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Frequently Asked Questions (FAQs)

A list of questions we frequently receive and the answers to them.

Are you coming to the end of your mortgage?

When does my Early Redemption Charge period end?

Please refer to your mortgage offer. The section entitled 'What happens if you do not want this mortgage any more' will provide full details.

What happens with Early Redemption Charges if the borrower is deceased?

In this situation the charges will be waived.

Do you accept Redemption monies by cheque?

We do accept cheques. However if the account is charged daily interest a further 3 days of daily rate must be supplied to allow time for the cheque to clear.

How do I Telegraphically Transfer redemption monies?

You need to go to your own bank with the account details supplied on the redemption statement. Your bank will then forward the funds onto us.

Can I use the Redemption Statement beyond the date it is valid?

The notes that accompany the redemption statement will advise you when the figure is valid to and in what circumstances you can add additional interest.

What are the charges associated with redeeming my mortgage account?

There may be Early Repayment Charges applicable upon redemption of your mortgage. You can find this information in Section 10 of your Mortgage Offer. There will also be a redemption administration and deeds release fee charged upon redemption. These fees can be found on Section 8 of your Mortgage Offer. All applicable fees will be detailed in full when you request a full and final redemption statement.

What are the 'Projected Solicitors Costs' included in my redemption statement?

These are predicted costs provided to us by the external solicitors acting on our behalf. They are over estimated to cover any works that may be undertaken within that month in order to redeem your account. If no further work is undertaken at the time the account is redeemed, this amount is refunded back to you.

How much of an LSO (Lump Sum Overpayment) can I make? Is there a fee for doing this?

The amount you can make as an LSO depends on the original mortgage offer. The information can be found in Section 11. For first charge accounts the minimum LSO is £5000 and anything under will be applied as a payment. For second charge accounts the minimum LSO is £1000 and anything under this amount will be applied as a payment.

For KIV accounts there is no minimum LSO amount and any overpayment above your basic monthly payment will be applied as an LSO however your payment will only be recalculated if the overpayment is over £500.

What do documents do I need to provide with a Lump Sum Overpayment?

Depending on the source of funds the below documents are required:

Generic description of source of wealth

Information to be requested to support source of wealth

Savings

 

Date funds received

From which company

Total amount

Type of savings

Income from employment (Normal and/or bonus)

If occupation on application form is satisfactory then no further verification is required

If occupation is different obtain full KYC details

Maturing investment or policy claim

Date funds received

From which company

Total amount

Type of investment

Compensation payment

Date received

Total amount

Reason for payment

Sales of shares

Date funds received

From which company

Total amount

Loan from friends/family

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Gift (non-repayable funds)

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Property sale

Address of property

Date of sale

Amount of proceeds from property sale

Inheritance

Received from

Date received

Total amount

Lottery, betting, casino win or funds obtained through any other gambling activity

Date of win

Total amount won

Details of organisation

Company sale

Name of company

Date of sale

Total amount

Principle activity of company

Account holder’s share of sale proceeds

Other income

Nature of income

From whom

Why is this information required?

It is a regulatory requirement that we obtain this information for any overpayment that a customer makes. We need to find out where the funds have come from or their source and also request evidence of this.

What are the charges associated with redeeming my mortgage account?

There may be early repayment charges applicable upon redemption of your mortgage, this information can be found in Section 10 of the mortgage offer. There will also be a redemption administration and deeds release fee charged upon redemption. These fees can be found on Section 8 of the mortgage offer. All applicable fees will be detailed in full when you request a full and final redemption statement.

General questions about your mortgage

What are the benefits of taking independent advice?

The main benefit to having professional advice is working with a professional that is giving you advice based on what's best for you.

What does execution only mean?

In certain circumstances, you can apply for a mortgage or make a change to your Mortgage without taking advice; this is known as an "execution only" mortgage application. However, you will need to know the details of the mortgage or change you want, and be able to deal with the application yourself without speaking to an adviser.

Where can I find information about interest only mortgage?

The Money Advice Service is a free, unbiased and independent source of information that is available to everyone. Click here to access their information.

Can I extend or reduce the term of my mortgage?

We are unable to extend the term of your mortgage. If you wish to reduce the term of your mortgage please contact us on 0345 199 2222 to discuss this. Reducing the term will increase your monthly payments.

