Hello, I’m looking for any solution to save the house. I’m a single mother, and I’m having difficulty with my mortgage payments, I have 8 per cent interest, and I’m 6 months behind. Could you help me? Helen

Oh Helen, this is so tough for you. You don’t say how large your loan is, but if it’s $300,000, your repayments are probably up $774 a month in the past less-than two years. If it is $500,000, they will be up $1289.

Escalating interest rates have meant many are struggling to keep up with their mortgage repayments.Credit: Gabriele Charlotte

But here’s the thing, they shouldn’t be that high in the first place. An 8 per cent interest rate is among the highest in the home loan market; the most competitive, quality loan today is 5.94 per cent.

That’s not relevant for refinancing – you sadly will not get one in your financial position. But put it in your arsenal for the financial fightback strategy I am about to outline.

Your first move to regain control and put your house out of danger should be to call your lender, ask to be put through to its financial hardship department and tell them your situation.

Be totally honest. Explain in no uncertain terms just how hard it has been for you… these hardship departments are obliged to help. But realise that your lender will still, somehow, at some time, want its money back.

Not just banks, but even utilities providers must have financial hardship departments.

So, think about how to also convey that you will be able to return to financial viability. Are your kids soon starting school soon, so you will be able to work more? Do you intend to upskill? Anything that suggests your situation is short term, and you are proactively working to fix it will be compelling and probably get you extra, immediate leniency.

Concessions that might be offered include: a home loan ‘holiday’ – a pause in your repayments for a time to get you back on your feet; a reduction in your repayments, which would extend your loan’s life but no matter for now; an official extension of your loan term, to spread your repayments over a longer period and thus cut them; and/or the downwards revision of that awful 8 per cent interest rate.