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Trouble payingyour mortgage?

How we can help if you're having difficulty paying your mortgage

Call us

If you're having trouble making your mortgage payments call us as soon as possible so we can try to help you. We'll be able to discuss your circumstances and could offer help to meet your individual needs.

Call us on
0345 166 9510*

Alternatively we have set up a facility which enables borrowers to discuss their financial situation with Payplan, an independent money advisor.

 

Payplan

Payplan is the UK's leading provider of free debt management arrangements. They are experts in helping people in financial difficulty, providing realistic and affordable ways of solving debt problems. They have a comprehensive range of solutions under one roof to help keep people in their homes, repay their unsecured debts and reduce their expenditure. They also provide ongoing support so that everyone has the best chance of becoming debt-free and staying that way.

Call Payplan
0800 280 2483*

What we will do

If you haven't already been in touch with us, we'll contact you as soon as possible to discuss your situation. We'll consider your circumstances and may be able to:

  • Arrange a new payment plan with you that suits both of us.
  • Change the way you make your payments, or the date you make them.
  • Allow you to pay your mortgage over a longer period of time (to reduce your monthly payments).
  • Arrange for a debt counsellor to visit you and discuss ways of managing your finances. The cost of the visits may be charged to your mortgage account.

We will provide you with full details on how these options work and give you time to consider any changes. If we can't offer you any of these options we will explain why. In addition:

  •  We will give you reasonable time to pay back the debt.
  •  We will talk to an agency like Citizens Advice Bureau to arrange a payment plan for you, if you want us to.
  •  We will only start proceedings to repossess your home if we are unable to solve the problem with you.

If we are unable to offer any of these options we might agree to you remaining in the property to sell the property yourself.

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What you can do

  • Tell us as soon as possible if you are having problems repaying your mortgage or think that you might experience problems in the near future
  • Contact us quickly, if we try to contact you.
  • Make sure you keep other people responsible for the mortgage (and anyone guaranteeing the mortgage), up to date with what's happening
  • Keep to any payment plan we may agree with you or tell us as soon as possible if there is a change in your circumstances which may affect the arrangements. If you don't make the agreed repayments, we might have to go to court to get any money you owe us or to repossess your property
  • Keep us up to date with any changes to your circumstances, including if you move to a new address
  • Check whether you can get any state benefits or tax credits which could help to increase your income.
  • If you have a mortgage payment protection insurance policy, check if it can help with your payments
  • If it is unlikely that your situation will improve in the future you may need to think about selling your home.

You may want to talk to a professional adviser, such as a financial adviser or a solicitor, before you change your mortgage arrangements. We would strongly advise that you seek independent, free debt advice.

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What happens if we can't agree a solution?

  • We may send a debt counsellor to see you and discuss your financial circumstances. The cost of the visits will be charged to your mortgage account.
  • We may go to court to start proceedings to repossess your home. If proceedings take place, we strongly recommend that you attend court and that you seek independent debt advice.
  • Starting court proceedings does not necessarily mean that we will repossess your home. We will keep trying to solve the problem with you. Repossession is a last resort.
  • Before we repossess your home, we will suggest that you get in touch with your local authority to see if they can find you somewhere else to live.

What happens if we repossess your home

  • We will sell it for the best price we can reasonably get. We will try and sell it as quickly as possible.
  • We will give you reasonable time to take your possessions from your home
  • We will use the money raised from selling your home to pay your mortgage and any other loans or charges.
  • If there is any money left over, we will pay it to you.

What happens if selling your home does not raise enough money to pay off your mortgage

  • If there is still not enough money from the sale to repay the whole of your mortgage, you will still owe us the amount that is left (this is known as a shortfall debt). We will tell you how much this is as soon as possible
  • If you bought your home with other borrowers, each of you is responsible for all the money borrowed. This is true even if you normally only pay part of the mortgage.
  • We will contact you within 6 years of selling the property (5 years in Scotland) to arrange for you to pay back what you still owe.
  • We will take account of your income and outgoings when we arrange a payment plan for this shortfall debt with you. But if we cannot arrange a suitable plan, we may go to court to get our money back. You may have to pay additional court costs
  • If a shortfall debt is not paid, it could affect whether you are able to get credit in the future.

What happens if you hand your keys over to us

You may be thinking about handing your keys back to us. If you do this, you will still be responsible for paying the mortgage until the property is sold. If your house sells for less than you owe, your mortgage won't be fully repaid and you will still owe us the amount that is left. Please discuss this option with us before taking such action.

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Arrears and Possession Related Fees

Arrears Management  fees

We understand that sometimes you may face some financial difficulties. In the unfortunate event you are unable to make your mortgage payments, you may incur some charges. The tables below outline our charges in the event that you are unable to pay your mortgage (arrears), such as those covering unpaid/returned direct debits or cheques. There are also charges relating to repossession of the property and typical litigation and possession fees and costs.

