| This page provides information for borrowers with the Society including general terms and conditions. |
| If a specific mortgage product has terms or conditions that differ from these, then they will take precedent. The Society produces separate leaflets detailing terms and conditions for each mortgage product. |
| The Society is authorised and regulated by the Financial Services Authority and with effect from 31st October 2004 any new mortgage taken with the Society on an owner occupied property will be covered by these regulations. |
| The Society does not provide advice on mortgages and will not recommend a particular mortgage product for you. However information on any product will be provided to enable you to make your own choice. |
| Types of mortgage |
When choosing a mortgage you will want to consider the full range of repayment methods available. The Society is not tied to any insurance company and does not sell any life assurance or investment products. If you have consulted a registered mortgage Introducer or Intermediary, he/she should be able to help. If you are dealing with the Society direct, we recommend that you consult an independent financial adviser. We can put you in touch with an independent financial adviser if you wish. |
 | Repayment - Your monthly instalment will cover both interest on the outstanding loan and repayment of the capital sum borrowed. Your mortgage will not be conditional on you taking out appropriate life assurance but you are advised to arrange separate life assurance cover to protect you and your family. | | Interest only - Your monthly instalment will only cover the interest on the outstanding loan and therefore the balance outstanding will remain the same. The following are types of investment schemes which can be used to repay the capital sum at the end of the mortgage term. It is your responsibility as a borrower to keep up the arrangements to ensure that the mortgage can be repaid at the end of the term. The following are various methods that can be used to pay off the capital: | | |  | Endowment - You will make two separate monthly payments during the mortgage term; one is interest on your loan payable to the Society, and the other a premium on an endowment policy with a life assurance company to build up a cash lump sum which aims to repay your mortgage. | | | | Pension - Again you will make two separate monthly payments during the mortgage term; one is interest on your loan payable to the Society, and the other a contribution to a personal pension plan. This will provide you with a pension, aims to pay off your mortgage and could also provide you with a cash surplus. You will also need to take out suitable life insurance. | | | | ISA (Individual Savings Account) - These were introduced in April 1999 to replace PEPs (Personal Equity Plans) and have certain tax advantages. The maximum amount that can be saved per annum is determined by the Government. A monthly payment is made to the ISA provider in order to build up a fund. Assuming sufficient contributions are made, the aim is to repay the capital on your mortgage. The Society will also require you to take out a life insurance policy to cover the amount of the mortgage linked to an ISA. |
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Some borrowers may wish to have part of the loan on an interest only basis and the balance on a repayment basis. The Society is prepared to accommodate this, and in these circumstances the loan will be set up in two parts. |
| Term of mortgage |
| The Society can be flexible about the period over which you repay your mortgage. The term is usually 25 years but can be as much as 30 years if your mortgage is pension-linked. |
It is important with any investment linked mortgage (e.g. endowment, ISA or pension) that you ensure that all premiums or contributions are made and that you do not surrender or cash in the policy or plan early as you may lose a large part of its potential value. With these types of mortgages, no capital is repaid until the end of the loan period so the outstanding balance never reduces. Consider how you would repay your mortgage at the end of the loan period if for example, you had allowed your endowment cover to lapse because you had not paid the premiums or if you had surrendered the policy. |
| The Society will send a reminder to each borrower annually to remind you of the need to make sure that an adequate repayment method is in place. |
| Interest rates |
| Interest will be charged on the amount of the mortgage advance from the date of completion to the following 31st December, and thereafter on the balance outstanding at the commencement of each successive year. |
| The Society will notify all borrowers in writing of any changes to the Society's interest rates, together with a revised repayment. |
| Repayments |
You will normally make your first payment during the calendar month after the month in which the loan is completed. However, before this we may ask for an amount to be paid which covers the interest charged between the completion date and the end of the month in which completion takes place. This payment should ensure that the mortgage balance does not increase. |
| Changes to terms and conditions |
| Any changes to terms and conditions will be notified to you in writing and we will give you reasonable notice before any changes take effect. |
| Fees |
| Valuation Fee |
| Valuation | Fee (VAT incl.) | | Up to | | £50,000 | £80 | | £50,001 | to | £75,000 | £110 | | £75,001 | to | £100,000 | £125 | | £100,001 | to | £125,000 | £140 | | £125,001 | to | £150,000 | £155 | | £150,001 | to | £175,000 | £170 | | £175,001 | to | £200,000 | £185 | | £200,001 | to | £250,000 | £200 | | £250,001 | to | £300,000 | £250 | | £300,001 | to | £400,000 | £300 | | £400,001 | to | £450,000 | £350 | | £450,001 | + | | by negotiation |
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The fees quoted above relate only to the basic valuation which is required to enable the Society to assess whether the property is suitable security for the mortgage which you require. If you are purchasing a property, it is strongly recommended that you consider obtaining either a Homebuyer's Report or Full Structural Survey. Please advise the Society of your choice on the mortgage application form. |