What interest rate is my mortgage linked to?

If you have a Tracker mortgage that is linked to Bank of England Base Rate then the rate that you are charged will reflect variations in this.

However, in general, our variable mortgages take into account movements in LIBOR (London Interbank Offered Rate), which is the rate at which banks lend money to each other.

We review the variable rate each quarter and make changes accordingly. These changes do not directly reflect movements in LIBOR as the rate is set at the discretion of Kensington within agreed parameters, as set out in your General Mortgage Conditions.

Can I let my property out?

If your property was purchased with a residential mortgage, in certain circumstances we may consent to letting. If you would like us to assess the application, please print and complete an Application to Let.

Should we agree to your request the interest rate on your mortgage may increase and you will incur an additional fee for us to carry out the assessment. Please refer to our Tariff of Fees for up-to-date details of this fee. We will advise you of your new monthly payment and interest rate

What do I do if I want to add, or take off, someone from my mortgage?

Please contact us on 0345 199 2222 to discuss.

Can I take my mortgage with me to another property?

Taking your mortgage with you to another property is known as Porting. We have a limited number of products where porting can be considered. Please refer to your General Mortgage Conditions to identify whether it is permitted on your mortgage

Can I borrow more money against my property?

We do not currently offer further advances.

Can someone visit me to talk about my mortgage?

We can arrange for a Field Representative to visit your home to discuss your mortgage. This will incur a charge. Please refer to the Tariff of Fees for more information.

Does interest charge daily or monthly to my account?

Your interest calculation will depend on your product. Please refer to your Mortgage Offer for further details.

Who can I speak to about taking out a new mortgage with Kensington?

Kensington mortgages are not available directly to consumers, so please speak to your mortgage adviser about how our criteria might suit your circumstances. Click here to find a mortgage adviser in your area.

Can someone else speak to you on my behalf?

Yes, we require a letter of authority, signed by all parties on the mortgage. This authority is ordinarily valid for 6 months before it needs to be renewed.

However, a ‘Next of Kin’ (Family member, spouse or children over 18 years of age) authority to act remains, once registered on the account, for the term of the mortgage, unless notified differently by the Customer.

Can I change my mortgage repayment type?

We can permit customers to convert from Interest Only to Capital and Repayment but following new mortgage market regulations you may need to take advice in order to do this. Please call us on 0345 199 2222 to discuss further.

We do not permit a permanent change from Capital Repayment to Interest Only but may permit a temporary conversion for customers who are facing a temporary period of financial distress. Please call us on 0345 199 2222 to discuss your circumstances, and our requirements, should you believe that this would be a temporary solution for you.

Why is my balance not reducing when I make my payments each month?

If your account is operating on an Interest Only basis then you will only be paying the interest due each month and your balance will not reduce.

I find your telephone system very frustrating. Why does it keep selecting the wrong options?

As a company we are continually looking at ways of improving this service and where necessary we are introducing changes to this process to improve our customers’ experience. This system is very sensitive and if you are in an area with a lot of background noise then this can affect the information that is heard. There is also an option to answer the majority of the questions using your phones keypad should your responses not be understood. Unfortunately there is no option to bypass the system.

How much of an LSO (Lump Sum Overpayment) can I make? Is there a fee for doing this?

The amount you can make as an LSO depends on the original mortgage offer. The information can be found in Section 11. For first charge accounts the minimum LSO is £5000 and anything under will be applied as a payment. For second charge accounts the minimum LSO is £1000 and anything under this amount will be applied as a payment.

For KIV accounts there is no minimum LSO amount and any overpayment above your basic monthly payment will be applied as an LSO however your payment will only be recalculated if the overpayment is over £500.

What do documents do I need to provide with a Lump Sum Overpayment?

Depending on the source of funds the below documents are required:

Generic description of source of wealth

Information to be requested to support source of wealth

Savings

 

Date funds received

From which company

Total amount

Type of savings

Income from employment (Normal and/or bonus)

If occupation on application form is satisfactory then no further verification is required

If occupation is different obtain full KYC details

Maturing investment or policy claim

Date funds received

From which company

Total amount

Type of investment

Compensation payment

Date received

Total amount

Reason for payment

Sales of shares

Date funds received

From which company

Total amount

Loan from friends/family

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Gift (non-repayable funds)

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Property sale

Address of property

Date of sale

Amount of proceeds from property sale

Inheritance

Received from

Date received

Total amount

Lottery, betting, casino win or funds obtained through any other gambling activity

Date of win

Total amount won

Details of organisation

Company sale

Name of company

Date of sale

Total amount

Principle activity of company

Account holder’s share of sale proceeds

Other income

Nature of income

From whom

Why is this information required?