Fee When This Fee Is Payable Amount
Monthly Arrears Charge This may be charged if your mortgage account falls into arrears by two or more monthly payments, unless there is an arrangement in place to fully repay the arrears and it is being maintained £35 per month, per account
Third Party Field Agents appointment An appointment for a representative of ours who visits you at home to discuss your mortgage account, financial position and circumstances £80
Missed third party Field Agents appointment A cancelled or missed appointment with a field agent £60
Property Inspection Property inspection to identify occupancy and/or property condition £55
Address Confirmation This fee will be charged where it is necessary for us to trace your current whereabouts up to £100

 

Litigation fees

If we need to ask our solicitors to recover any missed payments, litigate or start Court proceedings to obtain possession of your home, you will be liable for all their fees, costs and expenses. Listed below are the standard costs. You will also be liable for any additional non-standard or other third party costs. These will vary depending on circumstances. You will be liable for all costs and expenses we incur. As a guide only, for properties in England and Wales, typical litigation costs can be in the region of £800.

Fee Per Solicitor Instructed To: When This Fee Is Payable Amount       
Commence legal action Notify you in writing of our instructions to commence legal action £25
Issue proceedings Issue Court proceedings and apply for a hearing date £75
Preparation Prepare for the Court hearing date £60
Attend hearing Arrange attendance at the Court hearing and dealing with the outcome £25
Adjournment Adjourn the Court hearing date £60
Monitoring Monitor the payment terms of the Suspended Possession Order. Charged per each unbroken period of monitoring. £50
Enforcement Enforce the Possession Order and obtain an eviction date £25
Attendance for eviction Instructions to solicitors to arrange attendance on the day of eviction £60
Suspend Warrant Instructions to solicitors to suspend a warrant for possession:
  1. with agent in attendance
  2. without agent in attendance
  1. £60
  2. £85
Cancellation of Eviction Cancelling the eviction after 5pm on the day before the eviction £125

 

Possession fees

If we obtain possession of your home you will be liable for all our solicitors', agents' and other third parties' fees and all other associated costs and expenses. These include costs in connection with the management, maintenance and the sale of the property. We may also need to instuct agents to carry out investigative work. The list below sets out the standard costs. You will also be liable for any additional non-standard costs and charges. These will vary depending on circumstances. You will be liable for all costs and expenses we incur. As a guide only, typical sale in possession costs are in the region of £3000.

Fee When This Fee Is Payable Amount
Possession Administration fee Administrative costs for managing the sale of the property £300
Valuation cost Report from a RICS qualified surveyor of the estimated market value of the property and suggested marketing price. Two valuations will be obtained. £100 per valuation
Estate Agent/Auctioneer Commission Recommendation of the proposed selling price and marketing strategy, advertising and agreeing a sale either through private treaty or an auction sale 1.5% of sale price (minimum fee £1,000)
Solicitors Costs for a standard sale Solicitors conveyancing costs for checking the title to the property, preparing a contract, exchange and completion of the contract. £300
Withdrawal Fee For instructing the asset manager to take the property off the market £150 plus costs
Energy Performance Certificate Charge for the compilation of an Energy Performance Certificate required by a buyer before the property can be marketed £59
Property management costs Charged following possession of the property for changing locks, draining and switching off systems, and clearance of property in preparation for sale £400
Garden maintenance Garden maintenance whilst the property is marketed for sale during seasonal months: April – October £50 per visit
Accompanied visit To arrange an accompanied visit to remove remaining items from the property
  1. Weekday: half day/full day
  2. Weekday: half day/full day
  1. £80/120
  2. £100/£180
Auction Entry Fee Fee for entering a property into an auction sale £250
Solicitors costs - abortive sale Solicitors costs where an offer is withdrawn £50
Solicitors costs - distributing surplus proceeds Solicitors costs in establishing identity of the entitled person to whom the surplus should be paid, and distribution of surplus proceeds £50
Solicitors costs - distributing surplus proceeds Solicitors costs in establishing identity of the entitled person to whom the surplus should be paid, including tracing and distribution of surplus proceeds £125
Solicitors costs - payment of surplus proceeds into Court Solicitors costs to make payment of surplus proceeds into Court £250

The arrears, litigation and possession fees are for properties in England and Wales. Fees will vary for properties in Northern Ireland and Scotland. These fees quoted for arrears management, litigation and possession are subject to VAT. The fees will be added to your mortgage balance.

Further details of when fees apply can be found in our booklet 'How Your Mortgage Works', which is available in branch.

Some things to bear in mind

If we take action to enforce the terms of the mortgage, you will be responsible for payment of all fees (including legal fees, which will be added to your mortgage balance). The fees payable will depend upon the type of action we have to take.

For information about mortgage valuations, the different types of inspections and their associated costs, please read Mortgage valuations.

 

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Other issues & complaints

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 best interests in the long term. We would advise that you seek independent advice before entering into any arrangement of this type.

Making a complaint

If you have concerns about how we have dealt with your case please use our complaints procedure to make us aware of any problems. We'll do our best to address things quickly and fairly.

Our complaints procedure meets the requirements of both the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS).

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Need some help?

Visit us

You can visit us in branch to speak to a mortgage adviser.

Call us

Speak to one of our friendly mortgage advisers about your options

0800 138 2402*

  • 7.00am - 8.00pm, Mon-Fri
  • 9.00am - 1.00pm, Sat