Problems Paying Your Mortgage
If you’re struggling to make your monthly payments now or in the future, we’re here to help. You can contact our Mortgage Support Team on 01633 844371, who will talk you through the options available. Speaking to us won’t affect your credit file so please talk to us if you need help. Alternatively, if you would prefer not to speak to us on the phone, you can reach the team at creditcontrol@monbs.com.
Whatever the reason for your financial difficulty, we are here to help. We’ve listed some of the support that might be available to you below, but as everyone’s circumstances are different, it’s important that you contact us to discuss your options.
The Government Mortgage Charter
The Society is proud to have signed up to the Government Mortgage Charter.
Help under the Charter is only available to residential mortgage accounts that are currently up to date.
These are the commitments we are offering our members under the Charter:
This will lower your payments for 6 months, but your payments will be higher at the end of the 6 months. The overall cost of your mortgage will increase.
You can increase the length of your mortgage to pay less each month. This will increase the overall cost of your mortgage.
If you’re approaching the end of a deal with us, we'll be in contact 4 months before, to let you know the options available to you. If you find a better rate, you can change again up to 1 week before your new rate is due to start.
Up to 4 months before your current deal comes to an end, you can secure a new one. If your account is up to date and there’s no other change to the loan, property or people on the mortgage, there’s no need for affordability checks.
We won’t force anyone to leave their home for at least 12 months after a first missed payment.
Other Available Support
We recognise that everyone's circumstances are different, so not all the support options may be suitable or available for you. However, we’ll make sure all the options we suggest are affordable, tailored to your needs and focused on what you can afford to pay.
If you’ve already missed a payment, or think you will in future, contact us as soon as you can. Telling us will help you prevent things spiralling or getting even harder to manage.
Ways we may be able to support our members include:
To a more suitable one for you, perhaps to coincide with a change in the date that your salary is paid.
Under your mortgage terms and conditions, your payments should be made by Direct Debit, but if this is not suitable for you, we can consider other payment methods until you are back on track.
If you have missed payments and are now able to afford to repay them, we could come to an arrangement. You would pay your normal monthly payment, plus an additional amount towards the missed payments every month.
We might be able to move you temporarily to an interest-only mortgage for a short time. This will reduce your payments but it’s important to remember that you won’t be paying back any of the original amount borrowed, so you’ll need to repay it in the future which will mean your payments increase.
Extending the time you have to repay your mortgage temporarily could reduce your payments for an agreed period. This will allow you to continue to pay both the interest and capital of your mortgage, but with lower monthly payments. When this ends, your monthly payment could increase, as you'll have less time to pay the remaining balance back.
We may be able to agree to waive the monthly interest you’re being charged for a short period of time. If it’s affordable, you would pay a smaller amount of your monthly payment, which would reduce your mortgage balance by the amount you pay. We may also consider waiving or deferring payment of part of the capital sum due in exceptional circumstances.
If you are on our Standard Variable Rate (SVR) we can consider switching your account to a product with a lower interest rate, even if you are in arrears.
Applied to your mortgage or change the way we apply interest (charge simple rather than compound interest)
Adding the arrears on to your balance so that they can be repaid over the remaining term. This may mean that your monthly payment goes up, but your credit file will show that your payments are up to date.
If you are based in Wales and are struggling to afford your mortgage payments, you may be eligible for help under the Welsh Government’s Help to Stay scheme, which the society has chosen to participate in. More information can be found by clicking the hyperlink here.
If you don’t expect to be able to afford the mortgage in the long term, we can give you time to sell your property, and we can help you along that process while holding off on any action.
Budgeting
Budgeting is making a list of what’s coming in and going out of your household each month. You make a list of what you earn, what you spend and what you owe. Having those numbers in front of you will help you understand exactly how stretched your finances are or if there are some costs you could cut for the time being.
You can download a copy of our Budget Planner by clicking the hyperlink here – we may ask you to complete this information before we come to an arrangement with you, so if you can do this before you call, it may speed this process up.
Help From Other Organisations
Our Mortgage Member Support Team can provide you with support, but they are not financial advisors.
You might benefit from reaching out to one or more of the organisations listed below for independent help and advice. They offer a range of support, such as discussing your budget, making a payment plan for your creditors and ensuring you’re receiving any benefits you’re entitled to.
If you don’t feel comfortable discussing your financial situation over the phone, many of these organisations below provide self-serve tools on their websites, or webchat so you can get the help you need in the way that is best for you.
Website: www.moneyhelper.org.uk
Contact Telephone: 0800 138 7777
Help Available: Government website advice on benefits, pensions, everyday money issues.
Website: www.citizensadvice.org.uk
Contact Telephone: England - 0800 144 8848/ Wales - 0800 702 2020
Help Available: Debt & money advice may be able to arrange a face-to-face appointment
Website: www.nationaldebtline.org
Contact Telephone: 0808 808 4000
Help Available: Free online chat for help with debt.
Website: www.stepchange.org
Contact Telephone: 0800 138 1111
Help Available: Free debt advice with option of speaking to advisor over the phone/using their online tools.
