We all go through changes in our lives that can sometimes lead to financial struggles. From time to time we can find it difficult to manage all our financial commitments - don’t worry, you’re not alone. If you’re having trouble paying your mortgage, or you think you may face difficulty in the future, it’s important to let us know as soon as you can - there are things we may be able to do to help.
What you can do if you’re having problems
Call us as soon as possible and we'll try to help you. We'll need to get a good understanding of your situation so that we can find the best options for you.
It will be helpful to have the following information available when you call:
- details of your income
- details of your household spend
- any outstanding debts you have, and with who
If you miss a mortgage payment or fall into arrears you could be liable for extra charges so it's important you speak to us as soon as possible if you have trouble paying your mortgage.
Other things you can do:
- Seek independent debt advice - these organisations offer a free support service and a number of online tools that can help you with your budgeting:
- Check your insurance policies - payment protection, income protection and critical illness cover policies may be able to help you cover your payments.
- Find out if you’re entitled to any state benefits - we can help point you in the right direction
- Keep to any payment plan we agree with you - or tell us if anything changes
How we can help
We’ll give you time to repay any outstanding arrears based on what you can afford. We may also be able to:
Arrange a new payment plan with you
for example, change the way you make your payments or the day of the month you pay.
Increase the term of your mortgage
By allowing you to pay over a longer time, we could reduce your monthly payments.
Change the type of mortgage you have
We may be able to find a mortgage that suits your current circumstances better.
If these options aren’t suitable, you might be able to stay in the property while you try and sell it. If you’re in arrears, we’ll charge you for reasonable administrative and legal costs, but we’ll make sure you know how much these will be.
Repossession is always a last resort
We’ll only start court proceedings if we have no alternative because we haven’t been able to resolve the problem with you. Talk to us as soon as you realise there’s an issue and we may be able to help.
Bringing in independent support
We may ask an independent organisation to visit you at home to discuss your financial situation. Any costs for this will be added to your mortgage account.
We might start repossession proceedings, but this doesn’t mean we’ll stop trying to help you. We want to help you as much as we can to keep your home.
You may need to speak to your local authority to explain the situation and see if they can assist.
If we do have to repossess your home, we’ll:
- Sell the property in a reasonable timescale for the best price we can reasonably get
- Allow you a reasonable amount of time to remove your possessions
- Use the money raised from the sale to pay off the mortgage and any other loans or charges. If there’s any money left over, we’ll give it to you.
Shortfall in sale of a repossessed property
In some cases, selling the property doesn’t raise enough to repay the mortgage in full and there’s a shortfall. If this happens, each person named on the mortgage is equally responsible for paying us the outstanding amount.
We can arrange a payment plan with you for the shortfall. We take into account your income and outgoings to make sure that it’s reasonable and you can afford it. If we can’t arrange a suitable plan, we may have to go to court to get our money back – if we do this, you’ll be liable for any court costs and your credit rating could be affected in future.
Talk to us as soon as you can if you’re having trouble paying your mortgage, or you think you may struggle in the future.
Call us on 0800 121 8765 – we’ll always try to help.