If you are having trouble paying your mortgage, whether it is residential or commercial, we will always try to help you. We might be able to arrange a payment plan with you, change the way you make your payments and/or allow you to pay back the mortgage over a longer period.
The first, and most important step to take, is to contact us as soon as possible if you are having problems paying your mortgage or think that you might have problems shortly. Contacting us to discuss paying your mortgage will not impact your credit file.
Here are some of the ways we will be able to help you:
- Contact you as soon as possible to discuss your problem
- Liaise with an agency who provides debt advice, like the Citizens Advice, if you ask us to
- Provide you with reasonable time to pay back the debt
We might be able to:
- Arrange a new payment plan with you
- Change the way you make your payments, or the date you make them
- Allow you to pay back your mortgage over a longer period of time (which would help to reduce your monthly payments)
- Change the type of mortgage you have
Every step of the way we will explain the decisions and options we have chosen. If we can make a payment plan with you, we will explain how it would work, including any effect on your mortgage account, and give you time to consider it. We’ll also make you aware of the impact on your credit file when your payments are missed, or you make a payment plan with us.
For more information about how we can support you download our Mortgage Arrears Leaflet or contact the Arrears Management team.
Managing your mortgage payments
If you are experiencing difficulties in repaying your mortgage please contact us as soon as possible to discuss your situation.
We might be able to arrange a payment plan with you, change the way you make your payments and/or allow you to pay back the mortgage over a longer period of time. We will only start proceedings to repossess your home if we are unable to find a solution.
Seek debt advice
You should seek debt advice if you feel you need help with managing your finances or claiming state benefits. For our tips on managing your debts please click here. If you have an insurance policy, check whether it would help with your payments.
In some cases you may be able to get help with your mortgage payments from the government through the Support for Mortgage Interest scheme.
If we cannot agree a solution
We will keep trying to solve the problem with you; possession is the last resort. However, if we cannot agree on a solution to repay your mortgage, we may send an agent to see you to discuss your financial circumstances and we may ask a solicitor to go to court to start proceedings to repossess your home. If we instruct a solicitor, you will be able to get free support, including legal advice and representation, through a government scheme. For more details click here.
You may be thinking about handing your keys over to us. If you do this, you will still owe us any outstanding debt, and we would advise you to discuss this option with us before taking such action.
If we repossess your home
We will try to sell it as soon as possible for the best price we can reasonably get. We will use the money raised to pay your mortgage and any other loans or charges, if there is any money left over, it will be paid to you. If there is not enough money from the sale to pay the whole mortgage, you will still owe us the amount that is left (a shortfall debt).
Other issues to consider
Some companies may offer you new loans or even invite you to sell your property to them and then lease it back as a way of resolving your short term financial difficulty. Please be careful, as such actions may not be in your long term best interests.
We would advise you to seek independent advice before entering into any arrangement of this type. If you are in financial difficulty you can also get help and advice from debt counselling organisations. With your consent we will liaise, wherever possible, with debt counselling organisations.
