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Priority debts
Mortgage or rent arrears
If you are in arrears with your mortgage or rent, you should contact your lender or your landlord immediately. Explain why you are in arrears and how you are going to repay them. If your circumstances have changed, check whether you are entitled to help.
If you have a mortgage, you may be able to negotiate reduced payments for a period of time or have the arrears added to the amount you borrowed (capitalised), but you will need to consider your options very carefully if your situation is unlikely to improve.
You need to be able to pay the current instalment as well as payment off the arrears and will need to be able to clear the arrears within the remaining period of the mortgage.
Check your mortgage agreement to see if there are penalty charges for falling into arrears and ask your lender if they will waive these charges at least for the first few months. If you have mortgage protection insurance, be sure to claim. You should contact your local CAB if you require further information.
If your total income is below a certain level and you pay rent, you may be entitled to housing benefit to help you pay your current rent and should contact your local council for a claim form. You should make your landlord an offer to pay off your arrears and should immediately get advice about your tenancy and how secure you are. "Social landlords" (like councils or housing associations) may accept quite small regular amounts to pay off arrears. If you are claiming income based job seeker's allowance, income support, or pension credit you can arrange to pay your rent arrears in small weekly amounts which are deducted from your benefit (third party deductions). The rate is fixed by the Department for Work and Pensions (DWP)
If you are unemployed, 60 or over, or unable to work due to illness or disability and have a mortgage, you may be entitled to housing costs which are paid as part of income based jobseeker's allowance, income support, or the guarantee credit of pension credit. The amount you are paid may not cover all your mortgage interest (unless you or your partner are 60 or over) as it is sometimes calculated at a fixed rate irrespective of your current mortgage interest rate.
Housing costs are not paid immediately (unless you or your partner are 60 or over), and the length of time you will have to wait will depend on when you took out your mortgage. You will need to make an arrangement with your lender about paying any shortfall in your monthly payments.
Remember, your home can be repossessed and you can be evicted if you don't pay your mortgage or your rent.
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