Payment difficulties

Managing finances can be difficult at the best of times and with the added challenges we’re all facing because of coronavirus, meeting your monthly mortgage payments might be a worry for you at the moment.


There are a number of options available here that could help manage your payments - or stop them for a short while. It’s important that you know what these options are but also that you fully understand what implications they may have in future. You’ll also find information here about other organisations that can help you with free financial support.


Once you have considered your options, you can contact us by phone or request a call via our mortgage help and support form. We’ll contact you once we’ve reviewed your information, we’ll aim to do this within 72 hours (excluding weekends and Bank Holidays). Whether you call us or request a call back, it’s important that you’ve gathered together the relevant information to help us understand your situation. You can use our budget planner to capture these kind of details for our discussion (and any discussion you have with other creditors).

 

If we don’t know your situation, missed payments could affect your credit record so the most important thing is that you contact us, our friendly experienced staff are here to help. 


Payment holidays

Payment holidays that were introduced due to the coronavirus emergency response have now ended.

If you’re finding payments difficult due to coronavirus or any other reason, please look at the information in these pages, there are still a number of things we can do to help you.


If you have any queries regarding previous or unexpired payment holidays you’ve taken, please call us or request a call through our mortgage help and support form.

What can we do to help?

We have options that can temporarily reduce your payments but these will show as arrears, we'll look at what is right for you and your situation. We also have the following options could help to relieve the pressure of your mortgage payments, but they do have implications and you’ll need to take these into account. 
 

  • Extend the term of your mortgage
    If you have a repayment mortgage (where you pay part of the loan + interest back each month), spreading the repayments over a longer period of time will reduce your monthly payments. However, it means that you’ll have a mortgage for longer and pay more interest than you would have done originally. But you can always reduce your term again in the future if things improve for you.
  • Switch to a new mortgage product
    If you can afford to make part of your payment each month, changing the type of mortgage product you have could change the rate of interest you pay. This could reduce your monthly payment. But remember, your mortgage product may have Early Repayment Charges that still apply. If you choose to do this, we can look at the mortgages we have available and their interest rates and see if changing to a new one could help. 
  • Temporarily switch to an Interest-only mortage
    We may be able to arrange for you to transfer to an interest-only mortgage in the short term. This will reduce your payments but it’s important to remember that you won’t be paying back any of the original amount borrowed and it will have to be repaid in the future. However, if you can afford to keep paying back the interest each month, this may give you the time you need until your circumstances improve.

Your next steps


If you’d like to speak to a member of our specialist team about your options first, fill in our 
mortgage help and support form as the information you provide will help to choose the right option for you, and we’ll call you within 72 hours (excluding weekends and Bank Holidays). Please don’t cancel your mortgage payment until we have spoken to you.

 

We recommend you fill in a simple budget planner beforehand with details of your monthly income and outgoings – this will give us (and any other creditors you speak to) a good understanding of your financial situation.

 

We’ve made a lot of information available online for you as we expect our phone lines to be busy so please use this information and the relevant forms where possible.

 

However, if you’d prefer to, you can still call us on 0800 121 8765.

When you call, it would be helpful if you could have the following information to hand:

This will give us a good understanding of your financial situation when we speak to you.


Other help and support available
 

Unsecured personal loan accounts
If your difficulties relate to an Unsecured Personal Loan, you can contact us on 0800 121 8899 to discuss how we can help you. 


Government-backed schemes
There are various government schemes offering financial and income support for people affected by coronavirus. Whether you’re working, self-employed or not currently working, you may be eligible for some support. Find out more at www.gov.uk/coronavirus


Free debt advice
The following organisations offer debt advice, help, guidance and budget planning. It won’t cost you anything to get advice from them and they’ll look at your situation as a whole – with all of your creditors, not just us.

 

If you don’t feel ready to speak to anyone just yet, they also have lots of useful information online. 

Check your insurance policies
If you have payment protection, income protection or critical illness cover, your insurance policy may help you cover your payments for a while.


If you miss payments under normal circumstances
 

We really hope that the guidance we’ve given is useful and that we can find a way of helping you. But if we don’t get to speak to you to make arrangements and you start to miss your monthly payments, then we need to make you aware of what could happen:

  • Missed payments will be reported to Credit Reference Agencies and this will have a negative impact on your credit rating.
  • If we have to write to you about unarranged arrears, we’ll charge you administration costs.
  • We may ask an independent organisation to visit you at home to discuss your financial situation. Any costs will be added to your mortgage account.
  • Ultimately if arrears continue, we will have to consider recovering our balance through the courts. This is always the last resort and one we rarely have to take but it will incur a significant cost and this will impact on any equity you have in the property.

If the worst happens and we have to repossess your home

If we cannot come to an agreement with you regarding your arrears, we will have to commence proceedings to repossess your home. We will communicate with you regularly and before we take any steps to commence proceedings.

 

It’s never too late for us to make an agreement but any delay will result in additional interest and fees which could affect your final equity position.

 

Once we have taken possession:

  • We’ll sell the property within a reasonable timescale for the best price we can reasonably get.
  • Any surplus funds will be passed onto you or second charge holders.
  • If there’s a shortfall, that is, the sale of the property doesn’t cover the balance outstanding, we’ll contact you to arrange a payment plan with you. We’ll take into account your income and outgoings to make sure it’s reasonable and that 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 the future.

It’s never too late to talk to us

We can make an arrangement with you at any time so if you’re struggling to make your payments, or you’re worried about missing a payment, please contact us as soon as possible.

 

Fill in our mortgage help and support form and we’ll call you within 72 hours or call us on 0800 121 8765.

 

We’ll do our very best to help.

Want help?
Our help section is bursting with useful information. If you'd rather chat, just give us a call.

 

Call us on 0800 121 8899

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  • Mon-Fri 8am-7pm
  • Saturday 9am-2pm
  • Sunday & Bank holidays Closed
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Want help?
Our help section is bursting with useful information. If you'd rather chat, just give us a call.

 

Call us on

0800 121 8899

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