Here’s a list of frequently asked questions…
Browse by category or type a question into the search field to find the closest matches.
Accessibility
Yes. Call us on 0330 159 7152 to request this. Phone lines are open between 8:30am and 6:00pm Monday to Friday.
Changing Account Details
Call us on 0330 159 7152 and we’ll update your details. Phone lines are open between 8:30am and 6:00pm Monday to Friday.
Or log into your account using our secure self-service facility.
Complaints
We’re sorry if we haven’t got things right. You can tell us by:
- Calling us on 0330 159 7152. Phone lines are open between 8:30am and 6:00pm Monday to Friday.
- Writing to us at: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
- Sending us a secure message through our self-service facility. To do this you must be signed up to use the service.
If we can deal with your complaint within three working days, we’ll call you to make sure that you’re happy with our decision. If you are, we’ll send you a letter to confirm this.
- If we can’t deal with your complaint within three working days, we’ll send you an acknowledgement letter within five working days to let you know that we’ve received your complaint.
- We’ll give you a reference number in case you need to contact us about your complaint.
- We’ll keep you updated of our progress throughout our investigation.
- Once we’ve completed a thorough investigation, we’ll give you a final response. This will outline the details of our investigation, how we reached our decision and what we’re going to do to put things right.
We have eight weeks to resolve your complaint, but we’ll do everything we can to deal with it as quickly as possible.
If we can’t complete our investigation within eight weeks, we’ll send you a letter to let you know and tell you what steps you can take. This will include letting you know that you can go to the Financial Ombudsman Service (FOS) if you’d rather not wait for us to complete our investigation.
Direct Debits
You’ll receive a charge of £6.50
The Direct Debit will usually try to collect again after seven working days. You won’t be charged another fee if this second collection also fails.
Can I stop this collection?
Yes, you can choose to cancel your Direct Debit either with your bank (up to one working day before the collection is due) or us (up to four working days before the second collection is due), call 0330 159 7152 to cancel your Direct Debit and arrange to pay another way.
Does it matter if the second collection falls in the next month?
Yes, this may affect your credit file (and your eligibility for a payment holiday) call 0330 159 7152 to cancel your Direct Debit and arrange to pay another way. We can reinstate your Direct Debit at a later date. Please see FAQ ‘My Direct Debit was cancelled, can I reset it?’
We recommend you cancel your Direct Debit as soon as you’ve paid money into your account to redeem your mortgage.
If a Direct Debit payment is received after a mortgage has redeemed, a refund will be made directly back to the bank account it came from within 10 working days.
Yes, we’ll automatically update your payment amount each time your payment changes. We’ll write to you at least 10 working days beforehand to advise of any changes to your Direct Debit. You do not have to contact us.
We’re unable to set up a Direct Debit in a name that doesn’t appear on the mortgage. At least one mortgage holder name needs to appear on the bank account, this includes joint accounts.
No. Direct Debits can only be set up from a UK Bank or Building Society account.
All Direct Debits are covered by a guarantee. You can contact your bank or building society, complete a Direct Debit indemnity claim form and claim an immediate refund. Or, we can request a refund for you. Call us on 0330 159 7152. You should allow 10 working days for a refund.
Yes, please follow the same process for ‘How do I set up a Direct Debit?’
To set up a Direct debit you can either:
- Call our Customer Contact Centre on 0330 159 7152 and we can do it over the phone. All you need is your sort code, account number and the authority to set up payments from the account.
- Download and complete a Direct Debit mandate and post it to us at: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
Please allow at least 10 working days for your Direct Debit to be set up. If your monthly due date has passed or there are less than 10 working days left in the month your Direct Debit will be set up for the following month and you will need to arrange to pay another way for the current month.
Yes, please follow the same process for ‘How do I set up a Direct Debit?’
Yes. Call our Customer Contact Centre on 0330 159 7152 and we will guide you through the process.
Yes, as long as the amount is your monthly payment or more.
No. We can only set up the Direct Debit with the mortgage account holder.
Yes. You can cancel your Direct Debit at any time by calling us on 0330 159 7152, please allow up to five working days for your Direct Debit to cancel. You can also cancel your Direct Debit with your bank, allow one working day for this.
