How to ask for mortgage support from your lender
Three in 10 mortgage-holders would feel uncomfortable discussing their finances and budget pressures with their lender, according to debt-help charity StepChange.
Its survey of 2,000 people also revealed that one in five mortgage-holders were unsure of who they would be most likely to speak to if they had financial issues.
Vikki Brownridge, chief executive of StepChange, said: 'We know from our experiences with clients that it can take someone a long time to open up and seek help if they’re struggling with their finances.'
With half a million mortgage deals due to end by Christmas and homeowners facing higher mortgage rates, Which? takes a look at the support available and how best to contact your lender if you're worried about how you will meet your payments.
What mortgage support options are there?
If you don't think you'll be able to make your mortgage payment, the first thing to do is contact your lender. It's better to do this than to fall into arrears, which means you're behind on payments.
Your lender will be able to take you through a range of options that can ease the strain on your finances:
- A temporary mortgage payment holiday: repayments are paused for an agreed amount of time. Just be aware that interest will continue being added to your loan.
- A temporary switch to interest-only payments: instead of paying off the capital and interest, you may be able to switch to paying just the interest on your mortgage, for a set period. One drawback is that it will take you longer to clear your loan.
- Extending the mortgage term: this involves stretching the period you have agreed to pay back the mortgage. For example, you could extend a 25-year mortgage to 30 years. This can help lower your monthly repayments, but as you'll be paying back the same amount of debt over a longer period, you will pay more interest overall.
For more detail on the pros and cons of each support option, head to our guide: what to do if you can't pay your mortgage.
The vast majority of banks and building societies have signed a mortgage charter pledging to offer these support options with no new affordability checks and protecting credit scores if you meet certain criteria. However, if you continue to take the relief after the six-month period, your credit file could then be impacted and an affordability check will be required.
- Find out more: seven million households struggling with mortgage or rent
How to contact your mortgage lender
Many websites for banks and building societies have online chat functions, however, you'll want to speak to someone in order to make changes to your mortgage.
Calling your provider, or visiting a branch if there is one, would be the best option. Lenders have staff who are trained in helping customers with these types of concerns, so don't feel embarrassed to pick up the phone and ask for help.
Charles Roe, director for mortgages at trade association UK Finance, said: 'All lenders have teams of experienced experts ready to help anyone who is worried about their mortgage. Last year, lenders helped over 200,000 borrowers who couldn’t meet their full mortgage payments.'
Mortgage provider contact numbers
The table shows the contact numbers for 15 of the UK's biggest mortgage providers. Each number is for existing customers to dial if they want to discuss payment support options.
| Lender | Phone number for mortgage support | Operating hours |
|---|---|---|
| Barclays | 0333 202 7504 | Mon-Thu: 8am-8pm, Fri: 8am-6pm, Sat: 9am-1pm |
| Coventry Building Society | 0800 121 8899 | Mon-Fri: 8am-7pm, Sat: 9am-2pm |
| First Direct | 0345 610 0198 | Mon-Fri: 8am-8pm, Sat: 8am-5.30pm |
| Halifax | 0345 850 3705 | Mon-Fri: 8am-8pm, Sat: 9am-4pm |
| HSBC | 0800 783 6533 | Mon-Fri: 8am-8pm, Sat-Sun: 9am-5pm |
| Leeds Building Society | 0345 050 2230 | Mon-Fri: 8am-6pm, Sat: 9am-5pm |
| Lloyds Bank | 0800 783 3534 | Mon-Fri: 8am-8pm, Sat: 9am-4pm |
- Find out more: best mortgage lenders 2023
Check if you can use the Support for Mortgage Interest loan
Benefits claimants can get support on their bills with the aid of the government's Support for Mortgage Interest (SMI) loan.
The scheme helps struggling homeowners cover the cost of some of the interest on their mortgage.
To qualify, you will need to be in receipt of one of the following: income support, jobseeker’s allowance, employment and support allowance, universal credit or pension credit.
A recent rule change means 200,000 more benefit claimants are eligible, so make sure to check if you qualify.
Government data from September shows 12,110 households are currently using the SMI loan – this is up from 11,787 in the last quarter.
