Mortgage payment problems 

Useful resources and how we can help.

 

If you think you may have problems paying your mortgage, please contact us at the earliest opportunity so we can help you prevent mortgage payment arrears.

Guidance is available in the sections below, however you can also contact our dedicated mortgage payment support team by emailing, telephoning 01635 555588 or requesting a call back. Contacting us doesn’t affect your credit report, and the sooner you reach out for support, the more options may be available to you.

Other help is also there, and we encourage you to seek assistance through the MoneyHelper and other free debt services.

The effects of the pandemic and the rising cost of living are affecting many of us.

The Money and Pensions Service (MaPS) are working with financial service providers to reach people before their finances get into a crisis. Their focus is on people who have not yet missed payments on their bills or credit commitments, but who are at serious risk of doing so. 

They have launched a 'help with cost-of-living guidance on the MoneyHelper website to help people manage their money in uncertain times. These resources and tools are aimed at people who: 

For people who are already missing payments on their bills or credit commitments, then free debt advice services are available via the MoneyHelper locator tool. Don’t forget the sooner you seek help, the more likely you will be able to get the advice you need to get back on track.

We’ve partnered with MaPS’ Money Adviser Network (MAN) to support those who are struggling with their other debts or have already fallen behind. If you have personal debts and not self-employed, the MAN can link you to an available debt adviser from one of their partner services to provide you with independent, free, debt advice. 

We will contact you 3-4 weeks before the end of your first mortgage payment deferral to advise you what will happen when it comes to an end and how the amount deferred is due to be repaid.

Unless you contact us to the contrary, at the end of your payment deferral period we will “capitalise” (add to your mortgage balance) the amount deferred including interest and recalculate your monthly mortgage repayment over the remaining term of the mortgage. 

We will provide you with information showing you the impact of capitalising the deferred amount on your monthly repayments and general information relating to the impact on the overall cost of your mortgage over the remaining term. 

If, having read the information provided, you wish to proceed with capitalising the amount deferred, you do not need to contact us. If you would prefer an alternative solution, we will ask you to complete our “End of Mortgage Payment Deferral – next steps” form, which is available to the right handside. When we receive it, we will contact you to discuss your situation to understand the likely longer-term position and to ensure that what you have requested is suitable.

If you had mortgage arrears or a concession in place (e.g. paying interest only) prior to your payment deferral, we will telephone you to discuss your circumstances to ensure we consider repayment of any arrears outstanding or other factors that may be affecting your ability to pay your mortgage.

We will contact you by telephone at least 3-4 weeks before the end of your second mortgage payment deferral to discuss your current circumstances and to understand whether you will be in a position to resume your mortgage payments. 

If you are able to resume your mortgage payments, we will send you details of the impact of “capitalising” the deferred amount (adding to your mortgage balance and repaying over your remaining mortgage term) on your monthly payment and information about alternative ways to repay if you do not want to do this.

If you know you will be unable to resume your mortgage payments, we will ask you to complete and income and expenditure assessment, so that we can understand how best to help you. We will also refer you to one of our payment support team so they can discuss the solutions available to you.

If we are unable to reach you by telephone, we will send you a letter detailing the impact of capitalising the deferred amount and the other options to repay. Included in this letter will be contact details, so that if you need additional assistance because you will have short or long term payment difficulties, you can call to discuss them with us.

Unless you contact us to the contrary, at the end of your payment deferral period we will “capitalise” (add to your mortgage balance) the amount deferred including interest and recalculate your monthly mortgage repayment over the remaining term of the mortgage. 

If you had mortgage arrears or a concession in place (e.g. paying interest only) prior to your payment deferral, we will telephone you to discuss your circumstances to ensure we consider your longer-term position.
 

We will contact you as soon as we notice you may be struggling with your mortgage payments if you have not contacted us first. We will never repossess your home if you miss one payment, and we will always firstly try to see what support is available to help you get back on track.

Our first step involves understanding your situation and financial circumstances. We’ll take the time to listen to you and understand your finances so we can see what support would be most suitable for you, and we may request further information or documents so we can fully understand.

We will then explain what we can do to help, which could include:

  • Guiding you to 3rd party support for income, benefits, debts, or anything specific to your circumstances

  • 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.

When we look at what support is most appropriate for you, we consider your short and term long circumstances and how any support will impact you and your mortgage payments. This may mean rather than making any changes to your mortgage payments, we will refer you to 3rd party support. If this happens and we decide not to make any changes to your account, we will explain why.

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 need a little more information from you. This will allow us to get a better understanding of your financial situation and ensure that what we can offer you is affordable.

By being proactive, open, and honest with us about your situation, we can offer an arrangement better suited for your needs.

  • Maximise your income – for instance, you can look to see if you’re receiving all the benefits you’re entitled to, or if you’re working part time, seeing if you could work more hours

  • Reduce your spending – have a look at your expenditure and see if there’s anything you can cut down on, it could be as small as reducing how often you eat out, or cutting those media subscriptions

  • Prioritise your debts – if you’re struggling with payments elsewhere it’s important to seek debt advice and make sure you pay your ‘priority debts’ first. We’ve partnered with MaPS’ Money Adviser Network who can help you seek independent, free, debt advice, for those who are struggling with their personal debts and payments. If you’re self-employed or a business owner, you can contact Business Debtline (0800 197 6026).

  • Keep us up to date and informed – let us know as soon as you know you will have difficulty paying, updates on your situation and support you’re receiving. If your contact details change, it’s important you let us know.

  • Provide information we ask for – we’ll need to know about your circumstances and finances. Consents.online provides a safe and secure way to share your information online using Open Banking technology, which provides us a snapshot of your current account. It’s as easy as logging into your online banking. 

Click here to share your information using consents.online. If you want to know more or have any questions, please visit our FAQ section or contact us.

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:

  • 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

  • Third party support

  • Repossession and legal action – What happens if we do start legal proceedings?

  • Complaints 

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