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Frequently asked questions

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.

Here we answer some of the more frequently asked questions:

What age can I have an ISA (Individual Savings Account)?

Anyone aged 16 or more who is UK resident can open a Cash ISA.

Junior ISA accounts are available to young savers up to the age of 16 however the Society does not offer this type of account.

What if I wish to complain about my mortgage?

We aim to provide high standards of service. However, there may be occasions when you feel that you may have a complaint, if so please click here for information on our complaints policy and procedures.

Advance

The amount of your mortgage.

See section 3 of your Key facts Illustration (KFI) for your personalised details.

Mortgage

A loan made against the security of a property.

Does Hinckley & Rugby’s Offset Savings account offer online banking facilities?

H&R Online is our web platform that allows you to view your savings and mortgage balances online.  It has been designed to be easy to use and has a range of useful features, including a secure private messaging service.

In addition, if you are an Offset Savings customer and pay your mortgage repayments by direct debit, you can also transfer funds to your nominated bank account.

Further details can be found by clicking the H&R Online button in the top menu bar or by clicking here.

Treating Customers Fairly

The Product Terms (which are available for use by your customer) are contained in the Key Features of the product as displayed in the general public section of our website.

You must ensure that you fully understand the product terms before advising your customers, to determine whether the product fits with the customer’s needs and risk appetite.

If you have any doubt as to the nature of the product offered by us you must contact us.

The Society’s target audience for all of the Society’s mortgage products is for customers aged 21 or over who are financially aware and who have good track records of credit management and income. As manual lenders, individual consideration may be given to high quality but unusual application scenarios.

Annual Equivalent Rate (AER)

This illustrates what the interest rate would be if interest was paid and added to the account each year. This allows you to compare various products with each other.

Additional borrowing

A further loan, for a variety of purposes, added to your existing Mortgage. If additional borrowing is available, this will normally be made on the same product as your existing Mortgage.

Mortgage Products & Product Fees

The current lending terms in this section must be read in conjunction with our current product guide and individual product key features leaflets, all of which are shown in this website.

If there are any points about our products that you are not sure about, please contact us to discuss these.

Product Fees

Any Arrangement fees and Property Assessment Fees must be paid when submitting an application.  These will not be deducted from the Advance.

Some of our products have a Completion Fee.  Product Guides and Key Features Leaflets will show where this is applicable.

Applicants may choose whether they prefer to pay the Completion Fee to the Society before the release of the mortgage advance or whether they wish to add this to the loan.

If Borrowers choose to make a separate payment for a Completion Fee prior to release of the mortgage advance, cleared funds must be remitted to the Society some time before the scheduled completion date.

Alternatively an applicant may elect to add the Completion Fee to the mortgage advance, subject to the upper loan to value product limit, and the Society will deduct the Completion Fee from the total agreed advance.

Applicants who wish to add the fee to the loan must confirm this in the Mortgage Application form. If no election is made in the application form to add the fee, the Completion Fee will not be added to the loan and must be paid by the applicant prior to completion.

If the Completion Fee is added to the loan, the borrower may make a separate payment for this without any early repayment charge, at any time after the start of the mortgage.

If the borrower chooses not to make a separate payment for the Completion Fee either before or after release of the mortgage advance, any Completion Fee that has been added to the loan will be repaid over the term of the loan.

Advance

The amount of your Mortgage.

LTV Limits, maximum and minimum advance limits

Please refer to the individual product guide for details of the minimum loan size.

The maximum loan size varies according to LTV,  please see below

Residential Limits:

LTV Limits Advance Limit
95%

90%

85%

80%

75%

70%

65%

60%

£300,000

£325,000

£355,000

£410,000

£465,000

£520,000

£710,000

£1,000,000

BTL Limits:

LTV Limits Advance Limits
75%

70%

65%

60%

£300,000

£350,000

£400,000

£500,000

APRC (Annual Percentage Rate of Charge)

A standard interest rate calculation designed to reflect the total cost of credit over the whole term of the Mortgage so that it can be compared to other loans.

What can I do if I have difficulty visiting one of your branches or agencies?

