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.
Ways we can help (homeowners)
If you’re unable to meet all or part of your 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 your circumstances, like being out of work or undergoing medical treatment. 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.
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 have a repayment mortgage and either need a reduced payment for a period of time or want to repay payment shortfall at a faster pace, a temporary change in the type of mortgage you have – for example by temporarily converting a repayment mortgage to interest only – may be appropriate.
Important information about changing your repayment type:
- A temporary change of repayment type is normally agreed to cover a temporary change in your circumstances, like being out of work or undergoing medical treatment. It isn’t a long-term solution and would be for a maximum of 6 months.
- When you switch back to your original payment method, your payments will increase. You need to be confident that you can meet these higher payments.
- We won’t report the temporary change to credit reference agencies.
- Payment shortfalls are reported to credit reference agencies and may be affected by a temporary conversion.
If you have a repayment mortgage and need longer than the existing term to pay back the mortgage balance or an outstanding payment shortfall, we may be able to agree a term extension.
Important information about term extensions:
- Paying back your mortgage over a longer term will result in you paying more interest.
- You need to consider whether you can afford to pay the mortgage over a longer period, particularly if this goes past your retirement.
- We can’t provide financial or mortgage advice, so if you’re unsure of the best option for you then we’d recommend speaking to an independent financial or mortgage advisor. We also have sources of information in the Independent Support section of our Support page.
If you are no longer able to afford to live in your home, we may be able to help you sell the property through our assisted voluntary sale scheme. You’ll be able to stay in your property while it’s on the market and you’ll stay in control of the sale process.
Important information about assisted voluntary sale:
- Once accepted onto the scheme it lasts for six months. During this time, you’ll be expected to co-operate with us and the selling agent. If a sale isn’t achieved within this time, we reserve the right to extend or remove you from the scheme.
- CHL Mortgages can help by working with your solicitors and estate agents.
If you can no longer afford to make your mortgage payments but want to stay in your property and are resident in Scotland or Wales, you may be eligible for one of their mortgage rescue schemes. These schemes allow you to keep living in your own home as a tenant, part-owner or part-tenant.
If you live in Scotland, you can access more information on the Home Owners’ Support fund at www.mygov.scot/home-owners-support-fund
If you live in Wales, you can access more information on the Government Help to Stay scheme on the Welsh Government website.