Marsden Building Society

Marsden Building Society is a building society based in Lancashire that has been helping people own their own homes since 1860¹. It offers savings accounts, opened online or in branch, and mortgages, and it appears on the Bank of England's list of building societies incorporated in the UK². Its eight branches are spread across Lancashire, and its savings are protected by the Financial Services Compensation Scheme³.

The society's business today splits in two. Savings accounts are open to new customers, online and through its branches. Mortgages are for existing borrowers only: the Marsden does not offer mortgages directly to new customers, and anyone starting out is directed to Mortgage Advice Bureau, a separate advice firm the society has partnered with¹. Money saved with the society is protected by the Financial Services Compensation Scheme up to a total of £120,000⁴.

Savings accounts at the Marsden: easy access and fixed rate

The Marsden's savings range covers the main account types most savers look for. Easy access accounts, which can be opened in any one of its branches, let you add to and withdraw from your savings without giving notice⁶. Cash ISA accounts can also be opened in any one of the branches⁷. The society also offers children's savings accounts, which are opened and managed in a branch, with the trustee able to register for eSavings to view the account online once it is open⁸.

The broad distinction across the range is between easy access and fixed rate. Easy access accounts allow flexible withdrawals, whilst fixed rate accounts don't allow any withdrawals during a set period⁸. That trade-off, between access and the rate you get for locking money away, is the same one savers face across the market, and the savings accounts guide explains how the types compare in general.

Once an easy access account has been opened in a branch, account holders can register for eSavings to view the account online⁶. Anyone with a Marsden Building Society account can register to use eSavings⁹. The society does not publish its rates on this page, and rates on savings accounts change; the society's own website carries today's figures for each account.

Marsden mortgages are for existing borrowers only

The Marsden does not lend to new customers directly. Its mortgage business is built around people who already have a mortgage with the society. If you're an existing Marsden customer, you can apply to make changes to your current mortgage, or use its rate switch service to apply for a new mortgage when your product comes to an end, without advice¹.

Existing customers may also be eligible for additional borrowing. The conditions include that you already have a mortgage with the Marsden¹⁰. As an existing customer, you could be eligible for additional borrowing, and the society has partnered with Mortgage Advice Bureau for that route¹⁰. The society will contact you before your mortgage product comes to an end to explain your options¹¹.

This focus on existing borrowers is not unique to the Marsden. Other building societies also run products reserved for existing borrowers coming to the end of their term, and some lenders reserve particular products for existing customers only. The general mortgages guide explains how the market works for borrowers whose deal is ending.

Changing your Marsden mortgage term or repayment method

You can reduce or extend your mortgage term at any time, and you can apply to do it online¹³. The same online route covers changing your repayment method, from interest only to capital repayment or from capital repayment to interest only, and porting your mortgage¹⁴.

The effects work in opposite directions. If you reduce your mortgage term on a capital repayment mortgage, you'll pay off the loan faster by increasing the amount you pay each month, and you'll pay less interest overall, because there's less time for interest to build up¹³. Extending the term means you'll pay less each month, but over a longer period of time, and because you'll be paying off the mortgage for longer, you'll pay more interest and end up paying more overall¹³.

On an interest only mortgage the monthly picture is different. Reducing the term brings no change to your monthly payments, since you're paying interest only, but you'll pay less interest overall as the term will be shorter¹³. Extending the term means you'll pay more interest overall, as you'll be making interest only payments for a longer period of time¹³.

There are limits and checks. On capital repayment mortgages other than Later Life mortgages, you can only extend your mortgage term up to your retirement age; on a Later Life mortgage, the limit is a maximum age of 90 for the oldest borrower¹³. Depending on your circumstances, the society may need to contact you to carry out an affordability check, which depends on whether you're reducing or extending your term and your planned retirement age¹³.

