Finance

There is a wealth of strategies, advice and practical support that can help you keep your head – and your home

As a homeowner in the current climate, there's a good chance you're worried – perhaps deeply – about being able to pay your mortgage. It may seem small consolation but, as you may have noticed, at least you're not the only one. But whatever the extent of your personal situation, panicking or ignoring your problems are the worst things you could do.

Adam Sampson, Chief Executive of Shelter said: "As the credit crunch continues to bite, the reality is that more and more homeowners will struggle to keep up with their mortgage payments this year. We are seeing increasing numbers of people coming to us for help with mortgage problems and we would urge anyone in difficulty not to bury their heads in the sand and to seek advice early to ensure they don't lose their homes."

Instead, it's important to keep cool and undertake practical strategies for staying on track and out of trouble. Here are just a few, as recommended by leading money advice charities and the Council of Mortgage Lenders:

• If you're beginning to worry, you should talk your lender immediately. Yes, you might be reluctant and even find the prospect a bit scary, but it's crucial. The Government has created safety nets to help you, such as the Court Pre-Action Protocol, which requires lenders to demonstrate that repossession of your home is their last resort.
• If you are benefitting from lower mortgage rates, overpay each month if you can. It will improve equity, reduce interest payments and cut the length of your mortgage.
• While interest rates are low, switch to a repayment mortgage – but check if there are charges associated with it first.
• Prioritise debts – pay your mortgage, utilities and council tax before unsecured debts like credit cards – though you should continue to talk to your creditors and seek free independent financial advice.

If you're already in trouble it's vital not ignore your debts, or they'll just get worse. Keep paying as much as you can, as this will help you in negotiations with your lender. And don't just walk away from the property – the debt on it remains your responsibility.

If you feel you're at a loss for ways to get out of trouble, it's important that you take advantage of the free, independent and incredibly valuable advice that organisations like your local Citizens Advice Bureau, Shelter, National Debtline and CCCS has to offer. It can make a huge and positive difference, regardless of the severity of your situation.

And now there's also a brand new Government scheme specifically designed to help homeowners remain in their homes if they fall on difficult times. The Homeowners Mortgage Support (HMS) scheme will enable borrowers who suffer from a temporary loss of income to cut their mortgage interest payments for up to two years and help them get back on track with their finances. To find out more, take a look at the video in which Prime Minister Gordon Brown and Housing Minister Margaret Beckett announce and explain the scheme.

For more information visit www.direct.gov.uk/HMS