Can I get a mortgage offer before I find my property?

You can choose the mortgage that suits you best and get an 'agreement in principle' from a lender. However, your lender won't make a formal mortgage offer until a valuation has been carried out on the property you wish to buy or remortgage.

What does APR mean?

APR stands for Annual Percentage Rate. A lender is always required to quote the APR when advertising a loan or borrowing rate. The APR calculates the total amount of interest that will be paid over the entire period of the loan. It must also take into account charges which the borrower has to pay in order to obtain the mortgage and during the loan term (such as lenders fees, valuation and legal fees etc). The purpose of APR is to help you compare the true cost of borrowing.

How do I repay capital with an interest-only loan?

Interest-only mortgages pay off only the interest on your loan, not the money you borrowed in the first place. In order to repay the capital borrowed, you normally save money in a separate plan. The main options for saving in this way are by using a savings account, an endowment policy or a pension.

What other costs might I incur in taking out a mortgage?

When you take out a mortgage you should be aware that, on top of the mortgage cost, you may have to pay a valuation fee. You'll also need to pay search fees, land registry fees and legal costs, as well as stamp duty.

Prior to owning your property, we insist that you take out adequate buildings insurance and it is advisable, but not compulsory, to take out contents insurance as well as sickness and unemployment insurance, for your own peace of mind..

You should always look at the total mortgage package and not just focus on the interest rate.

What is the Early Repayment charge for my mortgage?

Your existing terms & conditions and/or offer letter will detail if an Early Repayment charge is payable and how it is calculated.

What if I lose my job?

You must tell us immediately of any change in your circumstances that could affect your ability to meet your mortgage repayments.

What if I am having trouble paying my mortgage?

Treating you fairly when you cannot pay your mortgage

If you are having trouble paying your mortgage, we will treat you fairly.

We will:

• contact you as soon as possible to discuss your problem;
• talk to agencies who give advice and are acting on your behalf if you want us to;
• give you a reasonable time to pay back the debt; and
• only start proceedings to repossess your home if we cannot solve the problem with you.

We might be able to:

• arrange a new payment plan with you taking your and our interests into account;
• change the way you make your payments or the date you make them;
• allow you to pay back your mortgage over a longer period of time (which could reduce your monthly payments). This may increase the total amount you pay back; or
• change the type of mortgage.

If we cannot do any of these things, we will tell you why. If we can make one of these arrangements with you, we will explain how it would work and give you an agreed period of time to consider it first.

What you can do to help us:

• Tell us as soon as possible if you are having problems repaying your mortgage, or anticipate having problems.
• Get in touch with us quickly if we try to contact you.
• Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up to date with what is happening.
• Keep to the payment plan we agree with you. If you do not make the payments, we might have to go to court to get back any money you owe us or to repossess your property.
• Check whether you can get any state benefits or tax credits.
• If you have an insurance policy, check whether it would help with your payments.
• Tell us if you move to a new address.

You may want to talk to a professional adviser, such as a debt counsellor or a lawyer, before you change your mortgage arrangements.

Costs and charges

We may charge you for administrative and legal costs. We will tell you the amount you will have to pay.

If we cannot agree on a solution

• If we cannot agree on a payment plan with you, we may go to court to start proceedings to repossess your home.
• We will keep trying to solve the problem with you, by talking to you about a payment plan, throughout the process or assisting you with the sale of your property.
• Before we repossess your home, we will let you know how to get in touch with your local authority to see if they can find you somewhere else to live.

If we repossess your home

• We will sell it for the best price we can reasonably get. We will try to sell it as soon as possible.
• We will give you reasonable time to take your possessions from your home.
• We will use the money raised from selling your home to pay your mortgage first, then any other loans or charges secured on the property.
• If there is any money left over, we will pay it to you.

If selling your home does not raise enough money to pay off the mortgage

• If there is not enough money from the sale to pay the whole mortgage, you will still owe us the amount that is left. We will tell you what this is as soon as possible and contact you for you to arrange to pay back what you still owe.
• If you bought your home with other people, each of you is responsible for all the money borrowed. This is true even if you normally only pay part of the mortgage.
• We will take account of your income and outgoings when we arrange a payment plan with you. But if we cannot arrange a suitable plan, we may go to court to get our money back. You might have to pay the court costs.
• Not being able to pay off your mortgage could affect whether you are able to get credit in future.