Difficulty Paying Your Mortgage

If you're having problems paying your mortgage, we'll try our best to help you.

This page explains what steps you should take to help yourself, what steps we can take to help you and how we'll treat you fairly throughout. If you're facing financial difficulty, please don't ignore the problem.

Talk to us - our number and opening hours are on the right. Please give us a call.

What you can do

Immediate steps you can take:

  • Tell us as soon as possible if you are having problems repaying your mortgage or if you think that you might experience problems shortly.
  • Seek debt advice for help with managing your finances.
  • Make sure you keep any other people paying the mortgage and anyone guaranteeing the mortgage up to date with what's happening.
  • Check whether you can get any state benefits or tax credits, which could help to increase your income.
  • If you have insurance policies, such as income protection, check whether they would help with your payments.
  • Keep to the payment plan we agree with you or tell us if there is a change in your circumstances that may affect the arrangement. If you don't make the agreed payments, we might have to go to court to get back any money you owe us or to repossess your property. Please understand that repossession of your property is a last resort.
  • Tell us if you move to a new address

You may want to talk to a professional adviser, such as a debt counsellor or a lawyer, before you change your mortgage arrangements. We'd strongly advise that you seek independent, free, debt advice.

What we can do

We will:

  • Contact you as soon as possible to discuss the issue.
  • Talk to an agency that gives debt advice (e.g. Citizen's Advice Bureau), if you want us to.
  • Give you reasonable time to pay back the debt.
  • Only start proceedings to repossess your home if we cannot solve the problem with you.

We may be able to:

  • Arrange a new payment plan with you.
  • Change the way you make your payments or the date you make them.
  • Allow you to pay back your mortgage over a longer period of time. Please note that this would reduce your monthly payments but increase the overall amount you will eventually repay.
  • Change the type of mortgage you have.

If we're unable to offer you any of these options, we'll tell you why. If we are able to make one of these arrangements with you, we'll explain how it would work and give you time to consider it. If we can't offer any of these options, we might agree to you remaining in the property to sell the property yourself depending on your circumstances.

Costs and charges

Costs and charges:

If you're in arrears, we may charge you for reasonable administrative and legal costs. We'll tell you the amount you'll have to pay. If we cannot agree on a solution:

  • We may send a debt counsellor to see you to discuss your financial circumstances and the cost of the visit may be charged to your mortgage account.
  • We may go to court to start proceedings to repossess your home. If proceedings take place, we strongly recommend that you attend the court and that you seek independent debt advice.
  • Starting court proceedings does not necessarily mean that we'll repossess your home. We'll keep trying to resolve the issue with you. Repossession is a last resort.
  • Before we repossess your home, we'll give you advice about getting in touch with your local authority to see if they can find you somewhere else to live.
If we repossess your property

Sale of Repossessed Property:

  • We'll sell it for the best price we can reasonably get and we'll try to sell it as soon as possible.
  • We'll give you reasonable time to take your possessions from your home (14 days).
  • We'll use the money raised from selling your home to pay your mortgage and any other loans or charges.
  • If there is any money left over, we'll pay it to you if you are entitled to it. There may be others entitled to receive the surplus, e.g. a second lender or your Trustee in Bankruptcy, if you have been declared bankrupt.

What happens if the sale price does not pay off Principality’s mortgage in full?

  • If there's not enough money from the sale to pay the whole mortgage, you'll still owe us the amount that's left (this is called a shortfall debt). We'll tell you what this is as soon as we're able.
  • If you bought your home with other borrowers, each of you is responsible for all the money borrowed. This applies even if you normally only pay part of the mortgage.
  • We'll contact you within six years of selling your property to arrange for you to pay back what you still owe.
  • We'll take account of your income and outgoings when we arrange a payment plan for this shortfall debt with you. If we can't arrange a suitable plan, we may go to court to get our money back. You might have to pay additional court costs.
  • If a shortfall debt is not paid, it could affect whether you're able to get credit in future.
Complaints and other issues

Complaints:

If you don't think we've treated you fairly, you can complain to The Complaints Department, Principality Building Society, PO Box 89, Queen Street, Cardiff CF10 1UA. If your complaint is not dealt with to your satisfaction, you may then take it to the Financial Ombudsman. The Financial Ombudsman Service provides a free and independent service for consumers.

The Financial Ombudsman Service
Exchange Tower
London E14 9SR
Phone: 0300 123 9 123

Other Issues:

Some companies may offer you new loans or even invite you to sell your property to them and then lease it back as a way of resolving your short term financial difficulty. Please be careful; such actions may not be in your long term best interests. We advise you to seek independent advice before entering into any arrangement of this type.

You may be thinking about handing your keys over to us. If you do this, you will still owe us any outstanding debt and we advise you to discuss this option with us before taking such action.

  • 9am to 5pm, Monday to Friday

Useful Contact Numbers

For independent financial and housing advice:

Principality. Where home matters.