Tips to deal with your Mortgage Debt

If you've taken a mortgage loan and are unable to make regular mortgage payments, then you've just started to build for yourself the situation of "debt trap".  You may have been unable to pay because of certain other financial commitments or simply you didn't have that much cash.

Now, you can't keep the situation sustained. For, if it sustains your lender will take you to court and you may then end up with no options else then losing your home. In most of the situation, if the debtor fails to repay the debt after considering the repayment holidays or extending the term or type of mortgage, then there is no option left else than repossessing the property of the debtor. In order to solve this situation, you need to consider on various options to make some way out of it.

Here are some tips and guidelines and initiatives that might help you to pay back the money you owe to your lender. These include:

1. One such initiative is where the non-profit housing associations shall buy your property and then even allow you to stay there.  This scheme is popularly known as Mortgage Rescue Scheme in England and Wales and it is run by the local authorities there.

2. Similarly, in Scotland the scheme is known by the name of Mortgage to Rent Scheme and is run by the Scottish government as a part of its Homeowners' Support Fund.  The same fund also includes the scheme of Mortgage to shared Equity Scheme, which enables Scottish government to own part of your home.

3. In Northern Ireland, there is a government initiative called Housing Advice NI.

4. The scheme of Homeowner Mortgage Support, makes it easy for the debtors who have seen a change in their incomes dropping, the chance to defer their part of mortgage payment up to two years. However, there are only a few lenders who have told that they would be a part of this scheme.

5. The Support for Mortgage Interest scheme, spanning across UK, allows people receiving benefits. Under the scheme, there are only those eligible homeowners who have lost their jobs, that their mortgage interest payment be cut from 39 weeks to 12 weeks, making the assistance viable and lasting for only up to 2 years.

 Else, from that, you can directly talk to your mortgage lender and ask him to consider some options for you. This might help you. Apart from that, the aforesaid government and organization initiatives are always there, besides also the presence of mortgage advisers, to help you make your way out smoothly from this financial rut.

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Scotland rental market creeps up

The new statistics show that around 30% of UK tenants are spending their net incomes on paying their rents. The percentage of tenants is seen escalating in to 32% in London The newest report from property lettings portal Citylets noted a strong growth in the Scotland’s rental market. The average rent in Scotland at present is £664; a 2.6% rise compared with the first quarter of 2011.Average rents in the city saw a moderate rise of 0.7% as a whole.

Going city wise, Aberdeen has seen the most expensive rent rates of three bed flat reaching an average of f £1,200. The city’s one bed rent rose to an average of £574, an increase of 1.1% on the same time last year whilst two bed rents saw a bigger increase of 1.5% to £864.

The city of Edinburgh saw an overall increase in 2.9% in the average monthly rent. Whereas Glasgow, saw an increase of 10.6% in three bed rents making an average rent rate increase to £832. The city also saw rise in one bed rents e to £463, a promising increase of 2.9%.

Scotland’s most affordable city is Dundee, the rents of which for two beds stand at £534. The rent figure is down to 6.6% as compared to last year. This is due to the increased advertising of these properties.

‘It is welcome news that while the rental market is continuing to expand rapidly in Scotland that on the whole the market appears to be meeting demand which is why increases in rents at the national level tend to be relatively modest,’ said Dan Cookson, senior analyst at Citylets.

‘This quarter’s figures are reassuringly steady which has continued to cement the confidence in the rental market. The key thing is that the market is steadily expanding at a time when the housing sales market is still in recovery mode,’ he added.

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