Consumer Credit and Consumer Protection
It is important to note that your home is at risk if you do not keep up payments on a mortgage or any loan secured on it.
If your mortgage loan is at any time at a variable rate, please note:
THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.
If you choose an endowment loan, and the insurer does not guarantee that the proceeds of the policy will be enough to repay the loan when due, please note:
WARNING: THERE IS NO GUARANTEE THAT THE PROCEEDS OF THE INSURANCE POLICY WILLL BE SUFFICIENT TO REPAY THE LOAN IN FULL WHEN IT BECOMES DUE FOR REPAYMENT.
You should also note that in the case of endowment loans, early surrender of the policy may mean that you get back less than you have paid in premia and other charges.
Will arrears on a loan create a difficulty?
Some home owners have problems paying their mortgages. This could be for many different reasons such as the end of a relationship, the loss of a job, or unexpected expenses such as having a baby. If you are having financial problems, you need to act quickly, even if the problems are only temporary. If you don't, you could lose your home.
Keeping up with your mortgage payments should be your top financial priority. If you are evicted because of payment problems (repossession), you could become homeless. This doesn't happen automatically, but the longer you delay, the more difficult it will become to control your arrears and avoid long-term debts. If you have already been threatened with repossession, get advice immediately.
Act quickly if you fall behind on your mortgage payments.
If you fall behind on your mortgage payments, you need to take action straight away. In some cases, the problem can be solved if you act quickly. Don't wait until the debt becomes unmanageable. Many lenders charge penalty fees if you miss payments. The sooner you deal with the situation the more options you have, and the less chance that you will lose your home.
Contact your lender as soon as you believe that you will have difficulty meeting your mortgage payments
If you have difficulty paying your mortgage (or think that you will have, for example because you have lost your job) it's important that to talk to your lender as soon as possible. Don't be put off because you think your situation is hopeless. There is often a solution. If you haven't yet decided what to do about the problem, explain to your lender that you are going to get specialist advice about your options.
Pay as much as you can afford.
Paying your mortgage has to be your top priority, even if you are under pressure to pay other debts as well. Losing your home through repossession would only make your debt problems worse, so it's essential to keep paying as much as you can afford. This will help to stop your mortgage arrears from rising too quickly. It will also show your lender that you are trying to tackle the problem.
Income protection insurance
If you are taking out a mortgage you should consider taking out an insurance policy that would help you keep up your mortgage repayment if you are unable to work because of illness or an accident..
Always exercise caution when borrowing money especially a mortgage. Take advice from a mortgage broker before taking out a mortgage.