Archive for the ‘Links / Advice’ Category

Avoid Repossession: Mortgage Help Website

Saturday, October 3rd, 2009



The government estimates thousands of people are suffering with their mortgage repayments at the moment. Many are unsure where to get the right advice. Websites like our own are a good way of getting free impartial information on who can help. Many companies advise a quick sale of your house. Some pushing it on you for their own financial gain. Although in some scenarios, the immediate sale of a home can be the best option, it doesn’t always mean that it is the right one.

The government has set up a new website to help those who are currently finding it hard to make their repayments. The website is called MortgageHelp and has been set up by directgov.

The site provides info for:
- People struggling to pay their mortgage.
- People who have missed mortgage payments.
- What to do if your lender is threatening repossession.
- What to do if you have been issued with a court appearance for repossession.

The site encourages you to take action if you are facing problems, raher than just trying to ignore the situation. The site intends to provide free and impartial advice on wherre to gain assistance. It encourages getting a plan of action and the steps you can take to keep your home and avoid repossession.

It is estimated that over 200,000 families are getting government assistance in order to stop their home being repossessed. If you require help, don’t be afraid to ask for help and make sure you take the right steps in your situation.

If you are facing having your home repossessed or want further information on property repossession, visit Repossessed Homes UK.

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How To Avoid Property Repossession

Sunday, July 19th, 2009



I found a great article from Wiki How on Avoiding Property Repossession:

Repossessions are starting to become common. Last year 17,000 homes were repossessed, the highest number for five years, with further rises predicted for the coming year by the Council of Mortgage Lenders.

A rise in property repossessions means that bailiffs will be kept busy – so what can you do to stop the bailiffs coming to your house uninvited? This will depend on how bad your situation is, but even if you have been handed a court order, and proceedings for repossession of your home have been started, there are still ways that you can deal with the situation.
If you are, or someone you know is facing repossessions, this article will help to enlighten you with the options that you have.

Steps

1. Falling behind on payments
(A) Lenders will normally only start to take action if you miss payments for two months – if you are having difficulties, the best thing to do is let your lender know and see if you can come to an arrangement with them.
(B) If you fail to come to an arrangement with your mortgage lender, they are most likely to send you a letter from their solicitor demanding payment, before issuing repossession proceedings with the county court.

2. Repossession proceedings
(A) By attending the proceedings, you may be able to come to some arrangement with the court and your lender. However, if you do not attend, the court will have no alternative but to order repossession.
(B) If you can make an offer to keep paying your monthly installments, plus something towards the arrears, the judge may be satisfied with this, and grant a Suspended Order For Possession.

3. Bailiffs
(A)If you have made no acceptable offer for repayment, or defaulted on a Suspended Possession Order, then your lender has the right to seek repossession of your property. In this situation, a court order will be granted, and a date will be set for a court bailiff to visit your property to formally take possession. You will normally be given just 10 minutes to pack your things and get out.

At any point in the process, before the bailiffs arrive, you still have a number of options to solve the problem. These are:

*Negotiate repayment – If you can afford to pay make your normal monthly mortgage installments and pay something towards the arrears, the lender may be able to agree to this.

*Pay off all of the arrears – Your options here are to borrow money from friends or family, or from another lender. It is important to be careful here though, if you can’t afford the payments on a new loan, you may have more lenders chasing you for money.

*Remortgage – Some mortgage companies may be willing to remortgage if your house is worth more then your outstanding debts.

*Sell your property – You could do this through an estate agent, which would probably get you the best price for your house, though there are downsides – it could take many months to find a buyer and complete a sale, and you may even need to spend money on your house to attract buyers, also bear in mind many buyers pull out due to broken chains.

*Sell your property fast – A fast cash buyer will normally offer you between 80% and 85% of the market value of your property, but they will give you a fast sale, completing the exchange of contracts in a very short time frame.
If you are facing a repossession order, this could be the answer. In addition you can sell and rent back your property, avoiding the hassle and stress of finding somewhere else to live.

Tips

* You can possibly sell and rent back – this is a great way of no one ever finding out that you sold your house.

Read the full article here.

