If you take out a loan with us to buy a property in Scotland we will take a security over that property known as a ‘Standard Security’. There are conditions which apply to this Standard Security and to your loan in addition to the terms and conditions in this booklet. Please ask your solicitor to give you a copy of this booklet when you sign the Standard Security.
If you buy a property in England or Wales then we will take a security over it known as a ‘Mortgage Deed’. The additional conditions which apply to this security and to your loan are listed in a separate booklet. Please ask your solicitor to give you a copy of this booklet when you sign the Mortgage Deed.
Whether you buy property in Scotland, England or Wales your solicitor will explain the obligations which you have entered into by signing our security document. Please ask your solicitor if you are unsure about any of the legal matters involved in taking out your loan and signing our security documents.
Additional borrowing may be available for existing borrowers wishing to borrow funds for home improvements, repairs and other acceptable purposes.
Please speak to the Society's staff for further details.
If you want to let your property you must get our written consent before you sign a lease and allow your tenant to move in. There are certain conditions which we require you to meet prior to letting.
These conditions protect your interests as well as ours. You can get a copy of these conditions from our Head Office. If the property is let, the interest rate may increase and you may have to pay an administration fee (details of the fee are in our Service Charges leaflet).
We also recommend that you discuss your intentions with your solicitor as he or she will be able to advise you on your rights and obligations. Your solicitor may also be able to draw up a suitable lease for you and make sure that any notices which have to be served on your tenants are served at the right time.
We may release our charge on any part of the mortgaged property eg., part of a garden if we are satisfied that the remainder of the property will be adequate security for the balance owing to us.
We may impose conditions and may require a revaluation of the property. This will be at your own expense. A fee for agreeing the release of part of the security will be payable in accordance with our “Service Charges” leaflet.
If you want to repay your mortgage in full you will need to pay us all sums owing in respect of the mortgage including:
You may repay all or part of your mortgage before the end of the term, however, you may have to pay an Early Repayment Charge.
We will not impose Early Repayment Charges when the reason for the early repayment is due to the death of one or other of the parties to the mortgage.
Please refer to our Service Charges leaflet for the amount of administration fee payable and also read the section of this booklet entitled Interest on Your Mortgage.
In some cases, we may require that, as a condition of granting you a loan, you arrange for another person to guarantee your loan. This means that if you are unable to pay your loan we can require the person who has granted the guarantee to pay it.
Before we take a guarantee from someone we will require them to take independent legal advice so that they understand their obligations. We will also tell them that they could become liable to pay your loan instead of (or as well as) you and how much they could be liable to pay. We will not take a guarantee for an unlimited amount, the guarantee will be for the advance amount plus interest and costs.
Where the Society is asked to consider a mortgage application and a guarantor is involved, your authority will be obtained to disclose to the guarantor full details of the mortgage application including your own financial information. In addition, your consent will be obtained to enable the Society to contact the guarantor and discuss the conduct of the account with them.
You may request that either you or your representative may examine the deeds of your property over which we hold a mortgage or to supply extracts from our copies of such deeds, subject to any reasonable conditions that we may specify. You may have to pay a fee for these services and the fees are shown in our Service Charges leaflet. The fee will be charged to your loan and you will be asked to make a separate payment.
For Land Registry deeds we do not require pre-registration title deeds. If they are sent to us, we may charge you a fee for providing storage facilities. The amount of this fee is the same as that charged for the release of title deeds.
It is very important to bear in mind that a change in your circumstances could have an adverse effect on your finances, e.g. divorce, bereavement, sickness, redundancy.
It is vital to plan for this and protect for these eventualities.
If you become ill or unemployed or find it difficult to meet your monthly repayments for any other reason, please let us know immediately. If you do this then we may be able to help by developing a plan with you for dealing with your financial difficulties. Please speak to the Society's staff for help and assistance.
If you do not pay the monthly instalments or other amounts on your loan as they fall due then we will regard your loan as being in arrears.
The Society will deal with any arrears which occur fairly, sympathetically and positively and will try and reach an agreement with you to enter into a payment plan to repay the arrears.
Repossession of the property will only be considered as a last resort, but if we have to re-possess your property an administration charge will be made.
There may be charges which are incurred whilst the account is in arrears and details of these are in our Service Charges leaflet. You can get this at any of our branches or from Head Office or on our website www.furness-bs.co.uk
In addition to our charges, you will also be responsible for any legal and other costs which we incur.
If your loan is in arrears, this will usually result in any incentive you have received eg discount, cashback, etc having to be cancelled and repaid to the Society.
If your loan is in arrears you will also have to pay interest on the payments which are in arrears. The rate which we use to calculate this interest is usually the same as the normal rate which applies to your mortgage. Please also read the section entitled ‘Interest on your Mortgage’.
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