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Ways we can help
If you’ve got your finances back on track and you’d like to add your outstanding arrears to your mortgage balance, capitalising your arrears may be an option. We usually need you to maintain your monthly payments for at least 6 months before we will consider capitalising your arrears.
Important information about capitalisation:
- Your monthly payments will increase as a result of adding your arrears to your mortgage balance. We’ll need to check that you can afford the increased monthly payments.
- Once we’ve added the arrears to your mortgage balance, we’ll tell credit reference agencies you’re now up to date with your payments. If you miss any future payments, we’ll report these to credit reference agencies.
- We’ll add the outstanding arrears to your account on a repayment basis. This is so that you’ll pay the arrears back by the end of your mortgage term. If you want to only pay the interest, we may consider this but you’ll need to provide us with details of your plan to pay off the balance at the end of the term.
- Paying back your arrears over the term of your mortgage will result in you paying more interest.