Frequently Asked Questions
Please choose from the range of mortgage related questions below.
How much can I borrow?
This will depend on how much your property is worth, how much you earn and how much you can comfortably afford to repay each month. Refer to the
Mortgage Guide for more details.
Do I need a deposit?
Yes, the amount differs with each product. Please check our mortgage product pages to see if we have a mortgage that is suitable for you.
Please note you must have at least a 40% deposit for a mortgage on a new build flat or 25% for a new build house.
Do you accept builders deposits/incentives?
No, including gifts and incentives.
How long can the term of the mortgage be?
The usual term is 25 years but your loan can be for any term from 5 to 30 years and should end on or before your normal retirement age. We may also lend for up to 35 years on some first time buyer products.
How does the Stroud & Swindon charge interest?
Interest is charged monthly on the balance outstanding at the end of each month.
What interest rate will I be charged on my mortgage?
The rate you will pay is the individual rate for the product you take. If you are taking a discount rate mortgage, capped rate mortgage, variable rate mortgage or fixed rate mortgage product we will advise you of the rate you will be paying and how long you will receive that rate for.
What are the Early Repayment Charges attached to a mortgage?
Some mortgages may involve some kind of Early Repayment Charge i.e. the amount of money you will have to pay if you repay your mortgage early or move your mortgage to another lender within a set period. We will ensure that you are aware of what you may have to pay.
What happens if I repay my mortgage early?
Some of our mortgage products may include an Early Repayment Charge. The charges that are made will depend upon the type of product (e.g. fixed rate mortgage) you have chosen and when you decide to repay your mortgage. A discharge fee will be payable which covers the cost of releasing the mortgage.
Can I make a capital repayment to my mortgage?
Up to 25% of the original loan can be repaid at any time without an early repayment charge and the minimum amount payable is £2,500.
What can I do to protect my monthly payments?
Subject to eligibility, our Accident, Sickness & Unemployment (ASU) Insurance policy is designed to protect you if your income is unexpectedly reduced. ASU Insurance will meet your monthly mortgage commitments for up to 12 months should you be unable to work due to accident, sickness or unemployment.
What happens if I can't afford to make my monthly mortgage payments?
Please call us straight away. We will do all we can to help you overcome your difficulties and work with you to find a solution. With your co-operation we can develop a plan for dealing with your financial difficulties and clearing any arrears.
Why has my mortgage balance increased?
It may be that you have not made all your monthly payments or they have not been paid in full. Have you included payment for insurance in your monthly payment? Please contact our Customer Service Centre on 08457 045 012 they will be happy to help.
Can I still get a mortgage after a bad debt or missed or late payments?
Possibly. Each application is assessed on its own merit.
What is the valuation?
The mortgage valuation is solely for our purposes so that we can be satisfied that the property provides sufficient security for us to lend on. The mortgage valuation does not give any indication as to whether the property is worth what you are paying for it, nor does it provide a comprehensive list of repairs that may be needed.
What are the different kinds of survey?
More detailed inspections of your home are available which are designed to help you with the choice of property. You may wish to consider the Homebuyer Report, which we can arrange to carry out at the same time as the mortgage valuation. Any urgent and important matters will be brought to your attention before you commit to buying the property.
An alternative is a Structural Survey which includes technical information on construction and materials as well as details of any defects found, both major and minor.
What to do when someone dies?
Write to the Society to inform us of the death. Including either:
- Original death certificate or Interim Death Certificate
- Certified Copy of the Death certificate or Interim Death Certificate
- Death Certificate Verification Form - This form is completed by a Solicitor using the information given on the Original Death Certificate.
Who can certify a document?
- A Member of Parliament
- Justice of the Peace
- Commissioner of Oaths
- Officer of the Armed Services
- A person registered with or approved by the FSA
- Police Officer
- A member of a nationally recognised professional body (e.g. a Solicitor, Barrister, Accountant, Doctor, Nurse (SEN or SRN), Chemist, Optician, Banker, Surveyor or Valuer)
Please note that the photocopy must be certified by writing “I certify that this is a true copy of the original”, and then signed and dated by the certifier. In addition we will require the certifier to print their name, status, professional body they belong to and contact details.
What should I do if the deceased held a mortgage with the Society?