If your bank rejects your Direct Debit three times in a row, we will cancel your Direct Debit. This is to help you avoid incurring any unnceccessary fees. We’ll write to you to let you know.
Yes, if your Direct Debit has been cancelled within the last two months, please allow 10 working days for your Direct Debit to be reinstated.
If it has been longer than two months since you had a Direct Debit in place, please follow the steps in ‘How do I set up a Direct Debit?‘
Financial Difficulties
There are many organisations available who can offer free, impartial advice on how to deal with your debts. See the Independent resources section under our Support page for more details.
We understand that this is a very worrying time and the first thing you should do is get in touch with us on 0330 159 7152 so we can get an understanding of your circumstances.
Legal proceedings to take possession of your property will only be considered as a last resort and once all other alternatives have been exhausted.
If we’re unable to get in touch with you and the level of arrears means that litigation is the only option, we will write to you at each stage of the process to explain what’s happening and invite you to discuss your options with us.
If there has been a change to your circumstances and you’re unable to afford your monthly payment, we’re here to help. You can reach our team of experienced agents by calling 0330 159 7152. Our phone lines are open Monday to Friday 8:00am – 8:00pm.
If you have debts with other companies or want independent advice, we might recommend you speak to a debt adviser. You can find details of the debt advice organisations we work closely with on our support page.
This helps us understand your financial situation and what options may be suitable for you.
Following changes brought in by the Consumer Credit Act 2006, we must tell you that your account is in arrears. We will send a subsequent notice if your account remains like this for six months. The notice does not affect temporary reduced payment arrangements.
We’ll write to you a month before the payment arrangement ends. If you’re still in financial difficulties we’ll need to review your situation and agree a new arrangement.
If your mortgage is two or more payments in arrears, we’ll add a £40.00 fee to your mortgage balance each month. This is to help cover the extra costs of managing your account whilst it’s in arrears.
We won’t charge the fee if you pay your full mortgage payment each month or agree a payment arrangement with us and keep to the agreed arrangement.
If you’re struggling with your mortgage payments, please talk to us. You can call us on on 0330 159 7152. Our phone lines are open Monday to Friday 8:00am – 8:00pm.
Interactive messaging service
We’ve launched new interactive messaging services. These messages come from different telephone numbers to the ones we usually use to contact you.
- Interactive text messages will come from 07862 138270
- Interactive voice messages will come from 01756 556998
So that you’ll recognise them in future, you may want to add these numbers to your address book.
The only personal information we’ll ever ask you for in an interactive message is your date of birth. We’ll never ask you for any other personal details.
We’ll also never ask you for debit card details in an interactive message.
If you’re worried that any message that you receive isn’t from us, please call us and we’ll confirm that it’s genuine.
Interest Only
The monthly payments you make only cover the interest. This means you need to pay off the amount you borrowed by the end of the mortgage term.
If you don’t, you might not be able to pay off the amount you borrowed by the end of the mortgage term.
If you have a repayment plan, you need to check it regularly to make sure it’s on track. We recommend that you do this at least once a year.
If you don’t have a plan or you’re worried that it might not be enough, we can help. Call our dedicated team now on 0330 159 7153. Phone lines are open Monday to Friday 08:30am-6:00pm.
We’ll try to get in touch with you to understand your circumstances. We’ll assess your financial position and look at ways to help you pay back the remaining balance. If this isn’t possible, you may need to sell your property.
If we can’t get in touch with you, we may have no choice but to tell our solicitors to take legal action. This could result in you losing your property. Taking legal action is always a last resort and something we’ll only do when all other options have been exhausted.
Interest Rates
If a fixed interest rate applies to your mortgage, it will not change until you get to the end of the agreed fixed rate term. You will then usually revert to one of the variable rates detailed below. We will write to you to inform you of your new interest rate and payment at least 14 days before your interest rate and payment changes.
A tracker rate will track at a set percentage above or below another rate (often the Bank of England base rate) for a specified term. Your Terms and Conditions will state details of which rate your mortgage is tracking against.
