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Managing your mortgage

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Sometimes during the life of the mortgage you may want to make some changes to the terms we agreed at the start.

For example, you may want to:

  • Extend or reduce the mortgage term
  • Change to a different mortgage product
  • Borrow more
  • The sections below explain how you can ask for a change and what will happen if we agree to it.

  1. Managing your mortgage online

    Using internet banking you can check your mortgage balance, monthly payment and interest rate. Log on to Internet Banking
    You can also request a duplicate printed mortgage statement or certificate of mortgage interest.

    Simply log on to internet banking, then select:

    • More actions
    • Account services
    • Order a certificate of interest or order a duplicate mortgage statement.

    If you are using a mobile device to access internet banking you’ll need to use the internet browser on your phone/tablet.

    If you are not registered for Internet Banking yet, it's easy and only takes about 5 minutes. Find out how to register.

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  2. Overpayments and underpayments

    There may be times when you want to pay more or less than your monthly payments.

    This section explains how to make overpayments and underpayments. More information about the types of overpayments and underpayments you may be able to make can be found in our mortgage features guide.

    How do I make regular overpayments?

    You can make regular overpayments by increasing the amount of your monthly payment.

    Direct Debit

    If you pay by direct debit you can set up, amend or cancel a regular overpayment using internet banking.

    If you’re already registered for online banking with us then you’ll need to sign into your account, then select:

    • More actions
    • Paying your mortgage
    • Manage regular overpayments

    If you are using a mobile device to access internet banking you’ll need to use the internet browser on your phone/tablet.

    If you are not already registered, you can do so here.

    Alternatively, you can call us on 0345 603 1637 and ask us to increase the monthly direct debit we collect from your bank account. Please remember to have your mortgage account number to hand.

    Standing Order

    You can set up an additional standing order via your bank or building society account. You will need the following details:

    Sort code: 30-00-00
    Account number: 00353019
    Reference number: Your 14 digit mortgage account number followed by 00.

    If you want to make the payment to a specific part of your mortgage, you can replace the 00 with the two digit sub-account number for the part of your mortgage you would like to repay. For example, if you would like to set up your additional standing order to repay part 2 of your mortgage, the reference you would enter would be your 14 digit account number followed by 02. If you don’t tell us which part of your loan you want to repay, we’ll reduce each part of your loan in the same proportions as we apply your full monthly payments.

    If you use Internet Banking you may be able to set a standing order up online, if you don’t use Internet Banking you’ll need to contact your own bank or building society to set this type of payment up.

    If you have a Lloyds Bank current account but are not registered for Internet Banking yet, it's easy and only takes about 5 minutes. Find out how to register.

    How do I make lump-sum overpayments?

    The easiest way to make a lump sum overpayment is to transfer the funds from your bank account.

    If you bank with Lloyds Bank you can make an additional lump-sum payment using internet banking. If you are using a mobile device to access internet banking you‘ll need to use the internet browser on your phone/tablet.

    You’ll need to log into your internet banking, then select:

    • More actions
    • Paying your mortgage
    • Make additional lump-sum payment

    If you bank elsewhere you can transfer the funds from your bank account using the details above. You’ll need to contact your bank or building society to do this, or you may be able to do this by using Internet Banking.

    Alternatively, you can call us on 0345 603 1637 and make a payment up to £30,000 by debit card (we do not accept credit cards or debit Mastercards). You can also pop into your local branch or write to us enclosing a cheque (cheques should be made payable to Lloyds Bank followed by your name and your 14 digit mortgage account number followed by 00. If you want to make the payment to a specific part of your mortgage, replace 00 by the sub-account number for that part of your mortgage). If you don’t tell us which part of your loan you want to repay, we’ll reduce each part of your loan in the same proportions as we apply your full monthly payments. Please note cheques may not be credited to the account on the same day that we receive them.

    If you would like to use your lump-sum overpayment to repay the full balance of a specific part, or the whole of your mortgage, you will need to call us on 0345 603 1637 to request a redemption statement. You may have to pay early repayment charges if they apply. Find out more about early repayment charges.

    Please remember to have your mortgage account number to hand when you call.

    We will automatically use any additional payments received to reduce your balance and the interest we charge you. You need to tell us if you would like us to immediately recalculate your monthly payments using the reduced balance over the remaining mortgage term. If you don’t do this we will do this automatically when we next recalculate your monthly payment, for example at an interest rate change.
     
