If you’re struggling with debt, you’re more likely to opt for a sub-prime mortgage but there is an increased risk you may not be able to stop house repossession.

Borrowing money is expensive – even going through a mainstream lender will add thousands upon thousands on an average mortgage. But if you’re using a sub-prime lender, the likelihood is they will charge higher rates for the privilege. The reason for this is many sub-prime lenders have been rejected by mainstream banks as they pose too much of a risk. The sub prime housing market crash in America furthered fears and led to a tightening of the lending criteria. However, there are many financial institutions who still sell mortgages to those with a bad credit history. There is a lot of profit to be made from this mortgage sector despite the risk, thanks to the higher rates. For the homeowner pushed into a financial cliff edge however, they could end up being more at risk of being unable to stop house repossession.

It’s important that you draw up a budget and stick to it if you want to monitor affordability. Budgets can also help you prioritise your bills, but if you really cannot pay your mortgage, a fast house sale could offer a speedy way out of a financial fix.

Sub-prime mortgages cost more. If you’re already struggling with debt you should think twice about taking on further debts. A missing mortgage payment leads to being in mortgage arrears and before you know it you may be unable to stop house repossession. If you’re in this scenario already a quick house sale may offer one solution to homeowners unable to stop house repossession.