FAQs for existing customers

FAQs for existing customers

Please have a look at our frequently asked questions for help and support for existing Bath Building Society customers. We recognise that over the lifetime of a mortgage, your circumstances will probably change. If you need advice or would like to make changes to your mortgage, we can help. If you can't find the answer you're looking for below, call our team on 01225 475730 or email mortgages@bibs.co.uk

  • Coronavirus: payment deferrals update

    We understand these are challenging times and you may be worried about how you will keep up your mortgage payments over the coming months.  Please contact us as soon as possible to discuss if a payment deferral is a suitable option for you.  

  • What is the difference between a payment holiday and a payment deferral?

    There is no difference, but it has been suggested that some borrowers might think the word ‘holiday’ would give the impression that there would be no need to catch up on the missed payments. As a result, the FCA is now using the term ‘payment deferral’.

  • How do payment deferrals work?

    The monthly payment changes to zero for a period. The unpaid interest continues to accrue, meaning that the amount you owe will increase. You will still need to make up these repayments in the future, which could be over the remaining term of the mortgage. However, if you can afford to pay your mortgage, or even just part of it, you should continue to do so.

  • Will I be eligible for a payment deferral?

    All borrowers are eligible for a payment deferral on the mortgage secured on their home. However, there a number of options available and a payment deferral isn’t always the most suitable solution for everyone. If you contact us, we can tailor the best option for you.

    If you are a Buy-to-Let landlord, a payment deferral will be available if your tenants have lost income because of the impact of coronavirus.

    Any request for a payment deferral must be received by 31st October 2020.

  • How do I apply for a payment deferral?

    If you are concerned about making your mortgage payments during this time you should contact us as soon as possible. You don’t need to fill out an application form. 

    For Buy To Let landlords, the Government has stated that landlords who are granted a payment deferral should pass on this relief to their tenants to ensure that they are supported during this time.

    Any request for a payment deferral must be received by 31st October 2020.

    Towards the end of the payment deferral we will contact you to assess your circumstances and agree a manageable way for you repay the interest and make up the missed payments.

     

  • How long will it take to process my payment deferral?

    We will process it as soon as possible. Our mortgage collections normally take place at the very end of each month. We will aim to process any payment deferral requests received by the 25th of each month in time to change the collection at the end of that month. 

  • I can afford my mortgage at the moment. Should I apply for a payment deferral just in case?

    If you can afford to make your payments, you should continue to do so. If you experience financial difficulties prior to 31 October, you can still apply for a payment deferral using this scheme. If you start to experience financial difficulties after 31 October, please get in touch so we see how we can help.

  • I'm on a payment deferral, but am now able to re-start my mortgage payments. Should I do so?

    Yes, as the sooner you re-start, the less it will cost you overall. Please contact us to find out how to do this.

  • My payment deferral is coming to an end. Can I extend it?

    If you are coming to the end of your first Coronavirus Payment Deferral, you can request a further Payment Deferral of up to another 3 months, so the maximum total period is 6 months.  Such a request must be made by 31st October.  If you can afford to make your mortgage payment, or even just part of it, you should continue to do so.  A payment deferral will cost you more in the long run.

  • What will my mortgage repayments be at the end of a payment deferral?

    We will tell you what your repayments will be when you enquire about a payment deferral and when it is coming to an end. For most borrowers, the difference will be small. For example, someone with a mortgage balance of £200,000, with 24 years remaining will see their payments go up by about £17pm after a 3 month payment deferral (or £34 after a 6 month payment deferral) The difference will be greater for larger mortgages or where the mortgage has fewer years left to run.

  • What are my options at the end of a payment deferral?

    We expect most borrowers will spread the missed payments over the remaining years of the mortgage. However, other options may be available, such as:

    • Paying the missed payments over a shorter period, or even in one lump sum.
    • Extend the length of your mortgage. For example, if you have had a 6 month payment deferral, you might want to add 6 months on to the end of your mortgage. We should be able to agree to this, but if it means your mortgage will continue into your retirement, we will need to check that is likely to be affordable for you when you retire.
  • What if I’m already in arrears?

    Borrowers in arrears are eligible for this scheme in the same way as those not in arrears. Mortgage lenders have agreed not to progress possession on residential and buy-to-let mortgages until 31 October 2020. In any event, we only ever take possession as a last resort.

  • What if I don't own my property but rent instead?

    You should contact your landlord or managing agent if you have problems paying your rent. If you are a landlord and your tenants are unable to pay their rent you should contact us as soon as possible to discuss the options that may be open to you.

  • How will a payment deferral on my Bath Building Society mortgage affect my credit rating?

    All UK credit reference agencies have confirmed that any agreed payment holiday will not affect a borrower’s credit file.  Your credit status for your Bath Building Society mortgage will be frozen as it is at the start of the agreed payment holiday.  However, some lenders may take a payment holiday into account when considering future lending.  Further information can be found here.

     

  • But lenders are only offering a short-term measure. What about customers who may be likely to need support longer-term, or help to recover their previous position after the payment deferral expires?

    Before the end of the payment deferral period, we will contact you about your options. If you continue to be in financial difficulty once this scheme is over, we will aim to come to an arrangement to help you get back into a sustainable position on your mortgage. Any arrangement will aim to minimise the risk of possession.

  • Where can I get more help with my finances?

    For most people, it makes sense to pay essential expenses and priority debts (such as your mortgage or rent) before any discretionary expenses or non-priority debts (such as Sky TV etc). The Money Advice Service has published help on prioritising debts https://www.moneyadviceservice.org.uk/en/articles/how-to-prioritise-your-debts

    The Financial Conduct Authority (FCA) has published information about dealing with financial difficulties during the coronavirus pandemic. See https://www.fca.org.uk/publications/finalised-guidance/information-consumers-financial-difficulties-coronavirus They have also published help on working out a household budget.

