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How We Help You Negotiate With Your Lender
How do you explain a late mortgage payment to your lender?
Communicating effectively with your lender after falling into mortgage arrears is so important for finding a workable solution. Here’s some guidance on how best to approach this.
As soon as you realise you’re having trouble making payments, contact your lender. Early communication shows that you are proactive and responsible. Clearly explain your financial situation and be honest about why you’re struggling to make payments, as this helps build trust and facilitates a more constructive dialogue.
Document all communications with your lender, including the names of the representatives you speak with and the details of your discussions. Gather all relevant financial information and if you have a plan to improve your financial situation or catch up on missed payments, be sure to share it with your lender. If the conversation becomes difficult, remain calm and polite, as professionalism helps maintain a constructive relationship.
After any phone call, follow up with a letter or email summarising what was discussed and any agreements made and if possible, continue making at least partial payments towards your mortgage. If your financial difficulties are likely to be temporary, you can formally request a financial hardship arrangement. Be open to negotiating with your lender to find a mutually acceptable solution as flexibility on both sides can lead to a more favourable outcome.
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Don’t feel isolated because of a lack of support, consider knowledgeable advisors that can negotiate with your lender on your behalf.
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Talking to a lender about mortgage arrears can be a really anxious experience, as the fear of losing your home creates an emotional burden. This can affect the way you see things, leading to decisions that might not be in your interest.
Mortgage arrears are often a symptom of broader financial difficulties creating financial instability, which can impact other areas of your life. Also, discussing personal financial failures can be embarrassing, making you feel ashamed about your difficulty in meeting financial commitments, causing fear of judgement from your lender. This feeling of embarrassment can also make the conversation particularly stressful.
Then there’s the complexity of financial terminology. Financial discussions often involve complex terminology and procedures that may be intimidating as you may not be well-versed in finance. However, if you are in arrears and cannot face talking to your lender, our knowledgeable advisors can analyse your situation, come up with a strategy and talk to your lender on your behalf.
By leveraging the skills and experience of a knowledgeable advisor, you can improve your chances of reaching a favourable agreement with your lender, reducing the risk of repossession and mitigating the long-term impact on your credit rating. Here are several reasons:
- Expertise and Experience: We are well-versed in the intricacies of mortgage agreements and financial regulations. Our expertise allows us to effectively communicate your situation and explore viable solutions that might not be immediately apparent to you.
- Professional Presentation: We can present your case in a professional manner, highlighting relevant financial details and context in a way that is persuasive and understandable to the lender. This can help build trust and facilitate a more constructive dialogue.
- Access to Better Solutions: We have relationships with lenders and understand their policies. We use this to negotiate more effectively, potentially securing better repayment terms, interest rate reductions, or temporary payment suspensions that you might not be able to obtain on your own.
- Stress Reduction: Dealing with mortgage arrears and communicating with lenders can be highly stressful for you as an individual. Our advisors can alleviate this stress by handling the communication, allowing you to focus on other aspects of your financial recovery and personal well-being.
- Tailored Advice: We can also provide personalised guidance based on the your unique financial situation, helping to develop a realistic and sustainable plan to manage and eventually overcome the arrears.
- Credibility and Influence: Lenders may take the situation more seriously when a professional advisor is involved. Our credibility can lend weight to your case, potentially leading to a more favourable outcome.
- Avoiding Common Pitfalls: We can help you avoid common mistakes, such as providing incomplete information or agreeing to unfavourable terms. We can ensure that any agreement reached is in your best interest.