Question 1

Can I make overpayments?

Accepted Answer

Overpayments are allowed, either as a lump sum, an increase to your monthly payment amount or as smaller regular or irregular payments. If you make an overpayment, you will need to advise us whether this is to be applied as a “capital payment” or a “general overpayment”.

Question 2

What is the difference between a “capital payment” and a “general overpayment”?

Accepted Answer

With a “capital payment”, the outstanding balance of your mortgage is reduced immediately and the monthly payments are recalculated based on the reduced balance. This takes into account the proximity to the end of your term, the applicable interest rate at the time and when the payment is made in relation to the scheduled payment cycle. These elements will determine the extent to which the monthly payments may be adjusted. With a “general overpayment”, the outstanding capital balance will not change until the next capitalisation date (either end of the month or end of the calendar year, depending on your account). Your monthly payment will not be automatically amended. This will lead to reduced interest charges for your account and for capital and interest repayment mortgages, assuming that your monthly payments remain unchanged, your mortgage will be repaid earlier.

Question 3

Are any charges payable if I make an overpayment?

Accepted Answer

Within the Early Repayment Charge (ERC) period you can make overpayments up to a maximum of 10% of your loan per year* without incurring a charge. Where applicable, the ERC allowance will be referred to in your mortgage offer letter or latest product change confirmation.*Please note that the year is measured from the month that your mortgage completed, or from the month that your last product change took effect. The ERC allowance is not cumulative and does not apply when the whole loan is being repaid, in this instance the charge will be incurred on the capital balance at the time of redemption. All overpayments made, either on a regular basis or as a lump sum, do count towards the 10% annual ERC allowance. If the permitted 10% capital reduction is exceeded, an early repayment charge will be applied based on the excess capital repaid.

Question 4

How do I make an overpayment?

Accepted Answer

Once you have notified us that you are intending to make an overpayment you can send moneys in the following ways:

You can give us an instruction to increase the amount we collect in your monthly direct debit. This increase can be cancelled at any time by contacting us.

Ask your bank to send a direct funds transfer quoting our sort code: 40-02-50 and account number: 21397400, plus your mortgage account number and name as a reference.

You can send a cheque (made payable to yourself or "Family Building Society" followed by your name and mortgage account number).

Question 5

Is it possible to take a payment holiday?

Accepted Answer

If you are experiencing any payment difficulties you must contact us immediately. We can work out a plan with you.

Question 6

Is it possible to take my mortgage to a new property?

Accepted Answer

Subject to affordability and property suitability you can take your existing product and, where additional borrowing is required, this can be taken on a new product from our product range at that time.

You can also reduce the amount of your loan when you move, but you may wish to check if Early Repayment Charges (ERC) apply.

Question 7

How would I be able to borrow more on my property?

Accepted Answer

Subject to affordability and property value you can borrow more on your mortgage. We have a range of mortgage products available for additional borrowing.

Question 8

When can I change my rate to another one and how much will it cost me?

Accepted Answer

You can request to change your rate at anytime however you may have to pay an Early Repayment Charge. The cost involved depends on the product that you feel is most suitable - there may be a product fee for the new product you'd like to transfer to. Any fees that you have to pay will be provided in a personalised illustration before you decide to proceed.

Question 9

How can I change from Interest-Only to repayment (or vice-versa)?

Accepted Answer

You must write to us and request the change. Any changes will be subject to re-assessment of income and consideration of the reason(s) for the change. There are fees associated with a change of this nature.

Question 10

How do I inform you of my change in bank details for my direct debit?

Accepted Answer

You can send us your new bank details using a Direct Debit Mandate form.

Question 11

How can I request a copy of my mortgage statement?

Accepted Answer

You can request a copy by letter, telephone call or email. Your most recent mortgage statement will be sent out to you, free of charge, on annual basis; any additional copies of this or previous statements can be requested at a cost of £20 per statement.

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