Building Society Mortgage Arrears & Payment Support Guide

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UK Mortgage Support • Missed Payments & Arrears

Building Society Mortgage Arrears: What to Do When You Cannot Afford Your Payments

If you have missed a mortgage payment to your building society, or know you will struggle with the next one, contact your lender’s mortgage payment support team as soon as possible. You do not need to wait until you are several months behind.

UK building societies can consider different forms of support, including temporary payment reductions, interest-only arrangements, longer mortgage terms and affordable arrears repayment plans. What is suitable depends on your finances and the type of mortgage you have.

This guide explains your next steps, what lenders must consider, how the 2026 Mortgage Charter works, where to get free debt advice and what to do if repossession proceedings have started.

What to Do Right Now Building Society Support Get Free Debt Advice
If you have received a court claim, possession hearing date or eviction notice: get specialist housing or legal advice urgently. Do not ignore the papers or assume that discussing a payment arrangement automatically pauses legal proceedings.

Independent UK information • Reviewed 16 October 2026 • Based on current FCA mortgage-arrears rules, the 2026 Mortgage Charter and official UK debt-support guidance.

Mortgage Arrears Help: Quick Answers

Already missed a payment? Contact your building society’s mortgage arrears team and ask for your current shortfall and support options.
Payment due soon? Contact the lender before it becomes overdue, even if you have never missed a payment.
Can payments be reduced? Potentially. The lender may offer a suitable temporary or longer-term arrangement after assessing your circumstances.
Does the lender have to help? FCA rules require fair treatment and consideration of appropriate support, but do not guarantee a particular arrangement.
Will arrears affect credit? Missed payments can be reported to credit reference agencies. The impact of support arrangements depends on their type.
Can the lender repossess? Possibly, but repossession should be a last resort after reasonable alternatives have been considered.
Is independent help free? Yes. MoneyHelper, StepChange, National Debtline and other recognised services provide free guidance or debt advice.
Can benefits help? Eligible homeowners may qualify for Support for Mortgage Interest, which is a repayable loan, not a grant.
Most useful first action: tell your lender what you can realistically afford and ask for an arrangement in writing. A smaller sustainable payment proposal is generally more useful than promising an amount you cannot maintain.

What to Do Immediately if You Cannot Pay Your Mortgage

If the next payment is unaffordable, the objective is to contact the lender, understand the shortfall and agree a realistic next step. You can start this process before any payment is missed.

  1. Contact the building society. Ask for its mortgage payment difficulties or arrears team. Use the telephone number shown on the lender’s official website or your mortgage statement.
  2. Explain what has changed. Mention reduced working hours, job loss, illness, relationship breakdown, increased household costs or another relevant change.
  3. Ask for the exact amount owed. Request the normal monthly payment, missed amounts, total arrears, charges and next payment date.
  4. Prepare a realistic household budget. Work out income, essential spending and what you can sustainably put towards the mortgage.
  5. Discuss support arrangements. Ask whether temporary payment reductions, changes to the mortgage term or another suitable option could help.
  6. Request written confirmation. Check the start and end dates, payment amount, arrears treatment, interest consequences and potential credit-file reporting.
  7. Contact a free debt adviser. This can help if other debts, council tax, energy bills or essential expenses are also becoming unmanageable.
  8. Review the arrangement. Inform the lender promptly if your circumstances change or you cannot keep to the agreed plan.
Do not cancel your mortgage Direct Debit without discussing it with your lender. Cancelled or missed payments can create arrears and affect your credit record. If your payment is due very soon, telephone the lender rather than relying on a general online enquiry form.

Official independent guidanceMoneyHelper: Help With Mortgage Payments

MoneyHelper explains the practical steps for borrowers who are worried about a payment or have already fallen behind.

After opening this link:

  1. Find the section that matches whether you are worried about a future payment or have already missed one.
  2. Review the guidance on contacting your lender.
  3. Check the types of support that may be available.
  4. Follow the links to free debt advice and government assistance if relevant.
  5. Keep the guidance alongside your mortgage statement when discussing options with your lender.

