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Creating DIPs and KFIs

We strive to keep our products straightforward and easy to understand and to keep terms and conditions to a minimum. However, there may be questions you want to ask that are not answered elsewhere within our website.

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Creating DIPs and KFIs

How do I use your online system?

Please follow these steps. You have to follow all the stages in order, for example you cannot get a KFI without doing a DIP and you cannot submit an online application without doing a KFI. Please note that if you exit the system before creating the KFI, the details will not be saved and the process would have to be repeated if you subsequently require a KFI.

  • Log in or register
  • Create your first named client only by clicking on the ‘new’ button (any joint applicant will be created later)
  • Click on the ‘create KFI’ button.
  • Enter details of the level of service you have given, the proc fee (unless otherwise advised by your club/network, this will be 0.35% of the loan amount with a minimum of £225 and a maximum of £1,250) and confirm whether the product you are recommending has a completion fee and if the clients which to add this fee to the loan. Click ‘Next’.
  • Enter all of the details onto the DIP screen. This is a basic DIP and does not include a credit check or leave a footprint. Take care when answering the question ‘what type of property assessment do you require’ – if the product has a free valuation then please choose ‘Free Valuation to £1m – residential’ or ‘Free Valuation to £1m – BTL’.
  • If your DIP is successful you will receive a pop-up certificate to print and, when you close this down, you will see a message confirming the success.
  • If your DIP returns a ‘refer’ result you will still receive the pop-up certificate to print, but you will see a message asking you to contact us to discuss the case. If you have already discussed the case with us there is no need to do so again as we will have a record of your earlier call.
  • Click ‘Next’ to get past the DIP screen and click ‘Add’ on the product of your choice.
  • Follow through the next screens and click ’Submit’ at the end.
  • You will now be back in your client details screen and the KFI will be saved underneath. Click on the red wording to access and print it or click on ‘Apply’ to convert it into an online application.

Can’t I create a KFI without doing a DIP?

No, our system always asks you to complete a DIP before producing a KFI to check that your application meets our criteria. We DO NOT credit search at this point so there is absolutely no footprint left. The DIP itself only takes a minute or two.

How do I create a new customer?

In the ‘Your Clients’ section, click on the ‘New’ button underneath the grid.

Do I have to input a Society reference number in my client’s record?

No, this is for your internal use only and there is no requirement to enter a reference number if you do not have one.

Why is there no space to input a second applicant’s details?

As advised in your registration email, you should set up your first named client (click on ‘new’) then click on ‘Create KFI’ and proceed to the DIP screen. You will be asked if the application is single or joint in the DIP screen. If you select joint, the DIP will take the second applicant’s income into account for the purposes of the DIP and will request their personal details for the KFI.

How do I create more than one KFI?

After clicking into the customer record, choose ‘create KFI’ again and repeat for as many KFIs as you require. You will have to undergo the DIP process each time. We DO NOT credit search at this point so there is absolutely no footprint left. The DIP itself only takes a minute or two.

Why doesn’t the DIP carry out a credit score?

As a lender we have chosen not to use credit scoring systems or any other automated underwriting processes – we carry out a manual check using our own judgement rather than a score.

The client will not have any credit commitments by the time this application completes. Do I need to include them in the DIP?

If the case is a remortgage then you will not have to include the commitments in the DIP, but please do still list them on the application form and include a note in the free format material information section to explain that they will be repaid.

Can you carry out a credit search on an application prior to full submission?

Unfortunately not as we require a fully completed application form giving us consent to carry out the search first.

What financial commitments should I include in the DIP?

All credit commitments such as loans, credit cards, store cards and hire purchase, plus any other regular outgoings such as childcare and maintenance payments. Utilities need not be included. Please note we calculate the monthly payment of a credit card by multiplying the total balances by 3.5%. If your client has other mortgages such as BTLs with more than 135% rental income coverage of the monthly payment then these do not need to be included.

What are your proc fees?

Unless otherwise advised by your club/network, these are 0.35% of the loan amount with a minimum of £225 and a maximum of £1,250.

I note that the product completion fee can be added to the advance. Can this then exceed the maximum LTV for the product?

No, you will need to reduce the advance amount by the amount of the completion fee for KFI purposes in this instance.

My DIP has been declined – what should I do?

If your DIP has been declined the system will confirm the reason for this. If you think there has been a mistake please contact our Business Development Team for guidance using the ‘Request a callback’ button on this page. Our PDF ‘Guide to Terms & Underwriting Criteria’ can be viewed via the Criteria & Terms button on the top green navigation bar if you wish to view the criteria which has led to this decision, for example our income multiples.

My DIP has been referred – what should I do?

If your DIP has been referred the system will inform you in red wording why. Please note the reason and contact our Business Development Team for guidance using the ‘Request a callback’ button on this page. If you have already spoken to us and we agreed to consider the application, then please just click on the ‘next’ button to continue – there is no need to call us again. Please note that no information is saved until the KFI/illustration is produced so, if you exit the screen, you will have to start again from the beginning later.

Why hasn’t my DIP saved on the system?

Please note that no information is saved until the KFI/illustration is produced so, if you exit the screen before then, you will have to repeat again later.

Do I need to include the monthly payment of any BTL properties in the commitments section of the DIP?

Not if the property is currently tenanted and there is 135% rental income coverage of the actual monthly payment. If this is not the case then please do include the whole monthly payment.

Why are the fees incorrect on my KFI?

You may have picked an incorrect product type or selected the wrong type of valuation on the DIP screen. You will need to go back using the ‘previous’ buttons and amend this before proceeding.

When I click to produce my KFI I’m taken back to the ‘Create KFI’ screen – why?

Your KFI has now been produced – if you look under the customer details, you will see it there. You can click on it to view or print it or use the apply button to convert it into an application.

How much does a homebuyer’s report cost?

The valuer will advise the applicant of the extra cost over and above that paid for the basic mortgage valuation. If the box on the application form is ticked to request a report, there is no obligation to proceed – the independent valuer will contact the applicant to confirm the cost and if the applicant wishes to proceed they will make payment directly to the valuer. Hinckley & Rugby does not see a copy of the report; it is a private arrangement between the applicant and the independent valuer.