All of the Society’s savings accounts can be operated by post. Simply post your passbook to any branch or agency, together with any cheques you wish to credit to your account and/or your written request to withdraw funds by cheque. Cheques can be made payable to any payee you choose, but please do not forget to sign your withdrawal request in accordance with your account mandate. We will return your updated passbook to your home address by first class mail together, with any cheques that you have asked us to draw (please note that we cannot forward cheques direct to third parties).

Repayment types

The default position is that Residential owner-occupier applications will be processed on a Capital & Interest Repayment basis, unless Interest-Only is specifically requested.

Interest Only will be considered for owner occupier applications. The only form of Mortgage Repayment Vehicle (MRV) that the Society will accept is sale of property/properties in the United Kingdom, either:

The sale of a property other than the mortgaged property, owned in the same names as the mortgage applicants. There must be sufficient equity in the property/properties to cover the interest only part of the loan. The LTV must not exceed 60% although applications split on a part Interest Only and Part Repayment basis will be considered to an overall maximum LTV of 80%, with the Interest Only part not exceeding 60%.

Alternatively, the sale of the mortgaged property itself will be considered, subject to a maximum LTV of 50% and a current minimum property value of £400,000. The feasibility of downsizing with reference to house prices in the chosen locality will also be considered. Applications split on a Part Interest Only and Part Repayment basis will be considered to an overall maximum LTV of 80%, with the Interest Only part not exceeding 50%.

Applicants will be required to provide confirmation, in the mortgage application form, of the MRV and the equity in the UK property/properties.

You will be required to provide confirmation in the Society’s Mortgage Intermediary Declaration of the UK property/properties, sale of which will be the capital repayment strategy, and the current unencumbered equity in the property/properties.

What if I wish to complain about my savings?

We aim to provide high standards of service. However, there may be occasions when you feel that you may have a complaint, if so please click here for information on our complaints policy and procedures.

Arrangement fee

The charge that may be made to cover the administrative costs of assessing and setting up a Mortgage (not all of our Mortgage products have an Arrangement Fee).

Remortgages

The applicant(s) must usually have owned the property to be mortgaged for a minimum of 6 months at the time of submitting the application. Applicants will be required to confirm in the application form, the date of their purchase and the price they paid for the property.

Capital raising applications will be considered up to a maximum LTV of 80%, subject to full disclosure in the application form of all capital raising purposes. Capital raising to buy a further share of equity in the property to be mortgaged, for example to buy out a joint borrower or final share of a shared ownership or Help to Buy property, will be considered to 95% LTV.

Where the loan purpose is for the clearance of other debts, affordability will be assessed on the current commitments based on the total indebtedness at the time of the application or alternatively, if feasible, the debt repayment funds will be payable directly to the creditor. Depending on the types of other debts being repaid, applicants may be required to obtain independent legal advice. For the purposes of product selection, the product selected must be from the Tailored Approach range if it is necessary for the Society to make part of the advance monies payable to creditor(s).

Where the loan purpose is for home improvements we will consider higher percentage applications subject to funds being released in up to 2 stage payments resulting in LTV not exceeding 80% (or other LTV limit as described in section 4) of the confirmed value at any time.  Reinspections will be required when a stage payment is requested and when the works are complete, for which there are fees payable.  For the purposes of product choice, the LTV would then be classed as not exceeding 80%.

Can you give me a balance or do transactions over the phone?

We are unable to take transaction instructions over the telephone on our savings accounts*, however if you have set up a security password with the Society we will be able to provide you with certain information regarding your accounts.

If we are unable to divulge the information you require over the telephone we will write to you confirming the details you have requested.

*For information specific to how you can transact on our Business and Charity accounts please visit the relevant product page. Transaction information can be found within the summary box.

Business accounts

Charity accounts

For Offset Savings please call 01455 894060.

 

 

Arrears

Term used if a Mortgage repayment is missed.

Property types, property assessment & property assessment fees

The Society will accept applications for advances on private dwelling houses of varying types, from terraced houses to detached properties, including leasehold flats, providing they are in the category of Standard Construction.

Standard Construction

The standard type of construction that is acceptable to the Society will normally be cavity brick or block wall type of construction with a tiled or slated pitched roof having suspended timber or concrete ground floor with timber joists for the first floor

Brick or block clad timber frame properties will also be acceptable to the Society provided that they have been erected in accordance with the accepted principles of timber framed construction.  The Society will rely on an independent valuer’s report to confirm this.

