Step 3 Dealing with your priority debts

​Priority business debts

Business mortgage

A lender’s powers are different depending on whether you take out a mortgage for your home or for business purposes, such as shop or office premises or a buy-to-let property.

Your mortgage lender may be more demanding if you took the mortgage out for business purposes.

If you are behind with your business mortgage repayments, you should contact your lender and discuss the options available. Use your Your budget to work out what you can afford to pay towards the debt.

If you cannot afford to pay your business mortgage, you will need to increase your income or you may have to consider selling the property.

Ways of increasing your business income and Ways of increasing your household income

For more information about business mortgages, contact us for advice.

Business rent

If you do not keep up your rent payments, your landlord can send a bailiff to your business premises to remove your stock and equipment without a court order.

Your landlord can also end your lease early if you have arrears. This is known as 'irritancy'. Check your lease to see if there are any irritancy terms and conditions.

Your landlord will have to give you a chance to pay the rent you owe first. The terms and conditions of your lease will tell you how long you will be given. Your landlord may have to tell other creditors that they intend to take your goods. This may lead to other creditors quickly taking action against you (known as diligence).

If you still have rent arrears, your landlord could also apply for a court order to evict you and then use diligence against your other assets.

Any action your landlord takes will depend on your relationship with them and the length of any lease you have. It is important to negotiate with your landlord as soon as you realise you are in financial difficulties. You can use Your budget to help you do this.

See our fact sheet:

Business property leases.

If you need more information about negotiating with your landlord, contact us for advice.