Product end date
The majority of our mortgage products refer to the fact that the interest rate is applicable until a specified date, the product end date.
This means that although the product may be referred to as a '3 year fixed' for example, the rate of interest may last slightly more or slightly less than 3 years.
This depends on when your mortgage (or mortgage product transfer or additional loan) completes.
A '3 year fixed rate with a product end date of 30/04/18' is chosen.
- If your mortgage application completed on 1 April 2015, the interest rate is fixed from 1 April 2015 (the date of completion) to 30 April 2018 (the product end date), which is almost 3 years and 1 month.
- If your mortgage application completed on 1 June 2015, the interest rate is fixed from 1 June 2015 (the date of completion) to 30 April 2018 (the product end date), which is 2 years and 11 months.
We calculate the interest payable on the balance outstanding at the end of each day. Any payments of capital are immediately applied to the balance but interest is compounded daily.
The important thing to note here is that if you miss or are late with payments, more interest will be charged.
Early repaymentment charges
With many of our mortgage products, if you repay (redeem) your loan in full, repay in excess of any overpayment limits, or transfer (in full or part) to a different product or to our Standard Variable Rate, we'll require payment of an early repayment charge. This charge only applies during the special rate period of the product.
The early repayment charge on these products will be calculated at the rate applicable for the year in which the repayment of the mortgage, repayment in excess of any overpayment limit, or transfer occurs.
The basis of the early repayment charge can vary depending on the product you chose, and will be based on either the amount repaid/transferred or the amount originally borrowed. If the early repayment charge is based on the total amount you borrow, this will disregard any payments (including usual monthly payments) you make during any fixed, capped, discounted or tracker rate period which may reduce the total amount borrowed. Please refer to the specific product for details of how the early repayment charge is calculated. Details of the mortgages that have early repayment charges and the level of the charge is detailed in our current mortgage range.
If you make a payment in excess of any overpayment limit, the early repayment charge will be calculated on the amount paid over the limit.
Some of our products are portable so that if you move house within the fixed, capped, discounted or tracker rate period and borrow the same amount of loan with us on the same product we will pay back the early repayment charges you incur for repaying your loan early. This refund is subject to conditions as will be explained in any mortgage offer issued to you. In order to exercise portability, you must meet our lending criteria applicable at that time.
Applications subject to standard lending criteria and all loans subject to status.
Depending on the product you chose, you could significantly reduce the total amount of interest you pay and potentially knock years off your loan by paying more than your usual monthly payment, or by making occasional lump sum payments on top of your usual monthly payment.
Any additional payments you make will immediately reduce your mortgage balance and so reduce the amount of interest we are charging you. This can help reduce future payments. If you want to pay your mortgage off quicker, please contact us to let us know. Otherwise, at annual review, your payments will be adjusted every year rather than reducing the term of your mortgage.
Early repayment charges may apply. Please refer to your offer for any limits on overpayments.
Underpayments and payment holidays
If you have previously overpaid, you can underpay or even take a break from making your monthly payments up to the amount you have previously overpaid.
Underpayments or payment holidays need to be agreed with us in advance and will increase the amount of interest we charge you. Interest continues to be charged during payment holidays.
Your mortgage commitments
You will have the following commitments whilst you have a mortgage with us:
- Maintain regular payments on your mortgage
- Look after the property and keep it in a good state of repair
- Fully insure your property with an adequate Home Insurance Policy whilst you have a mortgage with us. You may choose the provider of this policy as long as it meets our requirements
These are some of the obligations you will have as part of taking out a mortgage. You will receive full details with any mortgage offer we issue
If you fail to meet these (or other) obligations, there may be additional costs for you where we have to carry out further work and/or incur extra costs.
If in the future you have trouble making your mortgage payments, you should contact us as soon as possible so we can try to help you. We'll be able to discuss your circumstances and wherever possible offer help to meet your individual needs.
Ultimately, your mortgage is a loan which is secured against your home. This means that as a last resort, we can take action to repossess and sell your home if you do not keep up payments on your mortgage or in the event of any severe breaches of your obligations.
Interest only mortgages
All new mortgages can only be set up on a repayment (Capital & Interest) basis only. With this type of mortgage the borrower's monthly payment will include elements of both interest and capital. Provided all payments are maintained, the loan will be repaid at the end of the term.
We do not currently lend on an interest-only repayment basis.