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:
- Talk about your circumstances and explore what options there are and how much you can afford. For example, we may be able to:
- Allow a short-term reduction in your monthly payment(s), known as a concession
- Put your mortgage on a reduced interest rate
- Temporarily switch your mortgage to interest only for a set amount of time
- Extend how long you have your mortgage for to reduce your payment(s)
- Add the payment(s) you’ve missed to the amount you owe us.
- We’ll let you know how the options could affect you. You’ll get ongoing support from us to make sure the choice you make stays affordable.
- Tell you about free independent debt help and advice from support organisations.
You’re not alone. Thousands of mortgage borrowers get help from their lender each year.
Is there anything else I need to do?
- Tell people paying the mortgage or any sponsors / guarantors named on 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.
Changes to the Bank of England Base Rate
On 1st August, the Bank of England announced a decrease in the Bank Base Rate (BBR) of 0.25% so it’s now 5.00%. This means if your mortgage is linked to the BBR, your interest rate will decrease by 0.25% too, and the amount of interest you pay will go down. This will take effect from 1st September 2024. You should receive a letter within the coming days confirming what your new monthly payment will be.
Our Standard Variable Rate (SVR) is staying at 8.04% for now. This means if your mortgage is linked to our SVR, your payment will also stay the same. Our SVR can change at any time. We’ll write to you before this happens to let you know how much your new monthly payment will be.
These changes won’t affect your mortgage if you’re within a fixed rate period.
Read below for more information. You can also log in to your hub to find details about your mortgage.
If you’re finding it difficult to keep on top of your finances, 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 want help managing 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.
* To call using text Relay, dial 18001 0345 300 8000 using a textphone or the Relay UK app. All calls are recorded for training and monitoring purposes. Lines are open 9am – 5pm Monday to Friday. We’re closed on Bank Holidays. 03 calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.