Advice should you encounter payment difficulties
If you find you are struggling to meet your mortgage repayments, Manchester Building Society will try to help you.
We are committed to treating our customers fairly and will look at each person’s individual circumstances to try and help them keep their home or buy to let properties.
Please contact our dedicated team on 0800 083 9341 (freefone number) or 0161 923 8025 8.30am-5.00pm Monday to Friday as soon as you realise you may experience problems making your monthly payments. The sooner you talk to us, the sooner we may consider your circumstances and explore options that may be available.
The Society records and monitors telephone calls for training, quality control and regulatory purposes and to improve our customer service standards.
Also you may find the following website useful: www.moneyadviceservice.org.uk
Here are some of the questions that our customers who do experience payment difficulties often ask us:
What will Manchester Building Society do?
Manchester Building Society will:
- Contact you if you miss a scheduled mortgage payment.
- Consider your individual circumstances.
- Talk to an agency which gives debt advice, such as the Citizens Advice, if you want us to consider a revised repayment plan.
- Only start proceedings to repossess your home once we have exhausted other options.
- Manchester Building Society may consider a reasonable alternative payment plan or mortgage structure.
What can you, the mortgage holder, do?
- Tell us as soon as possible if you think you may experience problems repaying your mortgage or making the full monthly mortgage payments.
- Seek independent debt advice if you would like help with managing your finances and before you change your mortgage arrangements.
- Contact us quickly if we try to contact you.
- Make sure that you keep any linked borrowers or guarantors who are jointly responsible for paying the mortgage up to date with what is happening.
- Keep to the payment plan we agree, or tell us if there is a change in your circumstances which may affect the arrangement. If you do not make the agreed repayments, we might have to go to court to get back any money you owe us, or to repossess your property.
- Check whether you can get any state benefits or tax credits which could help to increase your income.
- If you have an insurance policy, check whether it can help with your payments.
- Tell us if you move to a new address.
What types of arrangements could be made and how are they reviewed?
- Manchester Building Society will do everything it realistically can to help you keep your home/property.
- We will ask you to discuss matters with us in order to gain a better understanding of your problems and then try to get an arrangement in place according to your current circumstances.
- This arrangement may mean you making the full monthly payment plus an amount towards the arrears that you can afford.
- It could also mean making lower monthly payments than the full monthly payment, if we can see that you cannot afford to pay the full amount due (this would be for a set time to be agreed between you and Manchester Building Society).
- Where you make lower payments, the difference will be added to the balance of your mortgage and be charged interest at the same interest rate as the existing borrowing.
- We will review your financial position every 6 months (or more often if appropriate).
- During the time you have an arrangement with us, and you keep to the agreed payments, we will treat you fairly by not adding any arrears charges to your account.
- You may be trying to sell your home/property to pay off the mortgage and cannot make the full payment due. We will again try to help you by accepting a payment that you can afford during the sale process.
- We will ask that you provide documentary proof that your property is being sold for a price that is achievable in the current market.
- Your estate agent should be able to write and confirm this for you.
- We will also need your solicitor's details and we can then keep in contact with them to make sure the sale is progressing.
What are the additional costs and charges?
- If you are in arrears, we may charge you for reasonable administrative and legal costs which are laid out in the Tariff of Charges. We will also tell you the amount you will have to pay when we write to you.
What happens if Manchester Building Society cannot contact you and / or cannot agree on a solution?
- We may send an independent debt counsellor or tracing agent to see you to discuss your financial circumstances. This will give us a better understanding of your problems and help us put a suitable arrangement in place with your agreement. The cost of this visit may be charged to your account.
- We may need to 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.
- We do not have to go to court to appoint LPA Receivers for Buy to Let properties.
- Starting court proceedings does not necessarily mean that we will repossess your home. We will keep trying to solve the problem with you. Possession or appointing LPA Receivers in the case of Buy to Let Mortgages is a last resort.
- Before we repossess your home, we will advise you about getting in touch with your local authority to see if they can find you somewhere else to live.
What happens if Manchester Building Society repossesses your home or appoints LPA Receivers on Buy to Let properties?
- Manchester Building Society will only ever repossess a property as a last resort.
- We are committed to working with our borrowers to try and make sure this does not happen.
- We will sell it for the best price we can reasonably get. We will try to sell it as soon as possible.
- We will give you reasonable time to take your possessions from your home.
- We will use the money raised from selling your home to pay your mortgage and any other loans or charges against the property.
- If there is any money left over, we will pay it to you.
- All associated legal and sales costs will be debited to the account.
What happens if your home does not raise enough money to pay off the mortgage?
- If there is not enough money from the sale to pay the whole mortgage, you will still owe us the amount that is left (a shortfall debt). We will tell you what this is as soon as possible.
- 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 only pay part of the mortgage.
- We will contact you within six years of selling your property to arrange for you to pay back what you still owe.
- We will take into account your income and outgoings when we arrange a payment plan for this shortfall debt with you. But if we cannot agree a suitable plan, we may have to 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 are able to get credit in future.
- If you have had a Buy to Let mortgage we may obtain a charge against your home.
- If you do not make an arrangement to repay the shortfall debt on a Buy to Let mortgage, we could take repossession proceedings against your home.
Should I use a “mortgage rescue" or "rent back" scheme?
Some companies may invite you to sell the property to them and then lease it back as a way of resolving your sort term financial difficulty. Please be careful as such actions may not be in your long term best interest. We would advise you to seek independent advice before entering into any arrangement of this type.
Can I just hand back the keys?
If you do this, you will still owe us any outstanding debt. Please discuss this option with us or an independent adviser before taking such action.
How can I complain?
If you do not think we have treated you fairly, you can complain to:
Manchester Building Society
125 Portland Street
If your complaint is not dealt with to your satisfaction, you may then take it to the Financial Ombudsman (FOS). The FOS provides a free and independent service for consumers, and can be contacted at:
The Financial Ombudsman Service
Telephone: 0800 023 4 567