Latest economic forecasts predict that more and more people living in the UK will be faced with repossession of their home in 2011.
If you are struggling to keep up with your mortgage repayments then you have a number of options to avoid repossession.
Speak to your Lender Often the best option when you first start having difficulties with your mortgage repayments is to speak to your lender.
Although this can seem daunting you should find that they will be willing to help you.
Mortgage companies should only consider repossession as a last resort and there are a number of ways they can help you to keep your home.
For example they may agree to change the terms of your loan, accept a short term reduction in payments or add the arrears to the amount you borrowed.
Another option sometimes used is to increase the length of your mortgage.
In this way your mortgage repayments will be reduced although of course you will be making payments for a longer period of time.
Sell and Rent Back One of the most popular options for people facing repossession is to sell and rent back their home.
Specialist organisations offer a service in which they buy your home and agree to rent it back to you.
In this way you get to stay in your home and be free of crippling mortgage repayments.
This type of scheme is a particularly good option if you have equity in your property.
With equity once you have cleared your debts you will have a sum of money which you can then reinvest.
Government Mortgage Rescue The Government has recently introduced a service to help people who are struggling with their mortgage.
This service is known as Mortgage Rescue.
The purpose of the scheme is to help vulnerable homeowners who are under threat of repossession.
The Government aim is to prevent up to 10 per cent of UK home repossessions through £200 million worth of funding.
To qualify for this scheme you should have a combined household income of less than £60000 or be in a family with dependent children.
The Mortgage Rescue Scheme can help in two ways.
If you can no longer afford your mortgage and do not have negative equity then you may be eligible for a loan from one of your local council's Registered Social Landlords (RSL).
This loan is then paid back at an affordable rate.
The second option is for an RSL to buy your property and rent it back to you.