FAQs for mortgage customers
If you think you're likely to face difficulties in paying your mortgage, it's important you speak to us as soon as possible. Don’t wait until you’ve missed a payment before you get in touch. We’ll do all we can to help you. Visit our customer support section to start taking control.
There are three different ways to repay your mortgage.
- Repayment: Your monthly payments are made up partly of capital (the sum you’ve borrowed) and partly of interest (the monthly interest on the sum you’ve borrowed). Provided all payments are made on time, the loan is repaid at the end of the mortgage term.
- Interest only: Your monthly payments contribute to paying off only the monthly interest on the sum you’ve borrowed. This means you won’t be paying off the ‘capital’ (the sum you’ve borrowed) during the term of your mortgage, so at the end of the mortgage term the amount you initially borrowed will still be owed in full. As a borrower you take full responsibility for ensuring that the loan is repaid at the end of the term. This is often achieved by having some sort of investment that, when mature, pays off the initial amount you borrowed.
- Repayment/Interest only split: A mix of the above two mortgage payment types; part of your mortgage would be on a repayment basis and part of your mortgage would be on an interest only basis.
You may need to meet certain criteria to change your repayment type. Get in touch if you'd like to discuss any changes with us.
When your Principality mortgage deal is due to end we'll get in touch at least six weeks before the maturity date, letting you know which deals are available for you to switch to. You can choose to receive advice from us on the most suitable deal, or you can choose for yourself and inform us which mortgage deal you’d like to switch to.
It’s important that you read and weigh up these options before deciding how to switch. Find out how to switch your mortgage.
If you do nothing: If you don't select anything to replace your mortgage deal before it ends, that part of your mortgage will attract interest at our Standard Variable Rate (SVR) when it matures.
When your mortgage is set up, the funds to purchase or remortgage your property are sent to your solicitor to distribute. The mortgage begins from this point, but you are not asked to make your first monthly payment until the direct debit is set up. This can be up to two months after the funds are released for purchase.
During this time, you've received the funds but have not yet made a monthly payment, so interest is accruing. This initial amount of interest is sometimes called the ‘accrual’. Payment of this interest can either be paid before your first monthly payment or taken with your first monthly direct debit payment.
To set up a direct debit agreement for your mortgage deal with us, send us a completed direct debit form. Or if you prefer, you can call us or visit one of our branches to talk to us.
We can collect your payments on either a working day between the 1st and 25th of the month or on the last working day of the month. If you'd like us to collect your monthly payment on the last working day of the month, please enter your payment date as last day of the month.
If your mortgage repayment amount changes we'll always let you know in advance. You won't need to do anything to change the direct debit agreement; we'll automatically adjust the amount for you.
You can cancel your direct debit at any time by contacting your bank; please remember to let us know too.
If for any reason your direct debit payment is returned to your bank unpaid, we’ll write to let you know and we’ll try again to collect the money in 10 days. In these circumstances, a charge is payable; you can find more information in your mortgage tariff of charges.
Your mortgage term is the number of years you agreed to pay off the loan you borrowed when you first took out your mortgage with us. As your circumstances change, you may want to change the term of your mortgage, making it either longer or shorter. Doing this will have an effect on your mortgage monthly payments, and any term adjustment agreement will be subject to our lending criteria and affordability.
Please get in touch if you'd like to discuss if you'd like to discuss changes to your mortgage term.
A further advance is an additional loan taken by someone who already holds a mortgage with us. It's secured on the same property as your existing mortgage.
We assess applications on a case-by-case basis, and each application is subject to our lending criteria so we can be sure you can afford your repayments.
- The minimum amount you can borrow is £1,000. The maximum you’ll be able to borrow will depend on your affordability and our lending criteria
- You can borrow the money over a period between 2 and 40 years. Repaying your loan over a shorter period of time will mean you pay less interest but your monthly payments will be higher than if you choose a longer repayment term. Repaying your loan over a longer period of time will mean you pay more interest but your monthly payments will be lower than if you choose a shorter repayment term.
- There's an application fee of £205, but there are no additional charges if you decide to make early repayments.
- You can apply for another further advance if you already have one with us. The total of your loan(s) and mortgage(s) with us cannot exceed 85% of the value of your home.
Get in touch if you'd like to discuss taking out a further advance with us.
You can add or remove someone from your mortgage with our approval, and subject to our mortgage lending criteria and affordability. This is known as a transfer of equity.
Get in touch if you’re thinking of adding or removing someone from your mortgage.
If you've suffered a loss, we will do our best to make things simple for you during this difficult time. We’ve prepared a step-by-step guide to registering a death which you can follow. When one of our mortgage customers passes away, we‘ll ask you for:
- the original death certificate (or a certified copy)
- the details of the family member, representative or executor who is acting on behalf of the person who has died
If we need any other documents we will let you know when we speak with you
You may need a certificate of mortgage interest (MIRA 5) for tax purposes. It gives details of the interest charged to your mortgage account during the previous tax year. Please note that we cannot produce a certificate of mortgage interest for tax paid until the relevant tax year has ended.
Get in touch if you need a certificate of mortgage interest.
If you sell part of your land or any outbuildings on land that you own, that portion of the property that forms part of our security on the mortgage is released. This is known as a release of part security and is often handled on your behalf by a solicitor. This process may involve having the property valued again.
Get in touch if you’d like to discuss a release of part security.