3. Mortgage arrearsWhat is a mortgageStandard securitiesCommon mortgage typesCapital repayment mortgagesInterest-only mortgageStandard variable rate mortgagesFixed-rate mortgagesTracker mortgagesShared ownership mortgagesIslamic mortgagesLoan for mortgage interestMortgage indemnity guaranteeThe FCA and regulated mortgage contractsMortgage prisonersFCA guidance for lendersTailored support guidance and forbearanceCustomers in vulnerable circumstancesGuidance for firms supporting borrowers with the cost of livingGuidance for customers with interest-only mortgagesConsumer dutyMortgages and Home Finance: Conduct of Business SourcebookThe repossession processPre-action requirementsArrears lettersDefault noticeCalling up notice and section 11 noticeSection 24 application and initial writEntitled residentsCourt hearingOrder for ejectionForm for charge for removingMinute for recallDealing with mortgage arrearsNegotiate with the lenderCheck for insurancesInterest–only paymentsChange from an endowment to a capital and interest mortgageReduced paymentsCapitalise the arrearsExtend the mortgage periodReduced payments or a payment holidayUse pensions or other savingsHomeowners’ support fundHanding back the keys (voluntary surrender)Using the Debt Arrangement SchemeUsing an insolvency optionTime orderRecall the decreeMortgage shortfallsThe Mortgage CharterComplaints and the Financial Ombudsman ServiceChecklistA ‘standard security’ is the Scots law equivalent of a ‘legal mortgage’ in England and Wales. It is the only effective form of fixed security that can be taken over land in Scotland. The property remains with the client as owner, while the creditor has fixed security over the property by a standard security registered on the land register through the Registers of Scotland.Mortgage arrears should be treated as a priority debt.