Tip: If you give up or sell your home and ask your council
to re-house you they will probably say that you have made yourself
'intentionally homeless' and so refuse to offer you anywhere to
live. Get expert advice from a local advice agency or from National
Debtline before you do this.
Handing back the keys
If you give your home back to your lenders you will still be charged
monthly instalments on the mortgage. If you do not pay, the instalments
will be added to the debt when the house is sold. Extra interest can
also be added on to the arrears figure. The monthly instalments will
only stop being added when your lenders sell your home. This could take
a long time. The lender will probably add solicitors' and estate agents'
fees and any court costs on to the bill.
Selling your home If you are thinking of selling your home you need to think
about where you will live.
Can you sell your home and buy a smaller property?
Look at renting from a housing association
as an option.
Private renting may be an option but you need
to be careful about the type of tenancy you are offered and how high
the rent is. Sometimes if you claim Housing Benefit your Council can
decide that your rent is too high and restrict the amount of rebate
they will pay you.
You may have friends or family that you can
live with, at least temporarily.