We understand that during these challenging times you may be worried about your mortgage payments, this is why Principality fully supports the Government’s Mortgage Charter. This applies to Residential Mortgages only. The Mortgage Charter does not apply to Buy to Let or Holiday Let mortgages.
This gives Members confidence that help is at hand. If you have any concerns around financial difficulty, please get in touch.
We can help
- Talk to us for help and guidance without any impact to your credit score
- Take a look at our Difficulty Paying Your Mortgage page
- Be assured that we will not repossess your home within 12 months of your first missed payment
- Lock in your mortgage deal up to six months in advance of your current deal ending, without an affordability check
- You will also be able to manage your new deal and request a better like for like deal, until two weeks before the new term starts
- If you have no missed mortgage payments, we can switch you to Interest Only payments for up to six months, with no affordability assessment *
- You can request an extension to your mortgage term, with no affordability assessment. You can then revert to your previous term within six months, also with no affordability assessment **
If you can meet your current repayments, you should continue to do so.
This means you will pay less interest than if you were to make any term or interest only changes.
*Moving to an Interest Only mortgage
If you move to an Interest Only mortgage, you need to be aware that it will have longer term financial implications, including:
- Increased payments - When your temporary interest only period ends, your monthly payment will increase automatically, to make sure you repay your mortgage in full, on time.
- Additional long-term cost - Your mortgage balance will increase whilst your payments are on interest only, therefore your mortgage will attract additional interest in the long run.
- Your mortgage balance will not reduce – When you’re paying interest only for any period of time, the overall balance (the debt you owe) does not decrease. This means you pay more interest in the long-term than you would have if no change was made.
**Changing your mortgage term
If you make a change to your mortgage term, it’s important you understand the impact of these changes:
- You pay back more long-term. By extending your mortgage term, you’re paying less over a longer period of time. This means you’ll be paying your mortgage for longer and will be paying more interest back overall.
- Your balance won’t reduce as quickly. By extending your term, it will take you longer to pay the balance, than if you made no change.
- Increased payment – if you choose to temporarily extend your mortgage term, your monthly payments will increase when you revert to your previous term.
Keep talking to us
These changes are on an Execution Only basis, which means we do not offer advice, assess affordability or assess the suitability on making these changes to your mortgage. You are able to gain access to free advice from organisations such as Money Helper, StepChange Debt Charity and Citizen’s Advice Bureau.
If you’ve already missed payments on your mortgage, or you’re a Buy to Let or Nemo customer, you may be able to get tailored support by calling us on 0330 333 4020, 9-5 Monday to Friday.
If you haven’t missed any payments and would like to discuss your options, you can contact our Mortgage Team on 0330 333 4030, 9-5 Monday to Friday and 9-1 Saturday.