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.