When should I receive my annual mortgage statement?
Your statement is sent to you on a yearly basis within four weeks of the anniversary of your mortgage account start date.
What is a sub-account?
Your mortgage may be split into multiple parts called sub payments. Each sub-account may have a different repayment method, interest rate and term.
The total monthly payment is made up of all the sub-account payments. When the total monthly payment comes in, we split it to give each sub account the amount it needs. If you overpay or underpay, each sub account is given its share of the total amount received.
What are sub-accounts 98 and 99?
Sub-account 99 holds fees. Some customers may also have a sub-account 98 if they have a mortgage account fee.
How much can I overpay by without being charged early repayment charges?
If you have a mortgage without early repayment charges you can overpay unlimited sums on your mortgage each year. Your mortgage statement should tell you if you have any early repayment charges.
For any sub-account where an early repayment charge applies, currently as a concession, in each calendar year you can make regular or lump-sum overpayments of up to 10% of the amount owed at 1st January without having to pay an early repayment charge.
For example, on a mortgage balance of £200,000 you can overpay by up to £20,000 as either a lump sum or regular monthly overpayments in one calendar year.
Why have you charged me an early repayment charge?
If your mortgage agreement is subject to an early repayment charge, we will apply the early repayment charge in the following circumstances:
- You have made one or more overpayments totalling over 10% of your mortgage balance in one calendar year.
- You have repaid your mortgage in full before any early repayment charges which were present on the account have expired.
Why am I charged more interest in some months than others?
Where your interest is calculated on a daily basis, this means that the number of days in each individual month determine the number of days worth of interest charged.
For example, January has 31 days and February has 28 days (or 29 in a leap year), this means the interest for each month will be different.
Where your mortgage is on a repayment basis each monthly payment you make reduces the overall mortgage balance we use to calculate interest and as a result reduces the amount of interest charged.
Why is my mortgage balance increasing?
There are a number of reasons your mortgage balance may increase including:
- Your monthly payments have not been made.
- Your monthly payments are only partially made.
- Additional fees may have been added to the mortgage (this could include Product, Additional Borrowing, and Arrears Fees).
- Unpaid insurance premiums that are linked to the mortgage.
- If you have had a payment holiday.
- You have changed the due date for your payments.
If your mortgage balance has decreased, this may be due to previous overpayments made.