Non-Standard Construction

Refer any application for non-standard construction property for consideration on an individual case basis.

New Build Properties

a. Sales incentives

Builder/Developer sales incentives must be disclosed in the ‘Material Information’ section of the Mortgage Application Form.  The value of sales incentives will most likely influence the mortgage valuation of the property and therefore may impact on the maximum advance available.

The CML Lenders Handbook (H&RBS – 6.4.4) requires the solicitor acting to report all sales incentives.

b. New build loan LTV limit

The maximum LTV for new build houses and flats is 90%.

Please refer details of all newly converted flats prior to submitting an application.

c. New build warranties – Properties less than 10 years old

The following acceptable new build warranty schemes are listed in section 6.7.1 of the HRBS entry in the CML Lenders Handbook.

NHBC, Zurich Municipal (up to 30/09/09), Premier Guarantee, Building Life Plans, LABC, Castle 10, & Build Assure.  Other schemes may be referred for consideration on an individual cases basis.

d. New build properties – re-inspections

A reinspection may be requested by the independent valuer for all new build properties which are not fully completed at the time of the initial inspection, for which a fee will be charged as outlined in the current Tariff of Mortgage Fees.  This fee will be deducted from the mortgage advance monies.

Leasehold Properties

There must be at least 85 years remaining on the lease when the mortgage starts, and a minimum of 50 clear years remaining on the lease at the end of the mortgage term.

The Society’s basic legal requirements for leasehold properties are described in the Society’s entries in section 5 of parts 1 & 2 of the CML Lenders Handbook (cml.org.uk/cml/handbook).

Purpose Built or Converted Flats and Maisonettes

Must be Leasehold with appropriate lease arrangements for the management of the property as a whole.

Refer if in a block of more than 6 storeys.

Leasehold flats created by the conversion of larger properties will be considered subject to adequate valuation and acceptable lease arrangements.

For converted flats and maisonettes resulting from the conversion of a single private dwelling house, it is strongly recommended that you check before submitting any application that the lease and independent incorporated management company arrangements meet all of the requirements detailed in the Society’s Part 1 & Part 2 entries in sections 5.14 and 5.15 of the CML Lenders’ Handbook (cml/org.uk/cml/handbook).  If an offer of advance is made, the solicitor acting in the creation of the charge will be required in all cases to confirm compliance with these requirements.

Properties we will not normally consider

Flats and maisonettes directly above commercial premises, flats in former local authority high rise blocks, freehold flats, problematic inner city new build developments, properties with more than one kitchen, properties designed or converted for multiple occupation.

Property Assessment & Property Assessment Fees

In all cases, the Society instructs its Panel Manager to arrange for an independent local ARICS qualified valuer to carry out an assessment of the property for mortgage purposes only.

Applicants must be informed that this assessment of the property is for the sole purpose of determining the amount of mortgage the Society may consider lending against the security of the property.  Purchase applicants should be advised to obtain their own property survey.

The type of Property Assessment the Society requires will vary with the type of mortgage application.

For all property purchase and BTL remortgage applications, the property assessment will normally be by standard mortgage valuation based on a brief inspection of the property.

For residential remortgage applications (up to 80% LTV), the property assessment will normally be by Drive-By valuation, as long as the property is sufficiently visible from the road.  Additional fees will be payable if the valuer is unable to provide a Drive-By valuation, or other types of property assessment are necessary.

Please refer to Product Guides and Key Features leaflets for details of the Property Assessment Fees that are payable.  Any property assessment fee must be paid at the time of submitting an application to the Society.

The Society will rely initially on the information provided in the mortgage application form, and will issue property assessment instructions as soon as practicable after receipt of the mortgage application form. It is not possible to underwrite the application before issuing property assessment instructions.

Once the property assessment has been completed, the property assessment fee cannot normally be refunded.

Can I open a joint account with my husband/wife/partner?

There are two options for how the account is set up: 1. Both signatures – this means that for any withdrawal or on closure of the account, both of you will be required to sign the forms. 2. Either signature – this means that for any withdrawal or on closure of the account only one signature is required. You should only open a joint account if you and the other account holder understand the commitments you are entering into. ISA accounts can only be opened in sole name.

