Hello. Thanks for your reply.
The business wasn't a limited company when it took out the mortgage, but the mortgage was taken out in the name of my wife's business. It's effectively a house, but the front two reception rooms have been converted into a shop.
1. The bank have "issued proceedings seeking possession of the property". Although it appears that they are not about to take possession of the property. I am no longer in contact with the bank directly and must contact them via their solicitor. I have been to court on several occasions. The last time was six months ago to agree to an increase in the amount I could afford to pay in addition the the monthly mortgage payment. The next review will be this month.
2. Good point. As far as I am aware the bank are aware of this, although I will check and confirm this.
3. The property has reduced in value a little due to the slow market, but is worth over £300,000. The mortgage balance is roughly £178,000. The arrears are roughly £6,000.