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:

• 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 7^th November, the Bank of England announced an decrease in the Bank Base Rate (BBR) of 0.25% so it’s now 4.75%. 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 1^st December 2024. You should receive a letter within the coming days confirming what your new monthly payment will be.

We’re also decreasing our Standard Variable Rate (SVR) by 0.20% so it’s now 7.84%. This means if your mortgage is linked to our SVR, your monthly interest will decrease by 0.20% too. This will take effect from 1^st December. We’ll write to you in November confirming what 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.

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

  These are variable rates, which means they can go up or down at any time. The affect it will have on your mortgage payments will depend on the type of mortgage you have:

  If you have a tracker mortgage: Your interest rate is variable and tracks the BBR. This means when the BBR goes up or down, so will your monthly payment.

  If you have a mortgage on our Standard Variable Rate (SVR): Your mortgage tracks our SVR. This means if our SVR goes up or down, so will your monthly payment. We may adjust our SVR when the Bank of England Base Rate changes. However, these rates aren’t directly linked. Like other lenders, we can change our SVR at any time.

  If you have a fixed rate mortgage: Your interest rate will stay the same until the end of the fixed period. After this, your mortgage will go on to a variable rate. A variable rate could change from month to month. This means if it goes up or down, so does your monthly payment. You can apply for a new fixed rate deal up to six months before your current one ends if you don’t want to go on to a variable rate. Your new rate will start once your current deal ends, or from the 1st of the next month if your mortgage is on a variable rate. To make sure this happens, we must have your Offer acceptance and anything else we’ve asked for by the 19th of the month before the new rate is due to start.

  You can find out what type of mortgage and interest rate you have, and when your fixed rate ends (if applicable) from your hub or latest Annual Mortgage Statement.

• Will you tell me if my mortgage payments are going to change?

  We’ll always write to let you know of any changes to your mortgage payment before the date it changes.

• Do I need to do anything when my payment changes?

  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 know how much your new monthly payment will be and the date it takes effect, please contact your bank to update the amount you send us each month. You should use your mortgage account number as the reference number. You’ll find this on the letter we’ll send you.

  If you pay by Debit/Credit Card online: Once you know how much your new monthly payment will be and the date it takes effect, you should update the amount you pay by card each month. Make sure you use your mortgage account number as the reference number. You’ll find this on the letter we’ll send you.

  to make your monthly payment, as this is the easiest way of paying your mortgage. Visit our payments page to set one up.

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

  We want to do our best to help you if you’re worried about paying your mortgage. Visit our:

  • Mortgage Charter page if you have a residential mortgage and your payments are up to date
  • Money worries page if you have a residential mortgage with us that’s in arrears or a Buy to Let mortgage.

  You can also visit our help and support section which has lots of useful information.

• 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 won’t change 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 or Annual Mortgage Statement.

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.