What Counts as Mortgage Arrears?

Mortgage arrears arise when you have not paid an amount due under your mortgage agreement. This may involve a completely missed payment or a payment that is less than the amount required.

For example, if your contractual mortgage payment is £950 and you pay only £600 without an agreed arrangement, you may have a £350 payment shortfall.

Example: Two Missed Mortgage Payments

£950Normal monthly payment
2Payments missed
£1,900Illustrative arrears

This example excludes any interest or charges that might apply. The lender’s account statement is the correct source for your actual balance.

What Happens After the First Missed Payment?

Your building society will usually attempt to contact you and establish why the payment was missed. It should provide relevant arrears information and consider whether an appropriate repayment arrangement can be agreed.

Under FCA MCOB 13 rules, regulated mortgage lenders have specific obligations to provide information about payment shortfalls, outstanding debt and charges. They must also treat customers experiencing or approaching payment difficulties fairly.

Important distinction: a borrower who has never missed a payment but expects difficulty still has a reason to ask for support. Waiting for arrears to develop can reduce the available options.

What to Prepare Before Calling the Building Society

You do not need a perfect budget before making first contact. However, a few details can help the adviser understand the problem and suggest an affordable arrangement.

Mortgage account or reference number
Normal monthly mortgage payment
Amount and dates of missed payments
Current household income
Employment or benefit changes
Essential housing and living costs
Credit cards, loans and other debts
Household circumstances and dependants
Insurance that may cover income loss
Expected duration of the problem
What you can afford to pay now
Any court or arrears letters received
Example of what to say

“I’m concerned that I won’t be able to meet my next mortgage payment. My circumstances have changed, and I want to discuss what support might be available before I fall further behind. I can explain my income and essential costs and would like to agree a payment arrangement I can afford.”

If you have already missed a payment, say so and ask for an up-to-date arrears statement. If you need an interpreter, accessible communication, longer appointment or help from a trusted representative, tell the lender.

What Mortgage Payment Support Can Building Societies Offer?

Under the FCA’s mortgage payment-difficulties rules, lenders must consider a range of appropriate support options. The exact arrangement depends on your circumstances, mortgage terms and affordability.

Support option
How it may help
Important consequence
Temporary reduced payments
May reduce immediate pressure during a short-term financial difficulty.
Unpaid amounts can still need repayment; interest and credit reporting may be affected.
Temporary interest-only payments
Can lower payments because you temporarily stop repaying capital.
The mortgage capital remains outstanding and later payments or total interest may increase.
Mortgage term extension
Spreads repayment over a longer period, potentially lowering monthly payments.
Usually increases total interest and may be limited by age or retirement circumstances.
Arrears repayment plan
Allows an affordable extra amount to be paid towards outstanding arrears.
The combined normal payment and arrears contribution must remain affordable.
Capitalising arrears
Adds an agreed shortfall to the mortgage debt where appropriate.
Increases capital owed and can increase future interest costs.
Interest or capital deferral
May allow temporary relief while finances recover.
Deferred payments do not necessarily disappear, and the arrangement can increase costs.
Rate or product adjustment
A different rate or mortgage arrangement may reduce payment pressure.
Eligibility, fees, Early Repayment Charges and long-term costs need checking.
FCA requirement: lenders must consider whether appropriate changes, including term extensions, repayment-type changes, deferrals, rate reductions or capitalising arrears, could help. They must provide enough information for borrowers to understand the implications. A lender is not required to grant every requested option.

Official regulatory rulesFCA Handbook: MCOB 13 Payment Difficulties and Repossessions

After opening this link:

  1. Read MCOB 13.2 to understand the purpose of the mortgage payment-difficulties rules.
  2. Review MCOB 13.3 concerning fair treatment and reasonable efforts to agree payment arrangements.
  3. Find the rules covering term extensions, changes in mortgage type, deferrals and capitalisation of arrears.
  4. Review how lenders must communicate the implications for the mortgage balance and credit file.
  5. Use the guidance to prepare specific questions if a lender’s proposed arrangement is unclear.

