Mortgage installments, what to do if you are unable to pay them: three possible ways

Difficulties in paying the mortgage payments can be overcome by choosing between subrogation, renegotiation and Solidarity Fund.

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Apply for a mortgage it is often the only way to buy a property. The banks disburse the necessary money and the customer undertakes to repay the debt with monthly installments fixed or variable amount. The amount to be paid monthly will be determined from the salary of the applicant – the ratio between installment and remuneration is equal to 30/35% – and the duration of the amortization plan. It may happen, however, that due to a period of economic difficulty, job loss or a reduction in the number of working hours fail to match what is due. Possible solutions to the problem there are three and will make it possible not to be in default, then undergoing the consequences of non-payment.

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Mortgage installments, solve the difficulties in paying with the subrogation

When you realize that you may soon have difficulty paying the mortgage payments, you might ask the subrogation. This tool allows you to move funding at another credit institution that offers better and more advantageous conditions. The home bank is obliged to consent to the passage and the entire operation it will be free. The push to change can be given by lower interests, by the possibility of suspending payments in case of need or to move an installment to the end of the amortization plan, from more flexibility or by a lower monthly amount.

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Renegotiation, a road to salvation

If you are unable to pay the mortgage payments, you can try to ask the bank for one renegotiation of conditions. The lender will evaluate the application only after the customer has submitted solid guarantees such as the presence of a guarantor, new income or new income brought about by alternative annuities (a rent, a pension, or investment income).

The practice of renegotiation it’s free and will affect the interest rate, the spread, the type of contract (fixed or variable mortgage) and the duration of the amortization plan.

Solidarity Fund to pay the mortgage payments

The Ministry of Economy and Finance manages a fund called Mortgage suspension fund for the purchase of the first home. By applying to your bank it will be possible to access the fund in order to obtain a suspension of payments da 6 mesi a 18 mesi. The conditions of access are the termination of an employment relationship, suspension of work for at least thirty days, the onset of a serious handicap or of non self-sufficiency and the reduction of working hours for a minimum period of thirty days.


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