Falling behind on your mortgage payments can feel overwhelming. But you're not alone—and there are clear steps you can take to protect your home and get back on track. This guide explains what mortgage arrears mean, how to respond, and what support is available from major UK lenders.
📌 What Are Mortgage Arrears?
Mortgage arrears happen when you miss one or more payments on your mortgage. Even a single missed payment can trigger arrears, and if left unresolved, it could lead to repossession—where your lender takes legal action to sell your home.
According to UK Finance, around 87,000 homeowner mortgages were in arrears in Q2 2025, though this number is falling thanks to better lender support.
🚨 Step-by-Step: What to Do Immediately
1. Contact Your Lender ASAP
Calling early shows you’re serious about resolving the issue.
It won’t affect your credit score just to speak with them.
You may be asked to complete a budget planner to assess affordability.
2. Work Out What You Can Afford
Before you call, use a budgeting tool or speak to Citizens Advice to understand your income and essential expenses.
Be honest about your situation.
If you’ve lost your job or had a health issue, mention it—this may unlock extra support.
3. Explore Tailored Support Options
Lenders offer several ways to help:
| Option | What It Means | Impact |
|---|---|---|
| Reduced payments | Pay less for a few months | May increase long-term costs |
| Interest-only | Pay just the interest | Lower monthly cost temporarily |
| Payment holiday | Pause payments for a short time | Adds interest later |
| Term extension | Spread payments over more years | Reduces monthly cost, increases total interest |
🏦 Support from Major UK Mortgage Providers
Let’s look at how some of the biggest lenders handle arrears.
🔴 Santander
Santander encourages early contact and offers:
A personalised budget review
Repayment plans over several months
30-day breathing space to seek independent advice
Example: Kirsty missed two payments due to illness. After completing a budget planner, Santander offered a reduced payment plan for 3 months while she recovered.
More info: Santander’s overdue payment support
🔵 Halifax
Halifax offers three main options under the Mortgage Charter:
Switch to interest-only payments for 6 months
Extend your mortgage term
Lock in a new fixed-rate deal early
Example: Tom switched to interest-only for 6 months, reducing his monthly payment from £850 to £420 while he looked for a new job.
More info: Halifax mortgage support
⚪ Nationwide
Nationwide allows you to:
Pay arrears via app, online banking, or in branch
Set up standing orders or make one-off payments
Contact their support team for tailored help
Example: Sarah missed a payment and used the app to pay £100 extra each month for 4 months to clear her arrears.
More info: Nationwide arrears payment options
🔵 Barclays
Barclays offers:
Interest-only payments for a set period
Term extensions
Free independent advice referrals (e.g. StepChange, Citizens Advice)
Example: Raj extended his mortgage term by 5 years, reducing his monthly payment by £120 and avoiding repossession.
More info: Barclays help with mortgage payments
🧮 Example: How a Repayment Plan Works
Let’s say your monthly mortgage is £600, and you missed one payment.
Instead of paying £1,200 next month, you could agree to:
Pay £700/month for 6 months (normal payment + £100 arrears)
This spreads the missed payment over time
Your lender may add an “arrangement” marker to your credit file
🛡️ What If You Can’t Reach an Agreement?
If you can’t agree a repayment plan, your lender may apply to court for a possession order. But even then, it’s not too late:
You’ll get at least 2 weeks’ notice before court action
You can still negotiate or ask the court for more time
Repossession is always a last resort
💰 Support for Mortgage Interest (SMI)
If you’re on certain benefits (e.g. Universal Credit, Pension Credit), you may qualify for SMI—a government loan to help pay the interest on your mortgage.
It’s paid directly to your lender and you’ll repay it when you sell your home or transfer ownership.
More info: SMI on GOV.UK
🧠 Tips to Stay on Track
Set up direct debits to avoid missed payments
Use budgeting apps like Money Dashboard or Emma
Check if you have mortgage payment protection insurance
Review your mortgage deal—could you switch to a cheaper rate?
🆘 Where to Get Free Help
If you’re struggling, speak to a debt adviser. It’s free and confidential.
| Organisation | Contact |
|---|---|
| Citizens Advice | citizensadvice.org.uk |
| StepChange | 0800 138 1111 |
| National Debtline | 0808 808 4000 |
| MoneyHelper | moneyhelper.org.uk |
📊 The Bigger Picture
While arrears are falling overall, possessions are rising slightly—1,340 homes were repossessed in Q2 2025, up 10% from Q1. This shows why early action is vital.
“Lenders remain committed to helping customers manage their payments, and we urge anyone concerned to contact their lender early.” – Charles Roe, UK Finance
✅ Summary Checklist
Contact your lender immediately
Work out your budget
Ask about tailored support (interest-only, term extension, etc.)
Consider SMI if you’re on benefits
Get free advice from Citizens Advice or StepChange
Avoid payday loans or sale-and-rent-back schemes
Keep records of all communications
📝 Final Thought
Mortgage arrears are serious—but solvable. The earlier you act, the more options you’ll have. Lenders are legally required to treat you fairly, and many offer flexible solutions tailored to your situation.
If you’re in arrears, don’t panic. Reach out, get advice, and take control.