Your home may be repossessed if you do not keep up repayments on your mortgage.

Mortgage Help

We have put together lots of helpful information for you to refer to. Whether you already have or are considering taking a Chelsea mortgage, it's all here.

 

Glossary

A

Advance

The actual amount of money we lend you.

Additional advance

Any further or additional borrowing secured against your property, which we lend you in addition to your initial mortgage advance. Sometimes known as a further advance or additional loan.

APR (Annual Percentage Rate)

The APR shows the total yearly cost of a loan taking into account all costs (e.g. interest rates, fees, etc) with the mortgage. It is the overall cost for comparison purposes and should allow you to compare mortgages from different "institutions" or "providers" on a like for like basis.

Arrears

The term used to describe overdue payments where a borrower has failed to keep up the monthly mortgage payments.

B

Bank of England Base Rate

This is the interest rate set by the Bank of England (it is officially called the 'repo rate').

C

Capital

The amount of loan on which interest is calculated.

Capital repayment

Any payment made to your mortgage account that exceeds the normal monthly mortgage payment that we require from you. Also see 'Early Repayment Charge'.

Capped rate

A rate where interest is charged at Chelsea Building Society's Standard Variable Rate, but it is guaranteed not to rise above a certain rate (the capped rate) for a specified period of time.

Cashback mortgage

This is a mortgage, where you receive a cash lump sum from us when you take out your mortgage (the cash amount is calculated as a specified percentage of the sum that you borrow from us).

Collared rate

Is the minimum rate of interest which is applicable to a mortgage product. When the Bank of England Base Rate falls, the interest rate you pay on your mortgage also falls by the same amount, but cannot go any lower than the collared rate.

Completion

The stage at which legal ownership of your property is transferred to you and/or we release your mortgage advance to you or your conveyancer.

Conveyancing

The legal work involved in buying or selling a property.

D

Daily interest

Interest is calculated on the balance outstanding each day. When you make a payment, interest is calculated on the new balance straight away.

Disbursements

These are expenses that your conveyancer pays on your behalf.

Discounted rate mortgage

A mortgage where you pay a set amount below Chelsea Building Society's Standard Variable Rate for the period of the discount. However, Chelsea Building Society's Standard Variable Rate can go up or down. See 'SVR'.

E

Early repayment charge

The fee that we will charge you if you make an early repayment of capital or transfer to another product or repay your mortgage entirely, within the Early Repayment Charge Period detailed in the product leaflet and your Offer of Advance. See 'Capital Repayment'.

Endowment plan

This type of investment combines monthly payments into a life assurance policy and an investment plan that is designed to repay the mortgage at the end of the mortgage term, or in the event of the borrower's death.

Equity

The difference between the value of the property and the loans secured against it. Where the value of the property is less than the value of the loans secured against it, this is known as negative equity.

Exchange of Contracts

The point where the buyer and seller are legally bound to proceed with the sale and purchase.

F

Fixed rate mortgage

A mortgage where the interest rate remains the same for a specified period.

Flexiplan mortgage

A mortgage that allows you to make either regular or lump sum overpayments (capital repayments) as and when you like, without an early repayment charge. This can help reduce the term and total amount of interest you have to pay.

Freehold

This is where you have outright ownership of the property you purchase and the land it stands on.

G

Gazumping

This is where you agree a price with the person selling a house, only to find out later that someone has put in a higher offer which has been accepted instead.

Ground rent

Annual charge payable by leaseholders to the freeholder.

H

Higher lending charge

This is a fee sometimes payable by the borrower to the lender, to cover the higher risk on lending a higher proportion of the value of a property. This fee provides some protection to a lender against the risk of the borrower defaulting under the mortgage, and the lender being unable to sell the property for enough to cover the amount owed.

This fee does not, however, remove or reduce your responsibility as a borrower for repayment of the full mortgage balance.

Homebuyers survey and valuation report

This is a more detailed inspection than a valuation, yet a valuation will still be included. The inspection will look at all reasonably accessible parts of the property internally and externally (from ground level or publicly accessible areas) and the report will comment generally on the state of repair and condition. The roof void will be entered (where practicable) to enable the surveyor to comment on the condition of the roof structure.

An overall impression of the services will be given (but they will not be tested). Outbuildings such as garages will be commented upon but only in respect of serious defects. The site, boundaries, paths etc will be reported upon in relation to special risks, such as large nearby trees. This report is suitable for most properties, but not those which are very large, old or of unusual construction. A Structural Survey (sometimes called a Building Survey) may be more appropriate for these types of properties.