Asking price

The price the seller is asking for the property.

Affordability assessment

Income multiples are used as an initial guide to the maximum amount of advance that may be considered.  A full net income and lifestyle expenditure analysis will be undertaken based on information received with the mortgage application form.

Increased multiples may be offered in certain circumstances to qualified doctors and dentists, please contact the Business Development department to discuss all cases.

The Income Multipliers will be based on the applicant’s annual income – £GBP confirmed for UK tax purposes after deducting the annualised value of other commitments (12 x monthly payments or 3% x 12 of credit card debts).

Our full affordability assessment will take into account the applicant’s net earned income and their expenditure analysis that is required in the mortgage application form.

Employed applicants

In some cases we write directly to the applicant’s employer for confirmation of their employment and income.

The employer will be asked to confirm that the applicant meets the following basic requirements, in addition to providing confirmation about earnings and other aspects of the employment:

  • Have been in their current employment for at least 3 months.
  • Be in a permanent position, not temporary.
  • Not be in a probationary period.
  • Not be under notice of termination or redundancy.
  • Not be subject to disciplinary proceedings.
  • If in current employment for less than 6 months, applicants must have previously been in the same type of employment with no employment gap, and an employer’s reference will normally be required.

The following will not normally be considered:

  • Seasonal employees.
  • Commission only sales staff.
  • Applicants wholly dependent on state benefits.

In addition to confirmed basic income, we will include the following additional confirmed earnings in our affordability assessment:

Guaranteed shift allowance, Large town allowance, Mortgage Subsidy, Car Allowance and up to 50% of other additional confirmable employment related income such as regular or guaranteed overtime and bonuses.

Please refer all cases whereby income from employment is likely to change in the foreseeable future, for example applicants undertaking maternity or paternity leave, for individual consideration.

Self-employed applicants

Self employed applicants must state in the mortgage application form their UK taxable income for each of the last 3 tax years.  In addition, the Society may require confirmation of taxable earnings to date in the current tax year.

We will require details in the mortgage application form of the applicant’s accountant from whom we may request confirmation of earnings and any other necessary income details together with certified copies of the last 3 years’ finalised accounts, and the corresponding HMRC Tax Year Overviews and corresponding tax calculations or SA302’s, unless these have been submitted with the completed mortgage application form. For applications of 80% LTV or lower, where the trading history is confirmed to be consistent, sight of only 2 years’ finalised accounts and the corresponding HMRC Tax Year Overviews and tax calculations/SA302s will usually be required.

For the purpose of confirming income of self-employed applicants’ acceptable accountancy qualifications include the following:  Chartered Accountant (ACA/FCA), Management Accountant (ACMA/FCMA), Certified Accountant (ACCA/FCCA), & Institute of Financial Accountants (IFA).  Refer other types of accountancy qualification for individual consideration.

The Society will normally assess affordability on income declared to, and agreed with HMRC for tax purposes, and in some cases it may also be necessary to obtain confirmation of current income.

Please note that retained profits are not included as income for the purpose of our affordability assessment.

Other forms of income

Unearned income and state benefits are not normally included in our affordability assessment.  Refer cases for consideration on an individual basis.

Guarantors and Joint Borrower, Sole Proprietor arrangements

A guarantee may be considered, subject to all parties meeting the Society’s lending criteria.  The maximum LTV is 90%.

Alternatively, mortgages may be arranged on a Joint Borrower, Sole Proprietor basis where one of the joint borrowers is not going to be a co-owner of the property, i.e. to increase the borrowing capacity of close family members through a joint mortgage.  Residential mortgages on this basis are available to 95% LTV and we will also consider buy to let mortgages to 75% LTV.

The applicants must clearly state the requirement for this arrangement and the name of the sole property owner(s) on the application form in the ’Additional and/or Material Information’ section.

Up to 4 applicants will be considered.

The borrower who is not named on the Title should sign an ‘Occupiers Agreement to Mortgage’ deed if they will also occupy the property.   All borrowers must sign the mortgage deed.

All borrowers not named on the Title will be required to obtain independent legal advice.  Release of the advance will be subject to the receipt of the Society of confirmation that the advice has given by the solicitor, in the Society’s prescribed format.

