Falling behind on a mortgage, or being stuck on a high rate you cannot escape, is frightening. The most important thing to know is that you have rights, there are rules your lender must follow, and free help is available. Doing nothing is the only choice that usually makes things worse.
This guide explains arrears, the standard variable rate trap, and the mortgage prisoner problem, along with where to turn. It is information only, not financial or debt advice. If you are struggling, contact a free service such as StepChange, Citizens Advice or National Debtline, and speak to an FCA-authorised broker about your mortgage.
If you are falling behind
Contact your lender as soon as you see a problem coming. Under Financial Conduct Authority rules, lenders must treat customers in difficulty fairly and consider options such as a temporary payment reduction, extending the term, or a short arrangement to clear arrears. The earlier you talk, the more room there is to help.
What a lender must do before repossession
Repossession is a last resort. A lender is expected to work with you to find an alternative first, and must follow a pre-action protocol before going to court. Even at a hearing, a judge can pause or refuse repossession if you have a realistic plan to pay. You should always receive clear notice and the chance to respond.
The standard variable rate trap
When a fixed or discounted deal ends, you move to the lender's standard variable rate, which is usually higher and can change at any time. If you cannot remortgage, you can be stuck paying more than you need to. This is a common squeeze, and it is worth checking whether a product transfer with your current lender or a specialist remortgage is possible.
Mortgage prisoners
A mortgage prisoner is someone unable to switch to a cheaper deal because they no longer meet standard lending rules, often after their original lender stopped offering new products. Rule changes in recent years have allowed some lenders to assess these borrowers more flexibly, so it is worth having a broker check whether a better deal is now within reach.
Where to get free help
You do not have to face this alone, and good advice is free and confidential.
- StepChange, for free debt advice and managed plans.
- Citizens Advice, for benefits, debt and housing guidance.
- National Debtline, for free telephone and online debt help.
- Shelter, for advice if your home is at risk.
Common questions
Will I lose my home if I miss payments?
Not automatically. Repossession is a last resort, and your lender must try to help first and follow a set process. Getting advice and talking to your lender early gives you the best chance of keeping your home.
What is a mortgage prisoner?
Someone stuck on their current deal, often at a high rate, who cannot switch because they no longer fit standard lending rules. Recent changes mean some prisoners now have more options than before.
Can I get a better rate if I am in arrears?
It is harder, but not always impossible. A product transfer with your existing lender may be available, and specialist lenders consider some cases. Free debt advice should come first if money is very tight.
Does getting debt advice affect my credit?
Speaking to a free advice service does not harm your credit on its own. Formal solutions such as a debt management plan can show on your file, and an adviser will explain the effect before you decide.
Should I just stop paying if I cannot afford it?
No. Contact your lender and a free debt adviser first. There are usually options that protect you better than simply stopping, which can lead to arrears and court action.