Guide to your offset mortgage (PDF) - Coventry Building Society

A GUIDE TO YOUR
OFFSET MORTGAGE

WHAT IS OFFSET ?
It’s a simple way to use the interest from your savings to reduce what
you owe on your mortgage. By paying less interest on your mortgage
now you really do save money in the future.
HOW DOES A COVENTRY OFFSET MORTGAGE WORK?
Our Offset links your mortgage to a dedicated instant access savings account. There are
no restrictions on how much can be paid in or taken out.
The Offset savings account receives the same rate of interest as your mortgage and
because your savings interest is paid direct to the mortgage each month, there is no tax
to pay meaning you get 100% of the benefit. Due to tax rules surrounding the receipt of
interest from a savings account, we can only pay interest on any savings balance that is
less than the outstanding mortgage balance.
You will start to earn a savings benefit as soon as any amount is paid into your Offset
savings account. The savings benefit is transferred to your mortgage account at
the close of business on the last day of each month. It will not reduce your monthly
payment needed until the following month if this option is chosen. Interest on your
Offset mortgage is calculated at the beginning of each month and will vary as it is
charged on the balance that you actually owe for that month.
Depending on the repayment method you choose for your mortgage, you can use your
savings benefit to either reduce what you owe on the mortgage, reduce your normal
monthly payment or reduce the overall term of your mortgage. The option you choose
is an individual choice, and as the options are flexible, you can change this at any time
during your mortgage. Separate fact sheets are available which explain the repayment
and benefit options in more detail.
MAKING THE MOST OF YOUR OFFSET MORTGAGE
Once your mortgage has started, we will automatically open your dedicated Offset
savings account and link it to your mortgage. You should deposit savings into the
account as soon as possible to fully benefit from Offset. You will need to transfer funds
into this account, and set up any further automatic arrangements yourself.

There are no restrictions on how much can be paid in or taken out of your savings
account. You can make cash or cheque deposits and withdrawals at any of our branches
or by using the CashLink card issued with the account for ATM withdrawals. You can
transfer money from any bank or building society account using the details we will
supply on completion, and use the account to pay standing orders and Direct Debits.
Cheque withdrawals can also be requested by writing to us.
LOST OR STOLEN CARD
If you lose your card, it’s stolen or you suspect that someone else may know your
Personal Identification Number (PIN), you must let us know straight away by phoning
0845 7665522, and we’ll arrange for a new card and PIN to be sent to you.
SECURITY DETAILS
If you’ve decided that you’d like to operate your account by phone and/or online, and you
already have Security Details set up for another Coventry account, you can use the same
details to operate your Offset savings account. You don’t need to set up new ones.
If you haven’t previously set up Security Details, we’ll need to post them to you. Each
account holder will receive their own Security Details and will need to set up a password
with us.
As a precaution against fraud, we’ll post all your Security Details (as detailed below), in
separate communications to the address we hold on our records.
Password
We’ll write and ask you to set up a password. It’s important that you do this as soon as
possible as you’ll need this password whenever you phone us to speak to an advisor, or
log in to our Online Services.
Grid Card
You’ll need your Grid Card whenever you phone us to make a withdrawal or to make
changes to your account details. You’ll also need your Grid Card to log in to our
Online Services.
Web ID
You’ll need your Web ID to log in to our Online Services and manage your account.
Telephone PIN
You’ll need this whenever you phone to use our 24 hour self-service option.
What if I forget any of my Security Details, or I lose my Grid Card?
If you forget or lose any of your Security Details please call us and we’ll make
arrangements to replace them.

