1. Assess Your Current Financial Situation Thoroughly

Before taking any external action, it’s vital to gain a clear understanding of where you stand financially. Start by listing all your sources of income, regular expenses, and outstanding debts. This will help you identify the gap between your earnings and your obligations, and reveal opportunities for change. Are there any non-essential costs you can cut back on? Do you have savings, valuable possessions, or other assets that could temporarily relieve financial pressure?

This internal audit is also useful when approaching lenders or financial institutions, as they’ll want to see evidence of your current financial position. At EP Finance, we often help clients conduct this review and present their financial case in a way that increases the likelihood of reaching a favourable solution.

2. Investigate Government Assistance and Support Schemes

Several government-backed initiatives are available to assist struggling homeowners in the UK. The Support for Mortgage Interest (SMI) scheme, for example, provides help with mortgage interest payments for those receiving qualifying benefits. While it doesn’t cover the full mortgage amount, it can reduce your monthly burden significantly, giving you more space to address arrears or restructure your finances.

While the previously offered Mortgage Rescue Scheme is no longer active, councils may still offer support or refer you to housing associations and debt charities. Applying for assistance as soon as financial difficulties arise can prevent further escalation. And in many cases, a combination of government support and tailored financial solutions, like those offered by EP Finance, can be used to fully stabilise your situation.

3. Explore Mortgage Refinancing Options

If your current mortgage terms are becoming unmanageable, refinancing might provide a way forward. Refinancing can involve switching to a new lender with better interest rates or extending the mortgage term to lower your monthly payments. While refinancing does require a credit and affordability assessment, it can be a powerful tool to ease financial pressure and help you stay in your home.

Keep in mind that not all homeowners will qualify for refinancing through traditional routes, especially if you’re already in arrears. That’s where alternative lenders, like EP Finance, come in. We work with clients who don’t meet mainstream criteria - helping them access competitive refinancing solutions, even when credit history or arrears present a challenge.

4. Negotiate a Partial Payment or Arrears Repayment Plan

Many homeowners are unaware that lenders may accept reduced or partial payments over a defined period. If your current financial hardship is temporary, for example, due to a short-term illness, redundancy, or business downturn - then a lender may agree to a reduced payment plan or arrears repayment schedule. This shows goodwill on your part and may prevent the situation from escalating to repossession proceedings.

To strengthen your case, come prepared with a realistic repayment proposal and supporting documents. If you’re unsure how to negotiate or need help putting your case together, EP Finance can support you with a full financial plan or, where appropriate, offer short-term funding that satisfies lender requirements in the meantime.

5. Consider Selling and Downsizing - Before It’s Too Late

If it becomes clear that your current mortgage is unsustainable in the long term, voluntarily selling your home before repossession proceedings begin might be the most sensible option. This allows you to retain control of the process and potentially access the equity in your property to pay off your mortgage and start again in a more affordable home.

A quick sale through the open market or a property-buying company may help you avoid negative marks on your credit file and give you peace of mind. EP Finance can assist by providing bridging finance if you're looking to downsize but need time to secure your next home, or if you need short-term funding to delay a forced sale while you find a better deal.

6. Use Your Home Equity to Access Urgent Funds

If you’ve built up equity in your home, you may be able to unlock it through a home equity loan or secured line of credit. This type of funding can be used to pay off arrears, cover legal costs, or support your family through a financial rough patch. However, these loans do put your home at risk if you default, so it’s essential to ensure affordability and understand the terms.

At EP Finance, we provide regulated and transparent home equity funding solutions, often within days. Our focus is on giving clients a lifeline without trapping them in unmanageable repayments. We also offer interest-only and flexible repayment options for greater peace of mind.

7. Consider Personal Loans or Flexible Lines of Credit

In some cases, unsecured personal loans or revolving lines of credit can be used to cover missed mortgage payments. These options are faster to arrange and don’t require using your property as security. However, they’re typically only available to those with a decent credit profile, and interest rates can be higher than secured alternatives.

If this is an option you're considering, it’s important to compare terms carefully and work with a reputable lender. EP Finance can advise on whether an unsecured loan is appropriate, or if another product, like a short-term bridging loan or secured facility, might offer better value and flexibility based on your needs.

8. Seek Advice from a Qualified Financial Expert

Trying to navigate debt, arrears, and mortgage risk alone can lead to stress, confusion, and missed opportunities. A qualified financial adviser or debt specialist can provide valuable insights into your legal rights, creditor negotiation strategies, and the best financial solutions for your specific situation.

Independent organisations like StepChange, Citizens Advice, and the National Debtline offer free advice and can help liaise with your lender. At EP Finance, we also work closely with advisers, legal professionals, and credit specialists to ensure our clients receive holistic support, not just funding.

9. Rent Out Your Property or a Spare Room

If you’re keen to keep your home but can’t cover the mortgage alone, renting out part or all of your property could be a viable stopgap. Under the Rent a Room Scheme, you can earn up to £7,500 a year tax-free by letting out furnished accommodation in your home. Alternatively, short-term lets or full property rentals may provide enough income to avoid defaulting.

This strategy works best when paired with other financial planning, such as restructuring debt or consolidating payments. At EP Finance, we can help assess whether this approach is suitable - and structure a loan or funding solution that complements the extra income.

Get Tailored Financial Support with EP Finance

The threat of repossession is serious, but it’s not the end of the road. With timely action and the right support, you can resolve your mortgage issues, protect your credit score, and safeguard your home. At EP Finance, we provide fast, flexible financial solutions for homeowners under pressure. Whether you need emergency bridging finance, help with debt restructuring, or advice on equity release, we’ll work with you to build a sustainable path forward.