Frequently asked questions

Will you lend to me?
In order to take a mortgage you must be over 18 and we would recommend the mortgage term does not extend beyond your planned retirement age. We will not discriminate against you because of your colour, race, ethnic or national origin, your sex or if you are disabled. Up to four people can be joined in an application, at least one applicant will be required to have an acceptable form of income and all should have a good credit history. Your application will be subject to a credit check via a credit reference agency and you will need to prove your income.

How much can I borrow?
This will depend on how much your property is worth and how much you earn.

What does loan to value mean?
The loan-to-value ratio of a mortgage refers to the difference between the amount of capital borrowed and the total value of the property being mortgaged. It is usually expressed as a percentage. For example, someone borrowing £80,000 to buy a property worth £100,000 would have an 80% loan-to-value ratio (£80,000 is 80% of £100,000). Someone borrowing £50,000 to buy a property worth £100,000 would have a loan-to-value ratio of 50%.

How do I repay my mortgage?
You can choose between a repayment mortgage or an interest only mortgage.

With a repayment mortgage you pay interest plus capital each month so by the end of your mortgage term, the amount you borrowed is fully repaid.

With an interest only mortgage your payments only cover the monthly interest. Your monthly payments will be lower than a repayment mortgage however, the amount you borrow will not reduce and will have to be repaid at the end of the mortgage term. This may be done by linking your mortgage to an endowment assurance or personal pension plan. You can also repay the amount borrowed from your own personal savings. It is your responsibility to do this and you should also consider arranging life assurance to repay the loan in the event of your death.

Which product is best for me?
Each of our mortgage products have different features and which is most suitable depends upon your personal circumstances. Our mortgage advisers will be able to offer you advice on the product for you. To arrange for one of our mortgage advisers to call you, please enter your details here.

What is an Initial Disclosure Document (IDD)?
This is a standard document designed by the Financial Services Authority to provide information about the service levels offered.

What is a Key Facts Illustration (KFI)?
This is a standard document designed by the Financial Services Authority to ensure customers receive consistent information to make it easier to compare lenders products.

What properties will you lend on?
We will lend on most properties built using standard construction methods and materials. We will not lend on flats in blocks above 4 storeys and we will not lend on ex-local authority flats.

The property I would like to buy is leasehold, will you lend on it?
Yes, as long as there is at least 30 years remaining on the lease at the end of the mortgage term.

I'm a council tenant, will you lend to me?
Yes, you can borrow up to 100% of the discounted price and can even borrow additional money for home improvements.

I have mortgage arrears, will this affect me?
Applicants must have a satisfactory record of mortgage or rental payment for the last two years by evidence of a reference, or comprehensive statements, or a rent book. Any applicant with a history of mortgage arrears or property in possession is not acceptable.

Over what term can I pay my mortgage?
The usual term for a mortgage is 25 years but your loan can be for any term between 5 and 40 years. The maximum age of the highest wage earner on the mortgage must not exceed 65 before the end of the mortgage term.

Why is my first mortgage repayment higher than the usual monthly repayment?
Included in your first months repayment will be an element of accrued interest. As there is no repayment taken during the month of completion, interest is accrued and added to your first monthly repayment. Accrued interest is charged from the day your mortgage completes until the end of the month.

Can I change the date of my direct debit?
Yes, as long as you give 5 days written notice of the change in collection date.

What happens at the end of the fixed or discount rate period?
Once your chosen product has ended your rate will switch to the relevant variable rate. We will contact you in advance of this to advise you of the options available to you and to offer you another product.

What are early repayment charges?
An early repayment charge can be incurred if part or all of your mortgage is paid off before a pre-agreed date, or moved to another product or lender. If a charge applies it will be explained to you as part of the mortgage application process and full details will be provided in your mortgage documentation.

Can I change from an interest only mortgage to a repayment mortgage?
Yes. A member of our Mortgage Sales Department will be happy to assist you. For further information please click here.

Can I borrow additional money against my mortgage to pay for home improvements?
Yes. A member of our Mortgage Sales Department will be happy to assist you. For further information please click here.

I'd like to request a Certificate of Interest Paid for my mortgage, how can I get one?
To request a Certificate of Interest Paid please click here. We do not charge for your first Certificate but there is a charge of £15 for any duplicate Certificates you request. For further details of the charges that apply to our mortgage products please click here.

What are the administration charges upon redemption?The charges will vary according to the terms and conditions of your mortgage product. Typically you can expect to pay a deeds release fee, a sealing fee and a redemption statement charge. For further details of the charges that apply to our mortgage products please click here.

Can I stop my direct debit before the mortgage is redeemed?
No, once redemption has taken place we will automatically cancel your direct debit.

What happens if a direct debit is collected after a redemption statement has been issued?
Once redemption has taken place and we are satisfied that the direct debit funds are cleared, we will refund your bank account by electronic transfer.

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