A discounted rate offers a set discount off either a Product Variable Rate (PVR) or a Standard Variable Rate (SVR) for a specific, initial term. Once the discounted rate period ends, you will then usually revert to one of the variable rates detailed below. The minimum interest rate that can be charged is 0.001%.
Our SVR is an interest rate set by us in accordance with the Terms & Conditions of your loan. It’s not linked to the Bank of England base rate. You can check if your loan is linked to our SVR by calling us or checking your Offer of Loan or credit agreement.
Whenever we change our SVR we will write to you to confirm both the date when the new interest rate will apply and the specific impact on your monthly payment.
The Landmark Mortgages Loyalty Rate is a discount of 0.25% from our Standard Variable Rate and applies if you meet all of the following criteria:
- you are an existing residential Landmark Mortgages mortgage customer and have held your mortgage with us on the same property for 7 years
- you do not currently benefit from a special rate (such as a fixed or tracker rate)
- you are not currently within an Early Repayment Charge (ERC) period
- you do not have a together mortgage
Life Events
Please contact your insurance provider directly.
You can do this by calling us on 0330 159 7152. Phone lines are open between 8:30am and 6:00pm Monday to Friday.
Or by writing to us at: Landmark Mortgages, PO Box 115, Skipton, BD23 9FE.
Find out more about the process in our Bereavement section.
Making changes
- A copy of your new signature
- A copy of your old signature
We’ll also need one of the following documents:
- Marriage certificate
- Decree absolute
- Birth certificate
- Change of name deed
- Civil partnership certificate
We don’t need to see original documents. We’ll accept copies which have been certified by a professional body, such as:
- Solicitor or notary
- Chartered Accountant
- Bank or Building Society official
- Post Office
The documents must:
- Say ‘certified to be a true copy of the original seen by me’ in writing
- Be signed and dated
- Have the name printed under the signature
- Include occupation, address and telephone number
There may be a charge for doing this.
You can remove a borrower from your mortgage without increasing the amount you’ve borrowed. This is called a change of borrower or transfer of equity. Before we can do this, we’ll need to make sure that you can still afford the payments after we make the change. To do this we will carry out a credit check and an affordability assessment on all people who will be remaining on the mortgage.
Please call us on 0300 159 7152 to make an appointment with a mortgage adviser who will guide you through the process. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Important Information
- There needs to be an original borrower remaining on the mortgage. If you wish to remove all original borrowers or add someone new, you’ll need to apply for a new mortgage with another lender.
- It will be helpful to have information like payslips, bank statements and how much you spend on your day-to-day expenses ready for your appointment. Work out how much you can afford using our helpful Income & Expenditure Form.
- As part of your application, you’ll need to appoint a solicitor and pay any associated costs.
- There’s a non-refundable application administration fee of £180.00 to carry out a change of borrowers application.
This allows someone else to talk about your account without you being there.
- Print off the third-party authority form.
- Call us on 0330 159 7152 and we’ll post a form out to you.
You should return the completed and signed form to: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
When we receive the completed form, we’ll use information from credit reference agencies to confirm the identity of your third-party. These are ‘soft searches’ which means they won’t leave a footprint on their credit file.
We’ll write to you when the third-party authority has been added to your account. The authority lasts for 12 months from the date it’s added, unless you tell us that you want it to stop before that. You should let your third-party know it’s in place as we won’t tell them.
What we need from you…
- Adding a third-party to your account doesn’t change your agreement with us. This means it won’t make them responsible for your debt or give them an interest in your property.
- If your chosen third party would like more information about how their personal information is used, they can look at our Privacy Notice
You may be able to transfer your mortgage to another property without increasing the amount you’ve borrowed. This is called porting your mortgage. As this will be classed as a new mortgage, we’ll need to make sure that you can still afford the payments after we make the change. To do this we will carry out a credit check and an affordability assessment on all applicants. We’ll also need to check that the new property is suitable security for the mortgage.
Please call us on 0300 159 7152 to make an appointment with a mortgage adviser who will guide you through the process. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Important Information
- All applicants will need to provide us with proof of income.
