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, but the minimum required is 5% of the purchase price/valuation. However, if you are a first time buyer we sometimes have products available which require no deposit.
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
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.
Death?
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.