Frequently asked questions
Who are Mars Capital?
On a daily basis Mars Capital manages hundreds of millions of pounds worth of mortgages. Mars Capital is authorised and regulated by the FCA number 459016. Mars Capital is also a member of the Council of Mortgage Lenders.
How will Mars Capital help me?
Our team will be able to help with all aspects of running your mortgage. We will collect your monthly payments, provide you with monthly, annual and redemption statements, and if you are facing payment difficulties, work with you to find a long term solution.
Why has my mortgage moved to Mars Capital?
This is nothing unusual. In the UK, mortgages are regularly transferred between mortgage lenders. Your mortgage terms and conditions have not been changed. Please refer to your welcome/goodbye letters for further information.
What is your approach to treating customers fairly?
Mars Capital is committed to treating all of our customers fairly. There are a variety of ways in which we can help you with your mortgage and we look forward to discussing these with you. Our aim is to develop a long term relationship with you based on the principles of good customer care. Mars Capital will always seek to understand the circumstances of its customers and help them, using all reasonable means available, return to long term financial stability.
Does the transfer affect me in any way?
Your mortgage terms and conditions will not be changed. Your mortgage will continue to be managed in a professional manner by Mars Capital.
Is my rate affected?
Absolutely not. Your rate will continue to track your chosen index. The rate will only change when that index changes. Your monthly statement will update you with any changes.
Is my mortgage in safe hands?
Yes, absolutely. Mars Capital is a very experienced mortgage lender and administrator, is authorised and regulated by the FCA and is a member of the Council of Mortgage Lenders.
Will you store my data safely/securely?
We are legally obliged to store all information securely under the Data Protection Act 1998. Mars Capital is your Data Controller - that is the organisation that determines the purposes and manner in which your personal data is processed. Mars Capital will continue to use your personal information for the same purposes as previously notified to you.
How will you keep me updated with my account information?
Mars will send you every month a detailed statement. You will also receive an annual statement
Frequently asked questions; LIBOR
Q&A for customers of Mars Capital Finance Limited regarding benchmark interest rate reform and the transition away from LIBOR
What is LIBOR?
LIBOR stands for London Interbank Offered Rate. It is the rate at which major banks can borrow from one another in the interbank market (over periods of overnight, one week, two weeks, one month, three months, six months and twelve months) and for many years has been used as a key interest rate benchmark across a wide range of financial products including mortgages.
Why is LIBOR ceasing?
The LIBOR benchmark relies on estimates from banks of their borrowing costs in markets which are no longer active, so international regulators no longer considered LIBOR sufficiently robust or sustainable.
In July 2017 the Financial Conduct Authority (FCA) announced that by the end of 2021, financial institutions must transition impacted customers to an alternative rate.
Mars Capital Finance Limited (Mars) (in line with other lenders and financial institutions) is therefore proceeding on the basis that LIBOR will not be available after end of 2021 and is working to move customers onto a safer and more transparent benchmark rate.
What does this mean for me?
If you have a mortgage where the interest rate is calculated by reference to LIBOR, this will be switched to a robust alternative rate before 31 December 2021.
We have considered the alternative rates available and have decided to switch our customers to an alternative rate based on the Bank of England base rate (the Bank Rate).
Changes will have to be made to your mortgage documentation to provide for the Bank Rate to replace LIBOR as the reference rate against which interest on your mortgage can be calculated.
What is the Bank Rate?
The Bank Rate is the official interest rate set by the Bank of England's Monetary Policy Committee (the MPC).
You can find more information about Bank Rate here: https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
When will you be transitioning my mortgage(s) to the Bank Rate?
The FCA has recently stated that, notwithstanding the ongoing Covid-19 pandemic, sterling LIBOR will discontinue at the end of December 2021.
In line with all other lenders and financial institutions regulated in the UK, we are working to meet the FCA’s expectations.
If your mortgage is linked to LIBOR you do not need to do anything at this stage. We will write to you again well in advance of the December 2021 deadline with further details on your replacement interest rate and how the transition process will progress for you.
Will my mortgage documentation need to change?
This will depend on the terms and conditions for your mortgage. Mars are undertaking a comprehensive review of all relevant terms and conditions.
We will let you know in our letter well before the end of December 2021 whether the terms and conditions allow for the transition to the Bank Rate as a replacement rate or if your approval is required to make the transition to the Bank Rate.
Am I going to pay the same amount?
The FCA has made it clear that LIBOR transition should not be used to move customers with LIBOR linked mortgages to replacement rates that are expected to be higher than what LIBOR would have been, or otherwise introduce inferior terms.
Just like LIBOR, the Bank Rate is a variable rate, so may increase or decrease in the future. Currently LIBOR changes quarterly, with the Bank rate this will change after the Bank of England have announced a Bank Rate change.,
We will be in touch with you well in advance of the end of December 2021 deadline to tell you more about how the Bank Rate will apply to your mortgage and how this is calculated.
To avoid transitioning, can I repay my mortgage early without penalty?
This will depend on the terms of the mortgage you have with us. Please refer to your mortgage offer letter to find out what your mortgage rate is. However, if you repay in fixed rate period, there will be an early repayment charge. If you are on a variable rate the mortgage exit administration fee (MEAF) will be £56. You may wish to seek independent financial advice on this matter.
I am currently on a fixed rate, will anything change?
Your fixed rate will continue until expiry. We will write to you again later in 2021 advising what the transition process will be.
How can I tell if my mortgage is linked to LIBOR?
We have written to all affected customers but please refer to your expanded monthly statement, page 2 under the interest rate heading for the rate information about your account.
Will I have to pay any fees or other costs?
Mars will not charge you any fees to transition your mortgage to the Bank Rate.
What is the potential impact on me?
This is a significant change and we are working hard to minimise its impact on our customers as far as possible.
In line with the national roadmap for transition, supported by the FCA LIBOR will not be used in any mortgage agreements post the end of December 2021.
Will other mortgage lenders continue to use LIBOR?
For new mortgages, lenders must have stopped using LIBOR by the end of March 2021. For existing mortgages, lenders will have to transition all mortgages which reference LIBOR and mature after December 2021 onto an alternative interest rate.