Rates, Fees and charges

• How is my interest rate set?

  Your mortgage interest rate plays a big role in determining your monthly payments, so we want to make sure you always feel informed and in control.

   

  • If you have a fixed-rate mortgage, your interest rate won’t change during the fixed term.
  • If you have a tracker mortgage, or your fixed term has ended, your interest rate may change from time to time as the Bank of England changes the base rate (referred to as BoEBR).

  We’ll always keep you updated. We will give you notice of any change to the Bank of England base rate and the change to your monthly payment within a reasonable time after the change. Please be aware that any changes to the Bank of England base rate will take effect immediately. We may inform you of these changes after they have already impacted your monthly payment.

   

  Not sure about your interest rate type or how long your fixed term lasts? You can find all the details in your mortgage offer letter.

• What is daily interest on repayment mortgages?

  We want to keep things clear when it comes to how your mortgage interest is calculated.

   

  • Your interest is based on the rate of the mortgage product you’ve chosen.
  • It’s calculated daily based on your balance at the end of each day.
  • Interest is added to the accrued interest each day. When a payment is made it is applied to the accrued interest first. If the payment amount exceeds the accrued interest the remaining amount is applied to reduce the interest bearing balance.
• What is Bank of England Base Rate (BoEBR) and how do products track this?

  The Bank of England Base Rate is the key interest rate that influences mortgage rates across the UK. If your mortgage is linked to this rate (for example if you have a tracker product), any changes to it will automatically adjust your interest rate on the following day. If the Bank of England Base Rate rate goes below 0% the interest rate on your mortgage will be calculated based on the Bank of England Base Rate being 0%.  If the Bank of England Base Rate ceases to exist or be available we may choose another independently set rate in its place.

   

  But don’t worry— we will give you notice of any change to the Bank of England base rate and the change to your monthly payment within a reasonable time after the change. Please be aware that any changes to the Bank of England base rate will take effect immediately. We may inform you of these changes after they have already impacted your monthly payment.

   

  If you have a fixed-rate mortgage, your rate won’t be affected until your fixed term ends.

• What is an early repayment charge?

  An early repayment charge is a fee that is applied to your mortgage if you repay all or part of your mortgage (i.e. above the allowed annual limit in your mortgage offer ).  But don’t worry—we’ll always be upfront about the details. Your mortgage illustration and mortgage offer will clearly outline:

   

  • The percentage of the amount repaid that the charge applies to
  • How long the charge is in place.
  • A clear example of what this might look like
• What fees and charges may I be required to pay?

  We want to ensure you’re fully informed about any fees and charges that may apply during the life of your mortgage. For a comprehensive overview, please refer to our Tariff of Mortgage Charges.

  Additionally, some mortgage products may include a product fee, which varies depending on the option you choose. You’ll find the specific amount detailed in your mortgage illustration and mortgage offer.

• What is a product fee?

  When you apply for certain mortgage products, a one-time fee may be included as part of the process. You can choose to pay this upfront or add it to your total mortgage amount. If you add it to your mortgage, it will accrue interest at the same rate as your loan.

  This fee may be a fixed amount or a percentage of the loan, depending on the product. Some lenders might refer to it as an “Arrangement Fee.”