Our Mortgages - Harpenden Building Society

Our General Mortgage Information

If you are thinking about applying for a mortgage and are unsure of what Harpenden can provide, this page includes some further information about our mortgages and some of the areas that will be involved if you secure a mortgage with us. Remember we deal exclusively with intermediaries; therefore, we advise new mortgage customers to obtain independent mortgage advice. When you have found the property you want, speak with your mortgage advisor and discuss your financial situation with them.

Mortgages can often be overwhelming and confusing. We are here to make things as simple as possible. There are many different types of mortgage products in the market place and you need to ensure that you choose the right product and rate to suit your requirements. Borrowing from a lender to purchase a property is a major financial commitment and a milestone in life and we are here to help make the process as simple as possible for you.

For more information about each section below, please click on the relevant purple button.

Our Mortgage Products

Residential Products

Specialist Products

Holiday Let and 2nd/Holiday Homes- This product is available for those purchasing an investment/2nd property. It is also available for those re-mortgaging an existing investment/2nd property or releasing equity from an unencumbered investment/2nd property.

Buy to Let Mortgage- This product is available if you are purchasing a property with the sole intention of letting it out under a rental agreement for business purposes. It is also available if you are re-mortgaging a rental property and either already own other properties that are rented out.

Consumer Buy to Let - This product is available if you are re-mortgaging a property that you or an immediate family member has previously lived in or you inherited, and you do not own other properties that are being let.

Self-Build- This product is available to those who are building a new main residence. This covers:
• Knock down + re-build
• Converting an existing barn/non-residential structure
• Undertaking a significant upgrade, extension, or refurbishment on their current residence.
• Converting a current single property into multi-unit property, or vice versa.

Methods of Repayment

Repayment

A repayment mortgage is where you make monthly repayments over an agreed number of years to cover both the capital you have borrowed and the interest charged.

At the beginning of the term, most of your payment is used to cover the interest and only a small amount is paid towards reducing the mortgage. Over the course of the repayments, more and more of the monthly payment is comprised of paying back the capital borrowed.

As the debt gradually reduces over time, the figure of capital paid increases and the interest amount paid reduces, so although the monthly repayment stays the same (assuming interest rate remains unaltered) the debt starts to reduce more quickly as the term of the mortgage progresses.

At the end of the term, provided you have made your payments on time, you will have paid off your mortgage.

Interest Only

An interest only mortgage allows you to make monthly payments that just cover the interest on the money you have borrowed. These payments do not pay off any capital of the sum originally borrowed.

This means that you’ll need to repay the full mortgage amount in one lump sum at the end of the mortgage or when you sell the property. You will have to agree with us at the outset how this will be achieved.

We can only provide this facility where we are satisfied that you will be able repay the mortgage at or before the end of the term.

Part & Part

Also known as a Part Capital & Part Interest Mortgage, this type of Mortgage is a combination of 2 different repayment types.

(1) Repayment (where you re-pay both the capital and interest elements of your mortgage in full).

(2) Interest only (where you only re-pay the interest element of your mortgage and the capital balance remains outstanding at the end of your mortgage term).

With a combination of the two, you repay the full interest element and a percentage of the capital balance. The remaining capital balance will be outstanding at the end of the agreed term. For this outstanding balance, as with Interest only, you will need to ensure you have a satisfactory repayment strategy in place.

For example:

As an example, a part and part mortgage of £200,000 may have £150,000 on repayment and £50,000 interest-only. You’d then repay the £150,000 over the term of your mortgage. The remaining interest of £50,000 would be paid at the end of the agreed term.

The higher the percentage set on Interest only, the higher the balance outstanding will be at the end of the mortgage term.

Additional General Mortgage Information

Mortgage products for Owner Occupation are regulated by the Financial Conduct Authority.
Mortgages are repaid on a monthly basis, with 12 payments annually. The number and amount of repayments will depend on the mortgage amount and term required.
We accept security comprising 1st legal charge over properties in England and Wales only.
You will be required to arrange buildings Insurance cover in respect of the property offered as security as a condition of the mortgage offer.