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Links / Advice

Saturday, May 2nd, 2009



We have provided some useful links below in order to provide you with a further source of information regarding home repossession or who to contact in case your home has been or is due to be repossessed. There are also links to sites offering help and advice on what can be done to help you in this situation. We always recommend contacting the company who is intending to repossess your home and attempting to negotiate some agreement in order to continue repayments.

Please feel free to click on one of the links below in order to locate sites offering further help and advice regarding property repossession.

Citizens Advice Bureau
The Citizens Advice Bureau (CAB) are experts in providing free debt advice to members of the UK public. If you are facing property repossession or are in any kind of financial difficulty, the CAB will be able to speak to creditors and negotiate repayments on your behalf. By clicking on the link, you can find an office close to you and arrange an appointment to go and visit one of their advisors.

National Debt Line
The National Debt Line provide a telephone service which covers the whole of the UK. Call them on 0808 808 4000. They provide free debt advice and their website also contains very useful info to help those in debt. Budget planners, letters to send to creditors, facts sheets and information packs can all be downloaded for free from their website.

CCCS Debt Remedy
CCCS is a registered charity offering free debt advice over the phone. They can be contacted by calling 0800 138 1111. Their website also provides you with a free Online Debt Councelling Service which you can access online and allows you to remain anonymous.

Shelter
Shelter is the homelessness charity that runs a housing helpline, has a network of housing aid centres, and works with local citizens advice bureaux. They provide up to date info on repossession and have helplines providing advice and information.

Advice UK
AdviceUK is the UK’s largest support network for free, independent advice centres. AdviceUK was formed in 1979 as the Federation of Independent Advice Centres (FIAC).

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Where To Find Personal Debt Advice

Saturday, May 2nd, 2009



Many people spend their lives juggling debts. With so many companies encouraging loans, mortgages, remortgages, credit cards, and debt advice agencies available to choose from nowadays it can be difficult to say no. Problems usually occur when circumstances change. these days, many people spend their time juggling remortgage payments, borrowing, using credit cards and it can only take one slip up to make something which was being barely managed to become unmanageable. In the current financial climate – with banks recalling loans, withdrawing mortgage offers and seeking emergency funding from the Bank of England – debt is front page news.

Regulation for Debt Agencies
In the UK, anybody can set themselves up as a debt adviser. In order to begin operations they require a Consumer Credit Licence which is available from the Office of Fair Trading (OFT). These debt advisers are not currently regulated by the Financial Services Authority. There are very few checks actually carried out by the OFT on these companies and they can have their applications processed within 25 working days.  Once they obtain the licence, it is valid for a 5 year period.

Paying for Debt Advice
Debt agencies will usually help their clients prepare a breakdown of all their income, expenditure and debts. They will often calculate a pro rata payment for each creditor based on the client’s available income and then correspond with creditors on the client’s behalf, offering to make monthly payments. It is not uncommon for debt agencies to charge considerable fees for their services.
A recent Radio 4 investigation into this subject gave the example of a woman with considerable debts who was charged an upfront fee of £1400 by a debt agency and then £53 per month – £43 per month went to the debt agency with the remaining £10 being apportioned to her many creditors. The woman was advised to ignore letters from creditors and ultimately ended up with County Court Judgments being entered against her. The advice she was given was simply wrong as a matter of law and fact. Needless to say, the money she paid to the debt agency – much of which was borrowed from friends and family – could have been far more usefully paid to her creditors.

Free Debt Advice
Although some organisations who charge for their services may give good advice, there seems little point paying for something when it can be obtained free elsewhere – especially if lack of money is the very problem on which advice is being sought. There are many organisations, both local and national, who can give excellent and accurate debt advice at no charge. The free debt counselling services should all be able to help with preparing a budget and negotiating with creditors. Three of the largest providers of free and independent debt advice are:

Citizens Advice Bureau (CAB) - A registered charity which offers free advice on a number of issues, CAB excels on debt and housing matters. They can help prepare a financial budget, negotiate with creditors, give advice on any court proceedings and provide advice on any state benefits to which people may be entitled. Advice is usually given in person or over the telephone. The CAB website is extremely comprehensive and is a good starting point for people worried about debt issues. CAB is the largest provider of free debt advice in the country.

National Debtline – Free and confidential advice given over the telephone. National Debtline is run by the Money Advice Trust (MAT) a charity formed in 1991 to increase the quality and availability of free, independent debt advice. The MAT is funded by the government and by a wide range of banks and finance companies. Calls to the Debtline are free and confidential – callers’ numbers are not displayed and callers do not have to give any personal details.

