Government help if you can’t pay your mortgage

Money Advice Service

If you’re struggling to meet your mortgage repayments there’s a range of government schemes that offer help. These include the Mortgage Rescue scheme, Support for Mortgage Interest, and other government benefits that might boost your income.

Contact your lender first

To find out how much you can afford to borrow use our Mortgage affordability calculator.

If you are having trouble paying for your mortgage, your first step should always be to contact your lender.

They want to help you to meet repayments.

Your lender is able to discuss your options with you and can offer suggestions, including:

  • temporary payment arrangements
  • lengthening the term of your mortgage, or
  • switching temporarily to interest-only repayments.

Get free advice

If you’re anxious about being unable to meet repayments, there are plenty of advice services which provide guidance for free.

These include Shelter, National Debtline and StepChange Debt Charity.

Mortgage Rescue scheme

Need someone to talk to about your finances?

If you’re struggling with money, you can talk to someone today, online, by phone or face to face. We have specially trained advisers who can help you start sorting out your financial problems.

Find free, confidential advice now using our free debt advice locator tool.

England

This scheme is no longer available.

Wales

Some local authorities and housing associations in Wales operate mortgage rescue schemes (MRS) to help homeowners avoid mortgage repossession if it is likely that otherwise the homeowner will be homeless.

Find out more about mortgage rescue schemes on the Shelter Cymru website.

Scotland

The Scottish Government provides some support to homeowners struggling to pay their mortgage through its Home Owners’ Support Fund.

The fund operates two schemes which homeowners could apply for:

  • the Mortgage to Rent scheme where a social landlord buys your home and rents it back to you
  • the Mortgage to Shared Equity scheme where the Scottish Government buys up to a 30% stake in your home, which reduces how much you owe on your mortgage. You continue to live in your home but make lower mortgage repayments as a result.
Read more on the Scottish government website.

Support for Mortgage Interest

If you’re claiming a benefit such as income-related Employment and Support Allowance, Income Support or Universal Credit you might be able to claim help with your mortgage interest payments. This is called Support for Mortgage Interest (SMI) and is offered as a repayable loan.

Read our guide Support for Mortgage Interest to find out more about SMI loans and repayment options.

For support in Northern Ireland go to NI Direct.

Help with mortgage payments under Universal Credit

If you’re getting Universal Credit and you’re struggling to pay your mortgage, you might be able to get help with your interest payments.

You will only qualify for this if you have no ‘earned income’, such as pay from part-time or full-time work, and you don’t get any benefits from your employer such as Statutory Sick Pay or Statutory Maternity Pay.

If you do qualify for help, the payments will usually be made direct to your mortgage lender and will be based on a set rate of interest applied to the amount you have outstanding on your mortgage (up to a maximum of £200,000).

You start to get this after a 3-month waiting period and the payments will stop as soon as you start work again, even if you’re only earning a small amount.

Benefits that might increase your income

It’s worth checking if you’re entitled to benefits to help boost your income to meet mortgage payments.

Visit Turn2Us, a charitable service that helps people access welfare benefits, grants and other support.

Budgeting and cost cutting tips

Check your income and outgoings with our Budget planner to help you.

Follow the links below to work out your monthly income and outgoings and to see if there are any cost cutting tips you could use to help free up cash at the end of each month. Every little will help.

This article is provided by the Money Advice Service.

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Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

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