- It will be helpful to have information like payslips, bank statements and how much you spend on day-to-day living expenses ready for your appointment. Work out how much you can afford using our helpful budget planner.
- As part of your application, you will need to appoint a solicitor and pay any associated costs.
- There is a non-refundable application administration fee of £200.00 to port your mortgage to another property. You’ll also need to cover the cost of a valuation of your new property.
If you want to let out your property instead of living there, you can, but you’ll need to get permission from us first. This is known as ‘consent to let’.
- Call us on 0330 159 7152 and ask for the forms to be sent out to you in the post.
Phone lines are open Monday to Friday 8:30am – 6:00pm.
You should return the completed and signed forms to: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
Important Information
- We will agree for you to let the property for a maximum of 12 months. If you wish to do this for longer, you will need to reapply every 12 months.
- We charge an annual fee of £31.00 to cover the administration costs of us assessing and agreeing your application. You can either pay this fee up front or add it to your mortgage balance. If you add it to your mortgage balance, you will incur additional interest.
- You will be responsible for meeting any costs and legal requirements associated with letting the property, for example gas safety checks, letting agents etc.
Online Security
You can make payments using our secure self-service facility all day, every day.
It’s easy to create a secure login to use the self-service facility and once you have it, you can access your account at any time.
Click here to create a new login.
Already registered?
Click here to securely login.
Important Information
- This service is only available to account holders.
- You can pay a maximum of £5,000 a month using the automated payment line. If you want to pay more than this, you will need to call and speak to one of our agents.
- Payments made after 8:45pm will be applied to your account the following day.
- If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), payments will automatically be split across all parts. If you want to make a payment to a specific part, you should call our Customer Contact Centre on 0330 159 7152. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Payment Methods
A Direct Debit is an easy and convenient way to make your payments. It means you don’t have to worry about forgetting to make your payment and if your payment amount changes, we’ll automatically update the Direct Debit so it collects the right amount. We’ll always write to you in advance to tell you that we’re going to do this.
To set up a Direct Debit:
Download and complete a Direct Debit mandate and post it to us at:
Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
You should allow 10 working days for us to set up a new Direct Debit. If your next payment is due before then, you should make it in a different way. We’ll send you a letter to tell you when we’ve set your Direct Debit up.
Alternatively, you can call our Customer Contact Centre on 0330 159 7152 and we can do it over the phone. Phone lines are open between 8.30am and 6.00pm Monday to Friday. All you need is your sort code, account number and the authority to set up payments from the account.
Important Information
- Your payments are protected by the Direct Debit guarantee.
- Payments made this way will automatically be split across all parts of your mortgage. If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), and want to make payments to a particular part, you should call our Customer Contact Centre on 0330 159 7152 for instructions. Phone lines are open Monday to Friday 8:30am – 6:00pm.
- If your Direct Debit is rejected by your bank because there wasn’t enough money in your account, we’ll add a fee of £6.50 to your account. This is to cover the cost of dealing with this. We won’t charge this fee more than once in a month.
- We’ll try to take the payment again after seven working days. If you can’t make the payment or want to pay a different way, you should contact us straight away.
- If we don’t receive your payment in the month that it’s due, your account may go into arrears or any existing arrears may increase. If your account is in arrears, you’ll be charged more interest. This is because your balance will be higher than expected.
You can cancel a Direct Debit at any time by contacting us or your bank.
A bank transfer is a one-off payment set up through your bank. You can set one up online, in branch or over the phone. You choose when and how much you pay.
Please use the following details to make a payment by bank transfer:
Sort Code: 62-31-87
Account number: 80140262
Reference number: your mortgage account number
Important Information
- Payments received after 6:25pm, at the weekend or on a Bank Holiday will be applied to your account the following working day.
- Payments made this way will automatically be split across all parts of your mortgage. If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), and want to make payments to a particular part, you should call our Customer Contact Centre on 0330 159 7152 for instructions. Phone lines are open Monday to Friday 8:30am – 6:00pm.
We have three ways you can pay using your debit card.
