Arrears

Arrears highlight the fact that it's important you keep up-to-date with the monthly repayments on your mortgage. When mortgage payments have not been paid on time and/or not made at the correct amount, borrowers are said to be in arrears.

Borrowers with a history of mortgage arrears will find it harder to effect a further mortgage with their current lender or a new lender in the future.

Although there are a number of lenders who will consider lending to individuals with poor credit history, it will cost more than an ordinary mortgage because of the risk-premium being charged by the lender.

Go to Moneyextra's Mortgage Centre and Mortgage Comparison Service now.

Last Updated: March 2007 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.