact you to understand what’s changed. If payments continue to be missed, you can fall into arrears, which means missed payments are added to what you owe. Repossession is generally a last resort, and most lenders will look at other options first if you engage early.
Can the bank repossess my home immediately if I miss a payment?
No. Repossession doesn’t happen after a single missed payment. It follows a process that typically involves arrears, ongoing contact, and formal steps if the situation isn’t resolved. Responding to your lender and any court letters is important, as ignoring them can make things harder to stop.
How can I qualify for government help with my mortgage?
Government help depends on your circumstances and the benefits you receive. Support for Mortgage Interest (SMI) is available to some people on certain benefits and helps with mortgage interest only. It’s a repayable loan, and eligibility rules apply, so it’s important to check whether it’s suitable for you.
What are my options if I’m behind on my mortgage payments?
If you’re behind on your mortgage payments, options may include agreeing a repayment plan, making reduced payments for a period of time, or accessing short-term support from your lender. Free debt advice can also help you understand what’s realistic and avoid making things worse.