The mortgage balance will continue to accrue interest and payments will still need to be maintained. The deceased's solicitor, the surviving borrower and / or the executor (upon receipt of Probate/Letters of Administration) are authorised to obtain information about the mortgage account.
What happens on a joint mortgage?
We will determine the tenancy of the mortgage. If the tenancy is held as Beneficial Joint Tenants, once we have evidence of death (please refer to
What to do when someone dies?), the mortgage will automatically transfer in the name of the surviving borrower. If the tenancy is held as Tenants in Common, we will require sight of the original or certified copy of Grant of Probate or Letters of Administration in order to establish any further requirements.
What does Beneficial Joint Tenants mean?
This is where the whole property is jointly owned by the borrowers and in the event of death the deceased persons share is automatically passed to the remaining borrower.
What does Tenants in Common mean?
This is when each borrower has a defined share of the property. Upon death the property does not automatically transfer to the remaining borrower but becomes part of the deceased's estate. The deceased's share will then be passed on, in accordance with the terms of their will or under the rules of intestacy if no will has been made. If the sole beneficiary is the surviving borrower, upon confirmation of this from the solicitor the mortgage will be transferred into their sole name. If the sole beneficiary is not the remaining borrower the existing mortgage will need to be paid in full and if necessary a new mortgage will need to be taken out.
What happens on a sole mortgage?
We will require sight of the original or certified copy of Grant of Probate or Letters of Administration in order to establish any further requirements.
What is a Grant of Probate? (England & Wales)
The document received from the Probate office on submitting the Oath for Executors. The Grant of Probate is issued if the deceased has made a will.
What are Letters of Administration? (England & Wales)
These are similar to Grant of Probate but they are issued (by the Probate office) if the deceased has not left a will.
What is Certificate of Confirmation? (Scotland)
This is the Scottish version of Letters of Administration or Grant of Probate which is obtained from the court.
What if your home insurance is arranged through Stroud & Swindon?
If your home insurance is arranged through the Stroud & Swindon please inform us if the mortgaged property is unoccupied as this may effect the terms and conditions of the insurance policy.
If home insurance is not arranged through Stroud & Swindon and the property is unoccupied please ensure that you notify your home insurance company of this.
Glossary
Annual Percentage Rate (APR) - The total cost of a loan taking into account all costs payable with your mortgage, expressed as a rate of charge over the mortgage term. It allows you to compare like with like when looking at mortgages on offer from different lenders.
Base Rate Tracker Mortgage - The interest rate you pay on your Base Rate Tracker mortgage is set at an agreed level relevant to the Bank of England Base Rate and follows its variations.
Completion Statement – A document prescribed by the FSA that we must give you when your mortgage completes and sets out the details of your mortgage contract.
Discounted Rate Mortgage - The interest you pay on your discounted rate mortgage is set at an agreed level below our Standard Variable Rate. Your payments will vary whenever our Standard Variable Rate changes.
Early Repayment Charge (ERC) – A charge that may be payable if you repay your mortgage early. The charge we impose is a reasonable pre-estimate of the costs we incur as a result of you deciding to terminate your mortgage or changing your product before the end of the specified term.
Financial Services Authority (FSA) – The FSA is the independent watchdog that regulates financial services. It regulates the way we conduct our mortgage business.
Fixed Rate Mortgage - The interest rate and payments of a fixed rate mortgage are fixed for a period of time.
Flexible Mortgages - A mortgage that allows you to overpay then underpay, take a payment holiday and draw upon any overpayments. Overpaying can substantially reduce the amount of interest you pay or enable you to repay your mortgage early.
Higher Lending Charge (HLC) - An additional charge which is applicable when you borrow more than 75% of the property's value, to enable us to buy insurance cover which protects us against the higher risks involved in mortgages of this size.
Initial Disclosure Document (IDD) – A document prescribed by the FSA that we must give to you at the interview stage and sets out key facts about our services.
This file is supplied in PDF format (42kb) and requires
Adobe Acrobat Reader to view it.
Key Facts Illustration (KFI) – A document prescribed by the FSA that we must give you before you apply for a mortgage and sets out the details of the mortgage that you may wish to apply for.
Offer – A document prescribed by the FSA that sets out the terms upon which we will lend money to you.
Standard Variable Rate (SVR) - The Society’s core interest rate, off which discount products are set. During your mortgage term the interest rate rises and falls, and so do your monthly payments.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.