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Mortgage FAQs

If you have a question about your mortgage, we may have the answer for you here.

General questions

How is my mortgage interest calculated?

We use three methods of calculating and charging interest. You may have a combination of different methods depending on the terms of your mortgage.

Daily Interest Scheme

Interest is charged to the mortgage account on the first of each month, based on the number of days in the coming month and the balance outstanding (including unpaid interest) on the last day of the previous month. Interest is also charged (as mentioned below) on debits (sums added) to your mortgage account during the month. When you make your regular monthly payment, or any additional amount is paid into your account, we will adjust the interest charged based on the payment amount and the number of days remaining in the month (including the day on which the payment is credited). For example if your payment is received on 20 January, 12 days' interest credit will be given.

Annual Interest Scheme

Interest is charged to the mortgage account on 1 January each year based on the amount you owed (including unpaid interest) on the 31 December of the previous year. Interest is also charged, as mentioned below, on debits (sums added) to your mortgage account during the year.

We will not adjust the interest charged to reflect any payments into the account during the year, except for any additional payment(s) treated as a capital repayment (please see 'Can I pay extra towards my mortgage' for details).

Half-Yearly Interest Scheme

Interest is charged to the mortgage account on 1 January and 1 July based on the amount you owed on 31 December and 30 June respectively, with interest on debits in the period as mentioned below.

Interest charged on debits (sums added) to your mortgage account

All advances, including a new mortgage advance, additional borrowing, stage advances or retention releases will incur interest from the day they are debited to the account. For more information on when fees added to your loan will incur interest, download our fees and charges.

If there is a change to the interest rate on your mortgage we will recalculate the interest charged at the time the interest rate changes, regardless of the interest scheme which applies to your mortgage.

Please note that on redemption (full repayment) of your mortgage, interest will be charged to the date of repayment. Special arrangements apply to interest-only flexible drawdown mortgages and lifetime mortgages. If you would like more information on these types of mortgages please call us.

Why has my balance increased?

Your mortgage balance could increase for a number of reasons:

New borrowing

If you've borrowed more from us in the past year, this money will appear on your statement.

Addition of fees

If you have opted to have a fee added to the account, you will be charged interest from the day it is added to your account.

Also, your initial mortgage payment may have been calculated on the amount borrowed, which may not have included the product fee. This means your mortgage payment may rise when the fee is added to the balance and your new payment is calculated, for example following an interest rate change.

Delayed repayments

If your December monthly payment reaches us after 31 December because of public holidays, it will be credited in January. If you want to avoid this situation, you can change the date your payment is collected by calling us on 0800 121 6263.

Insurance premiums

If you haven't paid your insurance premiums in full during the year, the amount owed is carried forward to the next year.

Missed payments and mortgage accounts in arrears

If you have missed any of your mortgage payments, in part or in full, the interest that has been charged is calculated on the total balance outstanding which includes these missed payments, and any fees that may have been charged to the account.

Payment holidays

Interest is still added to the balance of your account during a payment holiday.

I have more than one sub-account on my mortgage, how is my monthly payment divided between them?

If your mortgage account is split into a number of different parts - we call these 'sub-accounts'.

If you've borrowed more money or split your borrowing across different mortgages in the past, your mortgage will have sub-accounts. Each one may have different terms and conditions.

Although you'll usually only make one payment each month, we'll divide the money you pay us between your mortgage accounts in the following order:

  1. Secured personal loan(s)
  2. Further advance(s)
  3. Main mortgage account

If you'd like more information about how we distribute your monthly payment, please call us on 0800 121 6263.

What insurance policies do I need for my mortgage?

You must have adequate buildings insurance in place. This is a condition of your mortgage with us.

Your buildings insurance should be sufficient to cover you for the full cost of rebuilding your property in the event it is destroyed. This is called the reinstatement amount.

You can also choose to take out other insurance policies such as contents insurance, critical illness cover, life assurance and redundancy protection. However, these are not a requirement of your mortgage.

Where can I get the information I need for my Consent to Let self-assessment tax returns?

