|
The total interest you're paid on your savings and current account balances, showing the total it would amount to if it was paid and compounded annually.
This represents the true annual cost of borrowing including interest and any expenses like valuation and legal fees. Because we calculate interest on the basis of daily balances you could be better off.
When most banks lend you money, they work out the annual interest payment on the full amount that you've borrowed, and apply it to every year of the term of your loan.
So you'll pay the same amount of interest in the final year of your loan as the first, even though you may have paid off most of the capital.
Because we calculate interest on the basis of daily balances, as the amount you owe reduces, so does the amount of interest you pay, so you get a fairer deal.
The average balance of your current account and savings is used in our calculators to show the benefits of offsetting. In reality, these balances will vary from day to day. Because we calculate interest on the basis of daily balances, we make the most of your money.
The process of paying back the money you owe on your mortgage. Offsetting saves you interest, so you could do this faster.
During a house purchase, the day on which the buyer's conveyancer pays the balance of the purchase price to the seller's conveyancer, to allow transfer of ownership. In Scotland this is called the entry date.
A unique 10-digit number, given to you when you first apply. You'll need to quote this when you contact us about your application.
"Disabled" means being unable to work at your normal occupation because of an accident or sickness.
The rate of interest you're paid before the deduction of income tax at the rate specified by law (currently 20%)
A type of mortgage where your regular mortgage payment only covers the interest on the loan.
A savings account with government-imposed limits on the amount you can save each year, which pays interest without deducting tax.
All the products in an offset plan are called jars. You can choose to name your jars to help you to keep track of your finances.
A document that provides you with details of the level of service we offer.
A document that details our mortgage product, the overall cost, regular mortgage payments, fees payable and other features of the mortgage. This is also known as a 'key facts illustration'.
A life insurance policy that pays out a set amount on the death of the person insured by the plan.
With some products you can skip up to two monthly payments a year by taking a payment holiday. The amount is simply added to what you owe, and your remaining payments increase slightly to cover it.
A unique 10-digit number that you'll be asked for when you call us to make a transaction over the phone.
A four digit code given to you when your plan is open. You'll need it to register for online banking, and when you call us to make a transaction. You must not write this number down or tell it to anyone.
A type of mortgage where your regular mortgage payment is split between paying interest and repaying the money you borrowed.
An amount held back from the initial loan by a lender until certain repairs or improvements have been completed or, in some cases, to cover the cost of road building on a new housing estate.
A rate which guarantees to stay at a fixed level above the Bank of England rate, so you benefit from any reductions as soon as they happen.
With offsetting you're saving interest - not earning it, so there's no tax to pay.
|
