Experiencing financial difficulty

Experiencing financial difficulties

Talk to us, we want to help…

We understand how quickly circumstances can change and at times it can be difficult to keep up with your mortgage payments. If you’re worried about your ability to pay or have fallen behind, it’s important you talk to us.

We are committed to working with you to find a mutually acceptable solution. We promise to listen and consider your personal circumstances.

Don’t struggle alone when you can speak to someone who wants to help you. Advice is available online, over the phone or face to face

Independent money advice

Take control of your situation…

Debt can often seem overwhelming. It’s vital you take action as soon as you know you are struggling to maintain your payments.

Speak to everyone involved in paying the mortgage and any mortgage guarantors; it’s important that everyone understands what is happening
Write down the household income and spending, splitting all outgoing costs into essential and non-essential items; can you make any quick changes that could save you money?
Get free independent financial advice; don’t struggle alone when you can speak to someone who wants to help you. Advice is available online, over the phone or face to face
Check whether you’re eligible for any benefits and claim what you’re entitled to
Call any insurance providers to understand what help is covered by your policy
And most importantly; talk to us, we want to help you

Prioritise your debts…

Think about your finances as a whole; do you have several debts you are trying to manage, does it feel unmanageable? It’s important you prioritise your debts in order of the consequences of non-payment.

Priority debts are those that have the most serious consequences if you continuously miss payment; they aren’t always the largest debts or those with the highest interest rate, but could lead to imprisonment, the loss of essential services for living or your home. These could include, in no particular order:

Mortgage payments and any loans secured against your home
Rent and council tax
Child support and maintenance payments
Gas and electricity bills
TV licence payments
Certain payments ordered by the courts

Non-priority debts are those where the outcome of failing to pay is often less serious. For example you cannot be imprisoned and you won’t lose your home, but your creditor may eventually take you to court. These could include, in no particular order:

Personal loans
Overdrafts
Credit cards, store cards or payday loans
Any unsecured loans
Money borrowed from family or friends

If trying to make sense of your financial situation feels overwhelming or you need more support, speak to someone. You are not alone; a debt adviser at an organisation that offers free independent financial advice speaks to people in similar situations every day.

It’s not too late…

Don’t ignore your situation; it’s never too late to seek advice and try and to get your finances back on track. If you’re struggling to pay your mortgage and your payment arrears feel out of control, it’s important you talk to us.

We always consider repossession to be the last resort and will work with you to understand your circumstances and try to come to a mutually agreeable payment arrangement. However, if you are in serious mortgage arrears we may need to apply to the court for a possession order. This means we would be able to sell your property to recover the debt secured against the property.

A possession claim explained…

After a claim has been issued, the county court will write to you with a hearing date; check if you can get legal aid to help with any legal costs
The court will provide a court pack which will included why we are taking you to court and a defence form for you to complete; it is important that you complete the defence form and return it to the court
Get independent advice as soon as possible; an advisor may be able to help you prepare for the hearing and even attend with you
The hearing will take place at the county court; it is in your best interest to attend. Many Courts will have a solicitor on duty or a Citizens Advice representative who may be available to give advice
At the hearing, the Judge reads and hears the evidence from you and us before making a decision; this gives you the change to explain your personal circumstances and any proposals you have to make payments towards reducing your arrears.
The Judge may grant a Suspended Possession Order if they believe any proposals you make at the hearing are reasonable
If no payment arrangement has been agreed, we will likely request a Possession Order
Once a Possession Order is granted the judge sets a date for you to leave the property. This is usually in 28 days but the judge could allow you up to 56 days. Once this date passes we must apply to the Court for a bailiff’s appointment.
The bailiff will write to tell you when the eviction is going to take place; you should make sure that you have removed all of your personal possessions from the property before this date.

Independent money advice

Talk to us, we want to help…

Don’t struggle alone when you can speak to someone who wants to help you. Advice on a range of matters is available online, over the phone or face to face.

Citizens Advice is a charitable network offering free and confidential advice on matters ranging from legal advice to consumer and financial affairs. Help and advice is available face to face at local branches throughout the UK, as well as on the phone and online.
0345 404 0506
www.citizensadvice.org.uk

Run by national charity the Money Advice Trust, National Debtline is a free telephone debt advice charity that has been providing free impartial debt advice for over 25 years. Its website also offers information on debt solutions, debt management plans and has a webchat service.
0808 808 4000

www.nationaldebtline.co.uk

One of the UK’s largest providers of free debt advice and free debt management plans. They offer comprehensive telephone advice, support and guidance for anyone struggling with debt.
0800 280 2816

www.payplan.com

Shelter is a housing and homelessness charity, which provides support to millions of people each year through advice and legal services. Help is available face-to-face, online and via their national helpline. The charity also actively campaigns on issues related to poor housing and homelessness.
0808 800 4444

https://england.shelter.org.uk/get_help

The StepChange Debt charity provides a free comprehensive debt advice service, assisting 625,000 people a year to overcome their debt problems, by providing practical solutions to help them take back control of their finances. Tailored advice is available both online and over the phone.
0800 138 1111
www.stepchange.org

The Money Advice Service is a government-backed organisation providing free and impartial advice both online and over the phone.
0800 133 7777
www.moneyadviceservice.org.uk

The Money Charity is focused on encouraging people to build the skills, knowledge, attitudes and behaviours that can help them make the most of their money. It provides education and advice on money matters for young people and adults both online and through workshops.
www.themoneycharity.org.uk