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

MoneyExtra.com 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.