1. Use our automated payment line
Call us on 0330 159 7152. This line is available Monday to Friday 7:00am – 9:00pm, Saturday 9:00am – 4:00pm and Sunday 10:00am – 1:00pm.
Important Information
- This service is only available to account holders.
- You can pay a maximum of £5,000 a month using the automated payment line. If you want to pay more than this, you will need to call and speak to one of our agents.
- You will need your account number, date of birth and the numbers from your postcode to use this service.
- Payments made after 8:45pm will be applied to your account the following working day.
- If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), payments will automatically be split across all parts. If you want to make a payment to a specific part, you should call our Customer Contact Centre on 0330 159 7152. Phone lines are open Monday to Friday 8:30am – 6:00pm.
2. Use our secure self-service facility
You can make payments using our secure self-service facility all day, every day.
It’s easy to create a secure login to use the self-service facility and once you have it, you can access your account at any time.
Click here to create a new login.
Already registered?
Click here to securely login.
Important Information
- This service is only available to account holders.
- You can pay a maximum of £5,000 a month using the automated payment line. If you want to pay more than this, you will need to call and speak to one of our agents.
- Payments made after 8:45pm will be applied to your account the following day.
- If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), payments will automatically be split across all parts. If you want to make a payment to a specific part, you should call our Customer Contact Centre on 0330 159 7152. Phone lines are open Monday to Friday 8:30am – 6:00pm.
2. Speak to one of our agents
Call us on 0330 159 7152.
Phone lines are open Monday to Friday 8:30am – 6:00pm.
Standing orders are a recurring payment set up through your bank. You can set one up online, in branch or over the phone. You choose when, how much and how often you pay.
Please use the following details to set up a standing order:
Sort Code: 62-31-87
Account number: 80140262
Reference number: your mortgage account number
Important Information
- Payments can take up to five days to reach us and are only received on weekdays (excluding bank holidays).
- If your payment amount changes, you will need to change the amount of your standing order. If you don’t do this, you could end up paying too much or too little to your mortgage.
- If you no longer wish to pay by standing order, you will need to cancel the standing order with your bank. If you don’t do this, your bank will continue to send us the agreed amount (as long as there’s enough money in your bank account).
- Payments made this way will automatically be split across all parts of your mortgage. If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), and want to make payments to a particular part, you should call our Customer Contact Centre on 0330 159 7152 for instructions. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Please make your cheque payable to Landmark Mortgages Limited and post it to us at: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
Important Information
- It usually takes five working days for cheque payments to reach your account, so make sure you leave enough time before your payment is due.
- Remember to write your account number on the back of the cheque in case the cheque gets separated from your covering letter.
- If your cheque is returned unpaid, we’ll add a fee of £6.50 to your account. This is to cover the cost of dealing with this.
You can make payments using our secure self-service facility all day, every day.
It’s easy to create a secure login to use the self-service facility and once you have it, you can access your account at any time.
Click here to create a new login.
Already registered?
Click here to securely login.
Important Information
- This service is only available to account holders.
- You can pay a maximum of £5,000 a month using the automated payment line. If you want to pay more than this, you will need to call and speak to one of our agents.
- Payments made after 8:45pm will be applied to your account the following day.
- If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), payments will automatically be split across all parts. If you want to make a payment to a specific part, you should call our Customer Contact Centre on 0330 159 7152. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Personal Loans
You will need to ask us for a redemption statement. This will tell you exactly how much you need to pay including any interest and fees, such as the discharge of mortgage fee.
You can ask us for a redemption statement by:
- Asking your solicitor to request one.
- Calling us on 0330 159 7152. Phone lines are open between 8:30am and 6:00pm Monday to Friday.
- Writing to us at: Landmark Mortgages, PO Box 115, Skipton BD23 9FE.
- Logging into your account using our secure self-service facility and clicking ‘Redemption’.
Self Service
You can make payments using our secure self-service facility all day, every day.
It’s easy to create a secure login to use the self-service facility and once you have it, you can access your account at any time.
Click here to create a new login.
Already registered?
Click here to securely login.
Important Information
- This service is only available to account holders.