If you believe someone else may know your PIN or password, or has access to your Web
ID or Grid Card, contact us immediately. If you do not notify us, you could be liable for all
transactions on your accounts.
If you haven’t received your Security Details within two weeks of requesting them,
please let us know by calling 0845 7665522.
Using your CashLink card abroad
CashLink cards which have a PLUS logo on the back can be used at cash machines
abroad wherever you see a Visa or PLUS logo. If you’re planning a trip overseas, please
phone us before you go, so that we can activate your card for the duration of your visit.
You’ll need to contact us no more than two weeks before you travel, with details of
your destination(s) and the dates you’ll be away. This is an added security measure to
safeguard your card and prevent fraudulent transactions overseas. If you do not tell us
about your trip abroad, you will not be able to use your card and your transaction will
be declined.
If you forget to contact us before you leave the UK, you can phone us using the contact
number on the back of your CashLink card during our normal working hours (Monday to
Friday 8am-8pm, Saturday 9am-5pm, Sunday 10am-4pm).
Please note, a charge of 2% of the transaction value will be made for cash withdrawals
made abroad.
KEEPING UP TO DATE WITH YOUR ACCOUNTS
We will send you an annual mortgage account statement each January showing details
of your mortgage account including any further borrowing. We will send an Offset
savings account statement each quarter detailing your recent transactions. You can
also view your accounts online at any time, once you have registered for our Online
Services.
We will also send you a summary of all the savings accounts you hold with us, including
Offset, each April.
PAYMENT HOLIDAYS
You may be able to take a payment holiday with your Offset mortgage. We will assess
your request to make sure you meet all our criteria, for example, you have made the
first six monthly payments on all of your mortgage, your account(s) are not in arrears
and the loan to value of your mortgage is sufficient. There are also restrictions on the
number and frequency of payment holidays that you can take.

Please remember that the criteria we use to assess a request for a payment holiday
may change; we will let you know the current criteria on request or when you apply
for a payment holiday. We will also be able to give you an indication of the impact that
taking a payment holiday will have on your total borrowing, for example the effect on
your monthly mortgage payments.
To request a payment holiday please give us at least five working days’ notice prior
to your regular monthly payment date. It is important that you don’t stop making your
regular mortgage payments until the payment holiday has been approved. We have
discretion in approving any request for a payment holiday.
BORROWING MORE
If you want to borrow more after your mortgage has completed, just contact us to
apply for a further advance (you must have made a minimum of six months’ mortgage
payments first, and specific terms and conditions may apply to some products). Your
advisor will discuss the options available to you at that time.
MOVING HOME WITH YOUR OFFSET MORTGAGE
If you want to move house, but keep the mortgage product you currently have (‘porting’
your mortgage), you should refer to the specific terms and conditions of your mortgage
account. Our leaflet ‘Moving your mortgage to a new property’ also explains our
porting process.
WHAT HAPPENS TO MY OFFSET SAVINGS ACCOUNT
ONCE MY OFFSET MORTGAGE HAS BEEN REPAID?
Once your mortgage has been paid off, the linked Offset savings account will be
transferred to an instant access account in the same name(s) as the borrower(s) who
are named on the mortgage. The savings account number will stay the same, and you
can continue to use your ATM card. This new account will pay interest, but you can
ask us for details of other accounts that may be more suitable. When this transfer has
taken place, net interest for the whole of the month of redemption will be paid.
ANY QUESTIONS?
If you have any questions about the Offset mortgage, or the linked savings account,
just ask an advisor in your local branch, or call our Customer Service Centre on
0845 7665522.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Coventry Building Society is authorised and regulated by the Financial Services Authority (reference number 150892).
The information in this leaflet is provided for your information only. Legally binding terms and conditions can be found in
your specific mortgage product terms and conditions. For specific guidance please speak to an advisor in a branch or by
telephone.
Our advisors are available Monday to Friday 8am-8pm, Saturday 9am-5pm, Sunday 10am-4pm, telephone self-service is
available 24 hours a day, 365 days a year. Contact your service provider for details of call charges, as costs may vary. To
maintain a quality service, calls made to and from Coventry Building Society may be monitored and recorded. Information
correct at time of going to print (August 2012).
For further details, call into your local branch, or visit us at
thecoventry.co.uk
or call our Customer Service Centre on
0845 7665522
Coventry Building Society
Registered Office: Economic House, PO Box 9, High Street, Coventry CV1 5QN.
07080 08/12