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
- Complete an Income & Expenditure form; download one here. Think about your spending, split all outgoing costs into essential and non-essential items; can you make any quick changes that could save you money? Even small changes can add up every month.
- 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. A specialist debt adviser at an Organisation like PayPlan, can offer free independent advice on budgeting, maximising your income and can even talk to your creditors for you. Talking to us or an independent debt advisor about your circumstances and the options that may be available to you, will have no impact on your credit score. To read more about how PayPlan has helped support our customers; click here.
- 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
It’s vital you take action as soon as you know you are struggling.
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 like PayPlan speaks to people in similar situations every day. Since PayPlan started
they’ve helped over 1 million people become debt-free, and every year they help over 100,000 more people with their finances.
Source: payplan.com/about-us/
It’s important you prioritise your debts in order of the consequences of non-payment.
When you call us
The sooner you get in touch, the quicker we can help you. If you’ve fallen behind with your monthly payments, or you’re worried about being able to make a payment in the future, our team is here to help.
We will talk through your current circumstances, so we can understand the best way to support you. Talking to us about your circumstances and the options that may be available to you, will have no impact on your credit score.
During the conversation we will:
- Ask you some questions about your current circumstances. For example, why you are struggling to pay your mortgage? If you’ve experienced a large unexpected expense or had a loss in earnings? We have a range of support options available, so it’s important we understand your circumstances to find you the right support.
- Want to understand your income and spending. Before the call, we recommend you complete an Income & Expenditure form; download one here. We want to make sure that any support we offer is affordable to you and you can manage the payments alongside your other commitments, so it’s helpful to understand your total household income and spending before you speak to us.
- Talk to you about the different types of support we could offer you. Once we understand your personal circumstances, we can discuss what options may be available to you; for example we may be able to offer you a temporary suspension of payments, temporarily change your repayment method to interest only, agree a bespoke payment plan or look at another support option that meets your needs.
- Ask you if you have contacted any of the independent money advice organisations. There is a range of independent organisations offering free impartial support and guidance on how to manage your debt(s); they may be able to help you, and if you want extra support, some will liaise with your creditors, including us, for you.
- Update your contact details. We are keen to keep in regular contact so we can be sure that any support we have agreed, continues to be suitable for you; up-to-date telephone numbers help us keep in touch.
We can't offer advice or help with any credit commitments or outstanding debts you may have with other organisations, visit our independent money advice page for support.
If you’ve fallen behind with your monthly payments, or you’re worried about being able to make a payment in the future, our team is here to help.
Once we have completed an Income and Expenditure with you, we will have a clearer idea of what mortgage support might be affordable to you.
Mortgage support options are designed to help make your payments more manageable in the short term but will add to the cost of the mortgage in the long term. You should always try to switch back to making your regular contractual monthly payments as soon as it is affordable to you.
Talking to us about your circumstances and the support options that may be available, will have NO impact on your credit score. So please reach out to us as soon as you can.
When you agree what mortgage support is best for you, this is the point when your credit file might be affected, but we will always explain the impact so you can make an informed choice. Click the button below to see some examples of the support you may be offered.
Independent Money Advice
PayPlan
We have partnered with PayPlan 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. To read more about how PayPlan has helped support our customers; click here.
.png?Status=Master&sfvrsn=5b18b2b3_17){kind=icon}
National Debtline
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.
Citizens Advice
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
citizensadvice.org.uk
Shelter
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
england.shelter.org.uk
StepChange Debt Charity
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.
MoneyHelper
MoneyHelper combines the help and support of three government-backed financial guidance providers; Money Advice Service, The Pensions Advisory Service and Pension Wise. They provide free and impartial advice both online and over the phone.
0800 138 7777
moneyhelper.org.uk
The Money Charity
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.
020 7062 8933
themoneycharity.org.uk
Business Debtline
Business Debtline is a charity that specialise in offering free debt advice to the self-employed or small businesses. Their debt advisers can provide free, confidential advice both online and over the phone.
0800 197 6026
businessdebtline.org
Housing Rights Northern Ireland
Housing Rights have been providing advice on housing and homelessness issues in Northern Ireland since 1964. They provide independent specialist advice, representation services, advocacy and support to individuals and landlords. Help is available on the phone or via online chat.
028 9024 5640
housingrights.org.uk
PayPlan customer stories
Having debts is a lot more common that you might think, and it’s easier to fix than you might think too. Debt advice from PayPlan can help you.
With the ‘cost of living’ crisis adding extra pressure to your finances, PayPlan can offer advice to anyone who may be struggling to manage their finances and keep up with debt repayments. An impartial, friendly team with over 30 years’ experience will listen with empathy, compassion, and respect.
Plus, they’ll give you a clear idea of what your options are based on your specific needs.
We've referred over 1,400 customers to payplan in 2022. Click below to read some of their stories and find out how PayPlan helped them to manage their specific challenges.
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 (England, Wales and Northern Ireland)
- 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 include 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 (in England and Wales only) who may be available to give advice; check with the court ahead of time to see if these services are available.
- At the hearing, the Judge reads and hears the evidence from you and us before making a decision; this gives you the chance 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.
-
A possession claim explained (Scotland)
- After a claim is issued, the Sheriff Court will notify you of the hearing date; check if you can get legal aid to help with any legal costs.
- You’ll receive court papers with the claim details which will include 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 Sheriff court; it is in your best interest to attend. Many Courts will have a solicitor on duty who may be available to give advice; check with the court ahead of time to see if this service is available.
- At the hearing, the Sheriff reads and hears the evidence from you and us before making a decision; this gives you the chance to explain your personal circumstances and any proposals you have to make payments towards reducing your arrears.
- If no agreement is reached, a decree for repossession may be issued as there is no Suspended Possession Order equivalent in Scotland.
- If a decree is granted, this means that the court is allowing repossession, the Sheriff usually grants this after a minimum of 14 days but could allow more time.
- Once this date passes we must apply to the Sheriff for an ejection (eviction).
- The Sheriff Officers will write to tell you when the eviction is going to take place; you should make sure that you have removed all your personal possessions from the property before this date.
It’s never too late to seek advice and try to get your finances back on track.