How your Nemo mortgage works
What does my contractual monthly repayment include?
Contractual monthly repayments consist of an interest and a capital balance payment. The capital balance payment reduces your mortgage balance every month. By paying your contractual monthly repayment in full and on time you will clear the whole balance by the end of the term, provided that the term has not changed since you started your mortgage.
Interest is accrued daily, similar to most mortgage products and is in accordance with your Terms and Conditions.
Why is my balance not reducing at the same rate as the monthly payments I’m making?
Your monthly repayment consists of two parts: an amount to pay towards your interest and an amount towards your capital balance. The interest is accrued daily, and is applied every month to your Nemo second charge mortgage. Because this interest is calculated on the outstanding balance, the proportion of interest that you pay as part of your monthly payment is greater at the start of your mortgage. As the balance reduces, so does the proportion of the contractual monthly repayment that relates to interest. So, as time passes the balance will begin to reduce more quickly.
Why is there an outstanding balance on my account at the end of the contractual term?
During the term of your mortgage, you may have incurred fees and/or additional interest. An example of when a fee or additional interest can be incurred if you have ever fallen behind with your contractual monthly repayment. This type of fee is sometimes called a Default Fee and does not incur interest. Fees for different types of services, for example a Deed of Postponement, can also be incurred and if these are added to your account, they will have incurred interest. These are referred to in our Tariff of Fees and Charges as Service Fees.
If these fees aren’t paid by you, these will remain outstanding at the end of your term.
Our up to date Tariff of Fees and Charges can be found here. There might be other fees in your Terms and Conditions though so please check this source too for more information.
Other factors can cause additional interest to be accrued, such as changing a payment date. If this additional interest isn’t paid by you beforehand, it will remain outstanding at the end of your term.
If you want to pay any fees or additional interest now, or to simply check if any are outstanding, please contact us.
Your Nemo second charge mortgage will only be considered as fully settled once the outstanding balance is fully repaid which includes any outstanding fees and interest.
When can Nemo change my interest rate?
Nemo can adjust your interest rate for various reasons which are set out in your Mortgage Agreement. This is usually when Nemo's costs or market conditions change.
Your Terms and Conditions will indicate when we can vary the interest rate on your mortgage. Our rates are not tracked to any particular interest rate index. However, your Terms and Conditions might reference a specified rate index, like the Bank of England, to restrict how frequently and by how much we can vary your interest rate.
Settlements, and settlement quotes
If you have a question about how to settle your mortgage, or wish to request a settlement quote, please click here.