Welcome to your new mortgage.
Congratulations on your new mortgage, and thank you for choosing The Cambridge.
This guide explains what happens now your mortgage has completed, how it works, what to expect, changes you can make and the support available.
Jump to section:
• Your mortgage payments
• Your first mortgage payment and initial interest
• How mortgage interest is calculated
• Interest only mortgages
• Making your mortgage payment
• Making overpayments
• Keeping track of your mortgage
• What happens when my mortgage deal ends?
• Making changes to your mortgage
• If things change
• Keeping your details up to date
Your mortgage payments
Once your mortgage completes, we'll set up your account and monthly payments.
We'll write to you shortly after your mortgage starts to confirm:
- Your first mortgage payment and date
- Your regular monthly amount and date
- Your direct debit details
Your mortgage payment may be slightly different from the amount on your mortgage offer because payments are calculated using full calendar months.
Your first payment & initial interest
When your mortgage starts, we charge interest from the day we release the funds until the end of that month.
This one-off charge is called initial interest and is usually added to your first payment, making it higher than normal. After that, your payments will usually be the normal monthly amount.
Example:
If your mortgage completes on 4th November and your payment date is 1st of each month, your first payment on 1st December will include:
- Interest from 4th to 30th November, and
- Your normal December payment
If there isn't enough time to collect your first payment on your chosen payment date, we'll collect it as soon as possible afterwards.
Moving home and keeping your mortgage (porting)
If you move home and transfer your mortgage to your new property, your payment schedule will continue (although the payment amount may change).
Sometimes, a payment is already being processed on your old mortgage. If this happens, your initial interest and first new payment may be collected in the following month.
If your move completes on 29th November and your payment date is 1st. The 1st December payment may already be in progress on your old mortgage. Your new payment and any initial interest would then be collected on 1st January.
How interest is calculated
Interest is calculated based on your outstanding mortgage balance at the end of each day and added to your loan at the end of the month. When you make repayments, your balance reduces along with the daily interest.
When interest rates change
If you have a variable or discounted rate mortgage, your interest rate can go up or down. These mortgages don't track the Bank of England base rate.
If base rate changes, we decide whether to change our variable or discounted rates, and by how much. We don't have to pass on the full change. Find out more about how base rate could impact your mortgage here.
How interest is calculated
Interest is calculated based on your outstanding mortgage balance at the end of each day and added to your loan at the end of the month. When you make repayments, your balance reduces along with the daily interest.
When interest rates change
If you have a variable or discounted rate mortgage, your interest rate can go up or down. These mortgages don't track the Bank of England base rate.
If base rate changes, we decide whether to change our variable or discounted rates, and by how much. We don't have to pass on the full change. Find out more about how base rate could impact your mortgage here.
Interest only mortgages
If any part of your mortgage is interest-only, you'll need a suitable repayment strategy in place to repay the balance at the end of the mortgage term.
Making your mortgage payment
Your payment can be collected between the 1st and 28th day of the month.
After your first payment, you can change your direct debit date and details if needed, just give us a call or visit us in store.
Making overpayments
You can make overpayments on most of The Cambridge mortgages. Overpaying reduces the interest you pay over time and may shorten your term. Check your mortgage offer for any overpayment limits and early repayment charges.
Ways you can overpay:
- Regular monthly overpayments
- Adhoc lump sums
We'll apply overpayments the day we receive them, which will reduce your balance.
To find out more on making overpayments and your options, head to our mortgage overpayment guide.
Keeping track of your mortgage
Here's how you can keep track of your mortgage:
- Annual statement - Sent each year showing the balance as at 31st December, payments, interest charged and interest rate(s).
- Online or app - View your mortgage, including up to date balance and transactions. If you're not registered - call us or visit a branch and we'll get you started. Read our online guide to find out more.
- We'll write to you - If anything changes (e.g interest rate), we'll let you know at least seven working days before your new payment is taken.
- Call us or visit a branch - If you have a question about your mortgage, the team are happy to help.
Keeping track of your mortgage
Here's how you can keep track of your mortgage:
- Annual statement - Sent each year showing the balance as at 31st December, payments, interest charged and interest rate(s).
- Online or app - View your mortgage, including up to date balance and transactions. If you're not registered - call us or visit a branch and we'll get you started. Read our online guide to find out more.
- We'll write to you - If anything changes (e.g interest rate), we'll let you know at least seven working days before your new payment is taken.
- Call us or visit a branch - If you have a question about your mortgage, the team are happy to help.
What happens when my mortgage deal ends?
When a fixed or discounted deal ends, your monthly payments may change. If you don't switch to a new deal, your mortgage moves onto our Standard Variable Rate or Buy to Let Standard Variable Rate (depending on your mortgage) and your payments are recalculated.
When will I hear from you?
Around three months before your current deal ends, we'll contact you about your current rate, including end date, revert product and how to switch to a new deal.
To find out how to switch mortgage deals, read our guide to switching your mortgage deal.
Changes to your mortgage
If your plans or circumstances change, you might want to adjust your mortgage to suit you.
Borrowing more
If you want to borrow extra money (for home improvements or other major expenses), we’ll look at what you need and whether it’s affordable. If approved, your payments will change and, in some cases, a solicitor may be required. Book an appointment to find out more.
Moving home or selling
If you’re planning to sell your home or move, contact us so we can support you with the next steps. Sometimes your mortgage can move with you; other times, you may need a new deal. You can check your mortgage offer for the terms and conditions of your mortgage. There's also some helpful information here: making changes to your mortgage.
If things change
If your circumstances change and you're worried about making your mortgage payments, let us know as soon as possible. Our Financial Support team is here to help and talk you through your options.
You can also find information on support available here.
Keeping your details up to date
If your personal details change, let us know so we can keep your information accurate. Call us on 0345 601 3344 or visit us in branch.
If things change
If your circumstances change and you're worried about making your mortgage payments, let us know as soon as possible. Our Financial Support team is here to help and talk you through your options.
You can also find information on support available here.
Keeping your details up to date
If your personal details change, let us know so we can keep your information accurate. Call us on 0345 601 3344 or visit us in branch.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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