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Ways we can help
If you no longer wish to remain in the property and have somewhere else to live, regardless of whether there are any mortgage arrears, you can choose to voluntarily surrender the property. This is often known as ‘handing the keys back’. You should think very carefully before going ahead with this option.
Important information about voluntary surrender:
- You must have somewhere else to live before handing back the keys.
- All people named on the mortgage must agree to the voluntary surrender.
- Voluntarily surrendering your property may affect your eligibility for housing support from your local authority.
- You’ll remain responsible for the mortgage balance until we sell the property.
- You must 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.
- We’ll add the costs of selling the property (for example estate agent and solicitor costs) to your mortgage balance.
- Each month, we’ll tell credit reference agencies about any arrears on your account. After we’ve sold the property, we’ll tell them that we brought the property into possession and whether you’ve repaid the mortgage balance in full. This may make it more difficult or expensive to borrow money in the future. You can find more information about how credit file reporting works here.
- If the property sells for less than the outstanding mortgage balance, you’ll remain responsible for paying back any shortfall amount. If the property sells for more than your outstanding mortgage balance (and any other debts secured against the property), our solicitors will send any surplus money to you.