Mortgage Questions Answered

We understand that everyone's financial circumstances need individual consideration. Our mortgage interviewers will provide you with information only about our products so you can make your own choice about which is most suitable for you.

Please contact our New Business Team on 01509 631950 for more information and to apply.

We lend across the whole of mainland England & Wales. Some products may have postcode restrictions. 

If you are having trouble paying your mortgage, we will try to help you. This page explains how we will treat you fairly, and what steps you should take to help yourself.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

We will

• Contact you as soon as possible to discuss your account. Talk to an agency which gives debt advice (for example, Citizens' Advice), if you want us to.
• Give you reasonable time to pay back the debt.
• Only start proceedings to repossess your home if we cannot solve the problem with you.
• Maintain regular contact with you, regularly reviewing your circumstances.
• Accept payment to your account by cash, cheque, standing order, direct debit, bank giro payment or BACS/CHAPS

We might be able to

• Arrange a new payment plan with you, taking your and our interests into account.
• Change the way you make your payments, or the date you make them.
• Allow you to pay back your mortgage over a longer period of time (which would reduce your monthly payments).
• Change the type of mortgage. If we cannot offer you any of these options, we will tell you why.

If we can make one of these arrangements with you, we will explain how it would work and give you time to consider it, only progressing with your approval.  If we cannot offer any of these options, we might agree to you remaining in the property to sell the property yourself depending on your circumstances.

What you can do to help us

• Tell us as soon as possible if you are having problems repaying your mortgage or think that you might experience problems shortly.
• Seek debt advice if you would like help with managing your finances.
• Contact us quickly, if we try to contact you.
• Make sure you keep any other people paying the mortgage, and anyone guaranteeing the mortgage, up to date with what is happening.
• Keep to the payment plan we agree with you, or tell us if there is a change in your circumstances which may affect the arrangement. If you do not make the agreed payments, we might have to go to court to get back any money you owe us, or to repossess your property.
• Check whether you can get any state benefits or tax credits which could help to increase your income.
• If you have an insurance policy, such as a mortgage payment policy or income protection, check whether it would help with your payments.
• Tell us if you move to a new address.

You may want to talk to a professional adviser, such as a debt counsellor or a lawyer, before you change your mortgage arrangements. We would strongly advise that you seek independent, free, debt advice.

The Money Advice Service publishes useful guides on financial help. These are available free through its website: www.moneyadviceservice.org.uk, or by calling 0300 500 5000.

Costs and charges

If you are in arrears, we may charge you for reasonable administrative and legal costs. We will tell you the amount you will have to pay.

• We may send a debt counsellor to see you to discuss your financial circumstances, and the cost of the visit may be charged to your mortgage account.
• We may go to court to start proceedings to repossess your home. If proceedings take place, we strongly recommend that you attend the court and that you seek independent debt advice.
• Starting court proceedings does not necessarily mean that we will repossess your home. We will keep trying to solve the problem with you. Possession is a last resort.
• Before we repossess your home, we will give you information about getting in touch with your local authority to see if they can find you somewhere else to live.

If we repossess your home

• We will sell it for the best price we can reasonably get.  We will try to sell it as soon as possible.
• We will give you reasonable time to take your possessions from your home.
• We will use the money raised from selling your home to pay your mortgage and any other loans or charges.
• If there is any money left over, it will be paid to you.

If selling your home does not raise enough money to pay off the mortgage

• If there is not enough money from the sale to pay the whole mortgage, you will still owe us the amount that is left (a shortfall debt). We will tell you what this is as soon as possible.
• If you bought your home with other borrowers, each of you is responsible for all the money borrowed. This is true even if you normally only pay part of the mortgage.
• We will contact you within six years of selling your property to arrange for you to pay back what you still owe. If any costs are incurred in tracing you to make these arrangements, they will be payable by you.
• We will take account of your income and outgoings when we arrange a payment plan for this shortfall debt with you. But if we cannot arrange a suitable plan, we may go to court to get our money back. You might have to pay additional court costs.
• If a shortfall debt is not paid, it could affect whether you are able to get credit in future.

Complaints

If you do not think we have treated you fairly, you can complain to us by calling us on 01509 610707, emailing enquiries@theloughborough.co.uk or in writing to Loughborough Building Society, 6 High Street, Loughborough, LE11 2QB.

If your complaint is not dealt with to your satisfaction, you may then take it to the Financial Ombudsman. The Financial Ombudsman Service provides a free and independent service for consumers, and can be contacted at:

The Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Phone: 0845 080 1800

Other issues

Some companies may offer you new loans or even invite you to sell your property to them and then lease it back as a way of resolving your short term financial difficulty. Please be careful, as such actions may not be in your long term best interests. We would advise you to seek independent advice before entering into any arrangement of this type.

You may be thinking about handing your keys over to us. If you do this, you will still owe us any outstanding debt and we would advise you to discuss this option with us before taking such action.

The Society's Standard Variable Rate is currently 4.99%

The maximum we will lend will depend on how much of the property value you are borrowing (i.e. how much deposit you have) and the product you choose.

Yes

Yes

Yes.

Minimum: 18 years

Maximum: 65 years (please refer to the New Business Team) on 01509 631950

We will conduct credit searches on all applicants and will make a decision based on their credit report and the ability to make the repayments.

There are certain costs involved in taking out a mortgage:

• Completion fee
• Solicitor Fees
• Higher lending charge (where applicable)
• Valuation fee

In addition, if you are buying a house, you may have to pay:

• Stamp duty

This is a fee charged by the Society to cover the administration costs in arranging a mortgage. This fee can be added to your loan, if you wish (subject to loan to value limits).