It is a regulatory requirement that we obtain this information for any overpayment that a customer makes. We need to find out where the funds have come from or their source and also request evidence of this.

Why is my balance not reducing when I make my payments each month?

If your account is operating on an Interest Only basis then you will only be paying the interest due each month and your balance we not reduce.

What is LIO? Am I covered?

LIO (Lenders Interest Only) is a policy that covers the amount owing to the lender and is arranged because a customer has not provided the required evidence of buildings insurance cover on the property. This policy only provides buildings cover to protect our interest and so no one else will be able to make a claim on the policy should any insurable damage occur to the property. This is why it is important for a customer to arrange their own buildings insurance.

I find your IVR very frustrating – why does it do x, y, z? Or how do I...?

As a company we are continually looking at ways of improving this service and where necessary we are introducing changes to this process to improve our customers’ experience. This system is very sensitive and if you are in an area with a lot of background noise then this can affect the information that is heard. There is also an option to answer the majority of the questions using your phones keypad should your responses not be understood. Unfortunately there is no option to bypass the system.

Questions about payments

What time is your office open to take payments?

Our Credit Management department is open between 8.30am and 8pm Monday to Thursday and 8.30am to 5.30pm on Fridays. During these times you have the option of either making a payment through the automated system, talking to one of our team or setting up a Direct Debit.

Other departments, such as Administration and Insurance, are open from 8.30am to 5.30pm Monday to Friday.

Can I change my regular payment date?

We do not generally offer alternatives to the payment date that is specified in your mortgage offer. If this is causing you problems, please call us to discuss.

Why can't we set up a Direct Debit in the name of a third party?

The money used to make the regular payments must come from a person named on the mortgage. Having the direct debit in the name of mortgagors is the only way to ensure this is the case.

Can I make additional payments?

Overpayments may be made, however there may be conditions in doing so, such as a minimum or maximum amount. You may also be charged an Early Repayment Charge in some circumstances. Please refer to your General Mortgage Conditions for full details.

What methods can I use to make payments to my mortgage?

Our preferred method of collecting payments is by Direct Debit, however it is possible to also make payments by one of the following methods:

  • Debit Card
  • Personal Cheque (we cannot accept third party cheques)
  • Bankers Cheque
  • Postal Order
  • Standing Order
  • Internet Banking
  • At a bank (please call for a personalised paying in book)

Faster Payment

Please ensure your mortgage account number is quoted on all payment methods. If not there is a risk this will not meet your mortgage account.

We are not able to take payments by Credit Card or accept payments from third parties.

Please be aware that additional interest will be incurred if your payment is received after the date it is due.

What if I am having problems making my mortgage payment?

We have a range of forbearance options available to assist customers who are experiencing financial hardship. Please contact our office as soon as possible to discuss the options and ensure a contact method is available. Please also ensure you seek independent financial advice and free debt advice agencies.

Details of two free debt advice agencies that are available are included below:

Citizens Advice Bureau
www.citizensadvice.org.uk

National Debtline
Tel: 0808 808 4000
www.nationaldebtline.co.uk

How much of an LSO (Lump Sum Overpayment) can I make? Is there a fee for doing this?

The amount you can make as an LSO depends on the original mortgage offer. The information can be found in Section 11. For first charge accounts the minimum LSO is £5000 and anything under will be applied as a payment. For second charge accounts the minimum LSO is £1000 and anything under this amount will be applied as a payment.

For KIV accounts there is no minimum LSO amount and any overpayment above your basic monthly payment will be applied as an LSO however your payment will only be recalculated if the overpayment is over £500.

What do documents do I need to provide with a Lump Sum Overpayment?

