If you think you may have problems paying your mortgage due to Covid1-19, and you have not yet agreed a mortgage payment holiday with us, please read the section below for guidance.
The FCA issued proposed guidance for lenders on 22 May 2020 which outlines how we should treat borrowers with mortgage payment holidays when they come to an end.
The guidance is in consultation with lenders until early June, at which point it will be finalised and the Society will consider the options that will be offered to borrowers. We do not have the answers today, so please avoid contacting us unless, you wish to:
- Cancel your existing payment holiday.
- Extend your existing payment holiday to 3 months (if you originally opted for one or two months).
- Speak with someone about your individual circumstances because you consider yourself vulnerable.
When we have finalised our policy, we will publish it on this page and include in our individual communication to customers whose mortgage payment holiday is due to end. We expect these communications to be sent 4 weeks prior to the date the first payment is due following the mortgage payment holiday.
We are in the process of contacting customers whose mortgage payment holiday is due to end and their subsequent payment is due in June. If you have not heard from us, please contact us on 01635 555588 to discuss your options with us.
Newbury Building Society, like many other mortgage lenders, will offer a payment holiday for up to 3 months to those borrowers who are currently up to date with their mortgage payments and are experiencing issues with their finances as a result of Covid19.
A payment holiday does not mean the payment of your mortgage and interest is waived. The amount is deferred and repayable after the payment holiday over an agreed time and interest is charged during the period.
If you are in arrears of one or more monthly payments, you will need to contact us on 01635 555588 asking to discuss the arrears on your mortgage and how we can help you.
During the payment period:
- We will not expect a mortgage payment from you.
- Your account will not be reported to Credit Reference Agencies as being “in arrears”.
- No fees will be charged, or letters sent, to reflect non-payment of your mortgage.
- Interest is charged on the unpaid amount at the current rate and will increase your mortgage balance.
- Unpaid mortgage payments will be repayable after the payment holiday over an agreed period.
- Before the end of the payment holiday period we will review your situation to agree what happens next.
It would be normal practice to obtain an income and expenditure assessment to understand how we can support you. Due to the urgency of the current situation, we are not requesting this, however if your situation does not improve after the payment holiday, we will request this information to assess how we can help you further.
As mentioned above, and in line with industry practice, the amount that has not been paid will need to be repaid after your payment holiday. When we review your circumstances after the initial payment holiday period, we will discuss this with you and ensure an affordable plan is put in place.
You may wish to read the Financial Conduct Authority (FCA)'s frequently asked questions (FAQs) for more gerneral information about how the industry is helping mortgage borrowers.
We would encourage you to consider when to start your payment holiday based on your work situation, your other financial commitments and any unemployment/sickness insurance or savings you may have.
If you have a Shared Ownership property, we recommend you also speak with you housing association to see how they may be able to help you. If you have a Help to Buy property, speak with your equity loan agent if you will have difficulty paying the interest.
If you think you may have problems paying your mortgage due to Covid19
Please complete our mortgage payment holiday request form, available to download at the right hand side of this page, and email to firstname.lastname@example.org. If you do not have access to email, please call our Customer Support Mortgage Team on 01635 555588.
If you have asked us to set up a mortgage payment holiday but have not yet received confirmation, we apologise for the delay. We are prioritising by payment date and will respond to you when we have completed your request. We will refund your mortgage payment if you have requested a payment holiday giving the required 5 days’ notice and we have been unable to process your request before your direct debit was collected. We expect to be able to make refunds within 5 working days of your payment date, however due to high volumes of requests, this may change so please bear with us.
As we are dealing with extremely high numbers of calls and emails, we need to ensure we are prioritising members that need our help most, based on the urgency based on payment date.
We would like to thank you for your patience and will deal with your enquiry as soon as we can. In these difficult times, we remain focused on providing you with the excellent service and support you have come to expect of us, and we thank you for your continued loyalty.
Please continue to check here for the latest updates.
We will contact you as soon as we notice you may be struggling with your mortgage payments, if you have not contacted us first. To help you with your mortgage payments, we may be able to:
- Change the date you pay, or your payment method
- Arrange a payment plan – this could be suspending payments or underpaying for a brief period of time, or arranging for overpayments in the future
- Allow a payment holiday, if you have made previous overpayments
- Extend the mortgage term
The action we take will be based on your individual circumstances, and some of the options may not be suitable for you. If this happens, we will explain why we did not offer you a certain option.
So that we treat you fairly, we will ensure that we will:
- Talk to a debt-advice agency, if you want us to, about your payment arrangements if you have sought their advice
- Give you reasonable time to pay back the debt
- Use a solution that is tailored for your situation and best for all those involved
- Maintain a regular conversation with you and keep you up to date on your account
- Give you time to consider your options and any arrangements we offer
- Only start proceedings to repossess your home if we have exhausted all other options
As part of any arrangement we make, we will need you to fill in a Household Budget Planner form, which you can download from the right hand side of this page. We ask for this so that we can get a better understanding of your financial situation, which will help us to offer you the best solution.
By being proactive, open, and honest with us about your situation, we can offer an arrangement better suited for your needs. You can also help by:
- Telling us as soon as you know you will have difficulty paying
- Making any payment you reasonably can, even if it less than your monthly mortgage payment
- Seeking debt advice to help organise your finances
- Replying quickly to our attempts to contact you
- Keeping anyone else involved with your mortgage up to date about your situation
- Finding out whether you are eligible for any state benefits or tax credits that could boost your income
- Informing us of your new contact details, including if you’ve moved address
- Asking your other creditors for a payment arrangement if you’re struggling to pay them as well
By taking the first step and contacting us we can start helping you today.
Further information - Visit our further information page where you will find help and guidance on the following topics:
- What to expect – What happens when we get in contact and the steps we take to help you
- Your credit rating – How underpayments and missed payments can affect your credit rating
- Leaseholder and shared owner charges – Information on problems paying charges in relation to leasehold and shared ownership properties
- Debt advice – Contact details for debt advice agencies and further information on helping paying your mortgage
- Repossession & legal action – What happens if we do start legal proceedings?
- Other things to consider
Please remember it is always better to contact us as soon as you realise you may be having trouble paying your mortgage. We are here to help and want to arrange with you a plan of action to help you stay on track with your mortgage.