Consolidating mortgage arrears

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If the case is hopeless lenders will seek a repossession order which the borrowers will not oppose.

If there is a chance that the situation can be redeemed most lenders will nowadays try to seek an arrangement.

Mortgage arrears don't automatically lead to your home being repossessed.

Act quickly and take control before mortgage arrears put your home at risk.

Your lender is more likely to consider other options if you negotiate at an early stage.

Mortgage problems can often be resolved without going to court.

If you’ve made several late payments or have missed payments on your mortgage then it’s likely that you’ll find it hard to apply for a loan through the major banks and lenders.

This is because they’re able to see you repayment history information on your credit file and don’t want to approve a loan for a borrower who doesn’t have the capability to make regular repayments on time.

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With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.In some cases arrears begin to build up because the borrowers realise they are trapped in a property with negative equity, and lose heart in the fight to keep it.In the vast majority of such cases lenders will now try and get borrowers round a table to discuss the situation.Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.That's particularly helpful if you can combine it with a lower interest rate as well. Basically, you borrow a single, lump sum of cash that's used to pay off all your other debts.

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