Quick answer
If you have missed one or more mortgage payments, you have time and you have options. UK lenders must consider forbearance under FCA rules and the Mortgage Charter 2023, must follow the Pre-Action Protocol before going to court, and Charter-signatory lenders cannot force you to leave your home for at least 12 months from your first missed payment. Free regulated help is available alongside us.
If your situation is urgent, call 0800 324 7949. Lines are open 24 hours, 7 days a week.
A missed mortgage payment is not a one-way street into repossession. There is statutory protection at every stage, structured forbearance most homeowners do not know to ask for, plus a range of intervention routes if free help is not enough. This guide explains what mortgage arrears actually are, what your lender must do before they can take any further action and where the line falls between free charity advice and paid intervention.
Faster Property Solutions is not a cash buyer and we are not a regulated debt adviser. We are a property problem-solving firm registered with The Property Ombudsman (member ID 27780), with 27 years of operation and 50 years of combined director experience. The mechanism is straightforward. Where action is needed, we advance the immediate costs to stop the crisis: arrears within 24 hours, solicitor fees on both sides, removal costs, sometimes living expenses. Where a sale is the right outcome, the property sells at full market value through our structured process and we help source an onward home, often a smaller mortgage-free property. Our commercial margin comes from the upside of the eventual sale, not from your equity. You pay nothing out of pocket at any stage.
What counts as mortgage arrears in the UK?
Mortgage arrears are missed or partial mortgage payments that have not been brought up to date. In FCA terms, your account is formally in arrears once you have missed three full monthly payments, although your lender will start writing to you and adding charges from the first missed payment. Arrears do not by themselves trigger repossession, but they do trigger statutory obligations on both sides.
Arrears can build up for any number of reasons. The four most common causes we see at FPS are a sudden drop in income (redundancy, hours cut, contract ended), a relationship breakdown, an illness or bereavement and the cost-of-living squeeze on households where the budget was already tight. Self-employed homeowners are particularly exposed, because income can fall in a single month while the mortgage payment is fixed. None of these reasons make your situation unusual. All of them are recognised by UK lenders, the FCA and the courts as legitimate grounds for forbearance.
What should I do first if I can't pay my mortgage?
If you cannot pay your mortgage this month or you can see that you will not be able to pay it next month, the right first step is to contact your lender before the missed payment posts. The conversation goes on your lender's record and triggers their statutory obligation to consider forbearance under FCA rules and the Mortgage Charter. Doing nothing is the only outcome that closes options.
The five-step order of operations:
Open every letter from your lender immediately. The letters set out the dates that matter and what the lender has decided to do.
Call your lender within 48 hours of an arrears letter or a missed payment. Ask explicitly about forbearance under the Mortgage Charter and your options under MCOB 13. Make notes of the call and ask for written confirmation of any agreement.
Get free regulated debt advice. StepChange (0800 138 1111), Citizens Advice and MoneyHelper are the three to start with. None of them charge.
Send a written proposal. Even an imperfect proposal triggers the 10-business-day response window in the Pre-Action Protocol. The lender then has to respond in writing.
Keep a written record of every interaction. Date, time, name of the person you spoke to, what was said, what was agreed. This becomes evidence later if needed.
If the underlying issue is more than a one-month gap, the conversation needs to be a structural one rather than a tactical one. That is where firms like ours come in.
What happens when your mortgage term ends?
If your mortgage term is ending and you cannot repay the outstanding balance or remortgage, you have more options than your lender's standard letter will suggest. The Mortgage Charter, FCA forbearance rules and the Pre-Action Protocol all apply to a term-end situation in much the same way they apply to monthly arrears. The lender cannot simply demand the full balance and start proceedings without exploring alternatives.
There are three common term-end situations and the routes are different in each:
Capital-and-interest mortgage ending with a small residual balance. Most lenders will agree a short term extension, sometimes informally, sometimes via a formal product transfer. The Mortgage Charter allows you to extend the term to reduce the monthly payment, with the option to revert to the original term within six months. Ask for it in writing.
Interest-only mortgage ending with a large outstanding capital balance. This is the situation most likely to escalate. The repayment vehicle (an endowment, an ISA, an investment plan) may not have grown as expected, leaving a shortfall. The lender's options include extending the interest-only period, switching part or all of the balance to a capital-and-interest term, agreeing a structured sale with the lender's cooperation, or referring you to a specialist firm. None of these options happen automatically. You have to ask for them, in writing, with a credible plan attached. See our interest-only mortgage ending service page for the full detail of how we handle this specific scenario.
