ADVICE ON PAYMENT DIFFICULTIES
If you are concerned about your ability to pay your mortgage, please call us on 03330 140146. We will listen to your concerns and see if there's an alternative solution available that's suitable for your circumstances.
Information if you have an existing payment holiday with us
If you don’t make any payments during the payment holiday, we will continue to charge interest on your mortgage. If you are currently taking a payment holiday, your three options at the end of the payment holiday period are:
1 – Spread the cost of your deferred mortgage payments over the rest of your mortgage term
2 – Arrange to pay the cost of your deferred payments in a lump sum
3 – For those with a capital repayment mortgage, extend your mortgage term for the length of time that you took a payment holiday
In considering your options please remember that where appropriate your mortgage allows you to make additional payments each year (sometime called overpayments, or capital reductions), with no early repayment charge on payments of up to 10% of the balance. Making additional payments as and when you can afford to do so will help reduce your mortgage balance faster than would otherwise be the case and will reduce the interest that you pay. If you are not in a position now to pay the full amount missed during your payment holiday, making additional payments in future could help you get your mortgage back on track. Your mortgage offer (or more recent product switch offer) contains more details.
Concerned about your finances?
There are organisations out there to provide you with help if you need it. Those organisations are listed at the bottom of this page.
Other help is available
It’s in your interests to start making your mortgage payments if you can afford it. However, if you are still suffering from financial hardship and none of the above options are right for your circumstances, please call us so we can try and find a solution for you. This may include rearrangement of a repayment mortgage to Interest-Only (or part repayment, part Interest-Only), term extension or a combination of these.
Further support and advice
For more information on financial support available, you might find these websites useful:
- General government guidance and support - gov.uk/coronavirus
- The Money and Pensions Service have launched a new online tool to help those affected by Covid-19 navigate their finances - moneyadviceservice.org.uk/en/tools/money-navigator-tool
- If you're struggling to pay your bills, Citizen’s Advice offers the following information - citizensadvice.org.uk/debt-and-money/if-you-cant-pay-your-bills-because-of-coronavirus/
- You may be entitled to benefits, find out more with Citizen's Advice - citizensadvice.org.uk/benefits/coronavirus-check-what-benefits-you-can-get/
- The Money Advice Service can offer support with managing your money, including steps you can take to prepare for if your circumstances might change - moneyadviceservice.org.uk/en/hub/coronavirus-support
- For most people, it's a good idea to pay essential costs and priority debts before spending money on other things or non-priority debts. The Money Advice Service has a budget planner to help you work out essential costs - moneyadviceservice.org.uk/en/tools/budget-planner and it has also produced a guide to help you prioritise your debts - moneyadviceservice.org.uk/en/articles/how-to-prioritise-your-debts
- The Financial Conduct Authority has produced a guide to managing financial difficulties during coronavirus - fca.org.uk/publications/finalised-guidance/information-consumers-financial-difficulties-coronavirus
- Other places where you might find useful information at this time include Which? which.co.uk and Money Saving Expert moneysavingexpert.com/latesttip/
- Money and Mental Health - Practical Financial Skills to Manage Money offers practical information and useful tips on budgeting and dealing with debt
- If you are feeling stressed or worried and need help with your mental health, The Money and Mental Health Institute can direct you to help here - moneyandmentalhealth.org/get-help/