Sadly, homes are repossessed every day, but there are simple ways to prevent this happening to you.
Richard Fenton, writing in the Daily Star in February 2017, reported that 15 homes a day are repossessed in the UK, which works out as one every 96 minutes. Losing your home because you cannot afford to pay the mortgage is one of the most stressful life experiences.
Fenton recommends that borrowers can protect themselves through insurance. Mortgage protection, critical illness and income protection insurance are all types of policies that can cover the mortgage payments in case a borrower loses their income. These policies can cover you for sickness or accidents. Some policies will also cover losing a job through redundancy.
Some people may have taken out a mortgage protection policy as a condition of their mortgage application. Even if you think that you are not insured, checking the mortgage paperwork may reveal that you are.
If you do fall into arrears, Fenton recommends that you contact your mortgage lender as soon as possible. Lenders should allow time for arrears payments to be made. You may pay extra charges for late payments, but your home will not be at risk if you have a plan to make up the arrears. According to Fenton, the worst thing to do is to ignore the problem if you fall behind with payments.
Many people do not have enough savings to cover the mortgage payments in the event of losing their job, which is why protection insurance is such a good idea.