2026 Mortgage Charter: What Support Does It Provide?

The UK government published an updated Mortgage Charter on 26 March 2026. It sets out additional commitments by participating lenders to support mortgage borrowers facing higher payments.

One important distinction is whether you are still up to date with your mortgage or have already fallen into arrears.

If your payments are up to date

Eligible borrowers with participating lenders may request a one-off six-month switch to interest-only payments or extend the mortgage term to reduce monthly payments.

Reverting after a term extension

Qualifying borrowers can ask to return to their original mortgage term within six months, subject to the Charter’s conditions.

If you are already in arrears

The streamlined Charter options for customers up to date with payments are not automatically available. You should instead work directly with the lender’s specialist payment-support team.

Protection against rapid repossession

Participating lenders commit not to force borrowers to leave their home within 12 months of the first missed payment unless exceptional circumstances apply.

The 12-month commitment is not a payment holiday or a ban on all legal proceedings. Mortgage payments remain due, arrears can grow, and legal action may still develop. The commitment concerns forcing a borrower to leave their home, subject to the Charter’s terms and exceptions.

Does the Charter Affect Your Credit Score?

Under the Charter, eligible borrowers who are up to date with payments can use the specified temporary support options without a new affordability assessment or an adverse credit-score impact from taking those options as described.

This protection should not be confused with missed payments, arrears or other tailored arrangements, which can have different credit consequences.

Official HM TreasuryUK Government: Mortgage Charter 2026

After opening this link:

  1. Read the commitments for customers who are up to date with mortgage payments.
  2. Check the six-month interest-only and mortgage-term extension provisions.
  3. Review the conditions concerning repossession after a first missed payment.
  4. Find your building society in the list of participating lenders.
  5. Contact your lender to establish which options apply to your account and circumstances.

Building Society Mortgage Arrears Help: Official Lender Routes

Your existing lender is responsible for assessing and administering your mortgage. Use its own payment-difficulties team rather than applying to a different building society for arrears support.

Coventry Building SocietyCoventry Building Society: Mortgage Payment Difficulties

Coventry publishes separate guidance for temporary and longer-term mortgage difficulties. Its options may include reduced payments, temporary interest-only arrangements, extending the mortgage term, capitalising arrears or support with selling a property where necessary.

Missed-payment support: 0800 121 8765
General mortgage enquiries: 0800 121 8899

After opening this link:

  1. Read the short-term and longer-term payment-difficulty sections.
  2. Decide whether a phone discussion or the lender’s support form is suitable.
  3. Prepare information about income, essential costs and the reason for the difficulty.
  4. If a payment is due shortly and you cannot pay it, use Coventry’s urgent mortgage support telephone route.
  5. Ask the adviser to explain any proposed arrangement’s future costs and credit-file impact.

Coventry support requestCoventry: Official Mortgage Support Request Form

Coventry also provides an online form for customers seeking contact about payment difficulties or Mortgage Charter support.

After opening this link:

  1. Check that you are using Coventry’s official website.
  2. Complete the identification and contact fields requested by the lender.
  3. Choose the statement that accurately describes your circumstances.
  4. Explain the assistance you wish to discuss.
  5. Review the information before submission and retain the confirmation.
  6. Do not rely on the form alone if the next payment is imminent and you already know it cannot be made.
Other building societies: Nationwide, Yorkshire Building Society, Leeds Building Society, Skipton Building Society and other UK lenders may have their own dedicated arrears support arrangements. Start from the official lender website, find “Mortgage help”, “Payment difficulties” or “Financial support”, and use the route for existing customers.
Telephone verification: never provide a banking passcode or one-time security code simply because an unexpected caller says they work for your building society. If uncertain, end the call and use a verified official number.