Fixed-rate ending and you cannot afford the new rate. This is technically not a term-end situation but is often searched as one. The Mortgage Charter explicitly allows you to switch to interest-only payments for six months without an affordability re-assessment, or to extend the term to reduce the monthly payment. Both options are available without affecting your credit file, provided you are not already in arrears.
Where none of these options resolve the situation, a structured intervention may be the right route. We have helped homeowners across all three scenarios sell at full market value, find an onward home and walk away with substantially more cash than a quick-sale buyer would have left them with.
What is the Mortgage Charter 2023 and what does it give me?
The Mortgage Charter is a voluntary commitment, signed in June 2023 by lenders covering around 85% of the UK mortgage market, that sets out specific borrower protections during periods of payment difficulty. It is not legislation, but the FCA expects signatory lenders to deliver against it. Major UK lenders are signatories, including the high-street banks and most large building societies.
The four protections that matter most for someone in arrears or facing arrears:
Contact without consequences. Speaking to your lender about repayment concerns will not affect your credit file. Applying for support under the Charter does not affect your credit file either. The protection is for the conversation, not just the outcome.
Switch to interest-only for six months. If you are struggling with the monthly payment, you can switch your mortgage to interest-only for a six-month window without an affordability re-assessment. The balance is unchanged at the end of the window, but the monthly cost is lower while you stabilise.
Extend the term. You can extend the mortgage term to reduce the monthly payment, with the option to revert to the original term within six months if circumstances improve. Useful where the strain is short-term.
Twelve-month protection from forced eviction. Charter-signatory lenders have committed not to force borrowers to leave their home, without consent and barring exceptional circumstances, for less than 12 months from a first missed payment. This is a floor, not a ceiling, and it is your single biggest piece of breathing room.
The Charter sits alongside FCA MCOB 13 rules on payment difficulties, which require firms to consider a range of forbearance options tailored to your individual circumstances and to keep adequate records. Both apply. Ask your lender to explain in writing which Charter provisions and which MCOB provisions they are using when they respond to your situation.
The Charter, FCA forbearance rules and the Pre-Action Protocol all reinforce the same message: repossession is the last resort, not the default.
What can my lender do if I miss payments?
Your lender cannot simply take possession of your home. They have to follow the Pre-Action Protocol for Possession Claims based on Mortgage or Home Purchase Plan Arrears before any court application, and they have to follow MCOB 13 at every stage. The protocol is statutory. A lender that skips its obligations risks having any claim struck out.
Under the Pre-Action Protocol, your lender must:
Provide full information on your arrears, monthly instalments and outstanding balance
Provide a regulatory information sheet or the Shelter or National Homelessness Advice Service booklet
Advise you to contact your Local Authority's housing department
Consider any reasonable request to change the date of your regular payment, with written reasons for any refusal
Respond promptly to any payment proposal you make and give written reasons for any refusal within 10 business days
Consider whether it is reasonable and appropriate to extend the mortgage term, change the mortgage type, defer interest payments, capitalise arrears, or use a government forbearance programme
Give 15 business days written notice of intent to start a possession claim if you breach an agreed arrangement
Consider postponing proceedings if you have an active complaint with the Financial Ombudsman or are demonstrating a realistic sale or active claim for support
In practical terms, this means your lender has to take any reasonable proposal you make seriously and explain in writing if they refuse. The 10-business-day window is your statutory pause. Use it. Even a partial offer with a realistic timeline triggers the protection.
What can I do to stop arrears becoming repossession?
Acting before court action is the single biggest intervention you can make. After three missed payments, your account is formally in arrears and the lender's escalation path moves from internal collections to legal preparation. Once the lender has issued a claim form, the cost of resolution rises sharply.
The five things that move the needle:
A written proposal under the Pre-Action Protocol. Even a small one. It triggers the lender's 10-business-day response obligation and creates a paper trail.
Charter forbearance. Switch to interest-only for six months, or extend the term. Either reduces the monthly payment without restructuring your finances.
Free regulated debt advice. StepChange, Citizens Advice and MoneyHelper can build a debt-and-budget picture that supports any proposal you make to the lender. Court-tested.
Cleared funds. A third party clearing the arrears removes the basis of any possession claim. This is what we do, in 24 hours from agreement.
