Mortgage Payment Deferrals were initially referred to as Payment Holidays and were introduced by the Government in response to the COVID-19 pandemic to help people who had been affected by the pandemic where their circumstances had changed.

Mortgage Payment Deferrals are for a duration of up to 6 months that may or may not be consecutive.

What happens to the mortgage Interest?
During the deferral period, interest continues to accrue and is added to the mortgage balance so the amount owed will increase and will need to be repaid.

What happens at the end of the deferral period?
The balance will usually have increased (even if part payments have been made) during the deferral period and we will need to agree with you how this increased balance will be repaid.

If your Payment Deferral has come to an end and you are unable to recommence repayments, please contact us as soon as possible if you have not already done so, so that we can help you.

Options for Repayment
There are a number of options, including extending the term, however the default option which was applied to the majority of customers was capitalisation. Capitalisation is where the debt which has accrued during the deferral period is added to the mortgage balance and the repayment is recalculated to repay the balance over the remaining term of the mortgage.

Customers taking a deferral receive a letter towards the end of the deferral period outlining the options for repaying the increased balance and for recommencing repayments. The letter also outlines the previous and new balance and repayment amount following capitalisation. Other repayment methods are available, please refer to the letter sent at the end of your Payment Deferral for more information.

Taking a payment deferral will usually mean you repay more in total over the term of your mortgage. You will pay less back in the long term if you repay the amount missed through having a payment deferral over a shorter period than the remainder of the mortgage term.

Credit Reference Reporting
Whilst the payment deferral is in place this will not be reported as a worsening status to your credit file, however lenders may take into account other information when making future lending decisions, including for example information provided by applicants or bank account information. Once the payment deferrals end, any subsequent missed payments will be reported to the Credit Reference Agencies and show on your credit file.

Debt Assistance
There may be benefit in talking to an organisation which can provide free money guidance and debt advice, for example the Money Advice Service. Free and impartial debt advice is available from not for profit debt advice firms through both digital and telephone services and face to face services may also be available.

When you set up a direct debit with us it can take up to 5 days to activate. So if your payment is due now, you’ll need to bank transfer your current payment and the direct debit will take effect from the following month. 

As the Furness Building Society is not a major clearing bank we often use the Royal Bank of Scotland (RBS) for some of our electronic transactions, such as mortgage repayments.  

In order for us to agree to a mortgage with you, we first need to undertake a mortgage valuation report on your chosen property. This report will assess exactly how much financial security your chosen property offers against a loan and so determines how much we’re able to lend you.

All valuations and surveys undertaken by the Furness Building Society are carried out by qualified surveyors who are members of the Royal Institution of Chartered Surveyors (RICS).

There are various types of valuations. The most simple involves a qualified surveyor evaluating a property in order to put a monetary value against your property based on an assessment of the building. 

It’s important to note that the report is undertaken solely to help us understand the property’s value and to assist us in providing an appropriate loan value. It should not be used as a factor for understanding how sound your new property is as this report does not include a full assessment of all features (such as gas pipes and electricity). 

If you require a full survey of your home there are two private survey and valuation reports available to you: A homebuyer’s survey and valuation report and a building survey report.

Please note that there is a free valuation package available on standard remortgages . This includes a basic valuation up to a maximum fee of £2,300 or £3m value.

N.B. Mortgage Valuation Reports are carried out in accordance with the R.I.C.S. Appraisal and Valuation Manual, and the valuer is entitled to make assumptions which may, on further investigation, for instance by your legal representative, prove to be inaccurate. Any exception is clearly stated.

The Society’s valuation fees include VAT (if applicable) and a £75 administration charge.

If you’d like more information whilst buying or selling a conventional house, flat or bungalow, built from common materials and in a reasonable condition, a homebuyer’s survey would be suitable for you. 

A homebuyer’s survey includes:

• Professional opinion on the market value of the property
• An insurance reinstatement figure for the property 
• A list of issues that the surveyor considers may affect the value of the property
• Advice on repairs and ongoing maintenance 
• Issues that need to be addressed before serious damage or dangerous conditions occur
• Legal issues that need to be addressed before completing your conveyancing 
• Information on location, local environment and the recorded energy efficiency (where available)

If you are buying or selling a larger or run-down property, a building that is unusual in some way or if you’re planning major works, you may want to consider the building survey report.

A building survey report is more expensive than a homebuyer’s or mortgage valuation report as it provides more detailed information regarding the fabric and structure of the property. 

This kind of report is usually carried out by a qualified structural engineer or chartered building surveyors with appropriate experience and includes: 

• A thorough inspection and detailed report on a wider range of issues
• A description of visible defects and potential problems caused by hidden flaws 
• An outline of repair options and the likely consequences of inactivity 
• Advice for your legal advisor and details of serious risks and dangerous conditions

Should you require a building survey report, please let us know and we’ll arrange a surveyor to discuss the details with you and advise of the costs. It’s important to detail your particular requirements to the surveyor or structural engineer. Fees and terms of engagement will vary according to the work at hand and should be agreed in writing prior to the survey being undertaken. 

It’s important to note that RICS building surveys do not include a valuation but your surveyor may be able to provide this as a separate service as well as estimated costs of repairs. Our mandatory mortgage valuation report will also need to be arranged separately with us and the appropriate fee payable in addition to the building survey report costs. 