Consumer Credit Counselling Service (CCCS) – A registered charity which provides free advice on budgeting and the sensible use of credit, as well as on debt. Advice is provided through a free telephone helpline, online or in person. Anonymous counselling can be given online. The CCCS’s goal is to help people avoid getting into debt in the first place, and to help them arrive at a sensible and manageable repayment plan if they are in debt.
Demand for free debt advice is very high and it may not always be possible to get an appointment immediately. People should ensure that they seek advice as soon as they realise they are in difficulties – not when the bailiffs are knocking at the door.

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Getting Help With Mortgage Payments

Saturday, May 2nd, 2009



Mortgage payments often represent the largest item of monthly expenditure for a household. With the credit crunch biting and interest rates on many mortgages going up an increasing number of people are finding that they can no longer afford to maintain their mortgage repayments. Once a mortgage account goes into arrears the lender may start possession proceedings. To avoid a downward spiral into debt and eviction, action should be taken as soon as difficulties with mortgage payments arise.

Talking to Lenders About Mortgage Payments
Mortgage lenders have a responsibility to their customers – and taking possession of someone’s home should always be a last resort. If a borrower finds they are struggling with their finances they should immediately talk to their lender. There are various ways that a lender could help a borrower get back on track with their mortgage payments. These include:
* Capitalising the arrears – any arrears will be added to the total balance outstanding;
* Converting a capital repayment mortgage to an interest only mortgage resulting in lower monthly payments;
* Accepting lower mortgage payments for a limited period;
* Allowing a payment holiday, meaning that the borrower does not have to pay anything to the mortgage for a number of months.
Lenders are not obliged to offer any of these solutions. However, a lender is more likely to agree if the borrower contacts them as soon as mortgage payments become a problem.

State Benefits
Some people on low incomes or in receipt of state benefits are entitled to help with their mortgage payments. Assistance may be available to those on Income Support or Job Seekers Allowance. However, a contribution towards mortgage payments will usually not be made until the applicant has been in receipt of the benefit for about 36 weeks. Payments will only be made towards the interest element of the first £100,000 of the mortgage. People in receipt of pension credit are also likely to be entitled to help with their mortgage payments.
In addition to benefits which specifically contribute towards mortgage payments, people may be eligible for other benefits which could increase the overall household budget. These include:
* Working Family Tax Credits and Child Tax Credits;
* Child Benefit;
* Council Tax Credit.
Organisations such as the Citizens Advice Bureau can give free advice on eligibility for benefits.

Payment Protection Insurance
Payment Protection Insurance (PPI) can cover mortgage repayments if the borrower is unable to pay them due to unemployment or ill health. PPI is often sold at the same time as the mortgage, although it should be possible to find a similar product elsewhere. Whilst a good idea in theory, there have been some problems with PPI – and in particular the products sold with some mortgages. Questions to ask before taking out PPI:

* Will the policy cover a period of unemployment if the borrower is self-employed?
* Will the policy cover a period of unemployment if the borrower has only been in his current job for a few months?
* Will the policy cover ill health if the borrower has a pre-existing condition?
* Could a similar insurance policy be purchased more cheaply elsewhere?
* Will the policy still be valid if the borrower has already fallen into arrears with their mortgage by the time they make a claim?
As with any form of insurance, the small print should be read carefully before signing up for PPI.

Taking a Secured Loan to Help With Mortgage Payments
If there is equity in the property taking out a further loan to help with mortgage arrears could seem like a good idea. This is a step which should not be taken lightly and which may, at best, only provide a short term solution.
Anyone who is already struggling to keep up with the repayments on their mortgage is likely to find additional loan repayments problematic. The loan is likely to be at a higher rate of interest than the mortgage and, if the borrower defaults on the loan, the lender is entitled to ask the courts for a possession order.

Budgeting in Other Areas
With everyone so busy these days it can sometimes be difficult to organise finances and create a budget. Many debt and credit counselling organisations offer excellent, free money advice which often includes preparing a breakdown of all income and expenditure. This could disclose areas where savings could easily be made releasing more funds to put towards mortgage payments

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