Struggling with mortgage repayments? What to do and where to get help

If you are worried about making your mortgage repayments, the most useful thing you can do is talk to your bank early, before you miss a payment. You are not alone, and banks deal with this every day. Under the Credit Contracts and Consumer Finance Act, if illness, job loss, a relationship ending or another hardship you could not reasonably have seen coming means you cannot keep up, you can apply for a hardship change: a longer term with lower repayments, a break from repayments, or both. Lenders cannot charge a fee to consider your application and must give you a decision in writing. Free, confidential help is available from MoneyTalks on 0800 345 123.

First steps

Money worries are stressful, and it is natural to want to put off the conversation. But the earlier your bank knows, the more options you have. The government’s Consumer Protection service says “it’s best your lender knows as soon as possible”, and the hardship rules have time limits that start once you fall behind.

1. Get in touch with your bank now. Call, use the app or visit a branch and say you are having trouble meeting repayments. Ask about hardship options.
2. Get free support alongside. A financial mentor can help you prepare a budget and talk to your bank with you. MoneyTalks is a good place to start (details below).
3. Work out what you can afford. Write down your income and essential costs. Knowing what repayment you could manage, and for how long, makes the conversation with your bank much easier.
4. Keep paying what you can, and keep a record of every conversation and letter.
5. Do not ignore letters. Open everything from your bank, even if it is hard to read. Missing a notice can close off options.

We would be cautious about borrowing elsewhere, such as on a credit card or personal loan, to cover mortgage repayments. It can turn a short-term problem into a larger, more expensive one. A financial mentor can help you weigh that up.

Your right to apply for hardship

The Credit Contracts and Consumer Finance Act 2003 (CCCFA) lets borrowers ask their lender to change their loan because of unforeseen hardship. It applies to consumer credit contracts, including home loans. The Financial Markets Authority (FMA), which has regulated the CCCFA since 1 July 2026, sets out the rules:

• Who can apply: borrowers whose hardship is one they “couldn’t reasonably have seen coming”, such as illness or injury, job loss, the end of a relationship, or the death of a partner or spouse, and who cannot reasonably keep up with repayments because of it but believe they could if the loan were changed.
• What you can ask for: extending the term and reducing each repayment; postponing repayments for a set period; or both together.
• Limits on the request: the change should not be more extensive than you need, and must be fair to both sides. Your interest rate cannot be increased as part of a hardship change.
• No fee to apply: a lender cannot charge for considering your application, whatever the outcome. If the change goes ahead, it may charge a reasonable documentation fee if your contract allows it.

When you can and cannot apply

The FMA says you cannot make a hardship application if you are two or more months in default, if you have missed four or more repayments in a row, or if it was reasonably foreseeable when you took out the loan that you would not be able to meet it. You can make one application on the same grounds in any four-month period, unless the lender agrees to look at another. This is the main reason to act early.

What the lender must do

• Acknowledge your application in writing within 5 working days.
• Ask in writing for any more information within 10 working days.
• Decide and tell you in writing within 20 working days (or, if it asked for information, by the later of 20 working days after asking and 10 working days after receiving it).
• If it agrees, give you the details of the change before it takes effect. If it declines, give written reasons and a summary of your right to apply to the court to change the contract.

A lender does not have to agree, but it must handle the application carefully and treat you reasonably and ethically. It may decline if it believes the hardship was foreseeable or that you can afford the existing repayments.

What each change does to your loan

Hardship changes give breathing space now, but the FMA notes they may increase the total you owe over time. Here is what the main options look like on a hypothetical loan: $450,000 owing, 22 years left, 5.06% (the average advertised one-year fixed rate, as at 10 November 2026), repayments of $2,829.04 a month.

A short break or a period of interest only costs relatively little in extra interest, but your repayments afterwards are a little higher than before. Extending the term gives a lasting reduction, but because you owe the money for eight more years it costs much more over time. If your situation improves you may be able to pay extra later to make up ground, which our mortgage term length and interest-only loans guides explain.

Banks may also offer other options outside the formal hardship process, such as restructuring or refixing at a different rate. If you are on a fixed rate, ask whether any change would trigger a break fee before you agree.

Talking to your bank

Some things that tend to help the conversation:

• Explain what has happened and when. Say what changed (for example, reduced hours from a certain date) and whether you expect it to be short-term or longer.
• Bring a simple budget. Income, essential costs, other debts, and the repayment you think you can manage.
• Say what you are asking for. For example: “I’d like to apply for hardship and ask for three months of interest-only repayments while I look for work.” Consumer Protection suggests applying in writing.
• Ask questions. What will my repayments be afterwards? How much extra will this cost overall? Will it affect my fixed rate?
• Get it in writing. Ask for any agreed change to be confirmed in writing before it starts.

You can bring a support person or a financial mentor with you. A mentor can also help you prepare for, and take part in, the conversation.

Free help

Consumer Protection describes MoneyTalks as “a good place to start”, and says a free financial mentor can help you talk to your lender and build a repayment plan. If your lender takes too long or does not seem to be reviewing your application fairly, Consumer Protection says “you can complain to their dispute resolution scheme”. Complain to the bank first, then the scheme.

If things feel overwhelming, it is worth talking to someone you trust as well. Financial stress affects sleep, health and relationships, and getting support early helps with all of it.

This is general information, not financial advice. Rates as at 10 November 2026.

Questions people ask

What happens if I miss a mortgage repayment?

Contact your bank straight away. The right to apply for hardship ends once you are two months in default or have missed four repayments in a row, so acting early keeps more options open.

Can my bank charge me for a hardship application?

No. The FMA says a lender cannot charge for considering a hardship application, whatever the outcome. If a change is agreed, it may charge a reasonable documentation fee if your contract allows it.

Will a hardship change increase my interest rate?

No. The FMA says the interest rate cannot be increased as part of a hardship change. You may still pay more interest overall, because the loan takes longer to repay.

What if my bank says no?

It must give you written reasons and a summary of your right to apply to the court. You can complain through the bank’s complaints process and then its dispute resolution scheme, and a financial mentor from MoneyTalks (0800 345 123) can help.

How long does the bank have to decide?

It must acknowledge your application within 5 working days and decide within 20 working days, or longer if it asks you for more information.