- You can pay a maximum of £5,000 a month using the automated payment line. If you want to pay more than this, you will need to call and speak to one of our agents.
- Payments made after 8:45pm will be applied to your account the following day.
- If you have more than one part to your mortgage (for example, a mortgage and a linked unsecured loan), payments will automatically be split across all parts. If you want to make a payment to a specific part, you should call our Customer Contact Centre on 0330 159 7152. Phone lines are open Monday to Friday 8:30am – 6:00pm.
Switching Lenders
No. Landmark Mortgages doesn’t charge any Early Repayment Charges.
You could incur a Discharge of Mortgage fee of up to £250 for repaying your mortgage early, this covers the administration work we do to redeem the loan. Call us on 0330 159 7152 (phone lines are open Monday to Friday 8:30am – 6:00pm) to find out the amount you may need to pay.
Yes. To see if you can switch to a cheaper mortgage visit www.moneyhelper.org.uk and complete the simple, impartial and free questionnaire.
To help you complete the questionnaire as accurately as possible, it would be useful to have your latest mortgage statement to hand. The questionnaire takes 5 minutes to complete and when you get to the end you’ll be given an indication of whether you may be able to get a cheaper mortgage elsewhere. There’ll also be information on where you can get further advice on the options available to you.
You can also contact The Money and Pension Service on 0800 138 7777 (England) or 0800 138 0555 (Wales) for further information on what the rule changes might mean for you. If you do choose to switch, the new mortgage must be secured on the same property as your current mortgage and can’t be a buy-to-let mortgage.
No. Depending on the value of your property, a new lender may be prepared to lend you enough money to repay the unsecured part of your Together mortgage. Alternatively, you can “de-link” the unsecured part and keep it with us. This will result in an increase in the interest rate you pay. You may wish to take independent financial advice to determine which of these options is most suitable for you.
If you‘re not eligible to switch lenders, for example because you are or were recently in arrears, there is still plenty of support available. Please call us on 0330 159 7152 to talk about the range of solutions available to help you. Phone lines are open Monday to Friday 8:30am – 6:00pm. There’s lots of helpful information on how to get mortgage ready in the Switch to another lender section on our Support page.
Ways we can help
We can change your payment due date to be earlier or later (for example, to match the date you get paid), as long as the new date is within the same month.
Important information about changing your payment due date:
- If your new payment due date is later in the month, this will mean that you’re charged more interest. This is because the amount you owe will be higher for longer.
- If you choose a payment date at the end of the month, you must make sure that we receive your payment in time to apply it to your account. This is important if you pay by bank transfer or using our online system.
You could convert all or part of your mortgage to repayment, so you pay off both the interest and the capital you’ve borrowed. This will increase your monthly payments, so you’d need to speak to one of our qualified mortgage advisors to make sure that it’s affordable. You can make an appointment by calling 0330 159 7152. Our phone lines are open Monday to Friday 8:00am – 8:00pm.
Important things to consider:
- The shorter the term remaining on your mortgage, the higher your monthly payment. You need to make sure you’ll be able to keep up the higher monthly payments
- As long as you make all your monthly payments, having a repayment mortgage means that your mortgage will be paid off in full at the end of the term.
Overpaying your mortgage means you can save money on the interest you pay. It can also help reduce the amount you need to pay back at the end of the term. We don’t charge any early repayment charges, so there’s no limit to the amount you can overpay by.
Important Information
- You should only overpay what you can afford. If you’re unsure whether overpaying is right for you, you may wish to seek independent financial advice to help you with your decision.
- Overpaying might not pay back the full amount you owe by the end of the term, so you may need to think about how you’ll pay back any remaining balance.
If you have an endowment policy, shares, Individual Savings Account (ISA) or other investment plan that you were saving for a rainy day, you might want to use this to reduce or pay off your mortgage.
Important things to consider:
- The value of savings and investments can go down as well as up so it’s important to check on the progress of your plan regularly to make sure that it’s on track.
- If you’re unsure whether using an investment policy to repay all or part of your mortgage is right for you, you may wish to seek independent financial advice to help you with your decision.
