Financial worries

Life can be full of ups and downs and there may be times when you’re worried about what the future might bring.

Rising living costs and increasing interest rates are having an effect on many households. This means that managing your finances and keeping up the payments on your mortgage may seem like a struggle.

In tough financial times you might be facing worries in other ways – you may have become indebted through losing your job or find it a struggle to save because of low income.

Whatever your situation, you’re not alone - we’re here to help.

We have a range of guides and tools offering practical advice and information to help you manage your finances. Our short video also gives you a brief overview of how we can help.

With rising living costs affecting the nation, it’s natural to be concerned about the future.

Worried about missing a mortgage payment?

Call us on 0800 169 9722* if you’ve missed a mortgage payment, or you’re concerned you may miss one in the future. We’ll listen to your situation and work with you so we can offer you the most suitable help.

When you call, it will help to have your income details and expenses to hand, such as household bills, subscriptions and personal loans/credit cards/store cards or overdrafts. We may ask you to complete our Income & Expenditure form to get a better understanding of your current finances.

Once you contact us and we’ve talked to you about your situation, we’ll:

  • Explore practical solutions that you can afford
  • Tell you about free debt advice organisations that you can speak to if you need more help.
  • Arrange a realistic and affordable payment plan with you that takes into account your financial circumstances and our responsibilities as a lender.

Our promise to you is that we’ll be open and honest with you throughout. Where there are different options, we’ll explain how each will impact you and give you time to consider them. You’ll receive ongoing support with regular reviews to ensure any payment plan remains affordable. If on occasion we may not have any suitable options, we’ll tell you the reasons why.

Is there anything else I need to do?

  • If somebody else is equally responsible for the mortgage payments, or guaranteeing the mortgage, tell them about your situation
  • Check whether you have mortgage payment protection insurance which could help towards paying your mortgage
  • Complete a budget planner which may help you understand your finances better to get you back on track
  • It’s also worth checking whether you’re eligible for state benefits by contacting the Department for Work and Pensions.

Remember to get in touch as soon as you can – the sooner you let us know, the easier it will be to help you.

  • What happens if there’s a change to the Bank of England Base Rate (BBR)?

    The Bank of England have announced that the BBR will increase to 3.00% from 3rd November 2022.

    The effect the change in the BBR will have on you depends on what type of mortgage you have:

    If you have a tracker mortgage: A tracker mortgage tracks the Bank of England Base Rate and therefore the increase in the BBR will directly affect you and your mortgage payment. This change will be reflected in your monthly mortgage payments from 1st December 2022. Any payments made before December will remain at your current rate.

    If you have a fixed rate mortgage: If you have a fixed rate mortgage, the fixed rate is guaranteed until the end of the promotional period, but the payments due after this point could increase or decrease.

    You can find out what type of mortgage you have and when your promotional period will end (if applicable) from your hub or latest Annual Mortgage Statement.

  • Will your Standard Variable Rate also change?

    A Standard Variable Rate (SVR) is a variable rate of interest set by the lender. Many lenders adjust their SVR when the Bank of England Base Rate changes, however the two are not directly linked and it’s up to the lender to make a decision on their SVR. We’ve decided to increase our SVR to 6.09% from 5.59%.

  • What if I have a SVR mortgage?
    If you have a standard variable rate mortgage: The increase in our SVR will directly affect you and your mortgage payment. This change will be reflected in your monthly mortgage payments from 1st December 2022. Any payments made before December will remain at your current rate.
     
    You can find out what type of mortgage you have and when your promotional period will end (if applicable) from your hub or latest Annual Mortgage Statement.
  • When will you tell me what my new monthly mortgage payment will be?

    If you have a mortgage linked to the BBR, you should receive a letter within the coming days confirming how much your new monthly payment will be from 1st December 2022.
     
    If you have a mortgage linked to our SVR, we’ll write to you in November confirming how much your new monthly payment will be from 1st December 2022.
     
    Please note that payment dates may vary if you have multiple mortgages.

  • Do I need to do anything?

    If you pay by Direct Debit: You don’t need to do anything — we’ll automatically update the amount we collect.

    If you pay by Standing Order: Once you’ve had our letter telling you your new monthly payment and when that takes effect, please contact your bank to alter the amount you send us each month. Make sure the instruction to your bank has the correct reference number which is shown on the letter we’ve sent you.

    If you pay by Debit/Credit Card online: Once you‘ve had our letter telling you your new monthly payment and the date it takes effect you should alter the amount you pay by card each month. We recommend you set up a Direct Debit to make your monthly payment and can send you a mandate to complete and return.

  • I can’t afford an increase in my payments– what should I do?
    If you think you may struggle to afford your new payments, please get in touch with us as soon as you can and we’ll do our best to help find a solution. You can also find useful information on organisations that may be able to provide you with free, confidential and impartial financial advice here.

Sometimes circumstances make it difficult for us to keep on top of everything. There are many reasons why people might find themselves under financial strain such as:

  • Low income
  • Credit card debt
  • Little or no savings
  • Mental health concerns
  • Confusion over finances

Whatever the reason might be, the first step is to let us know. You can send us a message on your hub or call us on 0800 169 9722*.

You could also ask someone to help you manage your mortgage for you:

  • Granting third party authority – this is when you ask someone like a friend or organisation to manage your mortgage on your behalf
  • Power of Attorney – this is when you ask for long term help from someone, known as an attorney, to actually make decisions for you about your mortgage. For more information visit the government website.

Visit our practical help section for more information.

Our useful information section also provides a list of other organisations which you can turn to for support.

*Calls are recorded for training and monitoring purposes. Lines are open 9am– 5pm Monday to Friday. 03 calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.

Your home may be repossessed if you do not keep up repayments on your mortgage.