Mortgage Defaults

At Crystal Clear Home Loans we understand how easy it is to fall behind with your mortgage payments. This may be caused by the pressure of when a relationship breaks up, loss of your job, or where ill health reduces your earnings.

Generally High Street lenders are unwilling to assist people with mortgage defaults or have fallen into arrears on their mortgage or loans because of the risk that is perceived to be associated with such customers. However there are specialist lenders who ARE prepared to help people with mortgage defaults; they look beyond the adverse credit history, Crystal Clear Home Loans has put together an extensive panel of these lenders.

Your mortgage is secured on your home. For this reason if you have run into financial problems it is vital that you give your mortgage the highest priority over any other unsecured debts you may have. Therefore if you are finding it hard to meet your mortgage payments this means that you may have fallen into arrears, and it may lead to you defaulting on your mortgage. In this situation you need to act quickly to prevent your home from being repossessed by the bank which they may do to clear your debt with them.

Mortgages for people with defaults or missed payments.

A missed mortgage payment, or payment on any credit agreement, occurs when you fail to make the entire payment in the month it is due. A missed payment may still be counted as arrears even if you may have caught up with your payments in later months. If the creditor cannot claim the money owed after repeated attempts, you have defaulted on the credit agreement. Our extensive range of lenders specialise in helping clients that have missed mortgage payments by factoring the arrears into the price (interest rate) of their mortgages.

Here are a few guidelines on how they view mortgage default cases:

A missed payment is recorded when you fail to pay 75% of the amount due in the month it is due Some lenders will take into account missed payments on secured loans as well as your main mortgage. This depends on the amount of the loans and who they are with. Our specialist mortgage advisors will work together with you and help you choose the best plan based on your personal circumstances. The more recent missed payments count more than older ones You can still get a mortgage even if you have unlimited defaults – but you will pay more. These are called no reference schemes and your new lender may not even ask your existing lender for a payment history. Some schemes require that you have paid any arrears up-to-date before you make a new mortgage application

It is important to realise that the more mortgage defaults you have, the higher risk you will be to a new lender, therefore you may not qualify for the most competitive deals if you leave the problem for too long. You will also find arranging a new deal with your current lender very difficult until you clear the arrears and also prove that you can maintain the necessary monthly payments in the future.

Remember, it is always better to try and fix the problem sooner rather than later and avoid defaulting on your mortgage. In an ideal world it is recommended that you speak with your current mortgage company; however you may not feel like talking to your existing lender and it may not solve anything in the short term, but you must speak to somebody.

That's where Crystal Clear Home Loans can help.

Mortgage Defaults

Dependant on the severity of the arrears, we can help in convincing the new lender or the repossession court that you are trying to improve your situation and as such you will pay as much as you can afford. We will look to demonstrate that you will be able to pay off any arrears you have and keep up with future payments until your mortgage is completely paid off. If you switch to a different mortgage, particularly if it is with a different lender, you may have to pay a redemption penalty. It may be possible to add any fees or redemption penalties to the new mortgage and pay them off over the rest of your mortgage term.

If you are still struggling with your mortgage payments each month and playing catch up on any payments you have missed in the past.