What happens when payments are missed

Higher mortgage rates make buying a home more expensive. Borrowers are more likely to fall behind with payments, though, when relationships break up, they lose their jobs, or ill health cuts their earnings.

This has become such a common occurrence that banks and building societies put more effort into helping borrowers in debt. Indeed, the Mortgage Code says they must be sympathetic to customers with money troubles.

Your lender notices immediately a home loan payment is late. Mainstream lenders will probably phone with a gentle reminder - perhaps your bank has made a mistake.

After two missed payments, you get a stronger letter and, if you miss a third payment without responding, you are in trouble.

If you are short of money, you must face up to it right away. Debt problems do not go away on their own. They get worse.

You won't feel like talking to your lender but you must. You have to convince them that you are trying to sort yourself out and will pay as much as you can afford. They will give you more time, and accept lower payments, if you show you are doing your best.

They will be less lenient if you refuse to speak to them.

Failing to pay the mortgage is serious because the bank or building society can take your home away, although not without a court order. This takes time but, once you have been repossessed, you will have difficulty borrowing money again. Your name stays on a central register of defaulters for six years.