Questions and Answers on the TMB Standard Variable Rate Increase

The TMB Standard Variable Rate is going up from 4.84% to 4.95% in November. If the change affects you we will be writing to you at least 14 days in advance of your payment changing. This letter will provide details of when the rate applicable to your mortgage will change, and when your new monthly payment will be due.

It's mainly because of increased funding and capital costs of running your mortgage. We need to reflect the higher cost in our Standard Variable Rate.

The Bank of England base rate is only one of the things that affect the cost of funding your mortgage. Wholesale funding costs as well as capital charges are two important components in funding your mortgage and both have increased. These costs are not directly connected to the Bank of England base rate and we are now reflecting them in our Standard Variable Rate.

TMB no longer accepts new business. If you want to discuss a new mortgage, increasing your existing borrowing, changing your rate or moving home, you should talk to an Independent Financial Adviser. They will be able to provide information on mortgage products and advise you on the most suitable course of action. Details of local Independent Financial Advisers can be found on the website www.unbiased.co.uk

If you are affected by the increase we'll be writing to you. If you haven't received a letter by 26 October and you are on the standard variable rate please call 0845 725 3253.

You'll be sent a letter at least 14 days before your new payment amount is due. Your payment date will stay the same.

No, we'll automatically make the necessary adjustments to collect the new monthly payment. There is no need for you to contact us.

You'll need to contact your bank to change the amount of your mortgage payment from the date shown on your letter. Unfortunately, we can't do this on your behalf as the bank will not accept our authority to make the adjustments for you.

Simply adjust the amount(s) that you send to us each month to the new payment shown in our letter.

If you pay the difference between your full monthly mortgage payment and the amount of DWP benefit by Direct Debit, please contact us on the number shown on your letter as you will need to change your Direct Debit amount.

If you pay the difference between your full monthly mortgage payment and the amount of DWP benefit by Standing Order, please contact your bank to change the amount you pay by the amount of the increase which will be shown in your letter.

This may be for a number of reasons, for example:

• You have recently taken a payment holiday, in which case the balance of your mortgage will have increased.
• Your mortgage may be in arrears.
• You may have added fees to your mortgage (e.g. arrears fees), in which case your mortgage will have increased.

If your new monthly payment is within £2 of your previous monthly payment we have not amended your monthly payment.

If you have a repayment mortgage, we calculate your mortgage payments to ensure that your balance is repaid by the end of your agreed mortgage term. (This is known as your payment schedule.) When interest rates change we re-calculate your payment schedule to make sure your mortgage balance will still be repaid within your agreed term. If your mortgage balance has reduced by more than your original payment schedule (eg if you have been making overpayments) your new monthly payments would be reduced following a rate increase.

If you make your overpayment through your Direct Debit you will need to call us when you have received your letter confirming your new monthly payment amount. The number to call us on will be shown at the top of the letter
or
If you make your overpayment as a separate Standing Order payment, this will remain the same.

Please contact our Collections team on 0845 850 2802. We will then be in a position to assess your current situation and review your payment arrangement or agree a new one.

There may be 3 reasons for this:

1. You have come to the end of an existing deal (such as a fixed or tracker rate) and part of your balance has gone onto the Standard Variable Rate.
2. Your balance is now higher than the amount you originally borrowed on a mortgage deal and we charge interest on the extra amount at the Standard Variable Rate. This can happen if, for example, you have taken a payment holiday.
3. You may not be on the Standard Variable Rate but as you have been making overpayments or have underpaid, then from time to time we re-calculate your future mortgage payments to ensure your mortgage balance is repaid within your agreed term.

Annual mortgage statements are posted to all our mortgage customers and this shows your balance at the end of that year. If you want to repay your mortgage in full however, please contact us for a Redemption Statement.