Lenders, have a clear and implied obligations under the FCA regulations for arrears handling and are required to do all of the following. Handle matter sympathetically, Make reasonable efforts to reach an arrangement over repaying arrears, explain clearly their reasons for rejecting payment. If you have not already, sent a letter to your lender with a proposal for make further payments, you should do immediately, by recorded delivery and keep a copy for court. Secondly since the lender is not sympathetic, you can start a formal complaint with Financial Ombudsman on 0300 123 9 123, which often results in the lender being more cooperative. Take action, make copies

The mortgage company have to sell the house for the highest market value available, subject to offers even if it is more than what is owing. Any credit would normally be paid to you, but since the equity part of the property is not yours, the current holders would get that.