How to Agree an Affordable Mortgage Arrears Repayment Plan

A repayment plan normally covers your ongoing contractual payment and an additional amount towards arrears. The lender should consider whether your proposal is realistic.

Example: Repaying £1,200 of Mortgage Arrears

£900Normal monthly mortgage payment
£1,200Existing arrears
£100Extra monthly arrears contribution
12 monthsIllustrative time to clear arrears

If you could afford your normal £900 payment plus an additional £100 each month, the £1,200 shortfall could be repaid in approximately 12 months, assuming no further arrears, additional interest or charges.

The essential question is whether £1,000 per month is genuinely sustainable. If it leaves insufficient money for food, energy, travel to work or other essential costs, the proposal may fail.

These amounts are illustrative and do not constitute a recommended repayment plan. Your lender must assess your actual account and circumstances.

Questions to Ask Before Agreeing

What is the exact arrears balance?
Are further charges or interest expected?
What is the combined monthly payment?
When does the arrangement start?
How long is the arrangement expected to last?
Will the arrangement affect my credit file?
Will legal action be paused or reviewed?
What happens if my income changes?
Keep records: save written agreements, payment receipts, mortgage statements, letters and the dates of calls. Make a note of what was agreed and who you spoke to.

Will Mortgage Arrears Affect Your Credit File or Add Charges?

Mortgage payment history can be reported to credit reference agencies. Missed payments may make future borrowing more difficult, even if you later clear the shortfall.

Some formal payment arrangements may also be reflected on your credit file. The reporting depends on the specific arrangement and the lender’s obligations.

Before missing a payment

Contacting the lender to discuss possible support does not itself mean a mortgage payment has been missed.

After missing a payment

The shortfall may be reported according to the lender’s credit-reporting practices.

Agreed support arrangement

Ask how payments and the arrangement will be reported before accepting the proposed terms.

Arrears fees

Request a breakdown of charges. FCA rules restrict inappropriate arrears charges, and charges should reflect the relevant permitted costs.

Avoid an expensive workaround: taking out high-cost credit simply to cover mortgage arrears can make the situation worse. Seek free debt advice before adding another repayment obligation.

Government Help With Mortgage Payments: Support for Mortgage Interest

Some UK homeowners receiving qualifying benefits may be eligible for Support for Mortgage Interest, usually called SMI.

SMI is a loan that helps towards eligible mortgage interest. It is not a grant and does not normally cover mortgage capital repayments or existing arrears.

Qualifying benefits

Current eligibility can include Universal Credit, Pension Credit and certain qualifying income-related Employment and Support Allowance circumstances.

Interest support

SMI is calculated using government rules and a standard interest rate, which can differ from the rate on your actual mortgage.

Loan repayment

The SMI loan is normally repaid with interest when you sell or transfer ownership of the property, subject to the applicable rules.

Existing mortgage arrears

SMI does not clear existing missed payments. You must still agree suitable arrears arrangements with the mortgage lender.

2026 detail: GOV.UK currently states that SMI generally helps with interest on up to £200,000 of qualifying borrowing, with a £100,000 limit in certain Pension Credit and legacy cases. The standard calculation rate and eligibility rules can change, so check the current official guidance.

Official UK governmentGOV.UK: Support for Mortgage Interest

After opening this link:

  1. Read the overview to understand that SMI is a repayable loan.
  2. Select “Eligibility” and check whether your qualifying benefit and mortgage meet the rules.
  3. Open “What you’ll get” to check the calculation and amount of interest potentially supported.
  4. Read “How to apply” for the current application procedure.
  5. Check “Repaying your loan” before accepting an SMI offer.
  6. Tell your lender if you apply, especially if the application is still being processed.

What if You Have Mortgage Payment Protection Insurance?

Check whether you have an income protection policy, mortgage payment protection policy or another insurance arrangement that may apply after unemployment, illness or incapacity.