All potential applications must be referred by telephone for a decision in principle prior to submission.

For the purposes of product selection, the product selected in all instances must be from the specified range.

Why do you check my identity when I open an account?

In order to comply with the Money Laundering Regulations and to protect you against the risk of identity fraud we will ask you for proof of your name and address when you open an account with us . Please be assured that the checks that we make do not mean that you are under suspicion.  Money laundering is the method criminals use to disguise the money they make from crime and all financial institutions must have procedures in place to stop criminals from using them to launder their “dirty” money.  Further information is available in a leaflet “Proving your identity”,which can be viewed by clicking here

Bank of England Base Rate

The rate of interest set by the Bank of England, which is reviewed each month by the Monetary Policy Committee.

Confirmation of identity and UK residency for the last 3 years

To comply with our credit referencing requirements and money laundering procedures, we require a minimum of 3 years continuous residency in the UK up to the time of the application, confirmed by entry on the Voters Roll at current and previous addresses, together with your certification of having seen and recorded details of the applicant’s current UK Driving Licence or current UK passport with additional forms of identity confirming addresses.

Non-EEA Foreign Nationals

For applications to be considered, indefinite leave must be evidenced by a stamp in a currently valid passport or written confirmation from the Home Office. The Society does not lend to non-EEA nationals without indefinite leave to remain in the UK or permanent residency status.

These specific requirements are in addition to the already explained standard evidenced 3 years’ UK residency at the time of the application.

How is interest calculated?

Interest is calculated on a daily basis up to and including the day before any withdrawal. For cheque receipts, interest is paid from the day after the cheque is deposited with us. For cash and automated credits, interest is paid from the day of receipt. The day of deposit is the day it is paid in at a branch or agency or it is received by us in the post.

Base Rate Tracker

A Mortgage that tracks the independently set Bank of England Base Rate for an agreed period, by a pre-arranged amount – this means your monthly payment will automatically change in line with any adjustments made to the Base Rate.

Credit reference

A clear credit reference is preferred in all cases together with evidence of a satisfactory payment record on all current or previous mortgages, loans, and credit and rental agreements.

Please refer for consideration, any instances of slightly imperfect credit history.

All credit arrangements must be disclosed in the mortgage application form including those relating to interest free arrangements and credit cards that are cleared each month.

We may request a certified copy of the latest full statement for the applicant’s existing mortgage if we are unable to locate the mortgage account in our credit search.

Capped Rate Mortgage

A variable rate Mortgage that will not rise above a pre-agreed rate for a set period but will rise and fall beneath that pre-agreed rate with general interest rate movements.

Other owned properties/properties in the background

The Society will not take into account for affordability purposes the monthly mortgage payment of any buy to let properties in the background providing that they are tenanted at the time of application, with at least 135% rental income coverage.  In all other instances, the annualised mortgage payment will be deducted from the assessable income before the application of the relevant income multiple.

If the possibility exists that a retained property will be sold in the short term and has sufficient equity to repay our loan or reduce it significantly, we may make a commercial decision not to proceed with the application or delay the payment of any procuration fee

Please refer all cases, including cases potentially exceeding 80% LTV. The Society will not lend at above 80% LTV in instances where a property in the background also has a LTV of higher than 80% or where there is more than one retained property.

What happens if I change my mind after opening an account?

If, within 14 calendar days of investing your first payment with us (excluding public holidays) you consider you have made a mistake then, once you have notified the Society’s Principal Office in writing or by e-mail, the Society will help you switch accounts or arrange to reimburse your money (if cleared funds) and will waive any notice period or interest charges. (Please note that this will not apply to fixed rate accounts.) We will assist you in moving accounts.

Completion

The date we release your Mortgage funds for you.

Second home mortgages

The Society will consider lending for both remortgages and purchases on second residential homes for personal use such as homes located nearer a workplace for part-time occupation by the borrower and private holiday homes.  The maximum LTV is 80%.

The Society will also consider lending for both remortgages and purchases on second residential homes used to house dependent relatives.  Release of the advance monies will be conditional on the family member(s) obtaining independent legal advice regarding their rights of occupation and certification from the legal adviser in the Society’s prescribed format that this advice has been given will be required.

