Frequently Asked Questions

Insurance

It is part of the terms and conditions of the mortgage that you ensure you have adequate buildings insurance in place. It is our responsibility to ensure the property is adequately insured therefore, we contact all our borrowers to request a copy of their buildings insurance schedule.

We reserve the right to make alternative arrangements to insure the property as it is a requirement of the terms and conditions of the mortgage. Where possible, we will look to arrange a buildings only insurance policy on the property through our partner Legal & General Insurance Limited, the cost of which will be payable by you on a monthly basis. The policy will be affected on a joint basis between you and Paratus AMC Limited.

You can arrange your own insurance, however, we will require a copy of the schedule each time your insurance is changed or renewed. Alternatively if you would like us to arrange insurance for you please contact us on 0344 770 8035.

A financial interest only policy is one which protects the financial interest of Paratus AMC Limited in your property. It provides you with NO cover. You will receive written confirmation as to why you have been placed on this policy. If you already have cover in place please send us a copy of your schedule so that we can remove the premiums from your mortgage.

A property taken into possession must be covered by repossession insurance. This is dealt with by our Insurance Team and the relevant premiums are debited from your mortgage account.

You need to contact our insurers Legal & General Insurance Limited on 0370 900 5587, this number is available 24 hours.

You can contact our insurance team on 0344 770 8035 or send an email to Insurance@paratusamc.co.uk.

The policy should:

  • Be arranged with an insurance company who are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.
  • Show the period of insurance.
  • Show the building sum insured.
  • Show the address of the insured property.
  • Be on the insurers headed paper and show the policy number.
  • Be in the name of the mortgage account holder.

Please note we will not require a copy of your buildings insurance schedule if your property is leasehold.

Payments

Our preferred payment method is by Direct Debit, but payment by other methods is acceptable. We have an online payment facility which you can access via the Your Mortgage section of the website. Alternatively, we have an automated payment line which you can call on our general customer service number 0344 770 8030 and select option 1. Please note we do not accept payment by Credit Card or Maestro.

You can also pay by standing order, paying-in book, direct to Barclays Bank for the credit of our account or personal cheque (we will not accept third party, Ltd Company or company cheques). If you require our bank details to make your payment by any of these methods please see the Make a Payment section of the website. Please ensure you quote your mortgage account number as the reference number to ensure your payment is allocated to your account correctly.

If you would like to set up a new Direct Debit, please call us on 0344 770 8030. Alternatively, you can email us at payments@paratusamc.co.uk.

Yes, you will need to notify us at least 10 working days prior to your payment date by telephone, on 0344 770 8030, to advise us of your new bank details or request a new Direct Debit Mandate.

Yes. We offer four payment dates on which Direct Debits can be set up, making it easier for you to align with your salary payments. The dates are 1st, 15th, 20th and the last working day of the month. Please note, as we calculate interest on a daily basis, by selecting a payment date earlier in the month, you will pay less interest overall.

There are several reasons why a Direct Debit cannot be collected. You may wish to speak to your bank about this.

If your Direct Debit has been rejected due to insufficient funds, we will collect this again within the next two weeks.

If your payment date is the 1st or last working day we will collect on the 15th. If your payment date is the 15th or 20th we will collect on the last working day.

No, cheques are not re-presented to the bank again; an alternative payment method will be required.

The most likely reason is that the interest rate has increased. The monthly payment is calculated on the balance outstanding, taking into account the rate of interest and the remaining term of the loan. If any of this change, then it is possible that your monthly payment may also change.

No, we do not offer payment holidays. If you are experiencing difficulties with your payments please contact our Asset Management department on 0344 770 0093.

If you are experiencing difficulties please contact our Asset Management department on 0344 770 8190 as soon as possible.

My Mortgage

It is possible your balance has increased due to:

  • Any further advances you have taken out.
  • Release of a retention held back at completion.
  • Any arrears which have accrued on your mortgage.
  • Any fees and charges which may have been applied to your account.
  • Any Ground Rent / Service Charges we may have paid on your behalf.
  • Change in interest rate. Due to your payments being calculated in advance, where interest rates change mid-month; there is a difference between the interest charged to your mortgage and the payment you have made. This difference will be added to your mortgage balance.

Yes, overpayments can be made. Any payment received to the account in excess of £1000.00 is treated as a lump sum overpayment and your monthly payment will be re-calculated and confirmed to you.

In the early years of your mortgage, most of the monthly payment is used to pay interest, with only a small amount reducing the capital outstanding. In subsequent years a greater proportion of your monthly payment will go towards repaying the capital, which means that your mortgage balance outstanding will reduce.

