Having trouble paying your mortgage?

Don't ignore the problem.

If you are having trouble paying your mortgage, help could be available.

Although your mortgage is known as a C&G mortgage and Cheltenham & Gloucester plc administer it, Lloyds TSB Bank plc is the lender, so it is Lloyds TSB who you will try to help you if you are having difficulties paying you mortgage.  This explains how they will treat you fairly, and what steps you should take to help yourself.

Lloyds TSB will
Lloyds TSB might be able to
What you can do to help Lloyds TSB
Costs and charges
If Lloyds TSB repossess your home
If selling your home does not raise enough money to pay off the mortgage
Complaints
Other issues

Lloyds TSB will

• Contact you as soon as possible to discuss your problem.
• Talk to an agency which gives debt advice (for example, Citizens' Advice), if you want them to.
• Give you reasonable time to pay back the debt.
• Only start proceedings to repossess your home if they cannot solve the problem with you.

Lloyds TSB might be able to

• Arrange a new payment plan with you, taking your and their interests as lender into account.
• Change the way you make your payments, or the date you make them.
• Allow you to pay back your mortgage over a longer period of time (which would reduce your monthly payments).
• Change the type of mortgage.

If they cannot offer you any of these options, they will tell you why. If they can make one of these arrangements with you, they will explain how it would work and, more importantly, give you time to consider it. If they cannot offer any of these options, they might agree to you remaining in the property to sell the property yourself depending on your circumstances.

What you can do to help Lloyds TSB

• Tell Lloyds TSB or C&G as soon as possible if you are having problems repaying your mortgage or think that you might experience problems shortly. If you think you may be facing difficulties but haven't fallen behind with your mortgage payments, please call 0845 6031 637. If you have already fallen behind with your payments, please call 0800 3894 020.
• Seek debt advice if you would like help with managing your finances.
• If you are struggling with your financial commitments you should pay all your essential bills first, such as your mortgage, utility bills (electricity, gas, water), insurances, council tax and housekeeping.   You should pay these essential bills before any credit card or loans payments.
• Contact Lloyds TSB quickly, if they try to contact you.
• Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up to date with what is happening.
• Keep to any payment plan they agree with you, or tell them if there is a change in your circumstances which may affect the arrangement. If you do not make the agreed payments, they might have to go to court to get back any money you owe, 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 them 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.

Costs and charges

If your mortgage goes into arrears, Lloyds TSB may charge you for reasonable administrative and, more importantly legal costs. They will tell you the amount you will have to pay.

If they cannot agree on a solution with you to clear the arrears:

• They may send a debt counsellor to see you to discuss your financial circumstances, and the cost of the visit may be charged to your mortgage account.
• They may go to court to start proceedings to repossess your home. If proceedings take place, it is strongly recommended that you attend the court and that you seek independent debt advice.
• Starting court proceedings does not necessarily mean that they will repossess your home. They will keep trying to solve the problem with you. Possession is a last resort.
• Before they repossess your home, Lloyds TSB will give you advice about getting in touch with your local authority to see if they can find you somewhere else to live.

If Lloyds TSB repossess your home

• They will sell it for the best price they can reasonably get. They will try to sell it as soon as possible.
• They will give you reasonable time to take your possessions from your home.
• They will use the money raised from selling your home to pay your mortgage and any other loans or charges.
• If there is any money left over, they 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 Lloyds TSB the amount that is left (a shortfall debt). They 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.
• Lloyds TSB will contact you within six years of selling your property (five years in Scotland) to arrange for you to pay back what you still owe.
• Lloyds TSB will take account of your income and outgoings when they arrange a payment plan for this shortfall debt with you. But if they cannot arrange a suitable plan, they may 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.

Complaints

If you think that Lloyds TSB has not treated you fairly in dealing with any arrears on your mortgage, first please talk to them and let them know what the problem is.  The chances are it can be sorted out quickly by the manager of the department you are dealing with - so please contact them first.

If, after going through the complaints process, you’re still unhappy, you can then refer your complaint to the Financial Ombudsman Service (The Financial Ombudsman Service is only available once you have received the final letter of response from Lloyds TSB, or if you have not received a final response after 8 weeks). 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

email: complaint.info@financial-ombudsman.org.uk

Other issues

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.

You may be thinking about handing your keys over to Lloyds TSB or to us. If you do this, you will still owe Lloyds TSB any outstanding debt, and we would advise you to discuss this option with Lloyds TSB or us before taking such action.