An Important Message for anyone struggling to pay their Mortgage

A warning (and advice) for Homeowners Under Pressure

If you have mortgage worries or rising household costs, the start of a New Year can be tough and people look for solutions. As a result, the Financial Conduct Authority (FCA) has issued a warning to homeowners facing difficulty with mortgage payments.

And the message is simple: offers that seem too good to be true often are.

Why vulnerable borrowers are being targeted

The FCA states that people already under financial strain can become a relatively easy target of high-risk schemes or fraudulent offers. Some of the risky offers to watch out for include:

• Claims from the so-called ‘Freemen on the Land’ movement. Some groups tell borrowers they are no longer legally bound by their mortgage contract. This is 100% false and these claims have NEVER succeeded in court.
  

• Suggestions to send ‘promissory notes’ instead of regular mortgage payments. These notes are worthless for repaying a mortgage. Your lender will reject them and demand proper payments.
  

• Quick sale offers, where a firm proposes to buy your home at below market value, on the premise of selling fast to avoid repossession. In many cases these deals end in significant loss of value or equity.
  

• Sale and Rent Back schemes or other offers that allow you to stay in the property while paying rent after selling. These carry risk if the firm offering them lacks proper authorisation.

What you should do instead

If you are struggling to meet mortgage payments, the FCA recommends contacting your lender as soon as possible. Lenders may offer legitimate support before you fall behind.

You can also seek free and independent debt advice through trusted organisations such as the Citizen’s Advice or Money Helper or use a debt-advice locator tool to find local support.

One thing that clear. DO NOT act on unsolicited offers. If a firm or individual approaches you with a quick-sale deal or similar offer, check they are authorised, perhaps using the FCA’s firm checker. If in doubt, consult an independent adviser or solicitor first.

A Happy New Year

A fresh year can bring hope. But if your mortgage payments are causing problems, don’t turn to a quick fix. You are not alone. Go straight to your lender or free debt advice organisations who will work honestly with you to protect your home.