What to do if I'm struggling financially?

If you’re struggling to keep up with mortgage repayments due to Coronavirus, please talk to us. Our Mortgage Servicing Team is on hand to help Monday to Friday, 9am - 5pm and Saturdays, 9am - 12pm. Alternatively, please email us at [email protected] to schedule a call back.

In the meantime, please remember:

• you shouldn’t cancel your regular payments without speaking to us first

• check our FAQ’s to see if the answer is available online

What type of support is available to me?

If you’re finding it difficult to pay your mortgage because of Coronavirus, we will be able to offer you support tailored to your individual circumstances. This support will be available if you’re struggling for the first time or if you’ve already had a payment deferral that’s coming to an end.

Your options could include:

• making no payments for a temporary period

• making reduced payments for a temporary period

• changing your mortgage term to make your payments more affordable

Before agreeing to any support, we will need to collect information on your circumstances. We want to ensure you have the relevant information so that you can make an informed decision.

It’s important to be open and honest about your financial situation, so we can agree an option that is right for you.

Payment deferrals

From March 2020, those struggling financially due to Coronavirus may have been eligible to take a payment deferral. The deadline to apply for a payment deferral was 31st March 2021 and all payment deferrals must end by 31 July 2021.

A payment deferral is a temporary postponement of an outstanding debt, which could have been applied for up to 31st March 2021. This is more commonly referred to as a payment holiday. The monthly payment is either reduced or changed to zero, and interest accrues for the period. This may be particularly appropriate when there is a temporary shortfall of income. When payments are deferred for a time, the borrower will make up these repayments, which could be over the remaining term.

It’s important to remember that you still owe that money and the interest on your mortgage still accrues during a payment deferral period.

From 1 April 2021, if you are newly affected by Coronavirus (or if it starts affecting you again) we will be able to provide support tailored to your circumstances. This may include a payment holiday if that is appropriate.

Will a payment deferral impact my credit report?

Your credit report will not be negatively impacted during a payment deferral period if we agreed this with you before the 31st March 2021 as a payment deferral. You should be aware, however, that while a worsening status will not be reported to your credit file as a result of this payment deferral, lenders may take into account other information when making future lending decisions, including information provided by you, such as, bank account information or payment history. This means that your ability to access credit in future could be affected.

If you are unable to maintain your monthly mortgage repayments after your deferred payment period, please contact us straight away. You should be aware that any future missed payments will be reported to Credit Reference Agencies.

What happens my payment deferral ends?

While the payment deferral is in effect, the capital sum of the loan remains unchanged while the interest that would have been paid in the period accrues. At the end of the payment deferral period, we will calculate what your new mortgage repayment will be. Your monthly mortgage repayment will increase because your mortgage balance is higher than if you had not taken a deferred payment period.

We will get in touch with you before the payment deferral period ends to agree next steps. If you are continuing to face financial difficulties due to Coronavirus we can explore what support could be available to you that best suits your circumstances.

Further guidance

There are a range of publications which explain the help and guidance that is available to you from the Government and other third parties. Please click here for further guidance around Coronavirus.

What is the Repossession Moratorium?

Before the 1st April 2021, we have not taken steps to enforce any order to repossess a home, unless repossession has been agreed with the borrower.

From 1st April 2021, subject to any government restrictions on repossessions, we may be able to take steps to enforce a possession order and repossess your home. But we will only do this as a last resort. In all cases, we will assess if it’s appropriate to seek repossession at this time, especially if you’re particularly vulnerable to circumstances related to Coronavirus.

Can I pay my mortgage without visiting a branch?

There are several ways to pay your monthly mortgage repayments;

• Pay your monthly mortgage by Faster Payment or bank transfer from another bank or building society. To pay your mortgage from another bank/building society, please quote the following bank details:

Sort code 60-83-18

Account number 10001008

Please ensure you always include your Society roll reference number when making a transaction. The 'roll reference number' is your mortgage account number.

• You can set up a direct debit to pay your monthly mortgage repayment by calling our Mortgage Servicing Team or by downloading and completing a direct debit mandate form.

• You can pay your mortgage by cheque. Please make the cheque payable to yourself and write your name, address and roll reference number on the back of each cheque and post it to our Principal Office or to one of our branches.

• You can make debit card payments by calling our Mortgage Servicing Team on 01384 231414 and select option 2. Please note that we do not accept credit card payments.

FAQs
What is a payment deferral?

A payment deferral is a temporary postponement of an outstanding debt, which could have been applied for up to 31st March 2021. This is more commonly referred to as a payment holiday. The monthly payment is either reduced or changed to zero, and interest accrues for the period. This may be particularly appropriate when there is a temporary shortfall of income. When payments are deferred for a time, the borrower will make up these repayments, which could be over the remaining term. It’s important to remember that you still owe that money and the interest on your mortgage still accrues during a payment deferral period.

Can I just cancel my direct debit payment?

Do not cancel your direct debit. Cancelling your direct debit is not a payment deferral and it will be counted as a missed payment. This could show up in your credit file and may impact your ability to borrow, or re-mortgage, in the future. Contact us first if you are struggling.

