Answers · UK 2025/26

What happens if I cannot pay my mortgage?

If you miss mortgage payments, your lender must, by Financial Conduct Authority rules, treat you fairly and explore alternatives such as a payment holiday, reduced payments, or a longer term, before considering repossession, which is a last resort requiring a court order in England and Wales.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

Missing mortgage payments is a serious situation, but UK mortgage lenders are legally required by the Financial Conduct Authority's Mortgages and Home Finance Conduct of Business rules to treat borrowers in financial difficulty fairly, and to explore reasonable alternatives before pursuing repossession, which is always intended to be a last resort rather than a first response to a missed payment. If you are struggling, or think you might struggle soon, the single most important step is to contact your lender proactively as early as possible, rather than waiting until payments are already missed or avoiding contact out of worry -- lenders generally respond far more constructively to borrowers who reach out before problems escalate. Depending on your circumstances, a lender might agree to a temporary payment holiday or reduced payment arrangement, switch you to interest-only payments for a period to reduce the monthly amount, extend your mortgage term to lower monthly payments (though this increases total interest paid over time), or add missed payments (arrears) to the loan to be repaid gradually alongside your normal payments. If arrears build up and no affordable arrangement can be reached, the lender can eventually apply to the court for a possession order, but in England and Wales this requires a formal court process, and the court has discretion to suspend a possession order if the borrower can demonstrate a realistic plan to clear the arrears within a reasonable time. Free, independent debt advice from charities such as StepChange, Citizens Advice or National Debtline can help borrowers understand their options and negotiate with lenders, and should be sought as early as possible rather than only once formal repossession proceedings have already started.