Rooftop Mortgages

Rooftop Mortgages Limited (“Rooftop”) is a UK regulated mortgage lender which administers a range of mortgage portfolio accounts. However, Rooftop does not offer lending for new mortgages.

No, we don’t have a Standard Variable Rate (SVR). If you wish to discuss the interest rate currently being charged to you, please refer to the Contact Us information above and call us.

We are committed to consider our Customers circumstances individually and treat them fairly. If you are currently experiencing problems or believe you may have problems making your monthly payments, please refer to the Contact Us information above and call us. We will discuss your situation and consider all available alternatives to your new circumstances. We do want to help where we can and would encourage you to make contact with us as soon as possible.

Additionally, you may find the ‘Where can I obtain free independent advice’ information helpful.

We want to hear from you to discuss your plans to repay your mortgage. If you have an interest only mortgage you will need to repay the capital amount that you borrowed on or before your mortgage term expires. Please refer to the Contact Us information  above and call one of our specialists.

Additionally, you may find the ‘Where can I obtain free independent advice’ information helpful.

Sources of free independent advice are available to you and the following organisations can help to assess your situation and may be able to suggest solutions for you:

• National Debt Line – www.nationaldebtline.org
• StepChange Debt Charity – www.stepchange.org
• National Homelessness Advice Service- www.nhas.org.uk
• Citizens Advice- www.adviceguide.org.uk.

Interest Only Mortgages – if you have an interest only mortgage, useful information can be obtained from from Moneyhelper. The MoneyHelper website https://www.moneyhelper.org.uk provides information in the following areas:-

• How to review your interest only mortgage.
• Taking action on your interest only mortgage now.
• Making a plan to repay your interest only mortgage.
• Choosing an independent financial adviser.

In respect of Equity Release, please note that not all financial advisers are able to give advice on Lifetime mortgages. In addition to the MAS information, you may find the Equity Release Council’s website useful

• www.equityreleasecouncil.com

Please send your new details to General Enquiries, Rooftop Mortgages, PO Box 522, Ipswich, IP1 3YE.

We are committed to provide cheaper numbers for you to call us on and you will benefit from local call rates on our 033 numbers.

1.1.1 The London Inter-bank Offered Rate (LIBOR), an interest rate benchmark used to calculate the interest rate on your mortgage, ended in its previous form on 31 December 2021. As a result, LIBOR as a benchmark rate no longer exists.

1.1.2 In order to allow further time for transition to alternative benchmark rates, in January 2022 the Financial Conduct Authority (FCA) introduced a temporary replacement for LIBOR, known as "Synthetic LIBOR". The aim of Synthetic LIBOR was to achieve a reasonable and fair approximation of LIBOR’s expected value if LIBOR had continued to be published in the same way. The FCA permitted us to use Synthetic LIBOR as the replacement benchmark rate in mortgage contracts like yours where interest is calculated using LIBOR and it has not yet been possible to transition to an alternative rate.

1.1.3 From 31 December 2021, the interest on your mortgage has been calculated using "Synthetic LIBOR". The Financial Conduct Authority has confirmed that it will no longer publish Synthetic LIBOR beyond 31 March 2024. As a result, lenders are required to move LIBOR-linked mortgage customers to a suitable alternative reference rate.

1.1.4 We are proposing to change the terms of your mortgage agreement to replace the use of LIBOR (now Synthetic LIBOR) in calculating interest payable on your mortgage with "Term SONIA" plus a "credit adjustment spread".

1.1.5 The Interest Rate Margin applicable to your mortgage will remain the same.

1.1.6 Following the changes, the interest applicable to your mortgage will be calculated based on a rate which is the aggregate of:

• Term SONIA;
• the credit adjustment spread; and
• the Interest Rate Margin

No, we did not have any role in the decision to end LIBOR. We are taking action in order to comply with guidance from the FCA and other global regulators.

1.3.1 Term SONIA is based on SONIA. SONIA stands for the Sterling Overnight Indexed Average and is a benchmark rate administered and published by the Bank of England. It is based on the average of the interest rates which banks will lend to one another overnight. Unlike LIBOR, it is based on actual market transaction data and is the preferred industry alternative to LIBOR.

1.3.2 Term SONIA replicates the forward-looking periods which existed for LIBOR (for example three month LIBOR). Like LIBOR, Term SONIA is set at the start of your interest period, so that you have certainty of the payments you will have to make.

1.3.3 We have chosen Term SONIA (plus the credit adjustment spread) as we consider that to be the most appropriate and accurate replacement for LIBOR and because it is calculated in the same was as Synthetic LIBOR (which is derived from adding Term SONIA plus the credit adjustment spread.

1.3.4 Unlike LIBOR, Term SONIA is based on the average of historic rates and does not involve speculation on the way SONIA might fluctuate in the future.

1.3.5 Please see below a diagram showing a historic comparison of LIBOR and SONIA. This diagram is provided for indicative purposes only and we cannot confirm how SONIA will track going forwards.

1.3.6 You can find further information on SONIA on the Bank of England’s website: https://www.bankofengland.co.uk/markets/sonia-benchmark

1.4.1 The credit adjustment spread, which is fixed at 0.1193%, will be added to Term SONIA in order to reflect the historic average difference between LIBOR and Term SONIA, and to replicate (so far as possible) the rate of interest which you would have been charged had LIBOR continued.

1.4.2 This is consistent with the way Synthetic LIBOR has been calculated. Synthetic LIBOR is calculated by taking the Term SONIA rate plus an additional rate, which is also fixed at 0.1193% (based on the three-month Synthetic LIBOR rate).

1.5.1 There will be no difference in the way the new rate is calculated as it is now using Synthetic LIBOR. This is because Synthetic LIBOR and the new benchmark rate are based on the same underlying calculation (that is: Term SONIA plus the credit adjustment spread of 0.1193%).

1.5.2 Like LIBOR, Term SONIA is a variable benchmark rate, so it may increase or decrease over time and that will mean that the monthly payment you make will increase or decrease accordingly.

No, LIBOR in its previous form no longer exists and Synthetic LIBOR will cease to exist beyond 31 March 2024. It is therefore necessary to move to an alternative reference rate.

1.7.1 You may wish to obtain independent advice on the end of Synthetic LIBOR and the transition to the alternative benchmark rate.

1.7.2 The Money Helper website provides free impartial financial guidance that is backed by the Government and has details of independent financial advisors should you wish to discuss the replacement of LIBOR and how this impacts you: https://www.moneyhelper.org.uk/en or call 0800 138 7777 Monday to Friday between 8am and 6pm.

The FCA has produced information for mortgage borrowers about the end of LIBOR, which is available on its website: https://www.fca.org.uk/consumers/mortgage-interest-rates-libor.