    If you would like to keep your monthly payment the same, and reduce the remaining mortgage term you may need to speak to one of our qualified mortgage advisers, who will discuss your needs and circumstances and recommend the most suitable mortgage, and term for you.  To speak to an adviser please call us on 0345 727 3747 or you can book an appointment online.

    Underpaying your mortgage

    If you want to make underpayments, you should call us on 0345 603 1637 to discuss your options.

    If you have previously made overpayments, we can tell you how much is available for you to use to underpay. We can then change your direct debit for the time you want to underpay.

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  3. Payment holiday

    If you want to apply for a payment holiday we will fully assess your application once received as the amount you owe will increase. Check the eligibility detailed below to see if you may qualify, but please note further checks will be required. If you want to apply please call us. We don’t guarantee that we’ll agree to a payment holiday.

    You may be eligible to apply for a payment holiday if:
    • It's been at least 12 months since you took out your mortgage with us
    • You’ve not taken any additional borrowing in the last six months
    • The amount you owe does not exceed 75% of our latest valuation of your property
    • You've not had previous payment holidays totalling six months or taken one in the last three years
    • You live in the property and it’s your main residence
    • Your property isn’t owned jointly under a shared ownership scheme, for example with a local authority
    • You don’t receive support from the Department of Work and Pensions towards your mortgage payments
    • On a joint mortgage, all parties are in agreement to the payment holiday
    • Your mortgage payments are up to date and have been for at least 12 months

    If you have an application in progress for something else, such as a new interest rate deal, you can’t apply for a payment holiday at the same time.

    If you don’t think you’ll qualify but are concerned about making payments then still call us. A payment holiday may not be suitable but there may be other options we can discuss.

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  4. Changing your monthly payment date

    When you applied for your loan we asked you what day of each month you wanted to make your payment.

    If we calculate your interest daily, the best day of the month to make your monthly payment is the 1st because we'll charge the least amount of interest for the month. However, if you need to change the day you pay your mortgage, we will allow you to do this if it is no later than the 28th.

    Your monthly payment amount may rise or fall if you change the day.

    How do I change my payment date?

    You can contact us on 0345 603 1637 and ask us to change your payment date as long as you choose a date which is no later than the 28th. We will update your mortgage details and change the date we collect your future direct debits.

    This may not be in the month of your request. If you change your payment date from the end of one month to the beginning of the next month, you may be required to make two payments within a relatively short timescale.

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  5. Changing the repayment method

    Your mortgage could be a repayment mortgage, an interest-only mortgage or a combination of the two.

    If your circumstances change, you can ask to switch from your current method of repayment to another.

    How do I switch all or part of my mortgage to repayment?

    You will need to speak to a qualified mortgage adviser and get our agreement to switch.

    Switching all or part of your mortgage from interest-only to repayment will mean your monthly payments will go up. This is because you will start repaying some of your loan balance as well as paying interest.

    How do I switch all or part of my mortgage to interest-only?

    You will need to speak to a qualified mortgage adviser and get our agreement to switch.

    Switching all or part of your mortgage from repayment to interest-only will mean your monthly payments will go down. This is because you will be paying only interest – you will pay us nothing to reduce the loan balance. This means you will need to find a lump sum at the end of the mortgage to repay the loan.

    Before we'll agree that you can switch to interest-only, we will ask you to show us your plan for repaying the loan at the end of the mortgage term.

    We will only agree to your switch if we think your plan is likely to be enough to repay your loan at the end of the term. We will let you know when the switch has happened, what your new monthly payment will be and when we'll collect it.

    Interest-only mortgages are only available when the loan amount is less than 75% of the estimated value of your property.

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  6. Changing the mortgage term

    At any time you can ask to change the mortgage term from what we originally agreed with you. This might be because:

    • You think you can afford to pay more and would like to pay off your mortgage sooner; or
    • You want to reduce your monthly payments by extending your mortgage term.

    You will need to get our agreement to do this.

    Extending your mortgage term will increase the amount of interest we charge because the loan will take longer to repay. This means the loan’s total cost will be higher.

    How do I do this?

    You will need to speak to a qualified mortgage adviser. They will discuss your needs and circumstances with you. They will check whether you can afford the new monthly payment before recommending whether this change is right for you.

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  7. Repaying the mortgage in full

    You can repay your mortgage in full at any time, as long as you also pay any early repayment charges that apply.

    How can I do this?

