We all know that circumstances change, which can leave you struggling financially. Whilst many of us prefer to think ‘well, it’ll never happen to me’, it’s all too easy to get into the sort of financial difficulty that could, unfortunately, put your home at risk.
If you have already fallen behind with your mortgage payments, or are worried that this could happen, our dedicated team are here to help. You can contact us on 0808 168 8570 or use the callback form below and we'll contact you.
It is better to take action, as the worst thing you can do is…nothing! Together, we can work out the best option for your individual circumstances.
On Monday 26 June 2023, the Chancellor announced a new Mortgage Charter to provide a range of support measures for struggling mortgage borrowers.
Leek Building Society welcomes the Chancellor's announcement and we pledge our full support to the measures outlined within the Charter. For further information please click here.
If you are worried about your finances, your first move should be to start talking: talk to your lender, talk to your partner and talk to a free, independent Debt Adviser. The earlier you tell your lender, the more options will be available to solve the problem.
Options that your lender may consider include: extending the terms of the mortgage, changing the type of mortgage, deferring interest payments for a short period and treating the arrears as part of the original debt.
There are many organisations which offer free and independent money advice such as Citizens Advice, Shelter, National Debtline and the Step Change Debt Charity. Their Debt Advisers can assess your situation and devise the best course of action for you.
More useful contacts
If you are coming to the end of a fixed rate mortgage in the near future, start planning ahead for higher repayments and researching the best deals in the market now.
Ignoring your debt problems will only make them worse. Positive action will help you find ways to solve them.
A mortgage is a priority debt because if you don't pay this, you could lose your home. Debt Advisers can help you plan your budget and pay your priority debts first.
If you cannot afford your full monthly mortgage repayments, you should talk to your lender and still pay what you can afford.
Don't ignore letters or telephone calls from your lender; if you are not sure what they mean ask your lender or a Debt Adviser. Open all mail that is addressed 'to the occupiers'; if you are a tenant this is how the mortgage lender will contact you if the landlord has a payment problem.
Always attend the court hearings yourself. Court proceedings do not mean that you will automatically lose your home. The court process acts as a final check to make sure repossession is the last resort. Some courts have advice desks which can provide last minute assistance.
If you are struggling with mortgage repayments you may be tempted to send the keys to your lender or abandon your property. Don't do this without advice. You can still be responsible for the debt on the property and may be pursued for it years later.
Letting you know what it all costs, view our Tariff of Mortgage Fees and Charges here.
Tariff of Mortgage ChargesTo help us understand your financial circumstances and allow us to advise suitable options available to you, please complete an Income and Expenditure form by clicking the button below and submit to our Financial Support Team.
Income and Expenditure formThere are several third party helplines available who offer advice, knowledge and support when it comes to your finances and wellbeing. Click to find more information.
Free Advice
We will listen to you and get a better understanding of your current circumstances, what has caused the difficulties you are encountering and whether it's a temporary or a permanent change. Please be aware that by just contacting the Society, your credit rating will not be impacted, we will clearly tell you the individual impact of any solutions discussed and give you the time to consider these fully.
We seek to understand your financial position through the completion of an Income and Expenditure form, looking specifically at your income and outgoings as well as any other debts.
We will then work with you to explore the most suitable option tailored to your needs.
You'll always be treated as an individual and we'll ensure to help you find a solution that suits you and enables you to make an informed decision.
We'll also tell you about free organisations that you can talk to who will be able to provide independent advice and support you with any decisions you make.
Free Advice Agencies
If you require help completing the Income and Expenditure form, our friendly team is available to talk you through the necessary steps over the telephone.
If your financial difficulties are of a permanent nature then we may refer you to one of our Qualified Mortgage Advisers who will fully review your individual circumstances, either in person or by telephone, and where appropriate will seek to re-arrange the mortgage over a term that will make payments more affordable.
We only apply charges for arrears letters if you don't respond to contact attempts or you fail to maintain any agreed arrangements. These costs are detailed within our Tariff of Mortgage Fees and Charges and we'll always advise you of any applied to your mortgage.
