What should I do about missing mortgage payments?

Q I've started having trouble keeping up with my mortgage payments and I've missed a couple of payments. I now dread opening any bills or letters from my building society, as I know they'll threaten to repossess my house. What can I do?

RE

A Don't panic - your building society is likely to be much more understanding than you think. Lenders have learned from their mistakes in the last housing boom and bust when they were very quick to repossess. Now they are much more likely to sit down with you and work out a financial plan to help you continue to make your mortgage payments.

However, you must contact them straight away. They will be much more helpful if you explain the situation honestly rather than wait until things really get out of hand. Ring or write to them and explain why you are having difficulties - is it because of a bereavement or the end of a relationship? Ask them to reduce your monthly payments and spread the mortgage over a slightly longer timeframe.

If your money problems are bigger than just your mortgage, it is worth visiting your local Citizens Advice Bureau or speaking to the Consumer Credit Counselling Service (CCCS) who can help you prioritise your debts.

They will draw up a scheme for you to ensure that you are able to pay your essential bills such as gas, electricity and mortgage and advise on ways to reduce any hire purchase or credit card debt. All sorts of people have debt problems at times in their life and it is better to admit early on that you need help rather than struggle on alone and find you are in real difficulties later.

Contact details for your local Citizens Advice Bureau will be in your Yellow Pages directory, while you can use the free debt counselling service at the CCCS on 0800 138