A structured sale. If the underlying problem is that the property is no longer affordable, a sale at full market value with a route to a smaller home is often the right answer. Six to ten weeks at our pace.
Where the situation has already escalated to a possession claim or a court hearing, see how to stop repossession in the UK for the full stage-by-stage guide. Where a possession order has already been granted, see stopping repossession after a court order. Both are written for the same reader: someone whose situation has moved past early-stage arrears into the active legal process.
Other options: free advice and supporting routes alongside FPS
The right first call is to us. We handle every stage and every kind of underlying financial pressure, from the first missed payment to the morning of eviction. Once we understand the situation, we will tell you straight whether action from us is the right answer, whether a free charity route is enough on its own, or whether the two work best together.
The free routes that often run alongside what we do:
StepChange on 0800 138 1111. Free, regulated debt advice. Especially useful where the underlying problem is broader consumer debt and not just mortgage arrears. We frequently work with clients who have a StepChange plan in parallel.
Citizens Advice. Helps you understand what your lender's letters mean and what your statutory rights are. Useful early, useful all the way through.
Shelter. Detailed online guides plus a free emergency helpline for anyone facing imminent eviction.
MoneyHelper. Government-backed money guidance for the wider financial picture and a clear summary of the Mortgage Charter.
When FPS is the right route:
The arrears are larger than free advice alone can resolve and you need cleared funds in the lender's account in days.
The lender is moving towards court action despite a credible proposal.
An interest-only term is ending and the lender will not extend.
A sale is the realistic outcome and you need it at full market value, not at a quick-sale discount.
You need cash advanced for living costs, removal, or solicitor fees and have nothing to advance from your own resources.
You want a single named person handling the whole situation with you from first call to completion.
There is no shame in calling us early, and there is no penalty in calling us late. The earlier we are involved, the more options exist. Free advice and our intervention are complementary, not alternatives.
How FPS helps with mortgage arrears
People in mortgage arrears generally have three options.
Do nothing and let the situation escalate to repossession. The default outcome if no action is taken.
Sell to a quick-sale cash buyer at 70 to 75 percent of market value. Fast, but you walk away with substantially less than the property is worth, and you still have to find somewhere to live.
Work with a firm that advances the costs and structures the resolution. The property sells at full market value rather than at a discount, you walk away with substantially more cash than option 2 would have produced and we help source an onward home, often a smaller mortgage-free property. The outcome is your life back, debt free.
We are the third option. The mechanics:
We advance, we do not charge. "We do not pay everything, we advance the money." Arrears, solicitor fees on both sides, removal costs, sometimes living expenses. All advanced. All recovered at completion from the sale proceeds, not from your pocket.
Arrears paid in 24 hours. Once we agree to act, arrears go to your lender within a working day. That stops the lender's escalation in its tracks. The Pre-Action Protocol clock resets.
Cash advances during the process for immediate financial needs. Bridges the gap between agreement and completion.
All legal and solicitor costs covered. Zero upfront cost to you. Zero hidden fees.
The property sells at full market value. Our commercial margin comes from the upside of the eventual sale, not from your equity. You walk away with what a quick-sale company would have taken.
We help source an onward home. Often a smaller cash-bought property so you never have another mortgage payment.
We have intervened at every stage of the arrears and repossession process since 1998, including hours before bailiff attendance.
We are registered with The Property Ombudsman (member ID 27780). ICO registration ZA578580. Companies House registered. Verifiable.
Case study: Streatham, London SE27
Laverne, a hardworking woman, suddenly lost her job and fell into £4,000 of mortgage arrears. By the time she reached us, she had been evicted and was living in her car with her partner.
She believed her property was worth £450,000 with a mortgage balance of £85,000. The actual figures were £650,000 and £26,000. She had been offered between £350,000 and £400,000 by cash-buying companies, well below market value and not enough to buy another home.
We cleared her mortgage balance and got her keys back from the bank. We helped her find what she called her dream home. We simultaneously found a buyer for her property at the full market value of £650,000. We paid her moving costs.
Laverne's situation had escalated past arrears and into post-eviction recovery, which is rarer and harder than intervention earlier in the process. The principle is the same at every stage. The earlier you call, the more options exist.
Frequently asked questions
How can I clear my mortgage arrears?
