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 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.
Interest is charged on the balance outstanding at the end of each day. This means that you benefit immediately from any payments of capital but that interest is compounded daily. It also means that if you miss or are late with payments, more interest will be charged. Interest is also charged on any unpaid fees or premiums.
Early repayment charges
In providing your mortgage, one of our aims is to try to give you as much flexibility as possible with regards to your mortgage payment arrangements.
Providing special mortgage products, such as fixed, tracker, discounted and capped mortgages, does, however, involve us in putting in place special funding arrangements to support these products. Often we are locked into such arrangements, regardless of the actions of borrowers and changes in prevailing interest rates.
This combination of funding arrangements and our inability to vary these is the main reason Early Repayment Charges are normally applied. As a result, Early Repayment Charges may apply in the event of:
repayment in full (redemption)
repayment in excess of any applicable overpayments limits
transfer to an alternative mortgage product (in full or part)
Please note, the Early Repayment Charge only applies during the special rate period.
The early repayment charge that you will have to pay depends upon the product you choose and the size of your mortgage. Details of the mortgages that have early repayment charges and the level of the charge is detailed in our section, it will also be detailed in your mortgage illustration and your mortgage offer.
Some of our products are portable so that if you move house within the fixed, capped, discounted or tracker rate period and keep 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.
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.
By making additional payments you will be immediately reducing your mortgage balance, which will reduce the amount of interest we are charging you. 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 over the remaining mortgage term rather than reducing the term of your mortgage.
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.
This will 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.