There must be no tenancy created or in place, and the occupier must pay no rent or any other financial consideration to the borrower in respect of occupancy of the property.  The maximum LTV is 75%.

In all instances, affordability will be carefully assessed taking into account all mortgage payments and the associated costs of running more than one household.  The product selected must be from the Tailored Approach range.

Free standard administration or legal fees for remortgages will not apply to second home mortgages.  Please see the Solicitors/Licensed conveyancers acting for the borrower section of this guide for confirmation of the eligibility criteria for entry onto the Society’s Mortgage Panel.

How am I told of changes in interest rates?

Any changes in interest rates will be advertised on a notice in our branches and in the Leicester Mercury and Coventry Evening Telegraph within three days of the change unless you receive a personal notification of the change of interest rate. Interest rates are available at any time on request on our helpline 0800 434 6343 or on our website.

Completion fee

Payable when the process of arranging the Mortgage has been completed.

Solicitors/Licensed conveyancers acting for the borrower

If the mortgage application is for House Purchase, for a Remortgage involving any Title change, or for any Let or Buy-to-Let property, applicants are required to provide details in the mortgage application form of the firm of Solicitors or Licensed Conveyancers who they intend to instruct to act on their behalf.

Before instructing any Solicitor/Conveyancer to act, it is strongly recommended that you and/or the applicant check that their choice of Solicitor/Conveyancer is eligible to act also for the Society.

You can check if the applicant’s proposed choice of solicitor is eligible to act also for the Society by contacting LMS Ltd, the Society’s Solicitor Panel Manager, by telephone: 0343 221 0643, by email: lenderpanels@lms.com, or by visiting: lms.com/lenderpanels.

You should ensure that the applicant is made aware that if their choice of Solicitor/Conveyancer is ineligible for entry onto the Society’s Mortgage Panel, it will be necessary for the Society to instruct its own solicitors to act for the Society only, in which case two sets of Solicitor’s or Conveyancer’s costs will be incurred, and the applicant will be responsible for paying these.

How long does it take to clear a cheque paid into my account?

When you pay a cheque into your savings account our normal working practice will be to allow withdrawals from the start of the sixth business day following the day of deposit. Funds are available for immediate withdrawal for all other types of deposit. Business day means a day other than a Saturday, Sunday or Bank Holiday. The day of deposit is the day it is paid in at a branch or agency or it is received by us in the post.

Contract

The written legal agreement between the seller and the buyer with regard to the transfer of the property.

Buy To Let Mortgages

From 1/7/18 the Society will accept applications from borrowers with 4 or more mortgaged properties in their portfolio, to a maximum of 10 properties. Please see the separate Portfolio Landlord Helpsheet for full details of the lending criteria specific to portfolio landlords.

For Let to Buy applications, the Society will require sight of the mortgage offer for the proposed residential purchase prior to the release of the Let to Buy offer.

BTL remortgage applications where any element of the required advance is for debt consolidation or for capital raising unrelated to residential property purchase or improvement should be referred to the Society for consideration prior to submission

The Society’s Solicitor must confirm that the subject property meets the current regulatory requirements in respect of the property’s EPC rating.

The Society may consider applications for the purchase or remortgage of BTL property held in the name of a Special Purpose Vehicle (SPV). These mortgages are available exclusively through 3mc, who can be contacted on 0161 962 7800/info@3-mc.co.uk

I am a Treasurer for a local society. Can I open an account for their funds?

We are happy to open a Treasurers account for unincorporated clubs and associations including registered charities, please ask at one of our branches or agencies or call our helpline on 0800 434 6343 for details of this account.

For registered charities we also offer two carefully designed accounts, details of these can be found here.

Conveyancing

The legal work involved between the seller and the buyer.

Self-Build Mortgages

The Society accepts applications for self-build exclusively through Buildloan – please call 0345 223 4447 for more details.

Are my investments safe with the Hinckley & Rugby Building Society?

At the Hinckley and Rugby the safety and security of our members’ savings has been, and always will be, our number one priority. This is reflected in the Society’s prudent approach to mortgage lending (resulting in a mortgage book of the highest quality)

Daily interest

If interest is calculated daily then any payments made that reduce the Mortgage balance immediately reduce the amount of interest paid.