Read the eligibility conditions, exclusions, waiting periods and claim deadlines. Tell the insurer promptly if you may have a valid claim.

Do not assume an insurance claim or benefits application automatically suspends your mortgage payments. Contact your building society separately and keep it informed of any expected support.

Where to Get Free Mortgage Arrears and Debt Advice in the UK

Independent debt advisers can help you prepare a budget, understand priority debts and negotiate with creditors. You do not have to pay a commercial debt-management company to obtain basic debt advice.

MoneyHelper

Free and impartial money guidance, including mortgage payment difficulties and support options.

Visit MoneyHelper

StepChange Debt Charity

Free debt advice, budget support and help understanding suitable debt solutions.

Visit StepChange

National Debtline

Free confidential debt advice and information about mortgage arrears and other household debts.

Visit National Debtline

Citizens Advice

Guidance on debt, benefits, housing and other financial difficulties.

Visit Citizens Advice

Shelter England

Specialist information about mortgage repossession, court proceedings and housing rights in England.

Visit Shelter

Local housing advice

Your local council or relevant devolved-nation housing service may provide advice if you are at risk of losing your home.

Find Your Local Council

Free debt adviceStepChange Debt Charity

After opening this link:

  1. Select the route for getting debt advice or starting a financial assessment.
  2. Prepare your monthly income, mortgage payment, arrears balance and other debts.
  3. Explain that your mortgage is secured on your home and that payments are at risk.
  4. Review the suggested next actions and support options.
  5. Ask whether an adviser can help you communicate with your mortgage lender.
If a court hearing has been scheduled: tell the debt adviser immediately. You may need specialist housing legal advice in addition to general budgeting help.

Can a Building Society Repossess Your Home for Mortgage Arrears?

Repossession is a serious possible consequence of unresolved mortgage arrears, but it should be a last resort.

FCA rules require regulated mortgage lenders to make reasonable efforts to resolve payment difficulties and consider appropriate alternatives before taking possession.

How Mortgage Repossession Can Develop

  1. Missed payments: the borrower falls behind with contractual mortgage payments.
  2. Lender contact: the building society contacts the borrower and seeks information about their financial circumstances.
  3. Support discussions: appropriate options such as payment arrangements or other mortgage changes are considered.
  4. Formal notice and court action: if the problem remains unresolved, the lender may begin the relevant possession process.
  5. Court paperwork: the borrower receives documents explaining the claim and any hearing arrangements.
  6. Possession hearing: the court considers the case and what order, if any, should be made.
  7. Further enforcement: if legal conditions are met, possession may eventually be enforced.
Never ignore a possession hearing. Attend the hearing, provide accurate financial information and seek specialist advice. A court may consider repayment proposals and other relevant circumstances, but the possible outcomes depend on the case and jurisdiction.

What Does the 12-Month Mortgage Charter Commitment Mean?

Participating lenders have committed not to force a borrower to leave their home without consent within 12 months of the first missed mortgage payment except in exceptional circumstances.

This does not remove the mortgage debt, prevent interest or arrears from accumulating, or mean borrowers should ignore court correspondence.

Specialist housing guidanceShelter England: Home Repossession Process

After opening this link:

  1. Identify which stage of the repossession process you have reached.
  2. Read what the lender must do before court action.
  3. If you have received court documents, review the defence and hearing guidance.
  4. Look for information about legal assistance and court duty advisers.
  5. Contact an adviser urgently if a possession order or eviction notice has already been issued.

Mortgage Arrears Rules Across England, Wales, Scotland and Northern Ireland

FCA mortgage regulation covers relevant regulated lending across the UK. However, court processes, debt protections, housing support and repossession procedures are not identical in every UK nation.

