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Your annual statement helps you look back on mortgage payments you’ve made, how much interest you’ve paid, any fees you’ve been charged and more. We’ve created this short guide with some FAQs to help you better understand your annual statement.
Here’s an example of a typical mortgage statement.
The blue numbers flag where the most important information is, and there’s some more guidance on these parts underneath the example statement.
1. Balance brought forward
This is how much you still needed to pay on your mortgage product(s) as of 31 December 2023. If your mortgage started after this date, your start date and full loan amount will be shown here.
2. Loan payment
The loan payments you've made towards your mortgage will show in the 'Credits' column. Any refunds and returned or unpaid payments are shown in the 'Debits' column.
3. Fees
All fees and charges are shown in the 'Debits' column. Most of these items will include a short description, but you can look at our Tariff of Mortgage Charges for more details. You might have made an additional payment to cover a fee, as shown in the example statement. If a fee or a charge is added to your mortgage without an additional payment, the mortgage balance will increase by the amount of that fee or charge.
4. Interest charged
This is the interest charged from 1 January to 31 December 2024. It totals the interest applied to all parts of your account and considers any interest rate changes throughout the year. If you’ve made a lump sum capital payment or taken out any additional borrowing, the balance on your account will have changed. When your mortgage balance changes, the amount of interest charged on your mortgage would change too. Interest is also charged on any fees or charges added to your mortgage.
5. Balance carried forward
This is how much you still need to pay as of 31 December 2024, including all debits and credits shown on your statement.
6. Part number
Your mortgage account might be made up of different parts, which can have different interest rates, repayment types and terms. Each part will have a different number.
7. Product
This is the product you’ve chosen for each part of your mortgage.
8. Repayment type
This tells you how each part of your mortgage will be repaid. You can read the 'Your mortgage explained’ leaflet for more information about the different repayment types, particularly Interest Only. This was posted to you with your mortgage statement.
9. Balance
This is how much you still need to pay on each part of your mortgage as of 1 January 2025.
10. Interest rate
This is the interest rate for each part of your mortgage as of 1 January 2025.
11. Term end date
This is when each part of your mortgage is due to end. It’s also when you’ll need to make a lump sum payment to repay any Interest Only balance(s) in full, if applicable.
12. Regulated part
In the UK, the Financial Conduct Authority (FCA) is responsible for the regulation of Residential mortgages and certain Buy to Let mortgages taken out on or after 21 March 2016, which aren’t held by the borrower for business purposes. If your mortgage falls within this category, you’ll benefit from certain protections under the regulatory system.
13. Interest rates applied in 2024
This is the interest rate applied to each part of your mortgage between 1 January and 31 December 2024, and the dates any changes took effect. These interest rates only apply to part(s) of your mortgage that were open last year, and don’t include details for any parts closed before 1 January 2025.
14. Monthly payments due
These are all the payments that were due on your mortgage during 2024. These should be read alongside the payments you made, as seen in the 'Credits' column of your statement.
15. Amount to redeem mortgage
This was the amount required to repay your mortgage in full on 31 December 2024, and includes the balance at this date plus any possible repayment charges and exit fees. This is an illustration only. These fees haven’t been charged to your account and will only be charged if you choose to redeem your mortgage in the future.
This illustration was valid to 31 December 2024 and can’t be used for redemption purposes. If you want to redeem your mortgage contact us for an updated redemption statement.
16. Early Repayment Charges
This is the Early Repayment Charge, if applicable under the terms of your mortgage product(s), calculated as of 31 December 2024 for each product.
We’ve created a handy glossary of the most used mortgage terms for you online. We hope it makes things easier, but if you need more help when it comes to understanding your mortgage or your mortgage statement, please contact us.
Your annual mortgage statement shows whether the interest on your mortgage is worked out daily or annually.
If the interest on your mortgage is worked out annually, you can move to daily interest when transferring to a new mortgage product (Early Repayment Charges may apply). You can’t switch from daily to annual interest.
Annual interest
This is where interest is worked out on your mortgage balance on 31 December each year. With annual interest your monthly mortgage payments won’t reduce the balance on which interest is charged until then.
Daily interest
This is where interest is worked out on your mortgage balance at the end of each day. The interest is charged to your account daily, increasing the mortgage balance by the amount of interest. Making your mortgage payments as early as possible in the month will reduce the balance and the amount of interest charged.
Your statement also shows whether your monthly mortgage payments will be reviewed and worked out once a year, or more than once a year.
From January 2025, all annual review mortgages were changed. This means that payments will be recalculated each time there’s a change to the applicable interest rate. If any part of your mortgage has a variable rate, your monthly payment will change as interest rates go up or down. This means you might see smaller changes to your mortgage payment more often, avoiding a larger change once a year.
The way in which your mortgage will be affected by rate changes depends on the type of mortgage you have.
If any part of your mortgage has a variable interest rate, your monthly mortgage payment will go up or down whenever there’s a change to your mortgage interest rate. Whenever your mortgage interest rate changes, we’ll write to you and tell you about the new interest rate, your new monthly mortgage payment and when this will take effect.
If all your mortgage is fixed, your payments don’t normally change until the deal ends, unless you make any changes. These can include making a large overpayment, changing the term (length) of your mortgage, changing how you repay your mortgage, or taking additional borrowing. If your payment does change, we’ll let you know your new payment amount and the date the payment will change.
Your monthly payment could change for a number of reasons, such as:
• Your mortgage is on a variable rate of interest and the interest rate has changed.
• You’ve missed or underpaid any mortgage payments in the past year.
• If any fees or charges were added to your mortgage.
Your mortgage balance could increase for a few reasons, such as:
• You’ve missed or underpaid any mortgage payments in the past year
• You’ve chosen to add some fees to your mortgage instead of paying them separately. Interest will be charged on any fees added to your mortgage
• Your December payment didn’t reach us until January, so will only appear on the following year’s statement
Some mortgages let you make overpayments that will reduce your mortgage balance. The amount you can overpay by each year without having to pay any fees or charges depends on the type of mortgage you have. The limit is usually 10% of the mortgage balance each year.
You can make overpayments by:
• Bank transfer, for a faster payment
• Card payment in branch, or over the phone via our secure automated payment line.
• Cash or cheque in branch
If your mortgage product has daily interest, any of these options will reduce your balance on which interest is charged straight away.
If your mortgage product has annual interest, any overpayment must be for £1,000 or more to reduce your balance on which interest is charged straight away.
If you’re making an overpayment above your monthly mortgage repayment, there might be conditions or fees to pay such as the Early Repayment Charge. Please remember to check the terms and conditions in your mortgage offer or contact us to check how much you can overpay without fees or charges.
Yes, just get in touch with us. You need to let us know at least three working days before your Direct Debit collection date if you'd like to change it. The new date you choose must be between the 1st and 25th of the month.
If your bank details change, you might have to set up a new Direct Debit for your mortgage payment. You can contact us to do this or send us a new Direct Debit instruction form. It can take up to 10 working days for the new Direct Debit to be set up.
The cost of living isn’t getting any easier, but if changes to your circumstances are making it hard for you to pay your mortgage, we can help.
If you fall behind with payments, or are worried you might do, we’re here for you. Please get in touch on 08000 729 739. Our friendly expert team can help you work out what your options are and the best steps to take. Calling us about your mortgage won’t affect your credit rating in any way. You can call Monday to Thursday 8am-7pm, Fridays 8am-5pm and Saturdays 9am-12:30pm (except bank holidays). You can also take a look at budgeting tips and the support we offer if you're experiencing mortgage payment difficulties.
What can I do if I have an Interest Only mortgage and I'm concerned about repaying my outstanding loan?
If you don’t have a repayment strategy in place to repay the mortgage balance at the end of the term, you should contact us as soon as possible to discuss your options before your mortgage comes to an end.
If you already have a repayment strategy, make sure you regularly check it’s still appropriate.
Depending on the type of mortgage you have, you might be able to rent your house out. You’ll need to get in touch with us so we can send you a Consent to Let pack, which contains all the information you’ll need to make the request. We’ll then talk to you to see if it’s an option in your circumstances.
If you have a mortgage under this scheme, make sure you maintain the small balance by paying any amounts due, as set out in your statement. If the balance carried forward shown on your statement has increased due to any unpaid insurance, interest or fees in previous years, please contact us. Our team can help you arrange to reduce the balance back to a small amount.
You should regularly review whether the Deeds Safe Service meets your needs. You can repay the outstanding balance and close your mortgage account if you don’t need this service anymore. If you’d like to do this, please contact us so we can let you know the exact amount you need to pay. It might be a good idea to get some professional advice to discuss your options.
There are several options available to you for independent advice:
• MoneyHelper. This is a free service that provides clear, unbiased advice to help you make informed choices.
• Citizens Advice. They provide free, independent, confidential and impartial advice.
• Any other independent financial advice.
Your property could be repossessed if you don't keep up your mortgage repayments.