There are four routes to clearing mortgage arrears in the UK: a payment plan agreed with your lender (often combined with a term extension or switch to interest-only under the Mortgage Charter), a structured forbearance arrangement under FCA MCOB 13, a third-party advance from a regulated firm that pays the arrears in full, or a sale of the property where the proceeds clear the arrears at completion. The right route depends on whether your underlying income can sustain the mortgage going forward.
How many months of mortgage arrears before repossession?
There is no fixed number. UK lenders typically classify an account as in arrears after three missed monthly payments, but FCA MCOB 13 requires firms to treat repossession as a last resort and the Mortgage Charter commits signatory lenders not to force borrowers to leave their home, without consent and barring exceptional circumstances, for at least 12 months from the first missed payment. In practice, repossession is the end of a structured legal process, not a fast outcome.
Can mortgage arrears be written off?
Rarely, and only in specific circumstances. A lender may agree to write off a small residual balance after a sale completes, may agree to a partial write-off as part of a debt management plan supported by StepChange or Citizens Advice, or may agree to capitalise arrears (add them to the loan balance) rather than write them off. A full write-off of substantial arrears is unusual outside of formal insolvency. The realistic outcomes are forbearance, capitalisation, or a sale that clears the arrears.
Will mortgage arrears affect my credit file?
Yes, missed payments are reported to credit reference agencies and remain on your file for six years. The Mortgage Charter protects the act of contacting your lender about repayment concerns and applying for support under the Charter, neither of which affect your credit file. The arrears themselves still report. Resolving the arrears, either through forbearance or by clearing them, stops further marks but does not remove the historical entries.
Can I get a payment holiday on my mortgage?
A formal payment holiday is rare in 2026 outside of specific situations. The Mortgage Charter provides two close alternatives: switching to interest-only for six months without affordability re-assessment, and extending the term to reduce the monthly payment with the option to revert within six months. Both reduce the monthly cost rather than pause it entirely. Your lender may also agree to a short formal forbearance arrangement under FCA MCOB 13 if your circumstances support it.
Can my lender repossess my house if I am only one month behind?
Almost certainly not. UK lenders are required by FCA MCOB 13 to treat repossession as a last resort, must follow the Pre-Action Protocol before any court application, and Mortgage Charter signatory lenders have committed to a 12-month floor before forced eviction. A single missed payment puts you in early arrears. It does not put you near repossession.
What happens if I default on my mortgage in the UK?
Default is the formal step after arrears, where the lender treats the loan as having been broken and may demand repayment of the full balance. In practice, even after a default notice, your lender must follow the Pre-Action Protocol and consider alternatives before applying to court. The court route then has its own stages: claim form, hearing, possession order, warrant of possession, bailiff appointment. Each stage has intervention windows. See how to stop repossession in the UK for the stage-by-stage detail.
Can I get free advice about mortgage arrears?
Yes. StepChange on 0800 138 1111, Citizens Advice, MoneyHelper and Shelter all offer free guidance to UK homeowners in mortgage difficulty. StepChange and Citizens Advice are FCA-regulated for debt advice. MoneyHelper is government-backed. Shelter is a housing-and-homelessness charity. None of them charge. They are the right starting point for many situations and they often work alongside what FPS does.
What to do next
Whatever stage you are at, the right first call is to us. We will work with you to find the best outcome for your particular circumstances. There is no upfront cost, no lock-in and no pressure to proceed.
Call us on 0800 324 7949. Lines are open 24 hours, 7 days a week.
For the service-page detail on what we do at the arrears stage, see our mortgage arrears help service.
For the interest-only term-end situation specifically, see our interest-only mortgage ending service.
If a sale is the realistic outcome, see our sell my house fast service.
If your situation has already escalated to court action or a possession order, see our stop repossession service and the stage-by-stage guide on how to stop repossession in the UK.
For examples of the situations we have resolved, see our verified customer reviews.
If your underlying problem is broader consumer debt rather than mortgage payments alone, free regulated advice from StepChange on 0800 138 1111 is the right place to start, and we will work alongside it.
Sources
This article is general information, not regulated financial or legal advice. If you need regulated debt advice, contact StepChange on 0800 138 1111, Citizens Advice or MoneyHelper. If you are facing active repossession proceedings, call us on 0800 324 7949 so we can explain the intervention options at your stage.
Faster Property Solutions is a member of The Property Ombudsman scheme (member ID 27780). ICO registration ZA578580. Registered in England and Wales. Our coverage area is England and Wales.