Unless you tell us otherwise, any mortgage payments missed during a payment holiday period will be capitalised to your mortgage. This means that your outstanding mortgage balance will increase and the total amount of interest you pay over the remaining term of your mortgage will also increase. To help you understand what ‘capitalised’ and ‘capitalisation’ mean we’ve included a definition in our frequently asked questions.
There are other options available to you if you don’t want to add the capitalised amount to your mortgage. You can choose to:
• Repay the amount now as a single lump sum.
• Repay the amount over a shorter period of time by increasing your monthly payment.
• Discuss the possibility of arranging an extension to your mortgage term. Before any term extension can be agreed, we’ll need to talk with you to gain a full understanding of your circumstances.
How these options work:
Paying a lump sum
Before we can recalculate your monthly payment you’ll need to repay the capitalised amount. Please call us on 03451 220033 to speak to a member of the team who’ll confirm this payment amount. Once we’ve received your payment, we’ll write to you confirming your new monthly payment amount.
You can choose to pay the lump sum by debit card or by bank transfer.
Debit card payments:
You’ll need a debit card in your name and registered to the security address, or the correspondence address we hold if you have a buy to let mortgage. Please note we’re unable to accept payments from credit cards.
Bank transfer payments:
To make a payment by bank transfer, please call us on 03451 220033 to confirm the relevant bank details.
Increasing your monthly payment amount
If you’d rather not capitalise your missed payments, which could mean you reduce the amount of interest charged over the term of your mortgage, we can make arrangements with you to increase your normal monthly payment amount so that you repay the capitalised amount over a shorter period of time. This will reduce the amount of interest charged over the term of your mortgage as a result of the payment holiday. The quickest way for you to request this is to complete our opt out of capitalisation form.
Once completed, you can email the form to us at email@example.com. Please include ‘Increasing monthly payment amount’ in the subject line of your email. Please be aware that this is an unencrypted mailbox and any personal information sent to it will not be secure.
Alternatively, you can return the completed form to us by post at the address below. We're aware that there are delays to the postal service across the country and whilst we're not currently experiencing these delays, we'll be sure to keep you updated should this change.
A member of our team will call you within 5 - 7 working days to confirm your new monthly payment excluding the capitalised amount.
Extend the term of your mortgage
Extending your mortgage term will result in you paying more interest over the term of your mortgage, we therefore need to fully understand your circumstances so we can determine why you’re making the request and whether we can agree to a term extension.
To enable us to support you, we’ll need a full understanding of your current household income and outgoings, we’re working alongside Paylink Solutions to enable our customers across the Group to complete an online income and expenditure form.
Please click here to access the system and the form.
Please note that you’ll be directed to an external website where you’ll see reference to all brands within our Group.
Once we have confirmation that you’ve completed the process, we’ll review the information provided.
A member of our team will call you within 7 working days to discuss your request further.
If we’re unable to agree to your mortgage term extension request, we’ll explain the reason why and explain what other options are available to you.
Please note that we’re unable to offer financial advice and it may be necessary for you to seek Independent financial advice. The website Unbiased.co.uk can help you find a financial adviser in your local area.
If you are unable to use the link above please refer to our frequently asked questions for alternative options to provide this information.