Call us on 0800 121 6263 to request a Certificate of Interest Paid (MIR600) for each part of your Consent to Let mortgage. This certificate will contain a summary of the interest you paid in the previous tax year.

How do I arrange a drawdown on my flexible drawdown mortgage?

If you have an agreed drawdown arrangement on your flexible drawdown mortgage and you'd like to withdraw additional funds, please call us on 0800 121 6263 and we'll provide you with a personalised illustration of the costs.

We will carry out a credit assessment that includes a review of your ability to repay your mortgage. This credit assessment won't be seen by any organisation carrying out a subsequent search, and it won't affect your credit rating.

How do I opt out of receiving marketing information from Coventry Building Society?

We'd occasionally like to tell you about our new products or services. We will never pass on your details to third-parties for sales or marketing use without your consent, and we'll only contact you when we genuinely believe it may be of benefit to you.

However, if you'd like to opt out of receiving marketing information, please call us.

If you do choose to opt out we will of course continue to send you your account statements, statutory notices and other information relevant to the operation of your account as usual.

What should I do if I have a complaint?

If something goes wrong, please contact our Customer Service Centre on 0800 121 8899, go to a branch or write to us at Economic House, PO Box 9, High Street, Coventry CV1 5QN. We can sort out most problems very quickly.

If you believe we have not dealt with your complaint satisfactorily, you can refer the matter to the Financial Ombudsman Service. For more information visit their website: www.financial-ombudsman.org.uk

How do I register a bereavement with Coventry Building Society?

When you lose someone close to you, there's a lot to take care of and it can be difficult to know where to start.

Find out more about Bereavement

Paying off all or part of your mortgage

How do I get a redemption statement?

If you plan to redeem your mortgage, please call us on 0800 121 6263 for a redemption statement. This tells you exactly what it would cost to pay off your mortgage. It is only valid for seven days from the date it was produced because the cost of paying back your mortgage changes on a daily basis. If you're thinking about redeeming your mortgage in full, but your redemption statement is more than seven days old, please request a new one before making your payment.

The redemption amount shown on your annual mortgage statement is an indication only as it shows the amount that would have applied if you had redeemed your mortgage on or before 31 December of that year.

Can I pay extra towards my mortgage?

If you'd like to make extra payment(s) on your mortgage please contact us first to discuss your options.

Please remember that additional payments are subject to your existing mortgage terms and conditions which may include early repayment charges.

If you pay extra towards your mortgage, the amount you pay will determine whether it's treated as a capital repayment or an overpayment.

If the equivalent of three times your normal monthly payment is £1,000 or more then:

  • Any extra payment of at least three times your monthly payment will be treated as a capital repayment.
  • Any extra payment less than three times your monthly payment will be treated as an overpayment.

If the equivalent of three times your normal monthly payment is less than £1,000 then:

  • Any extra payment of £1,000 or more will be treated as a capital repayment.
  • Any extra payment less than £1,000 will be treated as an overpayment.

If you have an interest-only flexible drawdown mortgage, any additional payment(s) over £500 will automatically be treated as a capital repayment.

How do capital (lump sum) repayments work?

If you have an interest-only mortgage, your capital repayment will reduce the balance of your mortgage. This, in turn, will reduce the interest we charge and your regular monthly payments will go down from the following month onwards.

If you have a repayment mortgage, your capital repayment will reduce the balance of your mortgage and this, in turn, will reduce the interest we charge. You can then choose to either reduce your regular mortgage payments from the following month onwards, or reduce the term of your mortgage, which means you will pay off your mortgage in a shorter period of time. If you would like further information, please contact us and our advisors will be happy to help you.

You must let us know how you would like us to treat your repayment. If you don't provide us with specific instructions we will use your last instruction, if less than 12 months old. If you haven't given us an instruction in the last 12 months, we will treat your extra payment as an overpayment regardless of the value (read more about 'How overpayments work').

You must let us know which sub-account you would like us to apply your capital repayment to. Your mortgage account is likely to be split into sub-accounts if you have taken out a further advance or your mortgage consists of both interest-only and repayment - please refer to your annual mortgage statement for details of this.

