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We aim to provide all the information you need to know here. If there's anything you can't find call our Intermediary Support Team on 0345 845 0110.
Where the mortgage has been at least one month in arrears within the last three months, a further advance application cannot be accepted.
The customer should be advised to bring their account up to date and be ‘arrears free' for at least three months before re-applying.
This rule also applies to any standalone product transfers that you may wish to process, however, you can process the product transfer as soon as the account is up to date with no requirement to wait three months.
Tracker rates are linked to the Bank of England bank rate. This is announced by the Bank of England's Monetary Policy Committee (MPC). If the MPC decides to change the bank rate, we will change the tracker rate in line with it. This will be within 30 days of the publication of the minutes of the MPC meeting at which the decision to change the bank rate was made.
At the end of the tracker rate period the tracker rate mortgage will cease to be a tracker rate mortgage and we will charge your client interest at Scottish Widows Bank standard variable rate.
All variable rates are stated at their current levels and are subject to change.
Customers can apply for Consent to Let their property. If agreed, there is a fee of 0.5%. This fee is charged annually for short-term letting arrangements (not applicable for existing buy to let mortgages).
The 0.5% is calculated on the total outstanding balance of the mortgage, including any further drawdownns, as at the 1st of the month in which consent is granted. The fee is non refundable, even if the property is let for less than 12 months or the mortgage is redeemed in full.
To apply for consent to let, customers must complete the Consent to Let Application Form and return this to us.
A consent to let would not normally be considered until the mortgage has been in place for six monts (armed forces personal are exempt from this rule).
We offer different types of mortgage products with different interest rates. With some of these there may be a charge if the customer repays all or part of the loan within a certain period of time.The Mortgage Illustration and offer letter give details of any early repayment charges that apply.
Why do we charge them?
We charge them because when setting up the funds to provide loans to customers, we expect them to keep the money for the time agreed at the outset. There is a cost to us if they repay some or the entire loan sooner. The charge compensates us for this cost.
When do we charge them?
A fee will be charged if the customer repays the loan while an early repayment charge is still present. Details of the charge percentage and end dates are detailed in the Mortgage Illustration and offer letter.
If the customer repays part of the loan on which an early repayment charge applies, we’ll charge them a proportion of the early repayment charge due.
We’ll also make an early repayment charge if we agree to transfer all or part of the loan to a new mortgage product during the early repayment charge period.
Are there any exceptions to this?
Yes. Currently with our fixed rate products, as a concession, each year the customer can make a single overpayment of up to 10% of the amount outstanding without having to pay an early repayment charge.
If the amount you overpay exceeds 10%, or the customer makes any additional overpayments, we’ll only charge them an early repayment charge on the proportion they overpay above 10%, or as additional overpayments.
With our variable rate products (excluding our Standard Variable Rate) there are no early repayment charges unless overpayments take the outstanding balance below £100, or pay off the mortgage completely. No early repayment charges apply in any circumstances to our Standard Variable Rate.
Where the loan is divided into more than one part, the concession will apply to the amount owing on each part.
Remember, we can change or withdraw our 10% early repayment charge concession, so if the customer decides they want to make regular or lump-sum overpayments, it’s always a good idea to contact us and check if the policy has changed. We will give at least three months’ notice before withdrawing or reducing the concession.
If the customer is moving home and can take the product with the early repayment charge with them to a new mortgage, they may not have to pay the early repayment charge.
The list of acceptable reasons are as follows.
Lump sum or regular overpayments can be made at any time. If early repayment charges apply to the product, refer to early repayment charges for more details.
You can’t make regular overpayments on a fixed rate product.
It is sometimes possible to take a product with you to a new mortgage. We call this ‘porting’. The Mortgage Illustration and offer letter will say if any products are portable.
What does 'Porting' mean?
Porting means taking a product to another mortgage with the same lender, so there’s no early repayment charge.
The customer may be able to port the product and early repayment charge to the new mortgage for the amount they owe on the product they are porting. But if they are borrowing more, they’ll need to have a new product for the extra amount they borrow.
If they are borrowing less than the amount they owe on the product they are porting, and the offer they have for their old mortgage says there is an early repayment charge, then they will have to pay an early repayment charge on the difference.
When will the customer not be able to port?
We’ll decide whether to offer a new mortgage based on our lending policies at the time the customer applies. If we don’t offer a new mortgage, the customer cannot port their product. Also, if the customer repays their existing mortgage, they will still have to pay early repayment charges.
What if the customer can't repay their existing mortgage at the same time as they start my new mortgage?
If the customer intends to sell their current property but can’t take out a new loan and repay the existing loan at the same time, they can ask permission to have two loans with us for a short time.
We’ll agree to this if we think they can afford to pay the monthly payments on both loans. They may be able to take their existing product to the new loan. However, they will have to transfer the existing loan to the lender variable rate that applies to the existing loan until the sale is complete and they have fully repaid the loan.
This is a concession that may not always be available.
Other rules apply if the customer wants to let their existing property
What if the customer needs to repay their existing mortgage before they can start a new mortgage?
If the customer sells their property but are not yet ready to buy another, they will need to repay the existing mortgage. This means they will have to pay any early repayment charges that apply. However, if they complete a new mortgage with us within 90 days of repaying the existing mortgage, they may be able to take their old product with them to the new mortgage. Once the new mortgage has started, they can apply to us for a refund of the early repayment charge.
The Product Transfer will take effect from the 1st of the month following the month in which the application and all required documentation are received.
If an existing mortgage is already FCA Regulated then it will stay FCA regulated regardless of a further advance or product transfer.
If, however, a mortgage is non-FCA regulated and a further advance is required, to give the client the regulatory protection for the entire mortgage, the existing debt is refinanced to make the whole mortgage FCA Regulated.
Please note that a standalone product transfer would not make the mortgage regulated.
If a SCG is present contact you if there is a problem with the SCG type or problems in obtaining a Letter of Postponement (LOP).
If any of the following SCG reasons are present the further advance cannot proceed:
If the SCG is registered to a non-clearing bank and is to be repaid, a conveyancer must be instructed.
If the client does not intend to repay the SCG using the further advance and will therefore continue after completion, Halifax will request a Letter of Postponement (LOP) from the SCG lending company. If the LOP is not granted the further advance cannot proceed. It is not unusual for the SCG lending company to refuse to grant an LOP.
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