Mortgages – What we can do to help

A mortgage is typically arranged over 25 years. We understand that over such a long time your circumstances may change. This long timescale gives us a lot of room for flexibility, so if you talk to us we can probably help you, and agree a change to your payments, temporarily or permanently. Here is a brief overview of the things that we may be able to do, depending on the type of loan you have and your personal circumstances.

Most importantly for us and for you, when a change is agreed and maintained, we will not need to keep trying to contact you which incurs charges, so the quicker you get in touch, the better it is.

Temporary changes

Possible temporary changes include :-

  • Concession - this is a temporary reduction in your monthly payments. The amount not paid during the concession increases the arrears, (so it will have to be repaid through a future arrangement). Any unpaid interest is added to the balance, and interest is charged on it. We will work with you to ensure the concession is practical and affordable and we will monitor how it is going.
  • Arrangement - a temporary agreement to make overpayments to repay arrears, or the amount underpaid during a concession. Once again we will work with you to make sure this is affordable and managable. We will also review regularly to make sure any changes in your circumstances have not impacted your ability to repay.
  • ISMI - If you are claiming Income Support or Pension Credit, the government may make a payment towards your mortgage, called Income Support for Mortgage Interest (ISMI.) Ask the Department of Work & Pensions (DWP) for further information.
  • Change loan type
    • If you have taken out a repayment loan, then it may be possible to reduce your payments and just pay the interest. Of course, the capital will have to be repaid eventually, your plans to do this must meet our criteria.

Permanent changes

Permanent changes to the way your account is managed have implications, which you will need to consider. Talk to us, and we will explain the implications so you can make an informed decision. Such changes are only possible if in accordance with our lending policy and underwriting criteria. Permanent changes are not available where the loan is regulated under the Consumer Credit Act.

  • Change loan type
    • If you have taken out a repayment loan, then it may be possible to reduce your payments and just pay the interest. Of course, the capital will have to be repaid eventually, your plans to do this must meet our underwriting criteria
    • If you are only making payments of interest on the mortgage debt, but are also paying towards a savings plan that will repay the capital of the loan, it might cost less overall to convert to a capital and interest repayment loan
  • Extend Term - If you have taken out a capital and interest repayment loan, extending the term (i.e. the life) of the loan, can reduce your payments.
  • Consolidation - if you have resolved your financial difficulties, and have made full payment for the last 6 months, we may be able to add the arrears outstanding to the balance of the loan.

Contact us – Payment Difficulties

Our staff are here to give you guidance and help you review your options so please call us on 0800 195 1514^. Please have your account number available, and be ready to confirm your identity by answering questions about yourself and your account which we can verify against our records.

You can write to us at:

Specialist Servicing,
Operations,
Cheshire Building Society,
Castle Street,
Macclesfield,
Cheshire, SK11 6AF

Other help available

^ Please note that, for security and training purposes, calls may be recorded. Our Customer Contact Centre is open 8.00am to 8.00pm on weekdays, 9.00am to 4.00pm on Saturdays.

Cheshire Building Society lends on properties based within England, Wales, Mainland Scotland and the Isle of Wight.