If you do not give us specific instructions we will treat your extra payment as an overpayment regardless of the value. We will credit the payment between sub-accounts as we reasonably consider appropriate, subject to any regulatory requirements. If you would like more information about how we have processed your payment, please ask us.

Find out more about Repaying your Mortgage

How do overpayments work?

If your mortgage is on our daily interest scheme we will credit your overpayment to your mortgage account immediately, which means you will be charged less interest overall. However, we will not treat this as a capital repayment unless you specifically ask us to and the terms and conditions of your mortgage allow it. This means that your payments will not automatically be recalculated.

If your mortgage is on our annual or half-yearly interest scheme, your mortgage balance will be reduced immediately when we receive your overpayment. We will not automatically recalculate the interest charged until the following 1 January, or for half-yearly interest scheme accounts either 1 January or 1 July, whichever applies to you.

If your mortgage is split into 'sub-accounts' and you do not tell us which sub-account(s) you would like us to apply your overpayment to, we will credit the payment between sub-accounts, subject to any regulatory requirements.

If you would like more information about how we have processed your payment please call us.

Please remember that additional payments are subject to your existing mortgage terms and conditions which may include early repayment charges. If your mortgage account is in arrears, additional payments may be processed differently.

Find out more about Overpayments

Will I be charged if I repay all or part of my mortgage?

There may be a fee if your mortgage is subject to an early repayment charge. The details will be in your original mortgage offer and your annual mortgage statement.

When you fully pay off (redeem) your mortgage we charge a mortgage exit fee, as shown in your mortgage offer. This fee will be waived if there is less than one year left to run on your entire mortgage at the time of redemption. The fee amount is fixed for the term of your mortgage, except where you ask us to arrange additional borrowing, switching your mortgage or arrange a transfer of equity (when, if applicable, it will change to the prevailing fee at the time).

This fee is refundable if you take your next mortgage with us within six months of redeeming the original mortgage account (12 months if your mortgage includes a former Stroud & Swindon Building Society scheme).

Redeeming or part repaying your mortgage

If you repay your mortgage in full or in part by cheque, we will charge an additional seven days' interest on the payment to cover the time it takes for your cheque to clear. If you are making this payment using cleared funds or payment from a Coventry Building Society savings account, this charge will not apply.

Redeeming or part repaying your mortgage with early repayment charges

If you repay all, or part of, your mortgage, you may be required to pay early repayment charges. These charges are made to recover the cost incurred by us for the initial benefit you received on your current mortgage scheme. For details of these fees please refer to your mortgage offer.If you'd like to repay all, or part of, your mortgage, please contact our Customer Service Centre on 0800 121 6263 or call into your local branch so that we can provide you with a personalised illustration.

Making changes to your mortgage

How do I change the term of my mortgage?

If you're thinking about changing the term of your mortgage and would like to talk to us about the impact on your mortgage payments, call our Customer Service Centre on 0800 121 6263 and we'll be happy to talk through your current needs and circumstances to recommend the most suitable solution.

Can I let out my property?

If you have a residential mortgage with us you may let the property, providing our written consent is obtained in advance.

A fee of £100.00 will be charged for the work involved in processing and approving the application to let. Please contact us on 0800 121 6263 to discuss your current needs and circumstances and we'll recommend the most suitable solution.

In addition, the interest rate on all parts of your mortgage (except secured personal loans) will be increased by 1% during the time your property is let. The additional 1% will be removed when you inform us that you have moved back into the property or you switch to a Buy to Let mortgage.

If you'd like to let your property, we may ask you to transfer your borrowing to one of our Buy to Let mortgages.

Can I switch to a new mortgage?

We may be able to help you find a new mortgage - to reduce your monthly repayments, change the length of your mortgage or borrow more - as long as you can afford to. This is called 'switching'.

If you would like to discuss switching your mortgage with us, please call us on 0800 121 6263.

