Mortgage Information

The links below will take you to the various sections that can be found within the Society's Mortgage Information booklet.

Just click on the relevant heading and you will automatically be taken to that section.

If you cannot find an answer to your query, please either read through the appropriate mortgage details [shown on the right] or check out some of the links shown to the left.

Alternatively, you can find details on how to contact us by following this link to our Contact Us page.

Charges: When we provide you with a Mortgage Offer, and at any time that you ask us, we will give you a tariff covering the operation and repayment of your mortgage, including charges.

We will send you a mortgage tariff each year if there have been changes to it.

Confidentiality: All customer data is held in strictest confidence and is not given to any person or company outside the Society without your written authority, or unless we are required to do so by law, public duty, or if our interests require disclosure.

The information we hold may be used by us to send you details of other products or services we offer.

If you do not wish to receive details of other products or services, write to: Marketing Department, Harpenden Building Society, Aberdeen House, 14-16 Station Road, Harpenden, Herts. AL5 4SE

Customer service: The Society aims to offer a first-class customer service. We will treat you as an individual … there are no call centres or credit scoring. Simply tell us what your requirements are!

If you require any information about your mortgage, both before and after completion, please do not hesitate to ask. We also welcome suggestions to enable us to give an even better service to our customers.

If any time you do have reason to complain, we obviously want to hear about it. Our procedures for handling any complaint fairly, effectively, consistently and promptly are available on request.

If it does not prove possible to resolve your complaint, you then have the opportunity to refer it to the Financial Ombudsman Service for review.

Financial difficulty: A mortgage is a long financial commitment and it is important to give the matter careful consideration at the outset.

If you do have financial problems, Harpenden Building Society will always try to assist and has a fair approach. Please contact our Head Office at an early stage.

Higher lending charge: If the amount that you are borrowing is more than the maximum loan the Society would normally make on the property (currently 75% for purchases), a one-off higher lending charge will be payable on completion.

You will be informed of the approximate cost in the KFI at the outset and full details will be confirmed in the KFI [Key Facts Illustration] issued with our Mortgage Offer.

Part of this higher lending charge may be used by the Society to purchase additional security in the form of indemnity insurance, which is for the sole benefit of the Society. If the Society does purchase indemnity insurance for itself -

i) such insurance will not protect you if the property is subsequently taken into possession and sold for less than the amount that you owe,

ii) you will remain liable and promise to pay all sums owing in full, including arrears, interest, sale fees and the Society's legal costs,

iii) if a claim is paid to the Society under such insurance, the insurers have the right to recover from you any monies that they have paid to the Society,

iv) the Society may seek to recover from you the money that you owe both the insurer and the balance of any loss made by the Society which is not covered by indemnity.

High lending charges do not currently apply to remortgage's for which we can lend up to 75% of the valuation.

Insurance: It is important to make satisfactory insurance arrangements, including life, critical illness, buildings, contents and unemployment, accident and sickness. It will be your responsibility to check that such policies are put in force and that the premiums are paid in full.

Buildings insurance for the full cost of reinstatement is compulsory and the Society will be pleased to supply an optional illustration for this. If you arrange your own cover you must supply the Society with a copy of the Policy and we should be named as joint insured. It is your responsibility to ensure that satisfactory policies are started and are in place at all times from exchange of contracts until redemption of your mortgage. Alternative arrangements may apply if the property is leasehold, depending on the provisions of the lease. If no purchase is involved, cover should be effected from the date of commencement of the mortgage.

Harpenden Building Society will receive either commission or a fee for any insurance policies that it arranges. If you subsequently change insurance companies, a fee is charged each time as per the Tariff at that time.

Interest-only mortgage: With this, your monthly payments to Harpenden Building Society only cover the interest on the loan. They do not pay off any of the amount you have borrowed. This is why you usually make separate payments into a savings scheme each month to build up a lump sum. The idea is to use the lump sum to pay off the whole amount you originally borrowed in one go at the end of the mortgage (or sooner if you want to).

You can use various types of savings schemes to build up the money you need: endowment policies, ISA's (individual savings accounts), personal and stakeholder pensions and other investments. We cannot give you any advice or information about these savings schemes. An authorised financial adviser can help you on the options for repayment an interest-only mortgage.

Will it pay off the mortgage?
All interest-only mortgages involve some investment risk in building up a sum of money to repay the loan.

With an interest-only mortgage, it is your responsibility to make sure you have enough money to repay the loan at the end of its term. In order to do this, you will need to maintain your monthly payments and regularly monitor the performance of your savings. If your investment grows more slowly than expected, you may need to increase your monthly payments into the savings scheme, top up your savings in other ways, or find an extra lump sum at the end of the term.

If there are insufficient funds to repay the mortgage on the agreed date, you will either have to restructure the mortgage or sell the property in order to repay the debt.

Can you pay off the mortgage early?
Yes. Your mortgage can be repaid in full, or part, at any time, and this will save you a lot in interest payments. But please note that an early repayment charge may arise if this is during the early years of your mortgage. Such charges will be detailed in your personalised illustration.

Interest rates: Harpenden Building Society offers variable interest rates. You are welcome to ask us at any time what interest rate applies to your account.

Interest is charged on the outstanding mortgage balance at the beginning of each year and adjusted each time the interest rate changes. We will notify you of the revised repayments shortly before each change by personal notice.

The Annual Percentage Rate (APR) takes into account factors such as the amount and type of your mortgage, the term of years and how often interest is charged as well as the fees payable. Written credit quotations are available on request. Applicants must be aged 18 or over.

Please ensure that you feel confident of maintaining the mortgage payments if interest rates should increase.

Legal costs: We will be pleased to inform you of solicitors that can give you an indication of the legal fees involved.

If you choose to appoint your own solicitor, just supply us with their name and address details at an early stage. If we decide not to instruct them on our behalf, you will be responsible for the fees of the solicitor we appoint. An indication of any additional cost is available on request and will be stated in your personalised illustration.

Repayment mortgage: With this, you make monthly payments to Harpenden Building Society over an agreed number of years (called the mortgage "term"). Most people choose a term of 20 or 25 years for their first mortgage, but they can be for shorter or longer periods. Your payments cover the interest on the loan and also gradually pay off the whole amount you have borrowed (sometimes called the 'capital' or the 'principal').

Will it pay off the mortgage?
As long as you make all the payments agreed with Harpenden Building Society, the whole loan will be repaid by the end of the term. Bear in mind, though, that your monthly payments could increase if interest rates rise.

Your protection: Whatever type of mortgage you choose, it is important to ensure that you have adequate life assurance cover.

Early surrender of an investment, or changes in personal circumstances such as job loss, long-term sickness or relationship breakdown, can have adverse financial consequences. Each applicant will be liable for the whole amount of the loan.

It is important for you to consider Unemployment, Accident and Sickness Insurance, particularly where there are no alternative financial options in the event of loss of income. Income Support for mortgage interest is not payable for the first 39 weeks of a claim and will then be means tested.