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Why mortgage arrears are always priority number one

Mortgage arrears sit above credit cards, loans and most other debts. Here's why — and what to do first.

Mortgage Arrears4 min readReviewed July 2026

Mortgage arrears are a priority debt because the consequence of not paying is losing your home. Repossession is a last resort for lenders — but it's a resort. Ignoring letters or hoping things improve is the single biggest mistake homeowners in trouble make.

The moment you know you'll struggle, contact your lender. Ask about a payment holiday, a temporary switch to interest-only, extending the mortgage term or capitalising the arrears. UK mortgage lenders are expected to consider all reasonable options before applying to court.

If a court hearing is scheduled, you can still turn it around. Attend, take an income and expenditure statement, and be ready to propose realistic monthly payments. Courts typically grant a Suspended Possession Order if you can show you can meet the current payment plus a contribution to arrears.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.