Mortgage Payment Problems

Frequently Asked Questions Index

1. 'What can you do to help me?'
2. 'Are there any other ways you could help me?'
3. 'Is there anything I can do to help?'
4. 'Is there any free independent advice you would recommend?'
5. 'Talk to me about costs and charges'
6. 'What happens if we can’t find a solution?'
7. 'What happens if my home gets repossessed?'
8. 'What if you sell my home and it doesn’t raise enough money to pay off my mortgage?'
9. 'How do I make a complaint if I need to?'
10. 'Are there any other issues I should be aware of?'
11. Income and expenditure forms

'What can you do to help me?'

• We’ll make sure that we contact you as soon as possible to discuss your problem.
  
  
• We’ll talk to an agency that can give debt advice (for example, Citizens' Advice), if you want us to.
  
  
• Give you reasonable time to pay back the debt.
  
  
• And we’ll only start legal proceedings that may lead to repossession of your home if we cannot solve the problem directly with you.

 

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'Are there any other ways you could help me?'

• We may be able to arrange a new payment plan with you, taking both your and our interests into account.
  
  
• If it helps, we might be able to change the way you make your payments, or the date that you make them on.
  
  
• If you have a repayment mortgage, it may be possible to pay back your mortgage over a longer period of time, reducing your monthly payments, making your mortgage easier to cope with.
  
  
• You may be given the option to change the type of mortgage to better suit your needs.

If we cannot offer you any of these options, we will tell you why.

If we can make one of these arrangements with you, we will explain how it would work and give you time to consider it and advise you to seek independent advice.

If we cannot offer any of these options, we might agree to you remaining in the property to sell the property yourself depending on your circumstances.

 

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'Is there anything I can do to help?'

• Yes, it’s best to be upfront if you are having problems repaying your mortgage or think that you might experience problems shortly. The sooner you speak to us about this, the sooner we could be able to help you. You can call us on 08706 072 072*
  
  
• If you would like help with managing your finances, you can seek debt advice yourself.
  
  
• If we try to contact you, it’s best to get back in touch with us quickly.
  
  
• Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up to date with what is happening.
  
  
• Be sure to keep to the payment plan we agree with you, or tell us if there is a change in your circumstances that may affect the arrangement. If you do not make the agreed payments, we might have to go to court to get back any money you owe us, or to repossess your property.
  
  
• Check whether you can get any state benefits or tax credits which could help to increase your income.
  
  
• If you have an insurance policy, check whether it would help with your payments.
  
  
• Tell us if you move to a new address.

You may want to talk to a professional adviser, such as a debt counsellor or a lawyer before you change your mortgage arrangements. We would strongly advise that you seek independent, free, debt advice. To find out how to do this, contact some of the 'not-for-profit' organisations shown below.

 

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'Is there any free independent advice you would recommend?'

Citizens Advice Bureau
The Citizens Advice service helps people resolve their legal, money and other problems by providing free information and advice. They can offer advice face to face or over the telephone.

• Home page - http://www.citizensadvice.org.uk/ 
  
• Debt Advice section - http://www.adviceguide.org.uk/index/life/debt.htm
  
  

Citizens Advice Scotland
Citizens advice bureaux have been providing advice and information to the Scottish public for over 60 years. Since they were first founded, Scottish bureaux have been delivering a free, confidential, impartial and independent service.

• http://www.cas.org.uk/
  
• http://www.adviceguide.org.uk/scotland.htm
  

Consumer Credit Counselling Service
The Consumer Credit Counselling Service is a registered charity whose purpose is to assist people who are in financial difficulty by providing free, independent, impartial and realistic advice.

• http://www.cccs.co.uk/
  
• Helpline on 0800 138 1111
  

National Debtline
National Debtline is a national telephone helpline for people with debt problems in England, Wales and Scotland. The service is free, confidential and independent.

• England & Wales http://www.nationaldebtline.co.uk/england_wales/debt_advice.php
  
• Scotland - http://www.nationaldebtline.co.uk/scotland/
  
• Helpline on 0808 808 4000

 

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'Talk to me about costs and charges'

If you are in arrears, we may charge you for reasonable administrative and legal costs. And of course, we will tell you the amount you will have to pay so there aren’t any shocks.

 

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'What happens if we can’t find a solution?'

• We may send a debt counsellor to see you to discuss your financial circumstances in the process of finding a suitable solution and the cost of the visit may be charged to your mortgage account.
  
  
• In the worst case scenario we may go to court to start proceedings to repossess your home. If proceedings take place, we strongly recommend that you attend the court and that you seek independent debt advice.
  
  
• Starting court proceedings does not necessarily mean that we will repossess your home. And we will keep trying to solve the problem with you. Repossession is strictly a last resort.
  
  
• If we do have to repossess your home, we will give you advice beforehand about getting in touch with your local authority to see if they can find you somewhere else to live.

 

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'What happens if my home gets repossessed?'

• If it does come to this we will sell it for the best price we can reasonably get and we will try to sell it as soon 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 secured against your property.
  
  
• If there is any money left over, we will pay it to you unless this was a Buy to Let mortgage and you have other mortgages with us.

 

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'What if you sell my home and it doesn’t raise enough money to pay off my mortgage?'

• If there is not enough money from the sale to pay the whole mortgage, then you will still owe us the amount that is left (a shortfall debt). We will tell you what this amount 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 six years of selling your property (five 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 might have to pay additional court costs.
  
  
• If a shortfall debt is not paid, it could affect whether you are able to get credit in future.

 

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'How do I make a complaint if I need to?'

If you do not think we have treated you fairly, you can complain to:

Customer Relations - Lending
PO Box 2
Main Street
Bingley
BD16 2LW

If your complaint is not dealt with to your satisfaction, you may then take it to the Financial Ombudsman. The Financial Ombudsman Service provides a free and independent service for consumers, and can be contacted at:

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR

Phone: 0845 080 1800

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'Are there any other issues I should be aware of?'

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.

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.

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

 

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Income and expenditure forms

If you have been in contact with us we may have asked you to fill out an income and expenditure form. Filling out an income and expenditure form can be a useful way to asses your current financial position. There are separate forms depending on whether you live in your mortgaged property or have a Buy to Let mortgage, the two forms are attached below:

Income and Expenditure Form

Buy to Let Income and Expenditure Form

 

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