If a payment is missed, particularly the first payment, you should not immediately get heavy on the borrower. If there is an innocent mistake jumping the gun will damage your relationship with the borrower and your reputation with the private mortgage broker.

The borrower may have swapped a digit in the bank account number accidentally when they set up the transfer etc. The best thing to do is contact the private mortgage broker who arranged the loan and ask them to contact the borrower. If this gets you nowhere within 24 hours then ask Bransgroves Lawyers to write to their lawyer.

The borrower has seven days from the due date before the higher rate of interest kicks in. You want the borrower to know that you want them to pay before then. This generates goodwill and keeps communication channels open. Goodwill leads to performing loans being rolled over upon expiry.

If you have the borrower’s email you can email them but it is unwise to speak to them over the telephone. Always keep your communication in writing so the borrower does not later claim that you verbally promised an indulgence. If you do speak with the borrower, send them an email immediately after the conversation confirming what was said or agreed to in that conversation. Your email will trump both your recollections should the matter ever go to court.

Step 2 - Informal enquiries