What we’ll talk about

We know talking about finances can be difficult. To help you prepare, we’ve outlined the types of things you can expect. We will:

• • discuss your situation so we can understand any issues you’re experiencing
  • ask you about your income and outgoings and any debts you may have
  • explore potential solutions to your situation
  • provide independent contacts if you'd like more financial advice or support

Our team are here to provide support

We want you to feel completely comfortable reaching out to us. Having a conversation with us about your financial situation won't affect your credit file.

Before agreeing any arrangements, we will explain how the changes will be reported in your credit file, whether there are any additional costs or charges, and how any options could affect the total amount you pay over the term of the mortgage. We will give you time to make the best decision for your situation.

If you'd like to find out if you're eligible for any of these options, please contact us. Doing so won't affect your credit rating.

You may wish to seek independent advice from a free debt advice agency as they can help with budgeting and to assess whether there are any benefits that you may be entitled to. Sufficient time will be provided to enable you to make and attend an appointment.

Get free and independent advice

There’s lots of impartial and confidential support available if you have money worries. Getting advice won’t affect your credit score or involve a credit check.

Here are some organisations that can help you, from working out your budget to, tackling debt and checking your eligibility for state benefits. They can also help with prioritising your debts to help you avoid missing your payments.

• Visit National Debtline or call 0808 808 4000
• Visit MoneyHelper
• Visit StepChange Debt Charity or call them for free on 0800 138 1111
• Visit Citizens Advice or go to your local Citizens Advice bureau.

You may want to talk to a professional advisor, such as a debt counsellor or a lawyer.  We advise you to do this before you change your mortgage arrangements. We do strongly advise that you seek independent and free debt advice first.

• If we try and contact you, please come back to us quickly. This will really help the process
• Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up-to date with what is happening
• Keep to the payment plan we agree with you. Or tell us if there is a change in your circumstances which may affect the arrangement. If you do not make the agreed payment, 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. Let us know if you move to a new address.

Costs and charges

If you are in arrears, we may charge you for reasonable administrative and legal costs. We will inform you beforehand of any costs you will have to pay.

If we cannot settle on a solution:

• We may send a debt counsellor to visit you to discuss your financial circumstances, and this cost may 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 the 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. Possession is only the last resort

If we do have to repossess your home, we will give you advice about getting in touch with your local authority to see if they can find you somewhere else to live.

If we repossess your home:

• We will sell it for the best price we can reasonably get. We will try to sell it as soon as possible
• We will give you reasonable time to take the 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.

If selling your home does not raise enough money to pay off the mortgage

If there is not enough money from the sale to pay the whole mortgage, you will still owe us the amount that is left (a shortfall debt). We will inform you of 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 six years of selling your property 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 returned. 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 future.

Other issues

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.

Complaints

If you do not think that you have been treated fairly, you can make a complaint by following our Complaints Procedure.