Use our frequently asked questions to find out what you need to know about moving home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We'll only lend you a certain percentage of either the purchase price or the property valuation, whichever is lower. So you'll need to use some of your own money to buy the property – a deposit. We usually ask for at least a 5% deposit from your own money.
However, if you can pay more, you can often get a cheaper mortgage product.
If you currently have your mortgage with us it's sometimes possible to take a product rate and any early repayment charges with you to a new mortgage - we sometimes call this 'porting‘.
Your Mortgage Illustration and offer letter will say if any of your product rates can be taken to a new mortgage, also your Mortgage Adviser will be able to advise you when you have your appointment.
As well as your deposit, there are other costs associated with buying a property and taking out a mortgage.
Typical ones that apply to most buyers include conveyancing fees, Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland), valuation fees and Land Registry fees.
There are often unexpected costs too in buying a property, so it's a good idea to have a reserve fund to cover them.
This will depend on the mortgage product, there may be a product fee to pay and early repayment charges if you repay early.
You will need to check our current rates for full details. Any product fees can usually be added on to your mortgage on completion.
There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage.
You will be charged interest on any fees, charges and standard costs added to your loan.
An Agreement in Principle provides you with a personalised commitment-free mortgage promise of how much we might be able to lend you.
If you're buying a home it'll give you a clear idea of which properties you could afford. Estate agents will often ask to see an AIP to show that you are a committed buyer.
We do what's called a soft credit check as part of the process. Soft credit checks can only be seen by yourself on your credit report and do not affect your credit rating or ability to borrow from other lenders or ourselves in the future, even if you're declined an AIP on this occasion.
The property you buy must be located within the UK and loans can only be used to buy your main residential home or for purposes relating to this home.
We will consider lending you money to buy different types of property. We may ask you to provide a bigger deposit on some types of property than others.
Any loan we make is subject to a property valuation.
While we will consider many types of property, we have a responsibility to ensure that a property is suitable security for a mortgage.
As a result, we will not lend against properties where the lower of the valuation or purchase price is below £40,000.
A mortgage has one key difference to other loans – it is secured against your home. If you cannot keep up with your monthly repayments or you get into financial difficulties you should contact us straight away so we can give you the help you need.
Remember, house prices can go down as well as up. If you owe more than the current value of your home, you will be in negative equity. If you need to move home and sell your property, and if its value has dropped below what you paid for it, there may be a shortfall between the amount you owe on your mortgage and the amount you get for the sale which you will need to repay.
Mortgages can last for a long time, so it is important you get the one that is right for you. You will need to think about such things as the type of loan, how long you want it for and what type of product you would like.
Methods of repayment - there are three different ways of repaying your mortgage. These are repayment, interest-only, and a combination of repayment and interest-only.
Mortgage terms - mortgage terms of up to 40 years are available. How long the mortgage lasts will affect your monthly payments and the total cost of the mortgage.
With a repayment mortgage, the longer the term, the lower the monthly payment. However, it will take you longer to pay off the loan so you will pay more interest. This means it will cost you more over the life of your mortgage.
With an interest-only mortgage, the length of the term makes no difference to the monthly payments because these are only paying off the interest charges and not the loan itself.
With an interest-only mortgage your mortgage term needs to match the time when you will have enough money in your repayment plan(s) to repay the loan.
Mortgage products - we may have different types of mortgage products with different types of interest rates. These change from time to time and we'll give you details of the current range when you apply.
Depending on the mortgage product you chose, you may have to pay an early repayment charge if you repay all or part of your mortgage early or we agree you can change products.
Product incentives - from time to time we may offer mortgage products that include an incentive. The interest rate for products with incentives may sometimes be slightly higher than for products without incentives.
So you will need to consider whether the incentive available at the start of the mortgage is more important to you than the slightly lower interest rate you may get during the product rate period without the incentive.
Your mortgage adviser will ask you about your preferences and discuss your needs and circumstances before deciding which mortgage to recommend to you.
Look at key featuresRead about our mortgage key features to help you understand more about our mortgages.
It is a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar, fixtures and fittings. It's also a good idea to take out contents insurance as well - this protects all your possessions in your home, from furniture to jewellery.
You may want to look into insurance to protect your mortgage for example Life Cover and Critical Illness Cover.
Moving house can be stressful but it does not have to be. This useful checklistRead Our Checklist for moving home. PDF. Opens in a new window. will make it easier to tackle the big move.
You will usually be asked for conveyancer details to take care of the important legal work when you apply for your mortgage.
You will need to choose a conveyancer from our approved list. So it is worth checking with us before you instruct a conveyancer.
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.
We lend you the money on the basis that you are using the property as your main residence.
If your circumstances change after you take the mortgage, and you want to let the property you must ask our permission.
We do not guarantee that we will allow you to let your property and you may have to transfer onto another product if we do allow this.
An agreement in principle is the first step to getting a mortgage. It provides an indication of how much you could borrow (subject to terms and conditions).
You can apply for one online now. There’s no charge and no obligation to then apply for your mortgage with us.
Talk to a mortgage adviser in branch or over the phone.
See a mortgage adviser in branch – you’ll need to book an appointment beforehand.
Lines are open from 8am-8pm Monday to Friday and 9am-4pm on Saturdays. We’re closed on Sundays and Bank Holidays.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE