A simple guide to your mortgage account

A new year means a new annual mortgage statement, and time to review your monthly payments.

This statement is a useful tool that allows you to look back on mortgage payments you’ve made, interest you’ve paid, any fees you’ve been charged and much more. To make it easier for you, we’ve created a short guide that we hope will help you better understand your annual statement.

Your statement

Here’s an example of a typical mortgage statement.

The blue numbers flag where the most important information is, and we've provided some further guidance on these parts underneath the example statement.

Example mortgage statement Example mortgage statement

1. Balance brought forward
This is how much you still needed to pay on your mortgages as of 31 December 2020. If your mortgage started after this date, your start date and full loan amount will be shown here.

2. Mortgage Payment Protection Insurance Premium Loan Payment
If you have Mortgage Payment Protection insurance arranged through us, any premium(s) charged will be shown in the 'Debits' column. These premiums are paid with your monthly loan payments, as shown in the 'Credits' column.

3. Loan payment
The loan payments you've made will show in the 'Credits' column, while any refunds and returned or unpaid payments are shown in the 'Debits' column.

4. Fees
All fees and charges are shown in the 'Debits' column. Most of these items will include a short description, but you can refer to our Tariff of Mortgage Charges for further details. Unless you make an additional payment to cover a fee, as shown in the example statement, the mortgage balance will increase.

5. Interest charged
This is the interest charged for the period from 1 January to 31 December 2021. 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 a Homeowner Loan, the balance on your account will have changed, and in turn affected the amount of interest charged.

6. Balance carried forward
This is how much you still need to pay as of 31 December 2021, taking into account all debits and credits shown on your statement.

7. Part number
Your mortgage account may be made up of different parts, which have their own interest rate, repayment type and term. Each part will be assigned a number. It’s possible to have an account with two or more parts with differing details.

8. Product
This is the product you have chosen for each part of your mortgage.

9. Repayment type
This is the repayment type of the part shown. Please read the 'Your Mortgage Made Simple' leaflet for more information about the different repayment types, particularly interest only.

10. Balance
This is how much you still need to pay on each part of your mortgage as of 1 January 2022.

11. Interest rate
This is the interest rate for each part of your mortgage as of 1 January 2022.

12. Term end date
This is when each part of your mortgage is due to end (and when you’ll be required to make a lump sum payment to repay any interest only balance(s) in full, if applicable).

13. 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.

14. Interest rates applied
This is the interest rates applied to each part of your mortgage between 1 January and 31 December 2021, 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 2022.

15. Monthly payments due
These are all the payments that were due on your mortgage during 2021. These should be read alongside the payments you actually made, as seen in the 'Credits' column of your statement.

16. Amount to redeem mortgage
This was the amount required to redeem your mortgage on 31 December 2021, and includes the balance at this date plus any repayment charges and exit fees, if applicable. 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 only valid to 31 December last year and can’t be used for redemption purposes. If you’re intending to redeem your mortgage, please contact us for an updated redemption statement.

17. Early Repayment Charges
This is the Early Repayment Charge, if applicable under the terms of your mortgage product(s), calculated as at 31 December 2021 for each product.

Frequently asked questions

Frequently asked questions

  • How is my mortgage affected when interest rates change?

    If your mortgage is part of the annual review scheme, your monthly payments won’t normally be amended when interest rates change (they usually only change on the annual review date, with the new payment taking effect from March). If you’d like your monthly payments to be recalculated, please contact us.

    We’ll still write to you when interest rates change, confirming the new interest rate and effective date. Again, your mortgage payment won’t normally change until the annual review date. If interest rates increase, any underpayment of interest will be reflected in your new monthly payment, to be repaid over the remaining mortgage term. If interest rates reduce, any overpayment of interest will be subtracted from your mortgage balance, and your next monthly payment will be calculated based on the new outstanding balance.

    If your mortgage isn’t part of the annual review scheme, your monthly payment will be amended whenever there’s a change to your interest rate. We’ll contact you with further details if this happens.

  • Why has my monthly payment changed?

    Your monthly payment could change for a number of reasons, such as:

    • Fees have been debited to your mortgage
    • You have mortgage payment protection insurance arranged as part of your mortgage, and your insurance has been reviewed/renewed
    • You’ve missed or underpaid any mortgage payments, including taking a mortgage payment holiday
    • Your mortgage has a variable rate that’s linked to our Standard Variable Rate (SVR) or the Bank of England base rate, and the rate of interest has changed
  • Why has my mortgage balance increased?

    Your mortgage balance could increase for a number of reasons, such as:

    • You’ve missed or reduced any monthly payments, including taking a mortgage payment holiday
    • You’ve chosen to add some fees to your mortgage instead of paying them separately
    • Your December payment didn’t reach us until January, so will only appear on the following year’s statement
  • How can I reduce my mortgage balance faster?

    Some mortgages let you make overpayments that will reduce your mortgage balance. The most common ways to do this are by:

    • Paying a higher amount than the monthly payment quoted
    • Making a lump sum payment at any time

    If you have a daily interest mortgage, either of the above options will reduce your balance with immediate effect. This is only the case with annual interest mortgages if the overpayment is at least £1,000.

    Subject to the terms and conditions of your mortgage, any overpayment could incur an Early Repayment Charge.

  • By how much can I overpay each year?

    The amount of overpayments you can make each year without having to pay any fees or charges depends on the type of mortgage you have.

    To find out how much you can overpay each year without fees or charges, see the terms and conditions in the mortgage offer you received when you took out your mortgage or contact the Society.

    It’s worth knowing that making overpayments in any form may mean you have to pay an Early Repayment Charge.

  • How do overpayments affect interest?

    If your mortgage product has daily interest, either of these options will reduce your balance on which interest is charged straight away.

    If your mortgage product has annual interest, to reduce your balance on which interest is charged straight away, any overpayment must be for £1,000 or more.

  • Can I change the date my Direct Debit payments are taken?

    Yes, you can choose to make payments between 1st and 25th of each month. Please contact us to change your chosen date.

  • What can I do if I think I'll have problems meeting my monthly payments?

    We know that in life, things can change. Sudden, unexpected changes to your finances could mean you could struggle to pay your full monthly mortgage payment. This means you could go into arrears.

    If this happens to you, it’s important to remember you’re not alone. The most important thing to do is pick up the phone and talk to us. The sooner you do this, the better.

    If you are in this situation, call our team on 0800 072 9739 – we’re here to help.

  • 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, please make sure you regularly check that it’s still appropriate.

  • What can I do if my mortgage is under the Deeds Safe Service and my balance has increased?

    If your mortgage operates under this scheme, you should ensure that you maintain the nominal balance by paying any amounts due as set out in your statement. If the balance carries forward shown on your statement has increased due to any unpaid insurance, interest or fees in previous years, please contact us to discuss this and make arrangement to reduce the balance back to a nominal amount. It’s recommended that you regularly review whether the Deeds Safe Service continues to meet your needs.

  • Is there anywhere I can receive independent advice on my mortgage payments?

    Yes, there are several options available to you for independent advice:

    • MoneyHelper www.moneyhelper.org.uk. This is a free service that provides clear, unbiased advice to help you make informed choices.
    • Citizens Advice www.citizensadvice.org.uk. They provide free, independent, confidential and impartial advice.
    • Independent Financial Advice
  • Any further questions?

    Simply contact us and we’ll see what we can do to help.

The mortgaged property (which may be your home) may be repossessed if you don’t keep up repayments on your mortgage.