The Mortgage Statement shown is for example purposes only and does not relate to any existing or past borrowers. This example highlights the most common transactions that may appear on a Mortgage Statement – however, these are unlikely to appear together on one Statement. Therefore, please note that your own Statement may not contain some of these transaction types.
Overview of your mortgage
This overview reflects the total transactions applied during the statement period.
- Other Insurance
This will list any other insurance paid, such as ASU (Accident, Sickness and Unemployment) or Higher Lending Charge. Your Accident, Sickness and Unemployment cover is provided under the West Brom’s Loan Protection Scheme insurance.
- Other Credits
This will show any amounts, such as Higher Lending Charge, that have been paid on your behalf by the West Brom as a condition of your mortgage product.
- Redemption Summary
This figure is for information only and should not be used to repay your account. Please refer to our Tariff of Mortgage Charges. Should you wish to repay your account, please contact us.
These are details of insurance attached to your mortgage.
- Rates of Interest
This will show the rates of interest applied to your mortgage account(s) during the statement period.
Please note, if you have a mortgage regulated by the Consumer Credit Act your statement will contain additional information.
Figures in this column add to the Balance on your mortgage account and include Interest for the Year, Insurance Premiums, etc.
- Credit Payments
Figures in this column reduce the Balance on your mortgage account.
- Payment Reversal
This will appear on your statement if, for any reason, your cheque has not been cleared by your bank. In addition, any internal transactions will also appear as reversals.
- Repayment Methods
These are the ways of making regular payments against your mortgage: Payment at a branch, Direct Debit, Bank Payment, Standing Order and Debit Card Payment.
- Insurance Premium
When first taking out your mortgage through the West Brom, any insurance cover arranged through the West Brom will be charged from the date of completion until annual renewal. After this, your insurance renewal premium is charged annually on 1 October as shown on your Statement. On monthly loans, insurance premiums will be debited on the first day of the month.
You may have more than one listing for Insurance Premium, if you have selected different insurance schemes (e.g. Buildings/Contents Insurance, Loan Protection, etc).
Insurance Premium Tax (IPT) will be shown as a separate transaction.
It is important for your own peace of mind to make sure that you have adequate insurance protection.
These are charges made to cover the costs of administration. Please refer to our Tariff of Mortgage Charges.
- Capital Repayment
This is a lump sum payment (which must be above £1,000*) made to reduce the total amount outstanding on your mortgage. The repayment may be followed by the relevant interest adjustments. *except for Flexi-Mortgages
- Debit Interest
This is the interest charged for the period shown on the Mortgage Statement. On monthly loans, interest will be debited on the last day of the month.
Where you are on a variable mortgage rate, changes to the interest rate during the year will be advised in writing.
- Closing Balance
This is the amount at the end of the statement period and the figure that will be carried forward to the next period.
- Payments Due
This will list the monthly payments that were due on your mortgage account throughout the statement period.
- Mortgage Summary Details
This will show the repayment method and remaining term on your mortgage account(s).
The closing balance assumes that your agreed payments will be made on the agreed due date every month. Any deviation from this may affect the outstanding balance of your mortgage. Where fees have been added to your mortgage, unless we receive instructions from you, we will not automatically recalculate your payment. This means there will be an outstanding balance remaining at the end of the mortgage term that is still payable by you.
If you have an interest only mortgage or a mortgage that includes an amount borrowed on interest only terms, your mortgage payments do not include the costs of any savings plan or other investment you may have arranged to build up a lump sum to repay the amount you borrowed. It is important to check regularly that your savings plan or other investment is on track to repay this mortgage at the end of the term.
For all types of repayment vehicle, we recommend that you regularly obtain confirmation, together with financial advice, from your repayment vehicle provider(s) to ensure that the projected maturity value will be sufficient to repay your borrowing at the end of the term. If it indicates a potential shortfall, you have a number of choices to consider depending on your individual circumstances. To understand more about the options available to you, please contact us. Alternatively, the Money Advice Service provides information about why you need to act now and the options you have. Go to moneyadviceservice.org.uk and search for ‘Ways of repaying an interest only mortgage’. Or you can call them on 0800 138 7777.
In addition, the FCA has published an ‘Interest only mortgages: act now and talk to your lender’ leaflet which highlights the benefits of talking to your lender early. You can read the leaflet here.
It is your responsibility to ensure you maintain adequate life cover throughout the term of the mortgage and, where interest only payments are being made, that you have sufficient investment funds available at the end of the mortgage term to repay all sums due.