Getting Help Dealing With Mortgage Arrears

Kiwis often don’t know where to get help dealing with mortgage arrears.

They’re told to speak to their bank. But many don’t feel comfortable with a credit team hidden behind an email address or 0800 number.

It’s difficult to know what the banks credit people or hardship teams will do.

Understanding Mortgage Arrears

As non bank brokers we often speak to people in mortgage arrears. Many are distraught after dealing with their bank.

They were told to talk to their bank early. They expected the bank to be understanding and help.

Often the mortgage is only a little behind. With some help, it could be up to date in a reasonable time. Instead, banks tend to offer unrealistic catch-up plans, and charge penalty interest too.

When you’re in mortgage arrears, the bank should help you get back on track. Too often, though, it doesn’t. It just wants you to catch up fast. Meanwhile, it won’t change the loan term or find other ways to lower your repayments.

The key thing that needs to happen as soon as possible is to make a plan.

First, accept the problem. Then plan how to bring your repayments up to date. That way, you avoid trouble with your bank, and a costly mortgage rescue.

How A Non Bank Broker Can Help

You may think that the best way to approach mortgage arrears is to go and talk to your bank.

That can work in some cases and in other cases it can open a can of worms and cause undue stress.

Often, it’s best to talk to someone who knows what banks expect. They can help you build a plan the bank will accept.

The best advise is to act early.

We have helped many people in mortgage arrears. Sometimes we simply restructure their loans. Other times we arrange a small personal loan or second mortgage to bring the mortgage up to date. As a result, they stop paying crippling penalty interest. Then they follow a clear plan to get back on track.

Dealing with mortgage arrears can be stressful on your own, so we encourage you to have a chat and see how we can help.