Guidance for Homeowners Facing Financial Pressure
For many households, the start of a new year can feel challenging — especially when mortgage costs and everyday expenses continue to rise. When people are worried about keeping up with payments, it’s natural to search for solutions.
Unfortunately, this can also make homeowners vulnerable to dishonest schemes.
The Financial Conduct Authority (FCA) has recently issued a warning aimed at borrowers experiencing mortgage difficulties. The key message is clear: if an offer sounds unrealistically easy or too good to be true, it may well be a scam.
Why Borrowers in Difficulty Are Being Targeted
According to the FCA, individuals already under financial strain can become prime targets for high-risk arrangements and fraudulent “solutions” designed to exploit desperation.
Scammers often present themselves as offering quick fixes, but many of these schemes can result in serious financial harm — including the loss of your home.
Common Mortgage Scams and Risky Schemes to Avoid
Homeowners should be particularly cautious of the following types of offers:
False Legal Claims from “Freemen on the Land”
Some groups linked to the so-called “Freemen on the Land” movement claim borrowers are not legally required to follow mortgage agreements.
This is completely untrue. These arguments have never succeeded in court, and relying on them can lead to missed payments, arrears, and repossession.
“Promissory Note” Payment Tricks
Another dangerous suggestion involves sending so-called promissory notes instead of real mortgage payments.
These documents have no value in settling mortgage debt. Lenders will not accept them, and normal payments will still be required.
Below-Market Quick-Sale Deals
Some firms offer to purchase your home quickly, often at a price far lower than its true market value, claiming it will help you avoid repossession.
In many cases, homeowners end up losing a substantial amount of equity or being left worse off financially.
Sale-and-Rent-Back and Similar Arrangements
Schemes that allow you to sell your home but remain living there as a tenant — such as sale-and-rent-back deals — can be risky, especially if the company involved is not properly authorised.
Without regulation, you may have little protection if the new owner changes terms or forces you to leave.
What to Do If You’re Struggling with Mortgage Payments
If you are concerned about meeting your mortgage payments, the FCA strongly advises contacting your lender immediately.
Mortgage providers may be able to offer legitimate assistance, payment arrangements, or support options before arrears become severe.
You can also access free, independent debt guidance through trusted organisations, including:
Citizens Advice
MoneyHelper
Local debt-advice services (via a debt advice locator tool)
Avoid Unsolicited “Quick Fix” Offers
One of the most important steps is not to act on unexpected approaches.
If an individual or firm contacts you with a quick-sale proposal or alternative repayment scheme:
Check whether they are authorised
Use the FCA’s firm register or checker
Speak to an independent solicitor or adviser before agreeing to anything
Taking professional advice first can prevent costly mistakes.
A Safer Start to the New Year
A new year should bring optimism — not pressure to accept unsafe shortcuts.
If mortgage costs are becoming difficult, remember that support is available and you are not alone. The safest route is always through your lender or trusted free advice services, not unverified schemes promising instant answers.
If you’d like to speak with someone about protecting your home and ensuring your insurance cover remains appropriate, Peter Best Insurance Services is here to help.