Location
Where to start
Important difference
England
Building society, Shelter England, Citizens Advice and local council housing support.
Mortgage possession proceedings and applicable pre-action requirements operate through the courts in England.
Wales
Building society, Shelter Cymru and Welsh local authority housing advice.
Relevant England-and-Wales civil procedures apply, while Welsh housing support has its own services.
Scotland
Building society, Citizens Advice Scotland, Shelter Scotland and local money advice services.
Scottish repossession procedures and statutory protections differ from England and Wales.
Northern Ireland
Building society, Housing Rights and local independent advice services.
Northern Ireland has its own court procedures and housing-advice arrangements.
Scotland Shelter Scotland
Wales Shelter Cymru
Northern Ireland Housing Rights
Local rule: if you have received legal papers, obtain advice for the country in which the mortgaged property is located. Do not assume that an England-specific court form or deadline applies elsewhere in the UK.

What if Your Building Society Refuses to Help or Handles Arrears Unfairly?

If you believe your lender has ignored relevant information, charged inappropriate fees, failed to explain an arrangement or treated you unfairly, you can make a formal complaint.

Explain what happened, what help you requested, what response you received and why you believe the lender’s actions were unreasonable.

  1. Ask for clarification. Request the reason why a proposed arrangement was rejected.
  2. Make a formal complaint. Use the building society’s official complaints process.
  3. Provide evidence. Include statements, budgets, correspondence and dates of discussions.
  4. Explain the requested remedy. For example, reconsideration of an affordable proposal, correction of an account error or review of a charge.
  5. Consider external escalation. If the matter remains unresolved or the applicable response period has expired, check whether the Financial Ombudsman Service can consider it.
A complaint does not automatically stop repossession proceedings or suspend mortgage payments. Continue dealing with court dates, payment arrangements and urgent lender correspondence separately.

Official complaints serviceFinancial Ombudsman Service

After opening this link:

  1. Find the guidance on bringing a complaint about a mortgage lender.
  2. Check whether you must first give the building society an opportunity to respond.
  3. Review the applicable complaint and referral deadlines.
  4. Prepare the lender’s final response or evidence that the relevant response period has passed.
  5. Submit your complaint using the official Ombudsman process if eligible.

Common Mortgage Arrears Mistakes to Avoid

Waiting for a final warning

Support can be easier to arrange when you first recognise the difficulty rather than after several payments have been missed.

Promising unaffordable repayments

An unrealistic plan can fail quickly. Use an honest budget and ask for an arrangement you can maintain.

Ignoring other priority debts

Mortgage arrears can exist alongside council tax, energy and other urgent household liabilities. Free debt advice can help prioritise them appropriately.

Assuming a payment holiday is automatic

Temporary payment relief must be agreed under the relevant lender rules. Skipping a payment without agreement can create arrears.

Believing SMI clears arrears

Support for Mortgage Interest helps with eligible interest as a repayable loan; it does not simply cancel existing missed mortgage payments.

Ignoring a court hearing

Failure to respond or attend can seriously harm your position. Seek legal or housing advice as soon as legal action begins.

Your Mortgage Arrears Action Checklist

Before ending a conversation with the lender or adviser, make sure you know what happens next.

I know my exact mortgage arrears balance.
I have contacted the correct lender team.
I have explained my current financial circumstances.
I have prepared a realistic household budget.
I know the support options being considered.
I understand any future repayment increases.
I have asked about credit-file reporting.
I know when the next payment is due.
I have kept written records of the arrangement.
I know where to obtain free independent advice.
I have checked any benefits or insurance support.
I know what to do if the arrangement becomes unaffordable.

Related Building-Society.org Mortgage Guides

These published guides can help with related mortgage questions, including deal costs, switching and moving home. They are not substitutes for urgent arrears advice.

Nationwide Building Society: Mortgages, Savings and Customer Help Nationwide Building Society Mortgage Rates and Remortgage Guide
When money is already overdue: prioritise your current lender’s payment-support team and free debt advice over shopping for a new mortgage rate. Arrears can affect eligibility for refinancing.

Official UK Mortgage Arrears Resources

These official and specialist resources support the guidance on this page. Confirm the current information before making financial or legal decisions.