I

Initial disclosure document

A document that provides details about our mortgage services. This includes confirmation of whose mortgages we can provide, the fact that you will not receive advice or a recommendation from us, details of who regulates us and how you can make a complaint.

Introducer/intermediary

This is somebody, other than a lender, who advises you about the choice of your mortgage.

K

Key facts illustration

A document that we must give to you before you apply for a mortgage which contains all the important information you need to help you decide if a particular mortgage is right for you. In it we will include the details of the mortgage we have discussed with you, including the costs.

L

Land registry fee

A fee payable to the Land Registry for registering the transfer of ownership of a property/or grant of mortgage.

Leasehold

This is where ownership of the property is under the terms of a lease ie. not outright as with freehold. This is common with flats.

LTV

Loan to value. This is the size of the mortgage as a percentage of the value of the property or the price you are paying for the property whichever is the lower (a £180,000 mortgage on a house valued at £200,000 would have an LTV of 90%).

M

Mortgage Application Processing Fee

A mortgage application processing fee of £130 is payable on all mortgage applications. This fee is payable on application and is strictly non-refundable. This fee is charged to cover the costs involved with processing a mortgage application.

Mortgage deed

The legal document by which the owner (and borrower) of the property grants a charge over their property in favour of the lender to secure the loan.

Mortgage fee

This is the fee we charge to attend to the formalities involved in closing your mortgage account following repayment of the advance.

Mortgage offer

If we are happy to accept your application for a mortgage, this is the document that we will send you. It sets out the terms and conditions on which we are prepared to make the loan or further advance to you.

Mortgage term

The length of time over which the mortgage loan is repaid.

Mortgage valuation

A simple check of the property that is carried out for the lender to find out how much it is worth and whether it is suitable to lend a mortgage on. This is for the lender's benefit only and may not reveal defects in the property, which could affect your decision to proceed. You should consider organising your own Homebuyers Survey or full structural survey (see 'Homebuyers Survey and Valuation Report and Structural Survey'(Building Survey).

Mutual

A term for an organisation that is owned by its members, such as building societies, friendly societies and some life assurance companies. Mutuals don't have shareholders like public limited companies, so any profits are used for the benefit of its members only.

P

Payment date

The date which we notify to you as being the day in each month on which you must make your mortgage payments.

Personalised illustration

A document that contains a quotation for a particular mortgage and full details of the mortgage, such as whether any early repayment charges apply. This document is in a standard industry format and contains important information that you should read and understand to help you choose a mortgage that is right for you.

Portable

A portable mortgage allows you to transfer the terms and conditions of that mortgage product between properties when you move house.

Product fee

This is a fee we charge for certain types of mortgage products (eg fixed rate products and other special rate mortgages).

Product Switching Fee

Once you have submitted your application, if you decide to change products before completion, a product switching fee is payable. This fee covers part of the costs we incur when we reserve the product you have applied for. The fee is £90 and is payable at the point that you switch from one product to another. The switching fee is payable each time you change products before completion.

Property Ownership Fraud

If you aren't living in the property you rent out, it's important to keep Land Registry updated of your contact address. This helps to reduce the risk of property fraud occurring. Up to three addresses are allowed including email addresses, addresses abroad and the address of someone you trust. You can find out more on the Land Registry website.

Purchaser

An older term for the buyer of a property.

R

Redemption

The point at which the outstanding balance of a mortgage is repaid, including all interest, costs, and other charges (such as any early repayment charges) which are due on it.

Remortgage

Transferring your mortgage from one lender to another without moving house.

Repayment mortgage

A loan where the monthly payments are made up partly of capital and partly of interest, so that the loan is repaid in full at the end of the mortgage term.

S

Solicitors fees

These are charges you pay for the conveyancing and work that your solicitor does for us.

Stamp duty

This is a Government tax you will have to pay on the price of the property if it exceeds £125,000. The percentage of the tax paid varies according to the price of the property paid.

Structural Survey / Building Survey

This is an in depth report particularly suited to large, old or unusual properties and can be tailored to the needs of the client and type of property. The surveyor will advise on fundamental defects and any legal implications that they may have.

Every aspect of the property is looked at as for the Homebuyer Survey and Valuation report but in greater depth and any additional investigations such as drains tests, will be recommended.

SVR

Chelsea Building Society's Standard Variable Rate. This is our standard rate of interest, which is set independently of Yorkshire Building Society's Standard Variable Rate. This is because Chelsea Building Society is operated under its own brand and with its own products and services. As a result, Chelsea Building Society's Standard Variable Rate may be different from Yorkshire Building Society's Standard Variable Rate at any time and can vary upwards or downwards from time to time.

