Payment Difficulties

Our commitment to supporting customers affected by Coronavirus.

We are committed to supporting customers and landlords who experience difficulty with mortgage payments either as a result of Coronavirus or if customers and landlords suffer financial hardship.

In relation to Coronavirus, for customers who have had payment deferrals totalling less than 6 months, the Government has now extended the mortgage payment deferral scheme until the 31st March 2021. Customers yet to apply for a mortgage payment deferral, or those requiring a further mortgage payment deferral of up to 3 months are now able to request this up to a maximum of 6 months.

However, if you have already had payment deferrals totalling 6 months and you continue to experience financial difficulties, please contact us so we can assess your situation and establish the most suitable solution for you.

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 deferral(s) totalling a maximum 6 months on request.

For customers who have not yet taken a mortgage payment deferral since the scheme was first announced in March we can agree deferrals for up to 3 months each on request and without assessment of your income and expenditure. Payment deferrals must end no later than the 31st July 2021 regardless of how many have been taken therefore if you have not yet taken a payment deferral, the latest you can apply is before your usual payment date in February 2021 in order to receive the full 6 months payment deferrals.

For customers who currently have a mortgage payment deferral in place or have previously taken a deferral and have resumed full payments we are able to agree a further extension up to a maximum of 6 months. For example, a customer who originally took a 3 month deferral that will end before 31st March 2021 will now be able to extend this by a further 3 months.

This is available to all of our residential customers whether you are a homeowner or a landlord. Customers can choose between a full or partial payment deferral to suit their personal finances.

Note: If you have already taken payment deferrals for a total of 6 months, you cannot extend this further, under the government scheme.

Important information for you to be aware of

Your credit file is not affected by taking a mortgage payment deferral (if you are partaking in the Government initiated payment deferral scheme as a result of you being impacted by Coronavirus), although lenders may take into account other information when making future lending decisions including, for example, information provided by applicants or bank account information.

During a mortgage payment deferral interest will continue to be charged on your mortgage, and we will apply it to your mortgage balance monthly meaning your mortgage balance will increase during the mortgage payment deferral. At the end of the mortgage payment deferral your monthly payments will increase if you do not have a different method of repayment, such as a lump-sum repayment.

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

How to apply for a mortgage payment deferral (if you are affected by Coronavirus and meet the eligibility criteria)

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

Our expert team will then review your request and confirm when it has been agreed. Please allow up to 5 working days for this to be agreed.

If your mortgage is currently up to date and you want to discuss options, please call our Mortgage Contact 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 or your mortgage payment deferrals have exceeded the maximum 6 months, please call our Mortgage Support helpline number on 0345 702 3083. Lines are open from 9am to 6pm Monday to Thursday, and from 9am to 5pm on Fridays.

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 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
  • A transfer to an alternative product if eligible (subject to any early repayment charges)

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

Customers unable to resume full payments

If at the end of mortgage payment deferrals totalling 6 months, you let us know that you continue, or expect to continue to face payment difficulties as a result of circumstances relating to Coronavirus, we will work with you to come to a solution to help your financial circumstances, in advance of payments being missed.

Below are just some of the options that can be considered, subject to individual 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 https://newcastle.paylinksolutions.co.uk/login 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.

    You can contact us by email at mortgage.support@newcastle.co.uk or telephone our helpline on 0345 702 3083* or (0191) 244 2257 where we are available 9.00am to 6.00pm Monday to Thursday and 9.00am to 5.00 pm Friday, although we are experiencing an increased number of calls at this time.

    * This number is charged at local rates.

    Debt help and money guidance

    Alternatively, should you be unable to make your new monthly mortgage payments you may wish to seek independent advice.

    As your circumstances are unique to you for example, 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 when your payment deferral comes to an end:

    What happens if we cannot agree a solution?

    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 will take into consideration any exceptional circumstances such as those arising from Coronavirus.

    We will not repossess without our customer’s consent solely because of a mortgage payment deferral shortfall, unless the customer is 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.

    Customers currently in arrears – How we can help you

    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 to 6pm, Monday to Thursday, and 9am to 5pm on Fridays.

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

    We may be able to help you by:

    • Arranging mortgage payment deferrals for up to 3 months each on request, totalling a maximum of 6 months, and without assessment of your income and expenditure (if you are affected by Coronavirus).
    • 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
    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, 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

There are no charges of fees associated with the payment 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.

Customers currently in arrears - 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. 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.

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 re-mortgage 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.

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