Why have I received a letter requesting a copy of my buildings insurance schedule?
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.
What happens if I don’t have buildings insurance?
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.
Can I arrange my own buildings insurance?
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.
What is a financial interest only policy?
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.
What happens to my insurance when the property is taken into possession?
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.
What should I do if I need to make a claim on my buildings insurance arranged through Paratus AMC Limited?
You need to contact our insurers Legal & General Insurance Limited 0370 900 5587, this number is available 24 hours.
How can I contact the insurance team?
You can contact our insurance team on 0344 770 8035 or send an email to firstname.lastname@example.org.
What is an acceptable buildings insurance schedule?
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.
How can I make payments to the mortgage?
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.
How can I set up a Direct Debit?
If you would like to set up a new Direct Debit, please call us on 0344 770 8030. Alternatively, you can email us at email@example.com.
Can I change my Direct Debit details?
Yes, you will need to notify us at least 4 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.
Can I change my payment date?
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.
My Direct Debit hasn’t collected – Why?
There are several reasons why a Direct Debit cannot be collected. You may wish to speak to your bank about this.
Will you try and collect my Direct Debit again?
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.
Will cheques be re-presented if the payment is returned unpaid?
No, cheques are not re-presented to the bank again; an alternative payment method will be required.
Why has my monthly payment increased?
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.
Do you offer payment holidays?
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.
I can’t make my payments this month – What can I do?
If you are experiencing difficulties please contact our Asset Management department on 0344 770 8190 as soon as possible.
Why is my current balance higher than the amount of the advance?
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.
Can I make a Lump Sum Overpayment?
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.
I have a Repayment mortgage but my balance has hardly reduced – Why is this?
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.
Can I change my interest rate / product?
We are not currently able to offer new products or switch interest rates.
I have an Interest only mortgage and do not have a repayment vehicle in place to redeem the mortgage at the end of the term – What should I do?
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.
Can I change the repayment method of my mortgage?
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.
How often is my interest rate reviewed?
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.
Is my interest calculated on a daily or monthly basis?
We calculate interest on a daily basis. By selecting a payment date earlier in the month, you will pay less interest overall.
How are my fees and charges repaid?
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.
What is the LIBOR rate?
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.
What is the Bank of England Base Rate?
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).
Why has my interest rate increased when the Bank of England Base Rate has not changed?
Not all our products are based on the Bank of England Base Rate; your interest rate will be detailed in your Mortgage Offer.
Can I change the term of my mortgage?
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.
Can I borrow more money against my property?
We are not currently able to offer further advances.
Can you send me a copy of the deeds to my property?
We can provide you with a copy of the deeds, a fee will be applicable. Please refer to the Tariff of Charges.
Can I request a copy of my mortgage statement?
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.
How do I find out what charges could be applied to my account?
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.
What should I do if I am experiencing problems making my monthly payments?
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.
Can someone visit me to discuss my circumstances?
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.
Can I move my mortgage to another property?
We are not currently able to offer this option.
I think my account repayments may have been allocated incorrectly
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
I want to repay my mortgage, how do I find out the amount owed?
We would need to provide you with a redemption statement, please contact our Customer Services department on 0344 770 8030 to request this.
Do I need a Solicitor to redeem my mortgage?
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.
Will I incur any charges to redeem my mortgage?
A Redemption Administration fee and Deeds Production fee will be applied to your account; these are detailed in your Mortgage Offer.
What will happen if I pay too much on redemption?
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.
What will happen if I pay less than required on redemption?
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.
My account is redeemed but it is still showing I have a mortgage with you?
If the mortgage is redeemed in full we will remove our charge from the Land registry.
What will happen to my deeds when my mortgage is repaid?
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.
Am I due a refund of my Mortgage Exit Administration Fee (MEAF)?
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.