These fees will normally depend on the size of the property and will include a Land Registry fee, the solicitors own conveyancing fee plus other charges and expenses known as 'disbursements'.

Some of our products come with a legal fee incentive if you use the Society's own service (restrictions apply - full details will be in the product specification sheets).

Before we can make a lending decision, we will need to value your property. There are 3 types of valuation available:

• Standard/Basic Valuation: This is a basic valuation of the property and is for the lender's benefit only. It enables the lender to decide whether the property is suitable for lending purposes.
• Homebuyers report: This report is a more detailed inspection of the property than a standard valuation. You will receive a report on the condition of the property, stating any repairs or defects that need attention.
• Full Building Survey: This survey is the most comprehensive type of report and is a thorough and complete inspection of the property and its structure.

If you're buying a property, you will need to pay local search fees. A search provides information about your property and immediate neighbourhood, which may affect your decision to purchase the property.  Your conveyancer will normally arrange for these to be carried out.

Stamp duty is a tax payable by the purchaser of a property. It is collected by the solicitor/conveyancer prior to the sale completing. It is charged at the following rates:

A Higher Lending Charge normally applies if you want to borrow more than 75% of the property's value and provides indemnity insurance to protect the lender against any future loss if, for example, you go into arrears with mortgage payments or your property is repossessed.

The Higher Lending Charge will normally be provided free on our products where you're borrowing 90% of the property value or less.

If you're borrowing more than 90%, the Higher Lending Charge will be based on 8.50% of the borrowing above 75% of the property value.

We offer most types of mortgages:

• Fixed Rate: monthly repayments are fixed at a certain level for a specified period of time. At the end of the fixed rate period, your repayments will normally move on to the standard variable rate.
• Discounted Rate: monthly repayments will be reduced by a set percentage, off the standard variable rate, for the period of the discount. Your repayments may go up and down, but the discount remains during the agreed period. At the end of this period, your repayments will normally move on to the standard variable rate.
• Standard Variable Rate: You are paying the lender's Standard Variable Rate which varies from lender to lender and is almost certainly higher than the rates you can achieve through one of the products shown above.  If you are on this type of product with another provider then please call 01509 631 950 as we will almost certainly be able to save you money on your monthly payments.

It is always helpful if mortgage applications are accompanied by latest payslips, P60, latest full months bank statement, most recent mortgage statement, certified copies of driving licence and passport. However, if any additional supporting documentation is required, you will be advised at the processing stage.

Capital & Interest: Your monthly payments will cover the interest on the loan and also gradually pay off the capital which you have borrowed. By the end of the term provided you have maintained your payments you will have repaid the whole loan.

Interest Only: Your monthly payments will only cover the interest on the loan and will not pay off any of the capital which you have borrowed. It is your responsibility to ensure that there is a suitable repayment vehicle in place to repay the mortgage at the end of the term.

Also available are part and part mortgages where part of your loan is on a repayment basis, and part on an interest only.

Where a mortgage product is for a number of years this can usually be transferred to another property without incurring an early repayment charge. This assumes your new mortgage with the Society is for the same amount or more than your current mortgage. If you sell and buy on the same day we will authorise your solicitor to waive the early repayment charge.

The early repayment charge may apply but the Society may refund this fee. Speak to our Mortgage Administration Team on 01509 631951 for further details.

The Society will refund the early repayment charge up to six months from the date your previous mortgage was repaid.

We'll consider most property types other than:

• Freehold flats and maisonettes
• Local Authority flats / maisonettes being purchased under the Right to Buy scheme or flats / maisonettes originally constructed by the Local Authority.
• Studio flats (there must be a separate bedroom)
• Flats in blocks where the number of storeys has an adverse impact on the future marketability of the unit. Flats in a block of 6 storeys or more.
• Back to back houses
• Grade 1 listed buildings
• Shared ownership and shared equity
• Property having planning / occupancy restrictions
• Farms / small holdings or properties affected by an agricultural tie or restriction.
• Properties designated as defective under the Housing Act 1985 or of non conventional construction (including defective steel frame, concrete properties, high alumina cement, prefabricated / panel construction)
• Properties designed and built in accordance with Modern Methods of Construction (MMC) where the materials used do not comply with BRE Product Standards 2020 and 2021 and/or there is no warranty from an acceptable provider.
• Properties where buildings insurance is not available on standard household insurance policy terms (e.g. increased excess for subsidence, non standard construction)
• Properties with flying freehold unless the section of flying freehold is less than 25% of the total area of the security.
• Timber frame properties (outer leaf)  Timber frame / brick outer leaf are acceptable except where cavity wall insulation has been subsequently injected.
• Properties designated as being in extreme flood risk areas.
• Properties within 150m of a National Grid Electricity Pylon, within 100m of a mobile phone mast / transmitter, or within 20m of an electricity supply sub station.
• Properties less than 10 years old without an NHBC Certificate or other approved guarantee from an acceptable body or Architects Certificate.
• Large panel system property
• Flat roofed properties main roof area (part flat roof extensions maybe acceptable)

The following types of non-traditional property may be considered;

• In situ poured concrete houses (not flats); specifically no fines and easiform built post 1945 are acceptable security.
• Steel framed built post 1940 may be considered subject to the Valuers comments and a structural engineers report if appropriate.

If you've got any doubt as to whether we will lend on a specific property, phone our New Business Team on 01509 631950