    The Money Advice Service has also published a coronavirus support page on their website. See https://www.moneyadviceservice.org.uk/en/hub/coronavirus-support

    The Building Society Association (BSA) and National Debtlines have created this high level guide for customers who can't pay their mortgage.

    Free debt advice is available from the Citizens Advice Bureau.

    It is always sensible to contact your creditors if you are experiencing difficulties making your payments, whether it is your mortgage or any other debt (such as car loans, credit cards etc).

  • Contact Us

    If you are having, or expect to have, difficulties paying your mortgage it's important to contact us as soon as possible. Please contact our mortgage team today for more help and advice. You can use Live Chat, call us on 01225 475719 or email: mortgageadmin@bibs.co.uk

     

  • How can I find out how much I owe?

    We send out annual mortgage statements at the beginning of the calendar year. However, if you need to request a copy please contact our mortgage admin team on 01225 475719 and we will send a copy free of charge.

  • Can I make overpayments?

    Most mortgages now offer you the option of making overpayments. Making overpayments can help you repay your mortgage before the end of the term, which will save you money on interest. While you are in a preferential rate period, we allow you to pay up to 20% of the balance outstanding as at 1st January, each calendar year without incurring an early repayment charge. When your preferential rate period expires, you would be able to make any additional overpayments or even pay off your mortgage in full without incurring an early repayment charge. 

  • Can I take a mortgage payment holiday?

    A 12-month Capital Repayment holiday may be available for certain mortgages. During this period, you will still have to make monthly repayments in respect of the interest due. You will need to check your mortgage conditions to see if your mortgage allows this, or contact us to see if you are eligible. Before we make a decision about whether to allow a Capital Repayment holiday, we will need to consider your circumstances and the reason for the request. To be considered for this feature, you must have made your first 6 months repayments and all previous repayments must have been made on time and in full. Capital Repayment holidays will be considered for the following life events; Parental Leave, redundancy/unemployment, long term sickness or death of a joint borrower. It is important that you understand that after taking a Capital Repayment holiday, your monthly repayments will increase. The amount of capital that was not repaid during the period will be spread across your remaining mortgage term and your repayments increased accordingly. You can apply for a maximum of 12 months Capital Repayment holiday once during the life of the mortgage.

  • Can I change the repayment method on my mortgage?

    This may be possible subject to certain criteria. Talk to our mortgage advisors on 01225 475730 or email mortgageadmin@bibs.co.uk for professional advice.

  • How can I change the correspondence address on my mortgage account?

    To change the correspondence address we hold for your mortgage account we will require either: 

    • A request for this change in writing with a signature matching what we hold on file, or
    • A phone call from the borrower, answering a series of security questions

    When there’s joint borrowers we will need confirmation from all parties.

     

  • Can I remove or add a person on my mortgage account?

    If you need to remove or add a name to your mortgage you'll need to contact our mortgage team on 01225 475730.

  • If I move house and take out a new mortgage with the Society, do I have to pay the Early Repayment Charge?

    If you move house you may be able to transfer your current mortgage to your new house subject to meeting the Society's lending criteria. This is called 'porting' and will be shown in your product specification sheet and in your Mortgage Offer Conditions.

  • What do I do when a mortgage account holder dies?

    When someone dies the administration can be overwhelming. If you are dealing with a Bath Building Society mortgage, we will do all we can to make the process as simple as possible for you. Call the mortgage admin team on 01225 475719 or email mortgageadmin@bibs.co.uk.  If you'd prefer to see someone face-to-face you can make an appointment to pop into our head office.

  • Contact Us

    Can't find what you're looking for? Contact our mortgage team today for more help and advice. You can use live chat, call us on 01225 475719 or email us: mortgageadmin@bibs.co.uk

     

  • What can I do if I'm thinking about borrowing more on my mortgage?

    If you already have a mortgage with us and you want to borrow more funds, you could be eligible to apply for additional borrowing. This is called a 'further advance', and it's a way of borrowing against the value of your home. The easiest way to check if you qualify for a further advance on your mortgage with Bath Building Society is to call our mortgage team on 01225 475730 or email: mortgageadmin@bibs.co.uk

    It is important that you are aware that any additional borrowing will be secured against your property and your mortgage balance will increase. 

  • What is my Loan To Value?

    Loan To Value (LTV) is a ratio between the size of the loan you would like, against the value or sale price of the property you wish to re-mortgage or purchase. Generally the lower your LTV, the lower your interest rate is likely to be.

    When applying for additional borrowing you need to consider your outstanding balance on your existing mortgage as well as the amount you are looking to borrow in addition. It is the total of these two that will be used to decide your loan to value for any further borrowing.

    The value of your property may have changed over time and we may need to update the valuation in some circumstances.

    If the loan exceeds a certain percentage of your property value you may need to pay a higher lending charge.

  • Is there a minimum amount I can borrow?

    The minimum amount of an additional borrowing loan that we will consider is £5,000.

  • Contact Us

    Can't find what you're looking for? Contact our mortgage team today for more help and advice. You can use live chat, call us on 01225 475719 or email us: mortgageadmin@bibs.co.uk

  • What happens at the end of my discounted or fixed rate mortgage?

    Your rate will revert to our standard variable interest rate for the remainder of the term. However, we'll write to you about 12 weeks before your current deal expires to let you know what your new payment is.  At Bath Building Society we like to reward our loyal customers, so if you are eligible you may be able to transfer to a different 'fee free' mortgage product, subject to your current loan to value and payment history. 

     

  • Contact Us

    Can't find what you're looking for? Contact our mortgage team today for more help and advice. You can use Live Chat, call us on 01225 475719 or email us: mortgageadmin@bibs.co.uk