How we can help if you’re falling behind

What we will do

• Get in touch as soon as possible to talk through the problem
• Talk to an agency which gives debt advice (such as Citizens’ Advice) if you would like us to
• Give you reasonable time to pay back the debt
• We will only start proceedings to repossess your home if we cannot solve the problem with you

What we will try to do

• Arrange a new payment plan to help you through this difficult time
• Change the way you make your payments or the date you pay them on
• Give you the option to pay back your mortgage over a longer period of time (reducing your monthly payments)
• Change the type of mortgage you have

It is important to know

If we cannot offer any of the above options, we will tell you why. Obviously, we will do all we can to make one of these arrangements with you, explain it properly and give you time to think it through. If we cannot come to an agreement you may be able to live in your home until you sell it, depending on the circumstances.

What you can do

• Let us know right away if you think you are going to have problems or are already struggling to keep up with payments
• If we try to get in touch with you, make sure you get back to us quickly
• Talk to independent organisations that help people deal with debt. It is also important to talk to a debt counsellor or lawyer before agreeing to any changes to your mortgage arrangements. Keep anybody else who helps to pay the mortgage or guarantees it completely up to date
• If we agree a payment plan with you, make sure you keep to it. Let us know straightaway if anything changes which may affect the agreement
• Make sure you check if you are entitled to any benefits or tax credits which could boost your income
• If you have a mortgage-related insurance policy, check if it could help cover your payments
• Tell us if you or anyone else named on the mortgage moves to another address

Fees and charges

If you fall behind with your mortgage payments we may charge you reasonable administrative and legal costs. We will tell you the amount you will have to pay. Contacting us quickly may avoid you incurring these costs.

If we can’t come to a solution

• We may send a debt counsellor to your home to try and resolve the solution. The cost will be charged to your mortgage account
• We may go to court to start proceedings to repossess your property. If proceedings take place, it’s important that you attend the court hearing and seek independent debt advice. There may be someone available at the court to help you
• We believe that repossession is a last resort. Even if court proceedings begin, we’re still very keen to work with you to come to a solution
• If we have to repossess your home, we will advise you on getting in touch with your local authority for help on finding somewhere else to live

If we have to repossess your property

• We will give you reasonable time to take your possessions from your property
• We will sell for the best price we can reasonably get, as quickly as possible
• The money raised will be used to repay your mortgage and any other loans or charges which have been secured on the property. If there is any money left over we will pay it to you.
• A repossession may affect your ability to get credit in the future

When selling doesn’t cover your mortgage

• If there is not enough money from the sale to pay your whole mortgage, you will still owe the amount outstanding (the shortfall debt). We will let you know how much this is as soon as possible
• If you bought your property with other borrowers, each of you is responsible for the entire mortgage. This is true even if you only pay part of the mortgage or did not live there
• We will get in touch within six years of selling (five in Scotland) to arrange for you to pay back the shortfall
• When we arrange a payment plan, we will take into account your income and outgoings
• If we are unable to arrange a plan, we may go to court to get the shortfall back. That could incur court costs for you
• If the shortfall is not paid, it may be difficult to get credit in the future