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Practical options when your mortgage becomes unaffordable

From short-term breathing space to structural changes — the tools available depend on your situation.

Mortgage Arrears4 min readReviewed July 2026

For a short-term dip in income (a redundancy, illness, reduced hours) most lenders will consider a payment deferral, a temporary reduced payment, or switching to interest-only for a set period. These preserve your home while you get back on your feet.

For longer-term problems, extending the mortgage term reduces monthly payments (though you pay more interest overall). Some lenders will 'capitalise' arrears — rolling them into the mortgage balance — so you're no longer technically in arrears.

If you have significant equity but no way to sustain payments, controlled solutions like assisted voluntary sale or shared ownership schemes can be better than repossession. Free housing advice from Shelter or Citizens Advice will help you weigh options against your local property market.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.