V

Valuation

See 'Mortgage valuation'.

Vendor

An older term for the seller of a property.

 

Verifying identity

Under regulation for the prevention of financial crime, we have a responsibility to verify the identity of every applicant when processing a mortgage (including existing customers). To do this, we use an electronic verification system supplied by Experian.

If we are not able to verify your identity using this system, you will need to provide a form of ID from the list below.

  • Current signed passport
  • Current EU or UK photocard driving licence (full or provisional) or full UK driving licence (old style)
  • EU member state ID card
  • Signed employer ID card
  • Armed forces ID card
  • Residence permit issued by Home Office to EU Nationals on sight of own country passport
  • Construction industry -C1S4 photographic registration card
  • HM Revenue & Customs Notification
  • Benefit Book or original letter from Benefits Agency confirming right to benefits
  • Firearms certificate

The document or card you send must be an original not a photocopy, and will be returned to you. If you are applying jointly, evidence will be required for both of you. For security reasons, please do not send an original passport or driving licence through the post. Instead, you can send copies of these documents which should be certified by a solicitor.

What to do if you can't pay your mortgage

If you are struggling to pay your mortgage we would urge you to speak with one of our trained negotiators as soon as possible.

Call us on 0808 156 1158.
Lines are open 8am to 8pm Monday to Friday, 9am to 5pm Saturday.

Changes in circumstances

Relationship Breakdown

If you take out a mortgage with another person and your relationship comes to an end, your mortgage payments will still have to be paid. Both of you will remain liable to us for the amount outstanding. This means that even if you agree between yourselves that just one of you will pay the mortgage, the other will still be liable to us in the event of the required payments not being made.

Understanding your problems

We will need to understand your money problems so please be ready to answer questions about your budget when you call us.

Additional information

There's plenty of information about what to do if you are having difficulties in paying your mortgage. Why not read:

In addition, you can also get help from your local Citizen's Advice.

 

What is an equivalent savings rate?

You do not earn any interest on your Offset savings account(s). However, by linking savings to your mortgage, you only pay mortgage interest on the difference between your Offset mortgage balance and Offset savings balance(s). The money in your Offset savings account(s) therefore benefits from the equivalent of the interest rate charged on your Offset mortgage, as shown on the individual Offset mortgage product pages, or in the tables on the mortgage product factsheets.

The examples shown on the factsheets and on the product pages, assume that basic rate taxpayers pay 20% tax, higher rate taxpayers pay 40% tax and additional rate taxpayers pay 45% tax on savings interest and are based on current HM Revenue & Customs rules which are subject to change.

The equivalent savings interest rate examples are based on the current interest rate of the mortgage product(s). Therefore, where the rate on your Offset mortgage is variable or reverts to a variable rate after an initial fixed rate period, the benefit you get from your savings will change at the same time.

Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future.

 

Contact us

Top Mortgage FAQs

Choose Chelsea Offset

Chelsea Building Society and the Chelsea are trading names of Yorkshire Building Society. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in the Financial Services Register and its registration number is 106085. Principal Office: Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ.

References to 'YBS Group' or 'Yorkshire Group' refer to Yorkshire Building Society, the trading names under which it operates (Barnsley Building Society, the Barnsley, Chelsea Building Society, the Chelsea, Norwich & Peterborough Building Society, N&P and Egg) and its subsidiary companies.

Buy to Let mortgages are not regulated by the Financial Conduct Authority.

This site is intended for UK Residents unless otherwise stated. All communications with us may be monitored/recorded to improve the quality of our service and for your protection and security.

*Calls to 0800 numbers are free of charge from a landline or mobile. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile.

Chelsea Building Society and the Chelsea are trading names of Yorkshire Building Society. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in theFinancial Services Register and its registration number is 106085. Principal Office: Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ.

References to 'YBS Group' or 'Yorkshire Group' refer to Yorkshire Building Society, the trading names under which it operates (Barnsley Building Society, the Barnsley, Chelsea Building Society, the Chelsea, Norwich & Peterborough Building Society, N&P and Egg) and its subsidiary companies.

Buy to Let mortgages are not regulated by the Financial Conduct Authority

This site is intended for UK Residents unless otherwise stated. All communications with us may be monitored/recorded to improve the quality of our service and for your protection and security.

*Calls to 0800 numbers are free of charge from a landline or mobile. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile.

Get in touch with us:

  • Call us:
    http://www.thechelsea.co.uk/contact/index.html
  • Find a branch:
    http://www.thechelsea.co.uk/contact/branch_finder.html
  • Manage your accounts online:
    http://www.thechelsea.co.uk/security/online_help.html