It's all too easy to take out a number of mortgages or loans, and then discover you can't pay them back. Low interest rates, high earnings multiples and easy applications for credit and store cards mean that many people have borrowed more money than they can afford to pay back. Even if you can afford your multiple mortgage payments now, you may be hit by one of several things that could put your home at risk.

Interest rate rises

A large mortgage, where you have borrowed up to 5 times your annual salary, may seem pretty manageable when you take it out, but a rise in interest rates can make a real difference to the amount of money you have left to spend at the end of the month. For example, if you earn £25,000 per year, and you have borrowed £125,000 to buy a home, an interest-only mortgage at 5.5% means you pay £572.91 per month. If interest rates rise by just 0.5%, and your mortgage lender only increases your interest rate by the same amount, you'll be paying £625 – an increase of £52.09. That could make a big hole in your finances. 

Redundancy

Times change for businesses and public sector bodies of all shapes and sizes. Redundancy can have a huge impact on your finances, particularly if you don't benefit from a generous redundancy package. Even if you have a joint mortgage, losing your wage could make it really difficult to make ends meet, and if you have more than one mortgage or loans and credit cards to pay as well, you could end up in serious debt.

Divorce

Divorce or separation is a stressful experience. Added to the emotional problems are the financial difficulties. If you have one or more mortgages together, or any other financial products, you will need to sort out how the repayments are going to be met. This can involve delicate negotiations – and the last thing you want to do is to miss payments because you can't agree on how to split the costs.

Selling your property may help you to stop juggling financial products, or having to make multiple mortgage payments, and if you sell quickly, you can have the cash in your account quickly, leaving you free to take whatever steps you need to so that you can sort your life out.

If you need help to sell your property so that you can fix your mortgage problems, contact us at Discount Property Auction. We're committed to helping you, whatever your circumstances. If you want to sell your home, you can use our dedicated online auction facility, which allows you to upload your property yourself and put it in front of genuine, interested buyers. Call us now on 0800 1313 999 or email admin@discountpropertyauction.co.uk to arrange a valuation today.