We are not currently able to offer new products or switch interest rates.

The sooner you take action the better, as there may be options available. This could include switching to a repayment or part repayment mortgage, or making overpayments. You can find a useful calculator on the website here. You should also obtain independent financial advice to discuss the options available to you.

Yes, however this is subject to certain criteria please contact our Customer Services department to discuss further on 0344 770 8030. You should also obtain independent financial advice to discuss the options available to you.

This will depend on the product you are on and is detailed in your Mortgage Offer. You will be notified of any changes to the interest rate by letter before the amount is due.

We calculate interest on a daily basis. By selecting a payment date earlier in the month, you will pay less interest overall.

Any fees and charges incurred on your mortgage account will be repaid on a repayment basis (even if your mortgage is on an interest only basis). This ensures that the fees and charges balance will be repaid over the term of the mortgage. Consequently, when we re-calculate the monthly mortgage payment (most likely as a result of a rate change) you may notice an increase to the payment – the size of any increase will depend on the amount of the fees and charges balance at that time. If you would prefer, you can pay any fees as they arise to avoid incurring interest on these amounts.

LIBOR stands for “London Inter-Bank Offered Rate” and is the rate that banks charge when lending to each other. It is reviewed four times a year by the Intercontinental Exchange Benchmark Administration Limited in December, March, June and September.

The Bank of England Base Rate is the lending rate set by the Bank of England which acts as a benchmark for other interest rates (with the exception of LIBOR).

Not all our products are based on the Bank of England Base Rate; your interest rate will be detailed in your Mortgage Offer.

Yes, however this is subject to certain criteria, please contact our Customer Services department to discuss further on 0344 770 8030. You should also obtain independent financial advice to discuss the options available to you.

We are not currently able to offer further advances.

We can provide you with a copy of the deeds, a fee will be applicable. Please refer to the Tariff of Charges.

An annual statement is sent out during the second quarter of each year. If you require a mortgage statement at any other time or a copy of a previous statement, please contact our Customer Services department on 0344 770 8030.

Charges applied to the mortgage balance are detailed in our Tariff of Charges which is available on the website; alternatively a copy is enclosed with your annual mortgage statement.

We are able to offer assistance to borrowers experiencing financial difficulties and you should contact our Asset Management department as soon as possible to discuss your circumstances on 0344 770 0093. You should also obtain independent financial advice to discuss the options available to you.

We can arrange for one of our agents to visit you to discuss your mortgage. This will incur a charge which is detailed in our Tariff of Charges. Where we are unable to establish contact with a borrower to discuss their mortgage we may instruct an agent to contact them on our behalf. This will incur a charge which is detailed in our Tariff of Charges.

We are not currently able to offer this option.

You may have seen articles in the press recently which relate to a consultation issued by the Financial Conduct Authority (FCA) into the way financial institutions allocate payments received from their customers to their mortgage accounts. The FCA’s consultation focusses on mortgage accounts that are, or have been in arrears, and which are, or were held on a repayment basis. Mortgage accounts held on an interest only basis, or which were, or are up to date with their repayments do not form part of the consultation and are not affected by it. Paratus AMC are currently awaiting the outcome of the consultation which will be issued by the FCA . Once the outcome has been reviewed by us, should your mortgage account be affected in any way, we will be in contact with you.

Redeeming your Mortgage

We would need to provide you with a redemption statement, please contact our Customer Services department on 0344 770 8030 to request this.

You will only need a Solicitor to act for you if you are selling your property or re-mortgaging to another lender. If your mortgage is coming to the end of the term please contact our Customer Services department on 0344 770 8030.

A Redemption Administration fee and Deeds Production fee will be applied to your account; these are detailed in your Mortgage Offer.

Any overpayment applied to the account will be refunded to you unless this amount is less than £25.00, in this instance it will be donated to charity.

Your mortgage account will result in a shortfall, and we will not be able to release our charge from the property until it is repaid in full.

If the mortgage is redeemed in full we will remove our charge from the Land registry.

The original deeds to the property will be sent to you upon redemption of the mortgage account. If you are selling your property the deeds will be sent to your Solicitor.

We do not have a fee called MEAF; however we do charge a Redemption Administration fee and Deeds Production fee upon redemption of your mortgage. These fees are detailed in your Mortgage Offer and you should not have been charged a fee higher than that quoted to you. Therefore, you will only be due a refund if the amount charged to your account was higher than that quoted in your Mortgage Offer.