Financial worries

Worried about paying your mortgage?

Having a conversation with us if you’re worried about paying your mortgage won’t affect your credit score. Call us on 0345 300 8000* as soon as possible to talk about your options.

What happens when I call?

We’ll need to get a clear idea of your finances. It’s important you know how much money you receive each month and what you spend your money on. This includes monthly household bills, personal loans, credit cards or overdrafts. Having this information to hand will be useful as we may ask you to complete an Income & Expenditure form.

When you contact us, we’ll:

• Explore practical solutions you can afford. This may include finding a payment plan that works for you. You’ll receive ongoing support to make sure this remains affordable
• Tell you about free independent debt help and advice from support organisations.

You’re not alone – thousands of mortgage borrowers are getting help from their lender every year.

Is there anything else I need to do?

• Tell people paying or guaranteeing the mortgage about your situation
• Check whether you have insurance in place that could help pay your mortgage
• Work out your income and how much you spend on bills, your mortgage and other outgoings, such as shopping and car expenses. Using a budget planner can help you work this out
• Check whether you’re eligible for any benefits or tax credits by contacting the Department for Work and Pensions
• Struggling with your mental health can make it harder to manage your finances. Visit our mental health page which has a list of organisations which can help.

• 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 5.25% from 3^rd August 2023.

  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 1^st September 2023. Any payments made before September will remain at your current rate.

  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 decide on their SVR. We’ve decided to increase our SVR to 8.04% from 7.79%.

• 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 1^st October 2023. Any payments made before October 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 1^st September 2023.

  If you have a mortgage linked to our SVR, we’ll write to you in September confirming how much your new monthly payment will be from 1^st October 2023.

  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.

• What should I do if I can’t afford an increase in my payments?

  We want to do our best to help you find the best solution if you think you may struggle to afford your new payments. Visit our:

  • Mortgage Charter page if your account has no arrears and you hold a residential mortgage with us.
  • Money worries page if you hold a residential mortgage with us that’s in arrears or have a Buy to Let mortgage.

  You can also visit our help and support section which has lots of useful information including organisations that may be able to provide you with free, confidential and impartial financial advice.

• I’ve had help from you under the Mortgage Charter. Will changes to the Bank of England Base Rate or your Standard Variable Rate affect my payments?

  Depending on which of these rates your mortgage is linked to, your payments will still go up or down if you’re on a variable rate and you’ve had either:

  • A temporary switch to interest only for six months
  • An extension to your mortgage term.

  Your payments will stay as they are now if you have a fixed rate mortgage.

  You’ll find the details of your mortgage in your hub or in your most recent mortgage Offer.

If you’re feeling like it’s difficult to keep on top of everything financially, the first step is to tell us about your situation. Talking to us about your options won’t affect your credit score. You can send us a message on your hub or call us on 0345 300 8000*.

Getting help with your finances

If you feel you need help to manage your mortgage, you can:

• Grant third party authority by asking someone you trust to talk to us about your mortgage on your behalf
• Set up a power of attorney by choosing someone who will help you make decisions, either together or on your behalf.

Our practical help section explains these options in more detail.

Further help and support

The following organisations can help with any financial concerns you might have. They offer free and independent advice:

• StepChange Debt Charity, PayPlan and  National Debtline offer debt help, advice and solutions
• MoneyHelper have free easy to access money tools, information and advice
• The National Homelessness Advice Service has a guide to help with Mortgage payment problems.

Advice on housing and homelessness

• Shelter gives help and advice to anyone affected by homelessness and poor housing.

Help with wellbeing

• Mind support people to help them understand and manage their mental health
• Mental Health UK offer support and services for those facing mental health challenges with alcoholism, money problems, loneliness and isolation
• Samaritans help and support people who are in or may end up in a crisis.

General advice

• Citizens Advice Bureau advise on consumer rights such as health, benefits, housing, employment, debt, problems with goods or services bought and legal issues
• GOV.UK has details about government services, including housing, financial support, benefits and debt management.