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What happens if I fall behind with my mortgage repayments?

The West Brom will endeavour to help. However, we can only help if you contact us to notify us of your circumstances and keep us informed of any changes. Early contact is essential, and enables us to work with you to resolve any payment difficulties at the earliest opportunity.




Steps to consider

If you are struggling to meet your financial commitments you should prioritise your payments and pay all your essential bills first, such as:

These bills should be paid before making any payments to credit cards or unsecured loans. We also strongly recommend avoiding short term solutions such as payday loans.

We have also made a series of letter templates available for you to download here. An explanation is provided in each instance to help you decide which is the most suitable for your requirements.




What happens if I fall behind with my mortgage repayments?

We will try to contact you by telephone in the first instance to gain an understanding of your circumstances. All calls are recorded for training purposes.

We will complete a review of your income and expenditure with you. This will enable us to see if there is any disposable income available to make an arrangement to clear the shortfall/arrears on your account. These options may include:

If we cannot offer any of the above we will give you details of the reasons why.

We would strongly recommend that you seek free independent advice before making any changes to your mortgage.




Legal proceedings

If arrears accrue on your account and we cannot reach an arrangement with you we may need to commence legal proceedings to recover the arrears and this will incur additional costs.

This will mean that a court hearing is obtained and it is advisable that you attend and that you seek independent financial advice. If court proceedings are commenced this does not necessarily mean that your home will be repossessed. Repossession is a last resort.

You should remain in contact with the Society to try and resolve the problem.




Will falling behind with repayments affect my credit rating?

Credit rating agencies are independent companies, who collect personal data and financial history. This information is used to prevent fraud and decide whether to lend money or provide credit. We, like other lenders provide the agencies with information about how mortgage/loan accounts are managed. Other lenders will use this information for credit assessments.

If your account falls into arrears this information will be recorded with the credit rating agencies. This may mean that you will find it difficult to obtain credit or borrow money in the future.

You are entitled to view this information and can request a report online or in writing for a small fee.

You will need to provide your name, date of birth and address over the last 6 years.




Charges and costs

If you fail to keep up with your mortgage payments there are a range of common charges you will be expected to pay.

You will be provided with a Tariff of Charges with your annual statement. You will also be notified of any costs incurred for the management of your account. This includes any administration charges for non-payment or litigation.




What happens if my home is repossessed?

If your home is repossessed we will do all we can to obtain the best possible sale price for your property.

The proceeds of the sale will be used to repay all loans and charges including your mortgage which are secured against the property and any fees incurred from the sale. If there is any money left over we will pay this to you.

If there are insufficient funds to repay your mortgage balance you will still owe us whatever is remaining. This will be referred to as a shortfall debt.

An unpaid shortfall debt could stop you from getting credit in the future.



Helpful contacts


The below organisations offer free information and advice:


Money Advice Service

Phone: 0800 138 7777  Web: moneyadviceservice.org.uk


National Debtline

Phone: 0808 808 4000  Web: nationaldebtline.org


Business Debtline

Phone: 0800 197 6026  Web: businessdebtline.org


Pay Plan

Phone: 0800 280 2816  Web: payplan.com


Shelter

Phone: 0808 800 4444  Web: shelter.org.uk


Turn2us

Phone: 0808 802 2000  Web: turn2us.org.uk


Citizens Advice

Phone: Call your local advice centre  Web: citizensadvice.org.uk



If you have been financially impacted due to Coronavirus the following guidance and tools may help:


Money Advice Service
Coronavirus support
Money Navigator Tool
How to prioritise your debts
Debt Advice Locator



Financial Conduct Authority
Dealing with financial difficulties during coronavirus: information for consumers

Check you're getting all the support you are entitled to

Council Tax Support – To see if you’re eligible for help with your Council Tax bills, contact your local council

Job Seekers Allowance, Income Support or Income and Support Allowance - For information and advice or to make a claim for benefit if you are under state pension age, phone Jobcentre Plus on 0345 608 8545 or visit www.gov.uk

Pension Credit – For information and advice, or to make a claim if you are over state pension age, phone the Pension Service on 0345 606 0265 or visit www.gov.uk/pension-credit

Working Tax Credit and Child Tax Credit – For more information about Tax Credits, phone 0345 300 3900 or visit www.hmrc.gov.uk/taxcredits


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

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