If you have fallen behind with mortgage or any other loans secured on your home, especially with the recent rate rises, and you are under threat of repossession, there are a number of ways to deal with the problem:
One way to release equity to deal with your debts is to take out a second mortgage. This could be a good way of raising money if you want to avoid selling your house. However, you will end up with a larger mortgage, and may just be postponing your problems.
Remortgage your house
If you are paying the standard variable rate on your mortgage, it may be possible to save money by remortgaging. A fixed rate mortgage will insulate you from interest rate rises and allow you to plan in advance.
Sell your house at auction
This will provide you with a fast house sale, as legally, deals on auctioned property must be completed within four weeks, and the costs are broadly similar to those charged by estate agents. There is a risk with auctions though, your property may not go for anywhere nears the market price, and there is the risk that it won’t sell at all.
Rent your house
If you want to hang on to your property, renting it out to cover the mortgage costs may be an answer, or otherwise it may give you more time to sell it through an estate agent.
There are potential risks with renting, as well as having to find other accommodation, you will be left with the costs if tenants leave and can’t be replaced.
Sell your property to a cash buyer
This is the only guaranteed way to get a quick sale for your property, and you will avoid the costs of using an estate agent. Deals can be completed quickly enough to pay off your debts and avoid any threat of repossession.