Alternatively, view a full list of our mortgages here. Please be aware that if you switch to another mortgage before your current deal ends, there may be an early repayment charge.

I'm on your Standard Variable Rate (SVR), Privilege Rate or another variable rate, what are my options?

If you would like to discuss changing from your current variable rate, as an existing member you can apply to transfer onto any mortgage from our current range (subject to lending criteria, and your current needs and circumstances), giving you the opportunity to access the same competitive deals as new customers. This may incur early repayment charges.

Or, you can apply to transfer your mortgage to a transfer product (subject to availability) which are only available to our existing members. Please remember, an early repayment charge may apply.

If you do decide to change your mortgage (switch) to a different rate with us, our quick and easy process for changing means that you won't have to pay any valuation or legal fees. If you apply for a new mortgage your application will be considered subject to our lending criteria, and fees may apply to some products.

My mortgage deal ends soon, how do I find out what my options are?

You may be able to transfer (switch) to a different mortgage if you wish to, and you can tell us what you'd like to do up to four months before your current mortgage deal is due to end. Please call our Customer Service Centre on 0800 121 6263 to discuss your current needs and circumstances so we can recommend the most suitable solution. You can view our current range online.

We'll write to you shortly before your mortgage deal ends to let you know what your new monthly mortgage payment will be.

Please be aware that there may be a charge for switching your mortgage. It's best to contact us first so we can explain any costs involved.

Can I borrow more money?

We'll be happy to provide you with a personalised illustration for any new funds you want to borrow. Any application for additional borrowing will be subject to our usual affordability and lending criteria. Please call us on 0800 121 6263 to discuss this. Further information about borrowing more is available here: borrowing more.

I'd like to move to a new property, can I take my mortgage with me?

The majority of our mortgage products are portable, which means you can move them to a new property. Find out more about moving your mortgage here.

Managing your monthly payments

How do I change my Direct Debit details?

To change the date we collect your Direct Debit, or the amount we collect, please call us on 0800 121 6263 or pop into your local branch.

To change the account you use to pay your Direct Debit, you'll need to complete a new Direct Debit mandate form (PDF 206KB) Opens in a new window. Please complete and sign the form to confirm your instructions, and then send it by Freepost to the following address:

FREEPOST CBS CUSTOMER SERVICES

It's important that you write all of the address in uppercase as above.

You don't need to use a stamp. Royal Mail delivers Freepost as Second Class mail.

How do I change my Standing Order details?

You control the amount you pay us by standing order and the date on which the money is paid. To change either of these, simply contact the bank or building society your standing order is arranged with.

Can I see my mortgage information when I log in to Online Services?

Yes, when you're logged in to Online Services, you'll be able to view the outstanding balance on your mortgage account from the date of your last payment.

If you need to make any other changes to your mortgage account then call us on 0800 121 8899.

Can I take a break from my payments?

It is important that you contact us if you wish to take a payment holiday. We'll be able to explain any restrictions and give you an indication of the impact this will have on your total borrowing.

Payment holidays are only available on certain mortgages; please contact us to find out if you are eligible.

What if I'm unable to make my mortgage payments?

We all go through changes in our lives that can sometimes lead to financial struggles. If you're having trouble paying your mortgage, or you think you may face difficulty in the future, it's important to let us know as soon as you can.

You can call us on 0800 121 8765, Monday to Friday 9am-5pm and Saturday 9am-12pm, and we will do all we can to help you.

If you miss a mortgage payment or fall into arrears, you could be liable to charges, so it's essential you call us as soon as you can if you have trouble paying your mortgage.

Find out more about repaying your mortgage.

If interest rates rise how will this affect my monthly payment?

If the Bank of England Base Rate rises your monthly mortgage payment may increase too. Even if your interest rate is currently fixed, your monthly mortgage payment may still be higher than anticipated at the end of your fixed rate period.

What you need to do

We recommend that you review your finances regularly. You may find it beneficial thinking about your finances now so that you're prepared if interest rates were to rise, as it's important to ensure you can afford your mortgage payments each month.

