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Additional information for your rate switch

We explained some of the most frequently used mortgage terms, as well as questions and answers to help you find the answer you might be looking for.

Mortgage terms explained

The Office for National Statistics - UK House Price Index (HPI) is used to calculate your loan to value (LTV). The LTV is calculated using your current mortgage balance and the current value of your property according to the HPI. The mortgage products and interest rates available depend on your LTV at the time you apply for your new rate.

If you would like a more up to date valuation, by a surveyor, of your property instead of using the HPI figure this can be arranged for a fee. This will be a valuation for mortgage purposes only. If we arrange this, we are not able to proceed with your request until the mortgage valuation is received, which may take up to 5 working days from the survey date.

This is the value of your loan as a proportion of your property’s value. For example, if you were purchasing a home for £100,000, and had a deposit of £15,000 then you would need to borrow £85,000. This means you would require a mortgage product that offered a LTV of at least 85%.

A charge you will incur if you pay off your loan in part or in full within a pre-agreed period.  If the mortgage product has an Early Repayment Charge details of this will be shown in your documents.

An indicative guide to help you compare the cost of different mortgage deals, taking account of interest rates payable (both during the initial product period and after) and fees.

RMVR was introduced 14 November 2012. It is a different interest rate to the Society’s Residential Standard Variable Rate (RSVR), although both are set by the Society. These two interest rates may change by different amounts and at different times. More details on our Variable Mortgage Rates will be included in your Offer document and you’ll find the full information on our website.

This is the rate which is set on a monthly basis by the Monetary Policy Committee (MPC) of the Bank of England and influences the rates banks and building societies charge customers to borrow money.

 

What does ‘without advice’ and ‘with advice’ mean?

Without advice

If you have been given this option it will be stated within your mailing pack, and you can choose to switch to another mortgage product without us giving you advice.

You can only use this option if:

  • You don’t want to make further changes to your mortgage, for example the length of your remaining mortgage term
  • You’re confident that you can identify the right mortgage product for your needs and circumstances;
  • You’re happy to take responsibility for your decision; and
  • You’re able to access our website to make your product selection.

If you make your own decision to select a product on a ‘without advice’ basis, you won’t benefit from the protection of the Financial Conduct Authority’s rules on assessing the suitability of the mortgage product for you and you won’t be able to claim for this under the FSCS protection.

What do I need to do next?

If you're eligible and you’d like to switch to another of our mortgage products without us giving you advice, visit our switching your mortgage deal page.

With advice

You might need advice if:

  • You’re unsure about which mortgage product is suitable for your needs and circumstances; or
  • Your personal circumstances have changed (e.g. changes to your income, marital status or financial position) which means you would benefit from a full review of your mortgage arrangements; or
  • You want to review any other aspect of your mortgage, e.g. if you want to borrow more money or change the length of your remaining mortgage term.

Our qualified mortgage advisers offer a free advice service over the phone or via video link where they will recommend one of our mortgage products for you based on your circumstances. Appointments can take up to an hour, to make an appointment with our advisers call us on 0345 607 9739 or arrange a video appointment on Skipton link.

Payments

How do I know what my new monthly payment will be?

You can use our monthly mortgage calculator to give you an indication of what your monthly payment might be on any interest rate. Just enter the mortgage balance, term and rate. Your most recent mortgage balance can be found at the beginning of your maturity letter, although it’s worth bearing in mind this may not include your latest monthly payment and should not be used as a figure to fully pay off your mortgage.

Your Mortgage Illustration and Offer will show your specific mortgage payment based on the exact balance and term remaining on the date it is issued.

What if I currently make regular overpayments on my mortgage?

If you currently make regular overpayments on your mortgage, we will continue to collect the higher amount until you tell us to do otherwise.

What’s the difference between a fixed rate and a discounted variable rate mortgage?

Fixed Rate Mortgages

The monthly interest will stay the same for a set period – even if other interest rates rise during this time. However, if interest rates fall during the fixed period, your monthly payment won’t change, so you may end up paying more than you would with a variable rate mortgage. At the end of the fixed rate period your rate will change to a Residential Mortgage Variable Rate as described in your Mortgage Offer document.

Variable Rate Mortgages

Payments are usually linked to another rate, for example our Residential Mortgage Variable Rate or the Bank of England Base Rate. This means your rate and payments can go up and down during the initial period. At the end of the initial period your rate will change to a Residential Mortgage Variable Rate as shown in your Mortgage Offer document.

Switching through a broker

I have consented to my broker switching my mortgage, what information will you provide?

  • The current mortgage product
  • The current contractual mortgage payment
  • The current valuation of the property (based on the House Price Index)
  • Loan to Value (LTV)
  • Repayment type of the mortgage
  • Total remaining mortgage balance
  • Whether the mortgage is a Buy to Let, Consumer Buy to Let or Residential
  • Whether the mortgage is a ‘temporary let’ (what we define as a ‘Consent to Let’) and which is not a Buy to Let Product
You could lose your home if you don’t keep up your mortgage repayments.

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0345 607 9739

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