Keeping up with mortgage payments
If you have a mortgage, you do not have to tell your mortgage lender about your cancer diagnosis. But it’s usually better for you to let them know, and to tell them about the possibility that you may have trouble with your payments, as soon as you can.
The earlier you tell them, the more likely it is you’ll be able to find a solution together.
Options your lender may suggest include:
- Reducing your mortgage payments for a set period of time.
- Changing your repayment to interest-only repayments for a set period of time. Remember you won’t be paying off the loan if you do this. Your payments will also be higher when you start repaying again.
- Allowing you to take a break from paying. Some mortgage contracts include the ability to take a payment holiday.
- Extending the term of your mortgage.
- Changing the interest rate you pay.
Check your insurance
If you have health or life insurance policies, your situation may mean you’re eligible to receive money from your insurer (a payout). This could increase your finances and help you cover any housing costs you’re struggling with.
If you have the following types of insurance policies, you may also be able to make a claim:
- Mortgage payment protection insurance - Many people are offered this type of insurance when they first arrange their mortgage. It pays your mortgage payments (and sometimes a bit extra) if you’re unable to work due to an accident, sickness or redundancy.
- Income protection insurance - This pays out a monthly income if you are unable to work because of illness or disability. You might have income protection insurance through your workplace.
- Critical illness cover - This pays out a lump sum that is tax-free if you are diagnosed with certain life-threatening health conditions. Because not every cancer diagnosis is considered life-threatening, not everyone diagnosed with cancer will be eligible for a payout under critical illness cover.
The best option for keeping up with your mortgage will depend on your situation. You can call our financial guides on 0808 808 0000 to discuss this.