For home owners (owner occupiers), we will be waiving our normal arrears fee from April until further notice.
We will suspend evictions of home owners for the time being.
It is essential that you get in touch to agree an appropriate arrangement with us. If you simply stop paying, your credit file will be affected and you may be charged fees such as arrears fees and fees for failed direct debits (although from April, we will waive arrears fees for home owners for the time being).
A payment holiday is where you will not need to make your normal monthly mortgage payment for an agreed period. It does not mean that the payment will not need to be paid at all as this payment will be deferred to a later date.
Important: please be aware that you will still need to repay your mortgage and interest will continue to accrue during the payment holiday period.
If you or your family are affected by Covid-19 which will impact your ability to repay your mortgage, then please call us on 0344 770 8030.
Please be assured that we are following regulatory guidance and will assess each scenario on a case by case basis.
Your normal monthly payment(s) will be deferred to a later date. However, interest will still accrue on your mortgage account and payment for the deferred monthly instalment(s) – the payments missed during the holiday - will be required later.
We will review your individual circumstances and work with you to find the best solution.
If you are a buy to let landlord whose tenants have been impacted by Covid-19, a payment holiday may be an option available to you. Please call us on 0344 770 8030.
Important: Payment holidays are being provided on the understanding that this relief will be passed on to your impacted tenants, as stipulated by Government announcements.
The policy you send to us should:
Please note we will not require a copy of your buildings insurance schedule if your property is leasehold.
You can contact our insurance team on 0344 770 8035 between 9am and 5.30 pm or send an email to insurance@FoundationHomeLoans.co.uk.
You need to contact our insurers Legal & General Insurance Limited on 0370 900 5587, this number is available 24 hours a day. When you make contact you must advise Legal & General Limited this is an unsupported claim as you are on a block policy with Foundation Home Loans.
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 to your mortgage account. This will only protect the financial interest of Foundation Home Loans.
A financial interest only policy is one which protects the financial interest of Foundation Home Loans 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 these premiums from your mortgage.
You can arrange your own buildings insurance. However, we will require a copy of the schedule each time your buildings insurance is changed or renewed. Alternatively if you would like us to arrange insurance for you please contact us on 0344 770 8035. Please note we can only provide Buildings insurance from Legal & General and we do not provide any advice for our insurance services.
We reserve the right to make alternative arrangements to insure the property as it is a requirement of the terms and conditions of your mortgage. Where possible, we will look to arrange a buildings only insurance policy on the property with our partner Legal & General Insurance Limited. The cost of this is payable by you on a monthly basis. The policy will be taken out on a joint basis between you and Foundation Home Loans.
It is part of the terms and conditions of your 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 on an annual basis to request a copy of their buildings insurance schedule.
If you are experiencing difficulties please contact our Asset Management department on 0344 770 0093 as soon as possible.
We will follow our regulator’s guidance and will assess each scenario on a case by case basis, which could include payment holidays. Please call us on 0344 770 8030 if you have any concerns over making payments.
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, the remaining term of the loan and any fees and charges that have been applied to your account. If any of these change then it is possible that your monthly payment will be impacted.
No, cheques are not re-presented to the bank again; an alternative payment method will be required.
If your Direct Debit has been rejected due to insufficient funds, we will collect this again within the next two weeks.
There are several reasons why a Direct Debit cannot be collected. You may wish to speak to your bank about this.
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.
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.
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@FoundationHomeLoans.co.uk.
Our preferred payment method is by Direct Debit, but payment by other methods is acceptable.
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 visit the Make a payment page on our website. Please ensure you quote your mortgage account number as the reference number to ensure your payment is allocated to your account correctly.
Yes, any Tenancy Agreement must be an Assured Shorthold Tenancy, in a form normally used for residential property and be for a term of not less than six months and not be for more than thirty-six months. No sub-letting is allowed and the agreement must contain no terms which would adversely affect our interest as your Lender.
You must not allow the property to be occupied by an immediate family member at any point in the mortgage term.
Additionally, the following are not permitted to be tenants in respect of the property:
We do not currently offer the option to port your mortgage.
It is possible your balance has increased due to:
You should obtain independent financial advice to discuss the options available to you. The sooner you seek advice the better, as there may be various options available to you. This could include switching to a repayment or part repayment mortgage, or making overpayments. You can find a useful calculator on the website.
We do not currently offer any products switches.
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.
Yes, overpayments can be made; these may be subject to Early Redemption Charges which are detailed in your Mortgage Offer. 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.
We calculate interest on a daily basis. By selecting a payment date earlier in the month, you will pay less interest overall.
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.
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.
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.
The Standard Variable Rate is a variable interest rate set and charged by the mortgage lender, usually dependent on market conditions.
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.
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 in December, March, June and September.
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 and remaining mortgage term at that time. If you would prefer, you can pay any fees as they are applied to avoid incurring interest on these amounts.
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.
Charges applied to the mortgage balance are detailed in our Tariff of Mortgage Charges which is available on the website; alternatively a copy is enclosed with your annual 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.
We can provide you with a copy of the deeds, a fee will be applicable.
We do not currently offer further advances.
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 Mortgage Charges.
In April 2018, the Department of Work & Pensions (DWP) amended the Support for Mortgage Interest (SMI) from a benefit to a loan. The DWP has given claimants the choice to either accept or decline the loan. If you declined the loan, it may affect the affordability of your mortgage. If you are struggling with or have been unable to pay your full monthly mortgage payment please contact us. We have made it easy for you to see what actions you can take in this helpful document. There are also useful webpages from gov.uk, Citizens Advice and The Money Advice Service. You can see more information from the Department of Work & Pensions.
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.
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 will also remove our charge from the Land registry.
It may be that your mortgage has not been repaid in full, please contact our Customer Services department on 0344 770 8030.
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.
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.
A Redemption Administration fee and Deeds Production fee will be applied to your account; these are detailed in your Mortgage Offer.
What will happen to my monthly mortgage payment?
You need to maintain your mortgage payment whilst your redemption is in process of redeeming your mortgage and you should not make any changes to your direct debit instructions.
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.
We would need to provide you with a redemption statement, please contact our Customer Services department on 0344 770 8030 to request this.