Mortgage Payment Difficulties

Our commitment to supporting customers affected by Coronavirus.

In line with the package of financial support announced by the Chancellor of the Exchequer, we are committed to support customers and landlords who experience difficulty with mortgage payments as a result of coronavirus. This includes a mortgage payment deferral.

In addition to this, we will be withholding taking possession action for a period of 90 days to provide respite during this difficult time. 

We have provided a useful set of FAQs about mortgage payment deferrals and would recommend you read before requesting. 

Customers not currently in arrears - How we can help you

If you are currently up to date with your mortgage payments and there are no arrears on your account, but your finances have been affected in some way by the coronavirus outbreak we can agree a payment holiday for up to 3 months initially, with the option to extend this for a further 3 months at the end of this period, on request and without assessment of your income and expenditure.

This is available to all of our residential customers whether you are a homeowner or a landlord.

Important information for you to be aware of 

To ensure your credit rating is not affected, your account will not be classed as being in arrears whilst the payment holiday is in place, however interest will continue to accrue on your account.

We will contact you at the end of the payment holiday to discuss ways that you can repay any amount outstanding. This may include options such as recapitalising the interest over the remaining loan term, overpaying your mortgage or extending your term.

How to apply for a mortgage payment deferral

Please email us at mortgage.support@newcastle.co.uk attaching The Mortgage Payment Deferral Request form:

Customers yet to apply for a mortgage payment deferral have until 31 October 2020 to do so.

Our expert team will then review your request and confirm when it has been agreed. 

If your mortgage is currently up to date and you want to discuss options, please call our helpline on 0345 609 0707 which is available from 8am to 6pm, Monday to Friday.

If you’d prefer to talk to us to discuss your situation because you’re likely to be in financial difficulty, please call our helpline number on 0345 702 3083. Lines are open from 9am to 6pm Monday to Thursday, and from 9am to 5pm on Fridays.

Should you wish to take the opportunity to review your income and expenditure then please visit https://newcastle.paylinksolutions.co.uk/login where you can send us this information securely.

What happens when my mortgage payment deferral ends?

We will write to you in good time before the end of the mortgage payment deferral advising you of your new monthly repayment and when it will recommence.

We will also suggest some options you may want to consider as they may be less costly for you. You can take the following actions depending on your ability to resume your mortgage payments.

Customers able to resume full payments

We will write to you in good time before the end of the payment deferral advising you of your new repayment and when it will recommence we will let you know the difference in payment.

We will let you know that capitalisation could cost you more over the remaining term of your mortgage therefore you may wish to consider other options such as:

  • Making an over payment or a lump sum
  • Changing the term of the mortgage
  • Choose a new deal if eligible

It’s important you do contact us ahead of the payment deferral end if you would like one of these options or we will capitalise the sums covered by the payment deferral and assume that you are able to meet the new payment.

Customers unable to resume full payments

We will write to you in good time before the end of the payment deferral advising you of your new repayment and when it will recommence. We will let you know the difference in your monthly payment.

If you are unable to resume payments we can offer a further full or partial payment deferral for up to a further 3 months. Please email us at mortgage.support@newcastle.co.uk attaching the Mortgage Payment deferral Request Form:

You will be asked to provide:

  • Your name and mortgage account number 
  • That you are directly or indirectly affected by COVID-19
  • The number of months that you require a payment break (up to 3 months)
  • Whether you would like a full or partial deferral and the amount you are able to pay 

Our expert team will then review your request and confirm when it has been agreed.

If you’d prefer to talk to us to discuss your situation, please call our helpline number on 0345 702 3083. Lines are open from 9am to 6pm, Monday to Thursday, and 9am to 5pm on Fridays.

Customers currently in arrears – How we can help you 

If you're having difficulties paying your mortgage, please call us on our helpline number 0345 702 3083 and we will try to assist you in resolving the situation.

This number is charged at local rates and lines are open from 9am to 6pm, Monday to Thursday, and 9am to 5pm on Fridays.

Alternatively you may wish to use our direct helpline telephone number (0191) 244 2257.

Newcastle Building Society will treat all customers fairly, taking individual circumstances into consideration.

We may be able to help you by:

  • Arranging a payment holiday up to 3 months without assessment of your income and expenditure although we do need to speak to you to discuss as other options may be more appropriate.
  • 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.
  • Allowing you to repay your mortgage over a longer period of time (this will require you to speak with a qualified mortgage adviser).

We will discuss options that you may wish to consider and explain how they will work and give you time to consider it. 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.
  • Seek free debt advice if you need help managing your finances.
  • 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.
  • 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

There are no charges or fees associated with the payment deferrals we grant. 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.

You may wish to talk to a professional adviser, such as a solicitor or a debt counsellor, before you change your mortgage arrangement and we strongly advise that you seek independent, free debt advice. The following people may be able to help:

  • Your local Citizen's Advice Centre.
  • StepChange on freephone 0800 138 1111.
  • National Debtline on freephone 0808 808 4000.
  • Money Advice Workers at your local Council - the telephone numbers will be listed in the Yellow Pages and you should also find details online.

What happens if we cannot agree a solution?

If you had existing arrears and 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. However, as recently announced by the government we will be withholding taking possession action up until the 31st October 2020 to provide respite during this difficult time and we will write to those customers affected confirming that we will be providing a stay of action.

If, as a last resort we do seek possession once things return to normal, we strongly recommend that you attend the court and take independent debt advice. We will keep trying to resolve the problem with you. Possession is always a last resort. 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 true 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 - 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.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.