- If your savings or investment aren’t enough to pay back the full amount you owe by the end of the term, you may need to think about how you’ll pay back any remaining balance.
You might be able to get a cheaper mortgage with a new lender which could help make paying back your interest only mortgage more affordable. We recommend that you get independent whole-of-market mortgage advice to help you understand your options. There are many companies offering free advice but some organisations do charge for their services, so you should always check this first.
Free impartial advice
StepChange Financial Solutions (part of StepChange Debt Charity) offer free, impartial mortgage advice which is tailored to your individual needs. They’ll take the time to understand your situation, guide you through the process and provide clear advice so you can be confident you’re making the right decision. You can call them on 0808 1686 719. Phone lines are open Monday to Friday 9:00am – 5:00pm. You can also look at the service they offer on their website.
If you plan to sell your home to pay off your interest only mortgage you will need to think about where you’re going to live.
You may wish to:
- Use the equity from your home to buy a cheaper property with no mortgage
- Use the equity from your home to buy a cheaper property and have a smaller repayment mortgage
- Move into a rented property or with family
With each of these options (particularly the first two) you’ll need to make sure that you have enough equity in your property to make your plan work.
You will need to think about:
- How much is your property is worth and how much money will be left over after you’ve repaid your mortgage?
- How much would a cheaper property cost? Can you afford the difference?
- If you would need to maintain a smaller mortgage, how much could you afford to pay each month? And for how long?
- When will be the right time for you to move? Is it better to move sooner whilst you’re younger and in good health, rather than wait until later in the term?
If you’re planning to sell your property, our dedicated team can help you answer these questions. Call our them on 0330 159 7153. Phone lines are open Monday to Friday 08:30am-6:00pm.
If your mortgage has flexible features (you can call us or check your original Offer of Loan to confirm) then you may be able to take a payment holiday of up to three months.
Important information about payment holidays:
- Payment holidays are only suitable if your financial difficulties are short term and you’ll be able to afford the increase to your monthly payments at the end of the payment holiday.
- The missed payments will not be classed as arrears and will not be reported to credit reference agencies.
- If you have a repayment mortgage, the missed payments will be paid back over the remaining term of your mortgage. This will result in you paying more interest.
- If you have an interest only mortgage, the missed payments will be added to the amount you owe. This means that the amount you need to pay back at the end of the mortgage term will be higher and you will pay more interest.
If you’re unable to meet all or part of your mortgage payment, we might be able to accept a lower or even no payment for a period of time.
Important information about making lower payments:
- Paying less than your monthly payment is normally agreed to cover a temporary change in your circumstances, like being out of work or undergoing medical treatment. It isn’t a long-term solution.
- At the end of the agreed lower payments, we will need to agree a payment arrangement to pay back any arrears.
- Paying less than your monthly payment may result in your account going into arrears.
- Arrears are reported to credit reference agencies and this may affect your ability to borrow money in future.
- If your mortgage is in arrears, you’ll be charged more interest. This is because your mortgage balance will be higher than expected. The additional interest will increase the amount you owe and may reduce the equity you have in your property.
If you can afford your monthly payment or more, we may be able to agree a payment arrangement to help stabilise or reduce any outstanding arrears. The amount we agree will be based on your individual circumstances and how much you can afford to pay.
Important information about payment arrangements:
- Any overpayment arrangement will typically need to pay back any outstanding arrears by the end of the mortgage term.
- Arrears are reported to credit reference agencies and this may affect your ability to borrow money in future.
- If your mortgage is in arrears, you’ll be charged more interest. This is because your mortgage balance will be higher than expected. The additional interest will increase the amount you owe and may reduce the equity you have in your property.
If you have a repayment mortgage and need longer than the existing term to pay back the mortgage balance or outstanding arrears, we may be able to agree a term extension.
Important information about term extensions:
- Paying back your mortgage over a longer term will result in you paying more interest.
- You need to consider whether you can afford to pay the mortgage over a longer period, particularly if this goes past your retirement.
If you have a repayment mortgage and either need a reduced payment for a period of time or want to repay arrears at a faster pace, a temporary change in the type of mortgage you have – for example by temporarily converting a repayment mortgage to interest only – may be appropriate.
