If you are under financial pressure due to the payments made towards your mortgage payments or arrears, then you should contact your mortgage lender. They have experience with similar situations and are typically helpful. In our ‘ Mortgage terms ‘ section, you can find further information on managing a mortgage with long-term financial difficulties.
What are Repayment Plans?
They are a formal arrangement to pay back a loan. The following structure can act as a guide for setting out your repayment plans as well as the order you should pay debts.
Priority Outgoings
When calculating a plan to cover your mortgage, you should prioritise the most important outgoings first. These tend to be basic needs such as food, water, gas, electricity, debts to authorities (for example, court fines, council tax), and the mortgage itself.
Non-priority outgoings
You may be liable for outgoings such as credit cards, store cards or debts to family. However, their non-payment does not pose such a serious risk.
How to set up your repayment plan
Make a list of all your outgoings along with outstanding balances each month. In addition, make a note of any money that needs to be set aside for priority debts. Once you have created a statement, you can then see how much money you have left. If there is a deficit, you would then need to contact your non-priority creditors and explain your circumstances, to ascertain your situation they will provide you with an income/expenditure form for you to complete.
How we can help
Lestons have specialist staff who can provide support for you in creating a financial plan
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