| Legal Fees |
Solicitors' and Licensed Conveyancers' fees are not based on a set scale. You should ask your Solicitor to provide you with a quote for acting on your behalf and on behalf of the Society. If the Society is instructing its own Solicitor because your Solicitor is not acceptable to us you will have to pay their fees as well. Likewise if you are using a Licensed Conveyancer you will have to pay the fees of the Society's Solicitor as we do not accept Licensed Conveyancers. If your Solicitor is not acceptable to the Society we will endeavour to tell you at the earliest possible opportunity. |
| Mortgage tariff |
| Arrangement Fee |
A minimum of £295 for owner occupied residential mortgage applications. This must be submitted with your application form and is non refundable. If you wish to benefit from one of our products a higher fee may be payable.(See product literature). Other fees: |
| Mortgage Questionnaire | | £75.00 | | Conversion of Account to alternative Repayment basis | £75.00 | | Extending Account Term | | £50.00 | | Agreement of Letting property | | £100.00 | | Sealing Fee | New Customers | £100.00 | | Deeds Release Fee | | £25.00 | | Copy of Deeds | | £25.00 | | Deed of Transfer | | £100.00 | | Release of Security | | £50.00 | | Product Transfer Fee | | £200.00 | | Further advance fee | Up to £100,000 | £100.00 | | | Over £100,000 | negotiable | | Capital Raising | Minimum | £100.00 | | Reinspection fee | | At cost | | Arrears Letter | | £25.00 | | Arrears referred to Solicitor | | £125.00 | | Broken Arrangement | | £35.00 | | Solicitor Fees | | At cost | | Possession Fee | | £350.00 | | Possession Sale | | £150.00 | | Duplicate Mortgage Statement | | £20.00 | | Miras 5 | | £20.00 | | Copy of personal records | | £15.00 | | Unpaid Cheque | | £25.00 | | Unpaid DD | | £25.00 | | Chaps transfer fee | | £25.00 |
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| Early Repayment Charges |
| Interest will be charged to the date on which redemption takes place. If you originally benefited from a mortgage scheme, an early repayment charge may be payable. Your Mortgage Offer or the Society’s literature for the particular scheme will tell you if this is the case. |
| This is the Society's current tariff. Any changes will be notified to all borrowers 30 days prior to the change. |
| New business products |
From time to time, the Society provides a variety of new business products. Please see separate literature which will provide details of the products that are available at the time. This will provide you with details of the terms and conditions including any early repayment charges which are applicable. |
| With a new business product, if you move home during the scheme and return to the Society for a new mortgage for a higher or similar amount, a new scheme from our product range at that time will be offered. |
| Buildings insurance |
The Society does not insist that you arrange your buildings insurance through the Society. However the Society can arrange cover either on a standard basis or with accidental damage, with contents if required, and a quotation will be provided when your application form is received. The premium can be paid by monthly direct debit at no additional cost to you. Should you not decide to take the cover through the Society, then it will be necessary to provide a copy of the Policy to the Society. When issued, the policy should be preferably in the joint names of the Society and the borrower and as a minimum, the Society's interest should be noted. |
| Evidence that the Policy is in force must be forwarded to the Society before the advance is completed. |
| Costs |
| It is strongly recommended that you budget for all the costs involved in the purchase of a property including Stamp Duty Land Tax (SDLT) which is payable on transactions of £175,000 and over, the level of which will be determined by the purchase price. A Solicitor will be able to provide you with a quotation which should cover all disbursements and assist you with budgeting. |
| How much can I borrow? |
The Society, like most reputable mortgage lenders, uses income multiples as a guide when working out how much you can safely borrow. The Society will also look at any other financial commitments you may have and take these into consideration. |
| Broadly speaking, the following will apply as long as you do not want to borrow more than 75% of the purchase price or valuation, whichever is the lower: |
| If you are buying or remortgaging on your own, you can borrow up to 4 times the gross salary. |
| If you are buying or remortgaging with a spouse or partner, you can borrow up to 4 times the higher salary plus 2.5 times the lower salary. |
| The Society will also need to assess the affordability of any borrowing to ensure that difficulties do not arise in the future and you are aware of the costs of home-ownership. |
| Disclosure of mortgage debts to credit reference agencies |
| If we need to pass details of your mortgage debts to Credit Reference Agencies, we will give you at least 28 days notice of our intention to disclose. |
| Financial difficulties and change in circumstances |
Borrowers should be aware taking out a mortgage is a long term financial commitment and a change in personal circumstances e.g. long-term sickness, relationship breakdown or unemployment can have adverse financial consequences which may affect your ability to pay your mortgage and payments into an investment designed to repay your loan. If you do have difficulties at any time, please contact the Society as soon as possible. The sooner we are aware of the situation, the sooner we can work together to reach a solution. The Society will consider cases of mortgage arrears sympathetically and positively and co-operate with recognised debt advice organisations. |
If you require further information on any of our Mortgages please telephone our Mortgage Department on 01494 879517 |
| Your home may be repossessed if you do not keep up repayments on your mortgage. |
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