    To ask us for the total amount needed to repay your mortgage, please call us to request a redemption statement on 0345 603 1637 we're open 8am until 8pm Monday to Friday and 9am until 1pm on Saturdays (closed on Sundays and Bank Holidays).  We will ask you what date you want to repay your mortgage so we can give you an exact figure that includes all costs and charges up to that date.

    Alternatively, you can request a redemption statement online, your statement will then be sent by post and we aim to fulfil requests within 7 to 10 days.

    You don't need to use a conveyancer to repay your mortgage if your property is in England and Wales or Northern Ireland as we will make arrangements to remove our charge at the Land Registry.

    If your property is in Scotland you will need to instruct a solicitor to prepare discharge documents for the Registers of Scotland, which will enable our charge to be removed.

    If you are already using a conveyancer, perhaps because you are moving house, they will usually ask us for the amount needed to repay your mortgage and will deal with repaying it.

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  8. Adding or removing a person named on your mortgage account

    If you want to add or remove a name on your mortgage account, you will need to apply to us for a remortgage in the names of those who will be the new property owner(s). You may be charged fees that apply for a new loan. A remortgage is a legal process and you will need a solicitor.

    Currently you can apply over the phone and in branches. Your mortgage adviser will discuss your needs and circumstances and check whether you and anyone you are adding to the mortgage can afford the loan. They will then recommend the most suitable mortgage for you.

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  9. Additional borrowing

    What is additional borrowing?

    When you have had your mortgage account with us for at least six months, you may ask to borrow more money against your property. We call this additional borrowing.

    How do I apply for additional borrowing?

    You can apply over the phone and in branches.

    You will need to speak to a qualified mortgage adviser, who will discuss your needs and circumstances and check whether you can afford the new loan. They will recommend the most suitable mortgage available for you.

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  10. Product transfers

    What is a product transfer?

    When you take out your mortgage, you arrange to have a fixed or variable rate product for a period of time. At the end of this time, the product will end and your loan will usually be transferred to one of our lender variable rates. At this point, you may choose to move it to a new product for a further period of time.

    Alternatively, your circumstances may change and you may think a different type of product is more suitable. For example, if you are on a variable rate and interest rates start going up, you may decide that moving to a fixed rate would be better.

    How do I apply for a product transfer?

    You can find details about our new mortgage deals and how to apply.

    If you apply over the phone or in branch, you will need to speak to a qualified mortgage adviser who will discuss your needs and circumstances and check whether you can afford the repayments on the new rate. They will recommend the most suitable mortgage for you.

    You can also apply online. If you choose this option, you will have to choose your own product and will not benefit from advice from a qualified mortgage adviser.

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  11. Letting your property

    You must not let your property to tenants without our permission.

    You can find out more information on letting in our Mortgage Features Guide.

    Applying for Consent to Lease

    You must have had your mortgage with us for at least six months before you can apply, unless you are a member of the armed forces.

    If you are registered for internet banking you can complete the online application form through your secure internet banking.

    You can find the form under Your Mortgage – More Actions – Account Services – Request Consent to Lease. Internet Banking is 24 hours a day, 7 days a week.

    If you are not registered for internet banking we will ask you to complete our Consent to Lease application form (PDF) and return it to the address on the form.

    If we give our permission, we will tell you on what basis we will allow you to let your property.

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  12. If a mortgage account holder dies

    Mortgages usually take a long time to repay and sometimes an account holder dies before this happens.

    If the mortgage account is in more than one name and one of the account holders has died

    When you contact us, we'll ask you to send us the death certificate of the account holder who has died. We will then make the appropriate arrangements with you or the estate's personal representative to change the account.

    If the mortgage account holder has died

    If the account is held in only one name and that person has died, the estate’s personal representatives should contact us. We will ask to see the death certificate and a copy of the probate – in Scotland this is called the confirmation.

    If the mortgage account is to be repaid during an early repayment charge period, we'll not make any early repayment charges.

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  13. If you can’t make your monthly payments

    Sometimes circumstances change unexpectedly – perhaps you can’t work for a while because you are ill or you lose your job.

    If this happens, it may be difficult for you to meet all your financial commitments and you may need some help for a while.

    If you find yourself facing financial difficulty, you should contact us straight away so we can give you the help you need.

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Mortgage features

Overview of key features to help you understand our mortgages.

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Fees and charges

Our charges and standard costs.

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Interest-only mortgages

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