We are very mindful that the UK is facing a squeeze on household finances this year. Some Members might already be feeling the financial pinch.
We are your Society. We are here to support you and we encourage you to talk to us if you are concerned about your mortgage payments, or your wider finances.
If you are currently up-to-date with your mortgage payments and there are no arrears on your account, but you're worried about making future mortgage payments, please contact us.
You can call us on our helpline on 0345 702 3083 or 0191 244 2257 – we’re available from 9am – 6pm, Monday to Thursday, and from 9am – 5pm on Fridays. You can also contact us by email at firstname.lastname@example.org or, if you live in the North East, pop into one of our local branches.
Here are just some of the options that can be considered, subject to your personal circumstances:
- Arranging a payment plan, taking your individual circumstances into consideration
- Arranging a new short-term solution as you face a period of uncertainty
- Changing the way you make payments or the date on which you make them
- Changing the term of the mortgage
- A transfer to an alternative product if eligible (subject to any early repayment charges)
- Access to free, independent debt advice via PayPlan
Your credit file may be impacted depending on the most appropriate option for your circumstances. We will discuss this with you to allow you to make an informed decision.
Should you wish to take the opportunity to review your income and expenditure then please visit our online budget tool, where you can send us this information securely.
This is the quickest way to ensure that we have the most up-to-date and accurate information regarding your financial position to enable us to agree the best solution for you.
Debt help and money guidance
Alternatively, should you be unable to make your monthly mortgage payments you may wish to seek independent advice.
If you are experiencing short-term difficulty, you may be able to deal with your own debts without the need for full debt advice if you are given certain key information.
Therefore we thought it may be useful to remind you of options available you might want to consider:
- We have partnered with Payplan, who offer free independent debt advice
- Other free debt advice via Citizens Advice or Step Change is available
- You may find useful information from the FCA ‘Dealing with financial difficulties during the coronavirus pandemic’
- MoneyHelper's coronavirus support page
- For most people it makes sense to pay essential expenses and priority debts before any discretionary expenses or non-priority debts. For more information, visit the ‘How to prioritise your debts’ page on the MoneyHelper website
- We would recommend you contact all of your creditors to discuss your repayments.
If you're having difficulties paying your mortgage, please call us on our Mortgage Support helpline number 0345 702 3083 or (0191) 244 2257 and we will try to assist you in resolving the situation. This number is charged at local rates and lines are open from 9am – 6pm, Monday to Thursday, and from 9am – 5pm on Fridays.
We will treat all customers fairly, taking individual circumstances into consideration.
We may be able to help you by:
- Arranging a new payment plan, taking your individual circumstances into consideration.
- Changing the way you make payments or the date on which you make them.
- Access to free, independent debt advice via our partner PayPlan
- If we cannot agree a solution to your mortgage payment difficulties, we may appoint a field agent to discuss your financial circumstances and the cost of the visit will be charged to your mortgage account (you will not be expected to pay this up front).
We will discuss options that you may wish to consider and explain how they will work and give you time to consider them. If we cannot offer any of the options, we will tell you why.
You can fill out a personal budget sheet to help you get a picture of your financial situation.
Here is what you can do to help us:
- Tell us as soon as possible if you are having problems repaying your mortgage, by telephoning us or contacting us by email or through your online account.
- If we try to contact you, please respond quickly.
- Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up to date with what is happening.
- Keep to any payment plan we make with you, or tell us if there is a change in your circumstances which may affect the arrangement.
- Seek free independent debt advice if you need further help managing your finances.
- Check whether you can get any state benefits or tax credits which could help increase your income.
- Check whether you have an insurance policy which may help with your payments.
- Tell us if you move to a new address.
Costs and charges
If you are in arrears, we may charge you for reasonable administration and legal costs. We will tell you about the amounts charged and options for repayment methods. We do not charge interest on arrears related fees.
If we cannot agree a solution to your mortgage payment difficulties, we may appoint a field agent to discuss your financial circumstances and the cost of the visit will be charged to your mortgage account (you will not be expected to pay this up front).
We may go to court to start proceedings to repossess your home.
Possession is always a last resort. The Society will only resort to repossessing a property where all other reasonable attempts to come to a satisfactory arrangement have failed. We therefore encourage you to contact us if you remain unable to make your mortgage payments.
We will not repossess without our customer’s consent solely because of a mortgage payment deferral shortfall, unless you are unreasonably refusing to engage in relation to addressing the shortfall.
We therefore encourage you to contact us if you are unable to make your mortgage payments.
If, as a last resort we do seek possession, we strongly recommend that you attend the court and take independent debt advice. We will keep trying to resolve the problem with you. Starting court proceedings does not necessarily mean that we will repossess your home.
If we do repossess your home:
- We will sell it for the best possible price.
- We will give you a reasonable time to take your possessions from the property.
- We will use the money raised from the sale to repay your mortgage and any other loans or charges.
- If there is any money left, we will pay it to you.
- If there is insufficient money to repay the mortgage, you will still owe us the amount that is left (shortfall debt).
- We will tell you the amount as soon as possible.
- We will take into account your income and outgoings when we arrange a payment plan to repay the shortfall debt.
- If the shortfall debt is not repaid, it can also affect your future ability to obtain credit.
- If you bought your home with other borrowers, each of you is responsible for all the money borrowed. This is even if you normally pay only part of the mortgage.
- We will contact you within six years of selling your property (five in Scotland) to arrange for you to pay back what you still owe.
Some companies may offer you new loans or invite you to sell your property to them and then lease it back as a way of resolving short-term mortgage payment problems. You might also be tempted to remortgage with a different provider or borrow more against your home. Please be careful, as such actions may not be in your long-term interests. We would advise you to seek independent advice before entering into any arrangement of this type.
You may be thinking about handing your keys to us, which is called voluntary repossession. If you do this, you will still owe us any outstanding debt, and we would advise you to discuss this option with us before taking any such action.
Most importantly, please do not be afraid or embarrassed to ask for help. Litigation and repossession are always a last resort. The sooner you contact us, the sooner we can consider all options available to you.
Should your mortgage have commenced after 31 December 1994, and any arrears equal or exceed one monthly repayment at close of business on the last day of any calendar month, the Society is obliged to disclose information to a credit reference agency. If this action is carried out it could have an impact on your ability to obtain credit in future. It is therefore essential that contact is made at the earliest opportunity.
At Newcastle Building Society, we are committed to supporting our customers who experience money worries.
Whilst we are doing all we can to help our customers, we recognise there may be other debts that you need help and advice with. 9am – 6pm, Monday to Thursday, and from 9am – 5pm on Fridays
If you are worried about debts or have missed payments, there is also free and independent debt advice available.
The government-backed service MoneyHelper offers free support for people with money worries, including impartial guidance, and recommendations to further, trusted support if you need it.
The organisation, PayPlan, offers free, confidential and expert debt advice to help people take back control of their finances. They will also work with your creditors on your behalf.
The Building Societies Association and the Money Advice Trust have produced a booklet providing advice on what to do if you can’t pay your mortgage or if you think you might struggle in the coming months. You can view the booklet here.
Turn2Us have a free and confidential online calculator which you can use to check if you are entitled to any benefits.
Having payment difficulties?
You can call us on our helpline on 0345 702 3083. We're available from 9am - 6pm Monday to Thursday, and 9am - 5pm Friday.
Need help budgeting?
Our simple budget tool is designed to help you take the first step to get on top of your money and get help with debt.
YOUR MORTGAGE WILL BE SECURED ON YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE