Leek United's Arrears Policy
The Society aims to treat all its customers fairly and below are the standards we will observe if you fall behind in your repayments.
We will
If selling your home does not raise enough money to pay off the mortgage
Joint borrowers
If you are a joint borrower then you are equally responsible for ensuring that the monthly repayments are made, even if the court has ordered that the property be transferred to the other party. You should keep the society informed of your current address so that we may send you a copy of any correspondence.
Costs and charges
If you are in arrears, we may charge you for reasonable administrative and legal costs. We will tell you the amount you will have to pay.
Sale and rent back
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, as such actions may not be in your long-term best interests. We would advise you to seek independent advice before entering into any arrangement of this type.
Voluntary possession
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 would advise you to discuss this option with us or a free debt advice agency before taking such action.
If you voluntarily allow us to repossess your home, click here for information on what will happen next?
Complaints
If you do not think we have treated you fairly, you can complain to:
Mortgage Administration Controller
50 St Edward Street, Leek, Staffordshire. ST13 5DL
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 and can be contacted at:
The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Phone: 0845 080 1800
- Contact you as soon as possible to discuss your problem.
- Talk to any agency, which gives debt advice (for example, Citizens' Advice), 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.
- Arrange a new payment plan with you, after taking into account your financial circumstances (click here to view the full range of 'Options for borrowers with financial difficulties').
- If we cannot offer you any of these options, we will tell you why. If we can make one of these arrangements with you, we will explain how it would work and give you time to consider it. If we cannot offer any of these options, depending on your circumstances, we might agree to you remaining in your home and to sell the property yourself.
- Tell us, as soon as possible, if you are having problems repaying your mortgage or think that you might experience problems shortly.
- Seek debt advice if you would like help with managing your finances.
- Contact us quickly, if we try to contact you.
- Inform us if you have changed your telephone number.
- Make sure you keep any other people paying the mortgage, and any one guaranteeing the mortgage, up to date with what is happening.
- Keep to the payment plan we agree with you, or tell us if there is a change in your circumstances which may affect the arrangement. If you do not make the agreed payments, 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 would help with your payments.
- 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 would strongly advise that you seek independent, free, debt advice.
- We may go to court to start proceedings (click here to view 'Pre-Litigation avice for borrowers') to repossess your home. If proceedings take place, we strongly recommend that you attend the court (click here to view 'Notification of Court hearing date - advice for borrowers';) and that you seek independent debt advice.
- Starting court proceedings does not necessarily mean that we will repossess your home. We will keep trying to solve the problem with you. Repossession is a last resort.
- Before we repossess (click here to view 'Repossession of your property - what will happen next') your home, we will give you advice about getting in touch with your local authority to see if they can find you somewhere else to live.
- 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 charges.
- If there is any money left over, we will pay it to you.
If selling 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 immediately to arrange for you to pay back what you still owe.
- We will take account of your income and outgoings when we arrange a payment plan for this shortfall debt with you. But if we cannot arrange a suitable plan, we may go to court to get our money back. You might have to pay additional court costs.
- If a shorfall debt is not paid, it could affect whether you are able to get credit in future.
Joint borrowers
If you are a joint borrower then you are equally responsible for ensuring that the monthly repayments are made, even if the court has ordered that the property be transferred to the other party. You should keep the society informed of your current address so that we may send you a copy of any correspondence.
Costs and charges
If you are in arrears, we may charge you for reasonable administrative and legal costs. We will tell you the amount you will have to pay.
Sale and rent back
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, as such actions may not be in your long-term best interests. We would advise you to seek independent advice before entering into any arrangement of this type.
Voluntary possession
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 would advise you to discuss this option with us or a free debt advice agency before taking such action.
If you voluntarily allow us to repossess your home, click here for information on what will happen next?
Complaints
If you do not think we have treated you fairly, you can complain to:
Mortgage Administration Controller
50 St Edward Street, Leek, Staffordshire. ST13 5DL
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 and can be contacted at:
The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Phone: 0845 080 1800