Ways we can help (buy-to-let)
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 payment shortfall. 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 payment shortfall within 12 months.
- Payment shortfalls are reported to credit reference agencies and this may affect your ability to borrow money in future.
- If your mortgage is in payment shortfall, 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 there are any interest rate changes, this will change the amount that you pay. We’ll write to you if this happens.
- You can cancel your payment arrangement at any time. However, if you don’t have an agreement in place to pay your payment shortfall, we may take legal action to recover the amount owed.
If you’re unable to meet all or part of your Buy-to-Let 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 circumstances, like a rental void. 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 payment shortfall.
- Paying less than your monthly payment may result in your account going into payment shortfall.
- Payment shortfalls are reported to credit reference agencies and this may affect your ability to borrow money in future.
- If your mortgage is in payment shortfall, 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.
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:
- This will only be considered if the property is empty.
- You should remove any personal belongings and take meter readings before handing over the keys.
- Your credit file will be impacted as the mortgage will show as defaulted. This may impact your ability to obtain credit elsewhere.
- 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.
Ways we can help (homeowners)
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 payment shortfall. 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 payment shortfall within 12 months.
- Payment shortfalls are reported to credit reference agencies and this may affect your ability to borrow money in future.
- If your mortgage is in payment shortfall, 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 there are any interest rate changes, this will change the amount that you pay. We’ll write to you if this happens.
- You can cancel your payment arrangement at any time. However, if you don’t have an agreement in place to pay your payment shortfall, we may take legal action to recover the amount owed.