Checklist of documents required with mortgage applications

For all mortgage applications we will require the following supporting documentation:

  • Fully completed and signed mortgage application form
  • Fully completed and signed Intermediary Declaration and Checklist
  • Introducer letterhead or compliment slip Last three months’ bank statements

For FTB house purchase applications we will also require:

  • Evidence of deposit

For all employed applicants we will also require:

  • Last three months’ pay slips for employed applicants
  • Latest P60 for employed applicants (two P60s if bonus or overtime is required as part of the affordability assessment)

For all self-employed applicants we will also require:

  • Last three years’ audited trading accounts
  • Last three years’ HMRC Tax assessments or SA302s

For all BTL applications and residential applications with an LTV not exceeding 80%, the Society will normally accept two years’ history and supporting documentation.

For all retired applicants we will also require:

  • Confirmation of pension income
  • P60

For self-build applications we will also require:

  • Property plans/planning consents/cost estimates for self-build applications
  • Details of the ARIBA qualified Architect who will act for the applicant in drawing up the plans and in the supervision of construction of the property

AS WE UNDERWRITE OUR MORTGAGES ON AN INDIVIDUAL BASIS ADDITIONAL SUPPORTING DOCUMENTS MAY BE REQUIRED ON OCCASION

Incomplete mortgage application forms and Intermediary Declaration & Checklist forms are the most frequent causes of delays in processing mortgage applications.

Please help us to process the application as quickly as possible by ensuring that all sections of forms are fully completed and all required documentation is enclosed.

Does the Hinckley & Rugby participate in the Financial Services Compensation Scheme?

Yes. Hinckley & Rugby Building Society is covered by the Financial Services Compensation Scheme (FSCS). The FSCS will pay compensation to eligible depositors if a building society is unable to meet its financial obligations.

Your eligible deposit is covered by a statutory Deposit Guarantee Scheme.  If insolvency of your bank, building society or credit union should occur, your eligible deposits would be repaid up to £85,000 by the Deposit Guarantee Scheme.

For further information about the limit of protection, temporary high balances, joint accounts, reimbursement and exclusions from protection please view our Deposit Guarantee Scheme Information Leaflet.

 

Deeds

Legal documents showing the previous owner’s legal entitlement to the property. Today this is known as a Title Information Document which is produced by the Land Registry.

Potential conflict of interests

You must refer for individual consideration any application you may wish to submit in your own name or on behalf of any member of your family.

How can I protect myself against fraud?

Please see advice relating to fraud prevention by clicking here

 

Deposit

The amount of money the buyer has agreed to pay as a lump sum when the contracts are exchanged.

Contact with Mortgage Applicants and Information for Intermediaries

i. Customer contact

The Society will contact your client by telephone to confirm initial receipt of the mortgage application form, and subsequently with text message updates.

If we require any additional information or documentation while processing the application we will contact you for this, unless you ask us to contact the customer directly.

ii. Information for Intermediaries

You will be provided with a copy of any Mortgage Offer and any subsequent completion letter that we may issue to the customer.

The following information will be included in these documents:

  • The Society’s complaints procedure
  • Tariff of Mortgage Charges
  • Details on any product maturity

What if I wish to complain?

We aim to provide high standards of service. However, there may be occasions when you feel that you may have a complaint in which case please ask our staff who will tell you how to make a complaint using our complaints system. Whilst we hope we can resolve any problems through these internal procedures we are also a member of the Financial Ombudsman Service to which customers can refer a complaint after the internal procedures have been exhausted. Details of the Financial Ombudsman Service will be provided on request from any Branch or from Principal Office. If we cannot resolve your complaint within 48 hours of receipt of your complaint a written acknowledgement will be issued promptly, and in any event not later than five working days of receiving your complaint, confirming who will be responsible for investigating your complaint. We will finalise any investigation within one month and notify you of our findings. In the event that the complaint takes longer to investigate we will send you a holding response in four weeks and a final response no later than eight weeks from receipt of your

Discount Mortgage

Offers you a discount off Hinckley & Rugby’s Standard Variable Rate for a set period – if the Standard Variable Rate changes so will the rate you pay with the guarantee that the discount remains the same.

What are the opening times of your branches?

Please refer to our Branches page for full details of our opening hours.

