Planning for a mortgage shortfall
What to do if you can’t pay your mortgage
Tell your lender as soon as you expect a payment to be unaffordable. Work out the monthly gap, ask what support it can consider and check whether the proposed payments will be manageable later.
By Count Ready · Updated
Is this a timing problem or an ongoing shortfall?
The reason matters because a change to the collection date cannot fix a budget that is short every month. Explain what has changed and which future payments are affected.
Your income arrives after the payment date
Check whether the lender can change the collection date and how the transition would work. Confirm what is still due in the meantime; moving a date does not automatically clear an unpaid amount.
Your income has fallen for a limited period
Set out the reduction and any confirmed end date. Keep uncertain items, such as a possible return to work or insurance claim, separate from money you know will arrive.
Your mortgage payment is about to rise
Find the deal-end date and the lender’s notice of the new instalment. Compare that figure with the household budget now, while there is time to discuss available options.
The household budget no longer balances
If the gap continues after realistic spending changes, ask for a wider affordability review. A temporary reduction needs a credible plan for what happens when it ends.
Prepare a realistic monthly budget
Use bank statements and bills to replace guesses with figures. Record take-home income, essential household costs, debt commitments and the mortgage instalment. Include a monthly share of annual expenses so they do not disappear from the calculation.
If you are self-employed, distinguish business turnover from money available for household spending after business costs and tax provision. Show how the figures change in quieter months.
List any savings separately from regular income. A one-off amount can cover only a limited period; it does not prove the future instalments will be affordable.
Compare the whole support proposal
Your lender may consider changes such as extending the term or a temporary interest-only period. Availability depends on your circumstances and mortgage. Ask for the following details in writing before deciding.
- Payments now: the amount, starting date and duration of the proposed change.
- Payments afterwards: the instalment when temporary help ends and any catch-up amount.
- Overall cost: additional interest, charges and the remaining mortgage term.
- Account treatment: whether arrears remain and how the arrangement will be reported.
- Review arrangements: when you will speak again and what happens if recovery takes longer.
Check independent advice and household support
If several bills are becoming unaffordable, get free debt advice about the whole budget. Do not choose which debts to pay solely by the interest rate or the smallest balance: the consequences of missing priority payments matter.
Find free debt advice for your part of the UK (opens in a new tab)
Ask about benefits you may qualify for, and check any existing insurance or employer support. Confirm eligibility, likely timing and the amount before relying on a payment in your budget.
MoneyHelper: help with mortgage payments (opens in a new tab)
Make a plan that extends beyond this month
Keep one record of the agreed payments, expected income changes and review date. Recheck the budget when an actual figure replaces an estimate. Tell the lender if the plan has become unaffordable before the next scheduled review.
If your current deal is ending, ask an adviser to compare any suitable existing-lender offer with remortgage options, including fees and early repayment charges. A new lender’s affordability assessment may restrict the choices.
Changing your deal with the same lender (opens in a new tab) · Remortgaging with credit problems (opens in a new tab)
Further borrowing should not be assumed to solve a recurring shortfall. Get independent advice before turning unsecured debts into borrowing secured on your home.
If keeping the property remains unaffordable, discuss housing options and sale costs with appropriate advisers. Do not base a plan on an unconfirmed sale price, and do not assume handing back the keys ends the debt.
Questions when the mortgage is becoming unaffordable
Can I ask for help before I miss a payment?
Yes. Explain the expected shortfall and when it will begin, even if the mortgage is currently up to date. Do not wait for a completed budget or a failed collection before contacting your lender.
What if I do not know when my income will recover?
Say that the date is uncertain. Separate confirmed income from hoped-for work, overtime or a pending claim. Ask for a review date and explain what information you expect to have by then, rather than promising a recovery you cannot support.
Should I use the money set aside for annual bills?
Include those bills in your budget before deciding what is available. Money reserved for an essential annual cost is not necessarily spare cash. A debt adviser can help assess competing commitments if using it would only move the shortfall to another month.
Can my lender pause the payments automatically?
A pause is not automatic. Ask what support the lender can consider for your account and obtain confirmation of any agreement, including interest, later payments and credit reporting. Until the position is agreed, do not assume that asking for help changes what is due.
Does claiming Universal Credit mean my mortgage will be paid?
Do not assume that Universal Credit will cover your mortgage instalments. Eligible claimants may qualify for Support for Mortgage Interest, which is a separate repayable loan towards interest costs. Check what support applies to you and how you will meet any remaining payment.
When should I review a temporary payment plan?
Agree the review date when the plan starts and contact the lender sooner if the figures change. Check the payment due after the arrangement ends, not just the reduced amount during it. Explain promptly if the expected return to normal payments is no longer realistic.
Need advice about your next mortgage deal?
Count Ready can assess mortgage options based on your income, commitments and credit history. A callback request does not arrange payment support with your existing lender; contact it directly about an unaffordable instalment.
Give a brief outline in the form. Keep account numbers and financial documents out of the message.
Your initial mortgage consultation is free. Ask for written fee details before agreeing to any chargeable service.
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Your home may be repossessed if you do not keep up repayments on your mortgage.