Rent Arrears and getting a mortgage, details and help from Shire

Read on for a closer look at Rent Arrears and a detailed explanation of our help available for obtaining a mortgage if you have rent arrears problems.

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Rent arrears explained and our mortgage help available!

So, if you're reading this page, you probably already know what Rent Arrears are and require some help getting a mortgage. Having rent arrears needn't be a problem when it comes to getting a mortgage and here we explain why, and how we can help. But let's start with the absolute basics first...

What are Rent Arrears?

Let's just clarify what Rent Arrears are again. Rent Arrears is the term used when a Tenant fails to keep up and falls behind with their contractual rent payments on the accommodation they are renting, ie the tenant will fall into arrears with their rent.

I'm looking to buy a property.
Will having rent arrears stop me from getting a mortgage?

From Shire Direct Mortgages - no, not at all! You might encounter difficulties from certain High Street Lenders however!

You see here at Shire Direct we have developed a portfolio of specialist mortgage lenders many of whom will happily consider applications from tenants that may have fallen into arrears with their rent payments, either now or in the past at some point.

This applies to those who are presently tenants of council housing, who may have the opportunity of purchasing their homes at a discount, as well as those tenants renting privately, and who are looking to purchase a home on the open market.

Can Shire Direct help me if I have additional problems or difficulties other than, or as well as rent arrears?

Yes, absolutely!

If you have credit problems such as a County Court Judgement (CCJ) or credit defaults registered against you, it's likely that you will have already experienced difficulties in obtaining facilities such as credit or store cards, HP or bank loans. As part of their credit checks, mortgage lenders will also be interested in any adverse credit you may have registered against you, and so you may require specialist help.

Here at Shire Direct, we realise that in reality however, many of us will encounter some form of financial difficulty, often through no fault of our own. Illness, redundancy, partnership breakdowns, and family bereavement can all have a devastating effect on both personal lives and finances.

That's why we have incorporated a range of specialist lenders within our portfolio of lenders who will look to your ability to pay based on your current and future strengths, rather than your past difficulties. That's why if you need mortgage facilities and you have credit problems, it's really important to seek the advice of a specialist professional mortgage broker like Shire Direct.

Can you still help if I've been refused a mortgage or have been turned down elsewhere?

People are often refused a mortgage because of past credit problems, such as CCJ's defaults or rent arrears. Over the years Shire Direct has gained an enviable reputation for being leading professional mortgage advisors, and we consider our success has come about because we have the skills and know how, and because we take a common sense approach to our customers needs and aspirations. We're not judgemental, and understand that many people encounter occasional difficulties for one reason or another.

I've recently started working for myself. Will I still be considered for a mortgage?

Yes! You certainly will.

We have a tremendous range of schemes especially designed for borrowers who cannot satisfy the conventional accounting profile of three years audited accounts. These schemes allow the self-employed mortgage applicant to "self-certify" their income, without the necessity to provide accounts.

I'm looking for a mortgage, and I've read your rent arrears article and would like some further information, what do I do next?

A quick call to one of our mortgage experts will soon put you in the picture! Our qualified mortgage advisors are available to discuss the various options open to you, and naturally we'll carefully assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you.

You'll find our service to be friendly, yet professional, helpful and unstuffy. So, please don't hesitate to Contact Us if you would like to discuss your requirements, and of course without obligation! Our professionally qualified mortgage advisors are available on Freephone 08000 282 281 until 10pm every day (including the weekends), or why not enquire online at any time! In either instance, we'll be delighted to provide you with a rapid in-principle decision - whatever your circumstances.

I'm not looking for a mortgage just yet, but I would appreciate any help or information regarding my rent arrears!

Rent arrears can quite obviously be a worry for tenants especially if they are threatened with repossession of their home.

Is there anything I can do to avoid being repossessed?

As with homebuyers who are facing repossession proceedings, there are similar procedures that should be taken by tenants who have fallen into arrears with their rent. Essentially, it is important not to panic; but by the same token, you should not stick your head in the sand either if you're having problems with rent arrears!

If you have rent arrears, you need to pay them as quickly as possible, and you should first try talking to your landlord, and attempt to reach an agreement to clear the arrears. If the situation has been caused by a delay in payment of your Housing Benefit, you should write to your local Housing Benefit Office, and request a payment be made within 14 days. It's also very important that you carefully prioritise your debts. By maintaining your rent payments and not falling into rent arrears you will be keeping the roof over your head, and as such you should restructure your budget to ensure that your rent payment makes top priority! Next, work through the rest of your commitments, and prioritise as appropriate - if there is a deficit, you should adjust by reducing the amounts you pay to your lowest priority debtors.

As well as keeping in touch with your landlord or council, it's also a good idea to seek advice from your local Citizens Advice Bureau.

Well, we hope we've been able to provide some help there with regards to rent arrears and how having rent arrears needn't necessarily prevent you from getting a mortgage. There is much more mortgage related information throughout the pages of our website, so why not put a few minutes aside to explore some of the possibilities that could be open to you, and don't forget we're only ever a free telephone call or couple of mouse clicks away and would love to hear from you!

Enquire Online now, or call us today 08000 282 281 - our freephone lines are open 8am-10pm everyday! We'd love to hear from you!

The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.

There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.

THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Adding existing debt to your mortgage will increase the repayment term and overall cost.

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Rent Arrears and getting a mortgage, plus our help available!