Workout Options (Loan Exit Strategies)

Workout Options (also known as Loan Exit Strategies)

If you no longer wish to keep your mortgage, or we can’t agree on a suitable solution, we may consider final repayment options, even if the mortgage won’t be paid in full.

 

Important:

Please seek independent, professional advice before considering these options. Please visit our Useful Links page for more information.

 

Options include:

Time to pay off your mortgage in full - If you’re looking to repay your loan in full, either because your term has ended or you’re clearing arrears, we may allow time to complete this. For example, you’ve sold your property and are waiting for legal searches to complete, or you’re accessing pensions funds.  

Impact(s): Interest will be charged on the balance for longer until it is paid in full and the mortgage and any arrears will be reported on your credit file for longer.

Assisted sale - If you want to sell your property but you don’t know how, or don’t want to deal with the sale process, we may be able to help. This means we would appoint and manage estate agents, evaluate offers and oversee the conveyancing process with you.

Voluntary surrender - If you don’t want to keep your property and don’t want to deal with the sale process, you can voluntarily surrender the property to us. Please call us on 0333 014 2046.

Shortfall sale - If you want to sell your property but you don’t think the sale proceeds will be enough to repay your loan in full, we may consider agreeing a payment arrangement to repay the shortfall overtime.

Mortgage to Rent scheme - This is run by the Scottish Government as part of the Homeowner Support Fund. It’s designed to help homeowners at risk of repossession stay in their home. Under the scheme, your home is bought and then rented back to you, allowing you to remain in the property.

We assess every customer's circumstances individually to find a solution that’s most appropriate for you.

If we decline any of these solutions, we’ll explain why and provide a clear reason for our decision.

All customers remain fully liable for the whole debt, unless specifically informed otherwise.

 

If no solution can be agreed

We’re committed to working with you. Repossession is a last resort and will only be considered when all other options have been explored.

 

If repossession occurs:

  • We’ll sell the property for the best price we can reasonably obtain.
  • If the sale doesn’t cover the full mortgage, you’ll still owe the remaining amount (shortfall debt).
  • All parties named on the mortgage are responsible for the full debt.
  • We’ll contact you within six years (five in Scotland) to arrange repayment.
  • We may ask for details about your income, spending, and assets.
  • If no plan can be agreed, we may take legal action to recover the debt, which could result in additional costs.