Important information about changing your repayment type:
- A temporary change of repayment type is normally agreed to cover a temporary change in your circumstances, like being out of work or undergoing medical treatment. It isn’t a long-term solution.
- When you switch back to your original payment method, your payments will increase. You need to be confident that you can meet these higher payments.
- We won’t report the temporary change to credit reference agencies.
- Arrears are reported to credit reference agencies and may be affected by a temporary conversion. For example, if before the temporary conversion your monthly payment is £250 and you have arrears outstanding of £250, we would report to credit reference agencies that your account is one month in arrears. If your monthly payment reduced to £50 as a result of the temporary conversion and the arrears remained at £250, we would report to credit reference agencies that your account is five months in arrears.
If you are no longer able to afford to live in the security property but have alternative accommodation that is affordable, we may agree for you to let the property for a temporary period.
Important information about letting your property:
- The expected rental income would need to be enough to cover the mortgage payments (and a contribution towards the arrears, where appropriate).
- You would be responsible for meeting any costs and legal requirements associated with letting the property, for example gas safety checks, letting agents etc.
If you would like to add your outstanding arrears to your mortgage balance, capitalising your arrears may be an option.
Important information about capitalisation:
- We’ll only consider this once your finances are back on track and you’ve shown that you can afford the increased monthly payments.
- Once arrears have been capitalised we will report the account as being up to date to credit reference agencies. If you miss any future payments, these arrears will be reported to credit reference agencies.
- If you have a repayment mortgage, the capitalised arrears will be paid back over the remaining term of your mortgage. This will result in you paying more interest.
- If you have an interest only mortgage, the capitalised arrears will be added to the amount you owe. This means that the amount you need to pay back at the end of the mortgage term will be higher and you will pay more interest.
If you can no longer afford to make your mortgage payments but want to stay in your property and are resident in Scotland or Wales, you may be eligible for one of their mortgage rescue schemes. These schemes allow you to keep living in your own home as a tenant, part-owner or part-tenant.
If you live in Scotland, you can access more information on the Home Owners’ Support fund at www.mygov.scot/home-owners-support-fund
If you live in Wales, you should contact your local council’s Housing Options team, homelessness team or housing strategy officers for information on whether there is a mortgage rescue scheme in your area which could help you.
If you are no longer able to afford to live in your home, we may be able to help you sell the property through our assisted voluntary sale scheme. You’ll be able to stay in your property while it’s on the market, you’ll stay in control of the sale process and we’ll even pay your sale costs.
Important information about assisted voluntary sale:
- Once accepted onto the scheme it lasts for six months. During this time, you’ll be expected to co-operate with us and the selling agent. If a sale isn’t achieved within this time, we reserve the right to extend or remove you from the scheme.
- We’ll pay estate agent and legal costs up to an agreed limit.
This is known as a sale at shortfall. If you wish to sell your property, regardless of whether there are any mortgage arrears, and the sale price won’t be enough to pay back your mortgage balance you will need to go through our sale at shortfall process.
Important information about selling at a shortfall:
- We’ll obtain an independent valuation to make sure that the sale price is the true market value of the property.
- You’ll remain responsible for paying back any shortfall amount (there are certain exceptions to this if you’ve been declared insolvent, you should check with your trustee or the Official Receiver).
- We’ll report the shortfall amount to credit reference agencies and this may affect your ability to borrow money in future.
If you no longer wish to remain in your home and have somewhere else to live, regardless of whether there are any mortgage arrears, you can choose to voluntarily surrender the property (often known as ‘handing the keys back’). You should think very carefully before going ahead with this option.
Important information about voluntary surrender:
- Ensure that you have somewhere else to live before handing back the keys.
- Voluntarily surrendering your property may affect your eligibility for housing support from your local authority.
- You should remove all your possessions and take final meter readings before handing back the keys.
- You should maintain appropriate buildings insurance until the property is sold.
- We’ll place the property on the market and attempt to obtain the best sale price.
- If the property sells for less than the outstanding mortgage balance, you’ll remain responsible for paying back any shortfall amount.