Depending on the source of funds the below documents are required:

Generic description of source of wealth

Information to be requested to support source of wealth

Savings

 

Date funds received

From which company

Total amount

Type of savings

Income from employment (Normal and/or bonus)

If occupation on application form is satisfactory then no further verification is required

If occupation is different obtain full KYC details

Maturing investment or policy claim

Date funds received

From which company

Total amount

Type of investment

Compensation payment

Date received

Total amount

Reason for payment

Sales of shares

Date funds received

From which company

Total amount

Loan from friends/family

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Gift (non-repayable funds)

Date received

Total amount

Reason for loan

Relationship to account holder(s)

Full name, DOB, address, source of wealth from donor

Property sale

Address of property

Date of sale

Amount of proceeds from property sale

Inheritance

Received from

Date received

Total amount

Lottery, betting, casino win or funds obtained through any other gambling activity

Date of win

Total amount won

Details of organisation

Company sale

Name of company

Date of sale

Total amount

Principle activity of company

Account holder’s share of sale proceeds

Other income

Nature of income

From whom

In some cases you may be asked to supply additional information.

Why is this information required?

It is a regulatory requirement that we obtain this information for any overpayment that a customer makes. We need to find out where the funds have come from or their source and also request evidence of this.

Questions about deeds

Can you give me information about the boundaries of my property?

Providing the details are held with the original deeds we can supply copies of plans and boundaries upon receipt of a written request. If we do not hold the required details we will provide a leaflet regarding boundaries from HM Land Registry which will show you where you can find the required information.

How do I go about adding/removing my partner from the deeds?

A transfer of equity is a legally recognised process and Kensington will consider all submitted applications.

Questions about insurance

Can I arrange my own buildings insurance?

It is part of your terms and conditions of the mortgage that you ensure that you have adequate buildings insurance in place at all times. Please send us a copy of the schedule each time your insurance is set up or renewed. Please note, if we do not have satisfactory evidence that your property is appropriately insured we will add your property to our Lenders Interest Only policy. See below for more details.

What happens if I don’t arrange my own buildings insurance?

If you cannot prove that there is adequate buildings insurance in place we will set up a Lenders Interest Only (LIO) policy to cover the mortgage balance. This covers Kensington’s financial interest only and the costs for this policy will be added to your mortgage and included in your monthly payments.

Please remember, Lenders Interest Only insurance is not a suitable alternative to your own buildings insurance, as you will not benefit and will not be able to make a claim if any insurable damage occurs to the property. You are therefore advised to arrange your own cover.

If you cannot prove that there is adequate buildings insurance in place, we will automatically arrange cover on our Lenders Interest Only (LIO) insurance to protect our interest in your property. The cost of this will be charged to your mortgage account. As this policy is in Kensington's name only, you will NOT benefit from this insurance and will NOT be able to make a claim if any insurable damage occurs to the property.

What is an acceptable schedule?

One of the mortgagors must be named as policyholder
The insurance must cover the mortgaged property
The insurance must be in force
One of the mortgagors must be named as policyholder (if your property is leasehold this is not required)
The schedule must confirm buildings cover

Insurance Leaflet INS209

How do I get LIO removed from my account?

Provide a valid buildings insurance schedule which meets the above criteria and LIO will be removed. We will also investigate a refund of all the LIO premiums you have incurred for the period in which you have provided the proof of your own cover.

What are your contact details?

Kensington Mortgages
Gateway House
Gargrave Road
Skipton
North Yorkshire
BD23 1UD

Telephone 0345 199 2222

Fax 0345 199 3333

Can I email my buildings insurance schedule to you?

Yes, please email them to insurance@kmc.co.uk

Please note we are only able to accept email attachments in the following file types: .pdf / .tif / .jpeg / .bmp / .doc / .txt

While we will deal with any email in a timely manner, we are unable to respond via this method of communication so any correspondence from us will be issued, in writing, to your correspondence address.

Can I email my insurance schedule to you? What is your email address?

Yes, the email address is insurance@kmc.co.uk

What is LIO? Am I covered?

LIO (Lenders Interest Only) is a policy that covers the amount owing to the lender and is arranged because a customer has not provided the required evidence of buildings insurance cover on the property. This policy only provides buildings cover to protect our interest and so no one else will be able to make a claim on the policy should any insurable damage occur to the property. This is why it is important for a customer to arrange their own buildings insurance.

Why do you need a copy of my insurance schedule?

As we hold a financial interest in your property we need to ensure that all our records are up to date and our interest is protected.

 

If you can't find the answer to your query and you're an existing customer, telephone our Customer Helpline on 0345 199 2222