If you fall behind in mortgage payments, it is essential that you keep your lender informed about your circumstances.
Ask about hardship variation and provide them with details about how you plan to keep up the payments.
A lender can commence legal proceedings if :
- You are in default by a single installment
- They have served you with a default notice in writing
- You have not made the required payment within 30 days or the time specified in the notice
You must act quickly as timeframes for lenders to enforce the mortgage by selling your property is quite short.
If you are refused a hardship variation or if legal proceedings are issued against you, you should apply for a hardship variation with the external dispute resolution scheme, to which your lender belongs.
If a court has already made an order against you, it is too late to apply to an external dispute resolution scheme.
Also, it is important to note that lenders will charge you all sale and legal costs incurred during court action, repossession and sale of your property.
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