Can I pay my mortgage without visiting a branch?

There are several ways to pay your monthly mortgage repayments;

• Pay your monthly mortgage by Faster Payment or bank transfer from another bank or building society. To pay your mortgage from another bank / building society, please quote the following bank details:

Sort code: 60-83-18

Account number: 10001008

Please ensure you always include your Society roll reference number when making a transaction. The 'roll reference number' is your mortgage account number.

• You can set up a direct debit to pay your monthly mortgage repayment by calling our Mortgage Servicing Team or by downloading and completing a direct debit mandate form

• You can pay your mortgage by cheque. Please make the cheque payable to yourself and write your name, address and roll reference/account number on the back of each cheque and post it to our Principal Office or to one of our branches (all address details are here)

• You can make debit card payments by calling our Mortgage Servicing Team on 01384 231414 and select option 2. Please note that we do not accept credit card payments

How do I apply for a payment deferral?

From March 2020, those struggling financially due to Coronavirus may have been eligible to take a payment deferral. The deadline to apply for a payment deferral was 31st March 2021 and all payment deferrals must end by 31 July 2021.

From 1 April 2021, if you are newly affected by Coronavirus (or if it starts affecting you again) we will be able to provide support tailored to your circumstances. This may include a payment holiday if that is appropriate. 

How will the possession moratorium work?

Before the 1st April 2021, we have not taken steps to enforce any order to repossess a home, unless repossession has been agreed with the borrower.

From 1st April 2021, subject to any government restrictions on repossessions, we may be able to take steps to enforce a possession order and repossess your home. But we will only do this as a last resort. In all cases, we will assess if it’s appropriate to seek repossession at this time, especially if you’re particularly vulnerable to circumstances related to Coronavirus.

If I receive additional support from my lender after a six-month payment deferral, what will happen to my credit file?

We have standard procedures for reporting details of a mortgage account to credit reference agencies. This will show whether any mortgage payments have been missed. Payment deferrals under the Coronavirus scheme will not be recorded on your credit file as a missed payment.

If you receive further tailored support from us after your payment deferral comes to an end, the arrangement that has been agreed will be shown on your credit file. This helps to ensure that other users of information held by the credit reference agencies have a more complete picture of your circumstances.

What happens if I have already had a six-month payment deferral but continue to be financially impacted by Coronavirus and have difficulty making my mortgage payments?

If your finances continue to be impacted by Coronavirus and you have had a full six-months of payment deferrals, we will discuss alternative support with you, tailored to your needs. It is essential that you contact us before you miss a payment.

We will ask you a range of questions about your circumstances, including your monthly income and expenditure and it would be useful if you have this information to hand. We will also explain the impact on your credit file of the support that is offered.

You may also be eligible for other government support and we encourage you to visit the Money Advice Service website to understand what additional help might be available to you.

What happens when my payment deferral ends?

While the payment deferral is in effect, the capital sum of the loan remains unchanged, while the interest that would have been paid in the period accrues. At the end of the payment deferral period, we will calculate what your new mortgage repayment will be. Your monthly mortgage repayment will increase because your mortgage balance is higher than if you had not taken a deferred payment period.

We will get in touch with you before the payment deferral period ends to agree next steps. If you are continuing to face financial difficulties due to Coronavirus, we can explore what support could be available to you that best suits your circumstances.

What if I need further financial guidance or debt advice?

There are a range of publications which explain the help and guidance that is available to you from the Government and other third parties. Please find these on our main Coronavirus support page.

What if I’m already in arrears?

You should continue to speak to our Mortgage Servicing Team. We will assess your circumstances and ensure that your payments remain sustainable, this may include an offer of a payment deferral.

We will make every effort to support people in financial difficulty and will make this process as simple as possible.

What is accrued interest?

Accrued interest refers to the amount of interest that has been accumulated over the period of the loan.

What type of support is available to me?

If you’re finding it difficult to pay your mortgage because of Coronavirus, we will be able to offer you support tailored to your individual circumstances. This support will be available if you’re struggling for the first time or if you’ve already had a payment deferral that’s coming to an end.

Your options could include:

• making no payments for a temporary period

• making reduced payments for a temporary period

• changing your mortgage term to make your payments more affordable

Before agreeing to any support, we will need to collect information on your circumstances. We want to ensure you have the relevant information so that you can make an informed decision.

It’s important to be open and honest about your financial situation, so we can agree an option that is right for you.

Will a payment deferral impact my credit score?

Your credit report will not be negatively impacted during a payment deferral period if we agreed this with you before the 31st March 2021 as a payment deferral. You should be aware, however, that while a worsening status will not be reported to your credit file as a result of this payment deferral, lenders may take into account other information when making future lending decisions, including information provided by you, such as, bank account information or payment history. This means that your ability to access credit in future could be affected.

If you are unable to maintain your monthly mortgage repayments after your deferred payment period, please contact us straight away. You should be aware that any future missed payments will be reported to Credit Reference Agencies.