Mortgage Arrears Calculator

After 1 missed payment, your lender will contact you. After 2–3 missed payments, they begin formal arrears management under the FCA's Mortgage Conduct of Business rules. The lender must follow the Pre-Action Protocol before seeking possession — this means offering forbearance options like payment plans, capitalisation, or term extensions. Possession proceedings are a last resort.

Yes, but the process takes 12–18 months typically. The lender must follow the Pre-Action Protocol, obtain a court order (£325 fee), and then apply for an eviction warrant (£121). Courts will usually give you time to pay if you can demonstrate a repayment plan. The Administration of Justice Act 1970 allows courts to suspend possession if arrears can be cleared within a reasonable period.

SMI is a government loan (not a grant) that helps eligible benefit claimants pay mortgage interest. You must be receiving Universal Credit, Pension Credit, Income Support, or JSA(IB) for at least 39 consecutive weeks. The loan accrues interest at the current rate and is repaid when you sell the property. It covers interest only — not capital repayments.

Yes, missed mortgage payments are reported to credit agencies and stay on your credit file for 6 years. Even one missed payment can significantly reduce your credit score by 50–100 points. If the lender obtains a possession order or you enter an arrangement, this is also recorded. Contact your lender before missing payments — they may offer a payment holiday that is not reported.

Yes, and this is often better than repossession. You can sell privately (usually achieving a better price), use the proceeds to clear the mortgage and arrears, and avoid the credit damage of repossession. If the property is in negative equity, you may need lender consent for a 'short sale'. Your lender must give you reasonable time to sell before pursuing possession.