We're here to help

If you're concerned about how a rate change could affect you or have any queries call us on 0800 121 6263 (Monday to Friday 8am-8pm, Saturday 9am-5pm and Sunday 10am-4pm).

Annual Mortgage statements

When will I receive my mortgage statement?

Your mortgage statement is produced after 31 December each year so that it covers all transactions for the calendar year. We'll try to send your statement as soon as possible after this date. If you haven't received your mortgage statement by 31 January, please call us on 0800 121 6263 and we'll send you a new copy.

Why haven't I received a statement for my whole MOREgage account?

When you opened your MOREgage account, you took out two loans: a mortgage and an unsecured personal loan. Your unsecured personal loan is administered separately from your mortgage, and you'll receive a separate statement for it on the anniversary date of the completion of your MOREgage.

Offset mortgages

How does my Offset mortgage work?

Your Offset mortgage consists of two accounts, an Offset mortgage account and an Offset savings account. The savings held in your Offset savings account are linked to your mortgage account and used to reduce the amount of mortgage interest you are charged (this is called the Offset benefit).

Find out more about Offset Mortgages

Why haven't I received a statement for my Offset savings account?

You will receive a full statement for your Offset savings account in April each year.

Find out more about Offset Mortgages

What if I have no savings in my Offset savings account?

An Offset mortgage links your Offset savings to your Offset mortgage to reduce the amount of mortgage interest you're charged (this is called the Offset benefit). If you have no Offset savings you are receiving no Offset benefit and you may wish to review your situation to see if Offset is the right mortgage for you.

Find out more about Offset Mortgages

What if my Offset savings balance exceeds my Offset mortgage balance?

If your Offset savings balance is greater than your Offset mortgage you will not receive any benefit on the excess amount. You may wish to move the excess amount from your Offset savings account into an account that gives you interest on your savings.

Find out more about Offset Mortgages

Can I change the way I use my Offset benefit?

Yes, the Offset benefit can be used in one of two ways. You can either reduce your monthly mortgage payments or reduce your mortgage term, and you can change between these two options at any time.

Find out more about Offset Mortgages

I'm moving home, can I take my Offset mortgage with me?

Most of our mortgages allow you to apply to 'port' your mortgage from one property to another. A new Offset savings account will be set up on completion of your mortgage. You will need to confirm if existing standing orders and Direct Debits are to be cancelled or moved to the new savings account, as we can't do this without your permission. You'll also need to transfer any funds required to the new savings account as we are unable to do this automatically. When your mortgage has been repaid, transferred to another property or moved to a non-Offset mortgage, your original Offset savings account will transfer to an easy access account.

To find out more about moving your Offset mortgage, call us on 0800 121 6263, or read more Offset Mortgage guide.

Buy to let mortgages

Can I move my Buy to let mortgage to a new property?

Most of our mortgages allow you to 'port' your mortgage product from one property to another. You can read more about porting here or call us to find out more.

Where can I get the information I need for my Buy to let self-assessment tax returns?

To help you complete your self-assessment tax return, simply call us on 0800 121 6263 to request a Certificate of Interest Paid (MIR600) for each part of your Buy to let mortgage. This certificate will contain a summary of the interest you paid in the previous tax year.

You can also request that the Certificates are set up to be sent to you automatically each April to help you.

Find out more about Buy To Let mortgages

What are my responsibilities as a landlord?

We've listed some of the responsibilities that you should be aware of here 'Becoming a landlord (PDF 56KB)' Opens in a new window, but it's also advisable to seek professional advice.

Coventry Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (firm reference number 150892 www.fca.org.uk Opens new website in another window). This site is intended for UK residents only. Coventry Building Society. Registered Office: Economic House, PO Box 9, High Street, Coventry CV1 5QN.

Our Customer Service Centre is open Monday to Friday 8am-8pm, Saturday 9am-5pm, Sunday 10am-4pm.

Calls to 0800 numbers are free when made from the UK. You may be charged for calls to all other numbers, please contact your service provider for further details. We may monitor, record, store and use telephone calls to help improve our service and as a record of our conversation.