More information on the types of survey available via the Royal Institution of Chartered Surveyors (RICS) can be found here.

Often lenders will offer mortgage rates which give the borrower an incentive deal for a set number of years (usually 2, 3 or 5) at the start of the mortgage. 

Common incentives include a starting rate which is fixed for a period of time or a starting rate which offers a discount from an ‘underlying rate’ for a period of time. At the end of this period, the incentive ends and the rate payable on the account becomes the ‘underlying rate’.

Some mortgages also have what is called a ‘floor rate’. This means that whatever happens to the interest rate, the rate on the mortgage account will never fall below this rate (or ‘floor’).

If you already have a mortgage with us and you wish to move home, you’ll have to ‘pay off’ (also referred to as ‘redeem’) your existing mortgage and you’ll be expected to pay an early repayment charge (ERC) under the terms of your existing mortgage. 

Normally you only pay the ERC when paying back your mortgage. However, it’s possible that some, if not all, of this charge can be refunded to you if you take out a new mortgage with us - providing also that you comply with certain conditions (outlined below).

In order to avoid the early repayment charge you must take out a new mortgage with us for the same amount as your existing mortgage and carry forward the existing product terms to your new mortgage. 

You’ll also be expected to comply with the lending criteria applying at that time and complete your new mortgage within 6 months of repaying your existing mortgage.

If you need to borrow more money when you move home you can often top up the difference between the portable amount and your new mortgage with one of our other products available at the time.

If you borrow less than the portable amount on your current mortgage, you will pay an early repayment charge on the difference.

For example, if your existing mortgage is £50,000 and you only wish to borrow £40,000 on the new mortgage, an early repayment charge will be payable on the £10,000 difference.

Money Helper provides guidance guidance across a wide range of money matters, including a number of useful tools and calculators. The service is available 24 hours a day via the website and five days a week by telephone on 0800 138 7777 - calls are free.

What you need can vary depending on your circumstances, so our team will advise you on what to bring when you book your appointment. Generally speaking, we’ll need you to bring the following documents whether you’re a first time buyer, remortgaging or a buy to let landlord:

• A passport or driving licence for each applicant. 
• Details of your deposit. 
• Bank account details that you’ll be using for your monthly mortgage payments. 
• Proof of address dated within the last three months (a utility bill or bank statement).
• Details of any outstanding credit - loans, credit cards, car finance etc. 
• Details of the property you want to buy - address, price and building type. 
• For leasehold properties, we’ll need to know how many years are left on the lease. 
• Contact details for your solicitor. 
• Proof of income, including any bonuses. If you’re employed full or part-time, we’ll need three month’s worth of payslips. If you’re self-employed, retired or claiming income benefits, please contact us ahead of your appointment to check what documentation you’ll need to provide. 
• If you’re remortgaging or own rental properties, we’ll need details of your other mortgages.

You can contact us directly on 0800 220 568 and a member of our team will be able to answer any queries you have about your mortgage offer.

An overpayment is any payment that’s separate from your usual monthly mortgage payment, which can be made either as one lump sum or as a regular addition to your existing direct debit. You can make an overpayment at any time via bank transfer. 

Please note that your mortgage may have an allowance, which outlines how much you can overpay each year. If you go over this allowance then you may need to pay an Early Repayment Charge (ERC). The full details of your allowance and overpayments can be found in your original mortgage offer. If you need a new copy of your mortgage offer, please contact us on 0800 220 568.

When you have a mortgage with us you’ll receive an annual mortgage statement in the post, which details the current status of your mortgage. This includes information on your current interest rate, how long you have left of the initial ‘offer period’ and also how much capital remains.

If for any reason you need a new copy of your mortgage statement, you can contact us on 0800 220 568 and we’ll get one sent out to you.

Yes, it’s possible to add somebody to your mortgage. The process is similar to opening a new mortgage, so you’ll need to make an appointment with one of our advisors. Adding a new person means you’re legally changing the people responsible for paying the mortgage. Therefore, we’ll need to look at the income and outgoings of everyone named on the mortgage to ensure that it’s still affordable and those applying to be added are eligible.

It’s possible to borrow more on your mortgage mid-term through our additional borrowing products. To determine your eligibility for additional borrowing, you’ll need to book an appointment with one of our advisors by calling 0800 220 568. At your appointment, an advisor will review your circumstances to assess your eligibility.

Unfortunately, we are unable to offer Shared Ownership mortgages at this time.

At the end of your mortgage term, we will get in touch with you directly and you will receive a final statement. 

It’s also possible to repay all or part of your mortgage before the end of the term, however, you may have to pay an Early Repayment Charge (ERC). Details of any ERCs that apply to your mortgage can be found in your mortgage offer.

As of Friday 26^th May, the structure of the Society’s 2 year and 3 year new lending products has changed.  They will no longer immediately revert to the Society’s Mortgage Variable Rate (MVR), after the initial rate ends.  Instead, following the initial rate, the products will now have a variable period at MVR minus 1.25% before reverting to MVR 5 years after the start of the mortgage.

Retention products and 5 year fixed rates remain unchanged.