FCA Mortgage Payment Difficulties Rules HM Treasury Mortgage Charter 2026 MoneyHelper Mortgage Payment Support Coventry Building Society Payment Difficulties GOV.UK Support for Mortgage Interest Shelter England Repossession Process StepChange Free Debt Advice National Debtline Financial Ombudsman Service
Editorial review: this guide distinguishes support for borrowers who are up to date from arrangements for borrowers already in arrears. It also separates FCA requirements, the voluntary Mortgage Charter and nation-specific legal procedures.

Independent Information and Mortgage Risk Notice

Building-society.org is an independent informational website. It is not a building society, mortgage lender, regulated mortgage adviser, debt-management provider, law firm, government department or representative of the organisations linked in this guide.

This page provides general information about UK mortgage arrears and payment support. It cannot access your mortgage, negotiate directly with a lender, stop legal action or assess your personal legal or financial position.

Your home may be repossessed if you do not keep up repayments on your mortgage. If you are worried about payments, contact your lender and a free debt adviser promptly. If court action has started, seek specialist legal or housing advice without delay.

Building Society Mortgage Arrears FAQs

1. What should I do if I miss a building society mortgage payment?

Contact your building society’s mortgage arrears team as soon as possible. Ask for your current arrears balance, explain why the payment was missed and discuss an affordable repayment arrangement or other appropriate support. You can also obtain free independent debt advice.

2. Can my building society reduce my mortgage payments temporarily?

Possibly. Depending on your circumstances and mortgage terms, the lender may consider reduced payments, a temporary interest-only arrangement, term extension or another suitable form of support. The long-term interest cost and credit-file consequences should be explained before you agree.

3. Can I get an interest-only period if I am already in arrears?

A lender may consider temporary interest-only payments as part of tailored arrears support, but approval is not automatic. The streamlined Mortgage Charter option is intended for eligible borrowers who are up to date with payments. Borrowers already in arrears should contact the lender’s specialist support team.

4. Does the Mortgage Charter stop repossession for 12 months?

Participating lenders commit not to force borrowers to leave their home within 12 months of the first missed payment except in exceptional circumstances. This does not cancel mortgage payments, prevent arrears from growing or automatically stop all court proceedings.

5. Will missed mortgage payments affect my credit score?

Missed mortgage payments can be reported to credit reference agencies and may affect future borrowing. The credit impact of an agreed support arrangement depends on the type of arrangement and how it is reported. Ask the lender for an explanation before accepting revised payment terms.

6. Can my building society add arrears to the mortgage balance?

It may consider capitalising arrears where appropriate. This means adding the shortfall to the mortgage debt rather than requiring separate immediate repayment. The arrangement can increase the balance owed and future interest, so the lender should explain the consequences.

7. Can I get government help to pay mortgage arrears?

Eligible homeowners receiving qualifying benefits may be able to obtain a Support for Mortgage Interest loan towards eligible mortgage interest. SMI is repayable with interest and does not directly clear existing mortgage arrears. Discuss missed payments separately with your lender.

8. Where can I get free mortgage arrears advice in the UK?

MoneyHelper, StepChange, National Debtline, Citizens Advice and specialist housing organisations can provide free guidance or debt advice. If repossession proceedings have started, seek housing legal advice appropriate to your UK nation.

9. Can I complain if my building society refuses an affordable repayment plan?

Yes. Ask the lender to explain its decision and use its formal complaints process if you believe you have been treated unfairly. You may be able to refer the matter to the Financial Ombudsman Service if eligible. A complaint does not automatically pause mortgage payments or legal proceedings.

10. Can I lose my home after one missed mortgage payment?

One missed payment does not normally lead directly to immediate repossession. Regulated lenders must consider appropriate support and treat repossession as a last resort. However, mortgage arrears are serious, and you should contact the lender promptly rather than assuming a particular period of protection guarantees your home is safe.

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