One thing to weigh: applying to change your mortgage term online is a service without advice. Deciding to make the change yourself means you're responsible for the mortgage term you choose and the service you've received¹³. Not everything can be done online either: you can't apply to make changes online if you need advice to make a change, want to add or remove a borrower on the mortgage, or want to change mortgage product¹⁴.

Rate switching and porting when your deal ends

When your current mortgage product is approaching maturity, the Marsden will be in touch with the new product options you're eligible for¹⁴. Existing customers can then use the rate switch service to request illustrations and apply for a product via the society's website, without advice¹¹.

What happens if you do nothing matters. When a fixed period ends, you'll need to remortgage; if you don't, you'll be moved to your lender's standard variable rate (SVR), which is usually much more expensive¹⁸. The same pattern applies to discount mortgages: when the timeframe comes to an end, your lender will usually transfer you onto its SVR automatically, meaning monthly repayments will increase¹⁹.

Porting is the other route, for borrowers who move house. If the amount of your mortgage won't change, and you don't want to borrow more, you can apply to port your mortgage to a new property by filling out the form on the porting page¹². When you complete the form, you'll also have the option to change your repayment method and/or your mortgage term¹². Porting is subject to a valuation of the property being carried out and the new property being acceptable security to the society¹². If you want to borrow more than your existing mortgage, you'll need mortgage advice¹².

Depending on your circumstances, and if the changes you apply for increase your mortgage payments, the society may need to contact you to carry out an affordability check¹².

Mortgage payments, statements and service charges

The Marsden's preferred method for mortgage payments is Direct Debit, which can be set up by filling in the society's Direct Debit form and returning it²⁰. Allow 3 working days for your payment to reach your mortgage account²⁰. Interest is calculated daily, so you will benefit from your payment immediately²⁰.

Annual mortgage statements are posted in January²⁰. If a payment is refunded after redemption, it can take up to 6 working days for the payment to be processed and received back in your bank account²⁰.

The society's own support pages carry the current detail on charges for its mortgage services, and the figures change over time, so check the society's website for today's tariff rather than relying on figures quoted elsewhere.

New borrowers go through Mortgage Advice Bureau

New customers can't apply directly for a mortgage with the Marsden. Mortgage Advice Bureau will help you find the right mortgage based on your circumstances¹. The society is blunt about its own role here: "All mortgage advice is provided by Mortgage Advice Bureau. Marsden Building Society does not offer mortgage advice to customers"¹⁷.

Marsden Building Society is an introducer to Mortgage Advice Bureau for mortgage advice and protection¹⁵. The mortgage service itself is provided by Mortgage Advice Bureau²¹. This applies across the society's new-customer pages, including first-time buyers and holiday let mortgages: while the Marsden doesn't offer mortgages directly to new customers, Mortgage Advice Bureau provides expert mortgage advice²². On holiday lets, the society allows up to 90 days personal use, per year, on a holiday let mortgaged property²³.

For anyone buying a first home, the home buying guide sets out the whole process, from saving a deposit to completion, and the mortgages guide explains the types of deal available across the market.

How to open a Marsden savings account: online, branch or post

There are three routes, and which one applies depends on the account. Only the society's online savings accounts can be opened online; for its branch savings accounts, you must visit a branch to open the account²⁴. Online, you open the online savings accounts via the eSavings platform, selecting the link at the top of the page and either registering or logging in²⁴. You choose an online account, select the application option or register for e-savings, follow the on-screen instructions and complete the secure application form; once approved, you manage your savings online through the e-savings platform⁹. An electronic ID check is carried out on receipt of the application⁹.

In a branch, you visit and speak with a member of the team, who will guide you through the application process. If you're planning on visiting a branch to open a savings account, phone the branch before you visit to check if an appointment is required⁹. Once an account has been opened in a branch, account holders can register for eSavings to view the account online⁹.

By post, you complete the application form and send it via post; the form is available to download under the 'Apply' tab where an account is available to open by post. Not all savings accounts can be opened via post, so check the details on individual accounts to see if a postal application is available⁹.