Any actions to repossess a property will only be taken as a last resort if you don't work with us to try and resolve your financial difficulties.
Where there is a shortfall on your account or where you have made a payment arrangement to clear a shortfall, then your credit score and history may be affected.
Full monthly repayments are due from the month following completion, on the date stated on the Binding Mortgage Offer. You may change this payment date to suit your finances so long as payments reach us by the last day of the month.
If you choose to make your monthly payment later than the 1st of the month you will pay more interest as it is calculated on a daily basis.
| Address: | Leek Building Society 50 St. Edward Street, Leek, Staffordshire ST13 5DL |
| Sort Code: | 40-05-30 |
| Account Number: | 74578031 |
| Roll/Reference Number: | Your own 11 digit Leek Building Society mortgage account number. |
| It is really important that all three sets of digits are quoted to your bank or building society. Without this information your payment will not be credited directly to your Leek Building Society mortgage account. | |
If your income has temporarily reduced, a short-term arrangement to make reduced payments may be suitable, typically over a period of 3 months. We will review your circumstances again at the end of the 3 month period to further understand how your circumstances have changed.
We will need an Income and Expenditure form to be completed to understand what is affordable and we will need to consider how long this is likely to be needed for.
You may wish to seek independent advice from a free debt advice agency before making a proposal. Please advise us if you are using this option and we will allow sufficient time for you to make and attend an appointment.
Free Advice Agencies
If you are unable to pay the arrears in full immediately but can afford more than your monthly repayment, then a suitable option would be to enter into an arrangement to clear the arrears over a period which suits your finances. Typically this will be over a period of 12 months or less, although we are able to consider a longer period if necessary.
We'll need an Income and Expenditure form to be completed and consider what surplus income you have before agreeing this solution. If having entered into an arrangement you find that you cannot afford the repayments, then please contact us immediately and we will look at the alternative options available to you.
You may wish to seek independent advice from a free debt advice agency before making a proposal. Please advise us if you are using this option and we will allow sufficient time for you to make and attend an appointment.
A mortgage payment holiday is a break from paying your mortgage for an agreed period of time. At the end of the payment holiday, the interest that was due during the holiday will have continued to be charged and will need to be repaid. This may be done by adding the accrued interest onto the mortgage balance at the end of the payment holiday. Alternatively, we can discuss options to repay the missed payments over a shorter period of time or consider extending the term of your mortgage by the period of your payment holiday which may help with affordability.
A payment holiday will normally only be automatically granted on a loan where the mortgage product provides such a facility and is subject to the terms and conditions of the product.
If you request a payment holiday but are not eligible based on your mortgage product, a mortgage payment holiday may still be a suitable solution where your circumstances evidence that the break from payment is required for a temporary period only.
We will need an Income and Expenditure form to be completed to understand the temporary gap in affordability and we will need to consider how long this option is likely to be needed for.
You may wish to seek independent advice from a free debt advice agency as they can help with budgeting and to assess whether there are any benefits that you may be entitled to. Sufficient time will be provided to enable you to make and attend an appointment.
If it becomes evident that the reduction in your income is long-term, then you will be referred to one of our Qualified Mortgage Advisers or to a free debt advice agency to seek a long-term solution.
Free Advice Agencies
Where it is evident that the impact on your financial position is permanent and shorter term options are not suitable, then we may refer you to a Qualified Mortgage Adviser where appropriate. This could be to consider one of the following:
Finally, where the mortgage is considered to be no longer sustainable then we will discuss whether a sale of the property is the most suitable option – this would be where you can no longer afford the mortgage repayments and all other options have been considered but are not suitable. You can either sell the property yourself or we may be able to help you with an assisted voluntary sale. In this instance we will closely track the sale of the property with you and look at reduced payments over a period of time to enable the sale to progress. Prior to progressing with this option we would suggest that you obtain independent advice to explore any other options.
Free Advice AgenciesWe're here to help you, so please contact us as early as possible if you have any concerns about your mortgage repayments. Get in touch with us by using the Callback form above, or you can call, email or speak to us in branch.