For more information about different areas of our mortgage procedures, please view our table below. If you can’t find what you are looking for, please visit our Mortgage FAQs here or you can contact our Mortgage Team on 01582 463133 who will be happy to help answer any queries you have.

Affordability

When considering either a mortgage, or additional borrowing on your mortgage, it is very important that you are able to afford the mortgage payments as well as your bills.

As everyone will have very different financial commitments, your independent mortgage advisor will need to provide us with details regarding your income, expenditure and other assets, plus your mortgage requirements. We will then be in a position to make an individual assessment based on your personal circumstances.

Arrangement Fees

Changes to Terms and Conditions

Charges

Your Privacy

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, Mardall House, 9-11 Vaughan Road, Harpenden, Herts, AL5 4HU.

All customers have the right to know what information we hold about them. Customers should write to:

Address:

Data Protection Officer
Harpenden Building Society
Mardall House
9-11 Vaughan Road
Harpenden
Herts.
AL5 4HU

privacy@harpendenbs.co.uk

There will be no charge for the this information, unless the Society deems it to be manifestly unfounded, excessive, or a duplicate copy of documentation.

Credit Reference Agencies

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 your requirements and we will do our best to help you.

If you require any information about your mortgage, either before or after completion, please do not hesitate to ask. We also welcome suggestions to help us improve our service in the future.

If at any time you have a complaint, we would like to hear about it. A copy of our Complaints Procedure can be downloaded by clicking here.

Early Repayment Charges (ERCs)

A charge that may be incurred if you repay your mortgage (in full or in part) before the end of an initial discount period. Details of any early repayment charges applicable to a product will be shown on your European Standardised Information Sheet (ESIS) and mortgage offer.

If your product has no Early Repayment Charges, you will be able to repay your mortgage (in full or in part) at any time without incurring Early Repayment Charges.

Any overpayments received will be applied immediately to reduce the capital amount owing to us and will reduce the interest charge on your account from the day following receipt.

It should be noted compliance with the mortgage contract does not ensure repayment of the total amount of credit.

Financial Difficulty

A mortgage is a long-term financial commitment so it is important to give the matter careful consideration at the outset. Unexpected changes in personal circumstances could have an adverse effect on your ability to repay your mortgage loan.

Please contact the Society as soon as possible if you find that you are in financial difficulties or anticipate problems in paying your mortgage.

If you do have financial problems, we will always try to assist and take a fair approach to assessing your circumstances. Please refer to our “Problems Paying Your Mortgage” page for more information.

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 in place and that the premiums are paid in full.

Buildings insurance for the full cost of reinstatement is compulsory. You must supply the Society with a copy of the Policy. It is your responsibility to ensure that satisfactory insurance is in place at all times from exchange of contracts until the 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 in place from the date the mortgage commences.

Interest Charges

How we work out our Interest charges

For all of our products you will receive an illustration which contains details of the annual percentage rate of charge (APRC) which is the total cost of the loan expressed as an annual percentage to help you compare different mortgage products. Our interest is calculated on the daily changing balance of your mortgage and applied to your account monthly. This means that from the following receipt of any repayments from you the amount of the loan on which interest is charged will be reduced.

Mortgage Terms

You can select a mortgage term of up to 35 years, subject to being able to demonstrate affordability throughout the term and a satisfactory valuation report. Personalised illustrations are available over various terms from your independent mortgage advisor. Please bear in mind that shorter terms result in higher monthly repayments, but lower total payments over the full term. During the period of a repayment mortgage we can, on written request, following advice from your independent financial advisor, amend the mortgage term to suit your changing financial circumstances. You can also switch from a repayment mortgage to an interest-only mortgage, or vice versa, during the agreed term, subject to circumstances. The consequences of such actions should be discussed with your independent financial adviser. See our Tariff of Charges for any charges involved.

Solicitors Legal Advice and Costs

Valuation Fees

Your home may be repossessed if you do not keep up repayments on your mortgage.

If you fail to keep up with payments on your mortgage a 'Receiver of Rent' may be appointed and your rental property, or other property used as security, may be repossessed.