Banking with the Marsden in its Lancashire branches

The Marsden has eight branches across Lancashire, and you can open a savings account at any of them⁴. This is a branch-based society rather than a national network: its branches are concentrated in one county, so anyone outside travelling distance will use the online eSavings service for savings, and the website and phone for mortgage servicing.

The Marsden has eight branches across Lancashire, in Barrowford, Burnley, Clitheroe, Colne, Garstang, Lytham, Nelson and Poulton²⁵. For savers in Lancashire they provide a counter service that online-only banks do not. Branch-based accounts, including children's savings accounts, are opened and managed in person⁸.

Paying off your Marsden mortgage early

If you'd like to pay off your mortgage, and you aren't using a solicitor to do so, you can request a Redemption Statement from the society¹¹. Customers can request it by filling in the form on the page; solicitors must use LMS to request a redemption statement²⁶.

The society aims to issue the redemption statement within 3 working days of the request being received²⁶. The statement will be sent to you by email to the email address the society holds on its records²⁶. The request will be processed after the monthly payment is due, unless the expected redemption is before this date²⁶.

The redemption figure includes interest up to and including the day of redemption at the interest rate applicable at that time, as daily interest is charged²⁶. You'll need to send the full amount on the same day; if you can't, contact the society before making smaller payments, to avoid unnecessary fees²⁶.

The society can send you up to two redemption statements in any 12-month rolling period free of charge; any additional statements are charged at £25 per statement²⁶. Whether an early repayment charge applies when you pay off the mortgage early varies depending on your mortgage contract, so check your own terms before redeeming²⁶.

Letting out your home and other changes that need approval

If your mortgage is with the Marsden and you want to let out your property, you require the society's approval. Contact it on 01282 440500 to discuss this further²⁰. This is standard across the market: most mortgage agreements do not allow you to rent out your home without your lender's consent²⁷.

One scheme is treated differently. If you sign up to be a sponsor under the Homes for Ukraine scheme, you don't need to let the society know, unless your mortgage is currently in arrears, in which case the society asks to be contacted beforehand²⁸. You will need to let the society know as soon as you've been accepted, the vetting process has taken place and the visa for the Ukrainian national has been approved²⁸. If you become a sponsor, the society won't charge you a higher interest rate or any fees²⁸.

Other changes that can't be done online without advice include adding or removing a borrower on the mortgage, and changing mortgage product¹⁴. For anything that increases what you owe, such as borrowing more than your existing mortgage, you'll need mortgage advice¹².

Home insurance through Uinsure

The Marsden has partnered with Uinsure to offer home insurance, and acts as an introducer to Uinsure²⁹. The society does not underwrite the cover: the insurance product is Uinsure's²⁹.

Buildings insurance of this kind covers the cost of repairing damage to the structure of your property³⁰. If you have a mortgage, your lender will normally require buildings insurance as a condition of the loan. The insurance guide explains the types of cover and what to check in a policy.

How your savings are protected

Your eligible deposits with Marsden Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme⁴. This £120,000 limit applies to your total eligible deposits with the society, not per account, so money across several Marsden savings accounts counts together towards one limit.

The FSCS is the scheme of last resort for customers of financial services firms. If the society were unable to repay depositors, the FSCS would step in to compensate eligible savers up to that limit. The consumer protection guide explains how the scheme works, what counts as an eligible deposit and how joint accounts are treated.

As a member of the Marsden, your savings are covered by the Financial Services Compensation Scheme (FSCS)³. Your eligible deposits with Marsden Building Society are protected up to a total of £120,000 by the FSCS, the UK's deposit protection scheme². If the society were unable to repay depositors, the FSCS would compensate eligible savers up to that limit.

If something goes wrong with service rather than with your money, complaints go first to the society, by phone on 01282 440500, online or in writing⁵. If you're not satisfied with its final response, the Financial Ombudsman Service can look at the complaint, free and independently. The banks and building societies directory lists other mutual societies and how their protection is structured.