Mortgage payment problems - further information

This information will help if you are having trouble making your mortgage payments, or if you can see a problem arising in the future. We are here to help and will always discuss your circumstances with sensitivity.

Your credit rating

Talking to us about any payment difficulties you are experiencing does not affect your credit rating.

We notify credit reference agencies at the end of every calendar month of mortgage accounts that have arrears (overdue payments) equal to or greater than the normal payment due. We also report the number of months the account is in arrears.

For example, if your monthly mortgage payment is £500, and there were missed payments totalling £1,500, your account would be reported as being 3 months in arrears to credit reference agencies.

If we have agreed on a financial arrangement with you, you will be reported as 'in an arrangement' to credit reference agencies for the period of the arrangement. Once the arrangement ends, the account will then be reported as up-to-date or in arrears, depending on the status of your account.

These notifications will remain on your credit report for six years and are likely to affect your credit rating (also known as credit score). However, its impact on your rating will reduce as the record ages because lenders usually pay more attention to your most recent credit history. If you pay the arrears and keep up with future payments, you should see your credit rating improve over time. For more information, visit StepChange.

Leaseholder and shared owner charges

If you have a leasehold or shared ownership property, you will have to pay other charges related to your property, which take the same priority as your mortgage payments. These include:

Service charges – paid to your housing association/management company for the services they provide, including cleaning communal areas, general maintenance, or repairs to the building.
Ground rent – this is the payment you make to the freeholder of the land on which your property is built.
Rent – if you are a shared ownership owner, you pay your housing association rent for the part of the property they own.

If you think you will struggle to make these payments, or if you have failed to pay them previously, you should contact your housing association as soon as possible. You may be able to work out an arrangement to become up to date with your payments.

If you fail to contact your housing association, freeholder or management company, they will contact us as your mortgage provider to pay the shortfall. To prevent forfeiting your lease and safeguard our security on the property, we will pay the amount needed to keep your account up to date. This incurs extra costs for you. We will add the rent payment to your mortgage account, along with administrative fees. Because the rent arrears payment is added to your mortgage account, it will incur daily interest on top of your mortgage, making it more expensive overall.

We will contact you and try to organise an arrangement (alongside your mortgage payments) to bring your account up to date, but it is always better to see if you can agree on a payment plan directly with your housing association. It is important to talk to them to see what they can do to help, rather than rely on your mortgage provider to make the payments for you.

Debt and money management

Money Helper which helps provide advice on personal debt and will link you with an available debt adviser from one of their partner organisations.
StepChange (0800 138 111 and online webchat) provides free, confidential and expert advice on personal debts.
Business Debtline (0800 197 6026 and online webchat) – if you’re self-employed this charity provides free, independent, and expert advice.
StopLoanSharks - If you have borrowed from a loan shark or are worried about someone else, contact StopLoanSharks can provide emotional and practical support.

Maximise your benefits

Turn2Us – a free service to help you check you’re receiving all the benefits you can.
Entitledto – a free service aiming to make benefits easier to understand with a calculator and budgeting tools.

Mental health

Mind (0300 123 3393) – a charity providing support and information for those living with mental health problems.
Mental Health & Money Advice – an online advice service designed to help people understand, manage, and improve mental health and finances.

Support in difficult times

Citizens Advice Bureau – a nationwide charity with local centres providing help on money, debt, housing, work, and more.
GamCare (with online webchat) – the leading provider of information, advice, and support for anyone affected by gambling.
Gingerbread - a national charity supporting single-parent families.
Refuge (with online webchat at certain times) – a charity providing confidential support for women who are victims of domestic abuse.
Respect (with online webchat at certain times) – a charity providing confidential support for men who are victims of domestic abuse.

Repossession and legal action

If we cannot agree on a solution or if you fail to maintain your arrangement with us, we may have no other option but to start legal action. Repossession is always a last resort, and we will always try to come to an arrangement with you to get your mortgage back on track. However, if all options have been exhausted, we will:

We will inform you in good time that we intend to proceed with legal action and give you the opportunity to bring your account up to date.
We encourage you to attend court and take independent debt advice.
Repossession may not necessarily happen. We will continue to find a solution with you, and repossession is always the last resort.
If repossession does happen, we encourage you to contact your local authority to see if they can help you find a new place to live.

If we do repossess your home:

We will sell it for the best price we can reasonably get and try to sell it as quickly as possible.
We will give you time to take your possessions from your home.
Any money left over from the sale will be passed on to you.

It may be possible that the sale of your home does not cover the amount needed to pay off your mortgage - this is called a shortfall. If this happens:

We will let you know as soon as possible so that we can organise a way for you to pay it back.
Every borrower is liable for the shortfall – even if you only paid part of the mortgage.
We will consider your income and expenditure to organise a payment plan.
Details of any unpaid shortfall will be passed on to credit reference agencies which may affect your borrowing in the future.

The Housing Loss Prevention Advice Service

The Housing Loss Prevention Advice Service (HLPAS) is a government-funded scheme providing free early legal advice on housing and debt to those at risk of repossession proceedings and/or losing their home. You can find your nearest HLPAS provider on the government's 'find a legal aid adviser'webpage.

Other things to consider

Some companies may offer you loans or invite you to sell your property to them and lease it back to you to solve your financial problems. Some companies also offer to create a budget and organise your finances for a fee. Please be careful, as these may not be in your best interests. You can always seek free, independent advice before entering into any arrangement that is proposed to you.

You may also consider handing over your keys to us. Please consider this option thoroughly, as you will still have to pay your monthly mortgage payments until the property is sold and it may affect your ability to secure local authority housing. If the property is sold for less than you owe, you will still have to pay the shortfall.

Complaints

If you believe that we have not treated you fairly, you have the right to complain. You can visit our customer satisfaction page for more information.

If you believe your complaint has not been dealt with adequately, you may be able to refer it to the Financial Ombudsman, who can be contacted at:

The Financial Ombudsman Service

Exchange Tower

London

E14 9SR

Tel: 0800 0234567

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 arrange a plan of action to help you stay on track with your mortgage.

Return to the main mortgage payment page.

Information is correct as of October 2024.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.