Early Repayment

Paying off all or part of your Mortgage before the end of the agreed term.

How is interest calculated?

Interest is calculated on a daily basis up to and including the day before any withdrawal. For cheque receipts, interest is paid from the day after the cheque is deposited with us. For cash and automated credits, interest is paid from the day of receipt. The day of deposit is the day it is paid in at a branch or agency or it is received by us in the post.

Early repayment charge

The costs charged on some Mortgage products if you pay all or part of your Mortgage off early.

What are the opening hours of your branches?

Please refer to our Branches page for full details of our opening hours.

Equity

The difference between the value of the property and the amount of any loans secured against it.

What does APRC mean?

APRC stands for Annual Percentage Rate of Charge. A lender is always required to quote the APRC when advertising a loan or borrowing rate. It is a standard interest rate calculation designed to reflect the total amount of interest that will be paid over the entire period of the loan. It must also take into account charges which the borrower has to pay in order to obtain the loan and during the loan period (such as lenders fees, valuation and legal fees etc). The purpose of APRC is to help you compare the true cost of borrowing.

Exchange of contracts

The point at which both the buyer and the seller are legally bound to the transaction.

What is the difference between an Interest-Only Mortgage and a Repayment Mortgage paying capital and interest?

With an Interest-Only Mortgage your monthly payments will only cover the interest on the loan. Your payments will not pay off any of the capital that you have borrowed. You must arrange an adequate Repayment Vehicle (ie, savings plan or other form of investment) to pay off the loan at the end of the term.With a Repayment Mortgage your monthly payment will cover the interest on the loan and gradually pay off the capital you have borrowed. By the end of the agreed term you will have paid off the loan, provided all repayments are made when they fall

Fee Free Mortgage

Gives you all the benefits of  Hinckley & Rugby mortgage but with no fees to pay during the life of the mortgage, including when you apply, complete or redeem.

What is an Offset Mortgage?

Traditional savings accounts are kept separate from your mortgage. If you put them together in a Hinckley and Rugby Offset Mortgage you could save money and reduce the term of your mortgage. Making your savings work even better for you is easy – the amount of your savings is offset against your Mortgage and over the life of your mortgage we only charge you interest on the difference.

Fixed Rate Mortgage

Offers you peace of mind that your monthly payments will not vary for a set period of time, whether or not the Bank of England Base Rate changes.

What is the difference between a Standard Variable Rate (SVR) and a Tracker Rate?

The SVR is the Variable Rate of interest at which a lender’s standard mortgage is set. Although lenders normally change their SVR as a result of The Bank of England Base Rate changing, they are not obliged to change them by the same amount. With a Tracker Rate, the mortgage tracks, by a pre-arranged amount, an independently set interest rate, such as the Bank of England Base Rate for an agreed period. The benefit of a Tracker Mortgage is that you are guaranteed that any falls in interest rates will be passed on to you, usually from the beginning of the month after the rate change. However, any rises in rates are also guaranteed to be passed on to you.

Flexible Mortgage

Puts you in control by allowing you to adapt your mortgage to suit your changing needs – for instance, you might want to take a payment holiday or make an overpayment.  Some of our flexible mortgages also have an optional offset facility.

What is the difference between an Interest-Only Mortgage and a Repayment Mortgage paying capital and interest?

With an Interest-Only Mortgage your monthly payments will only cover the interest on the loan. Your payments will not pay off any of the capital that you have borrowed. You must arrange an adequate Repayment Vehicle (ie, savings plan or other form of investment) to pay off the loan at the end of the term. With a Repayment Mortgage your monthly payment will cover the interest on the loan and gradually pay off the capital you have borrowed. By the end of the agreed term you will have paid off the loan, provided all repayments are made when they fall

Freehold

Full ownership of the property and the land it stands on.

Will offsetting automatically reduce my monthly payments?

No, as your savings balance could vary each month your mortgage payments would also have to change each month, making budgeting complex. Because your monthly payments remain the same you are effectively overpaying on your mortgage every single month, reducing your mortgage balance and leading in turn to a reduction in the amount of interest you will be charged over the mortgage term.

Further advance

Please see Additional Borrowing.

Does the Hinckley & Rugby Offset Savings account offer online banking facilities?

H&R Online is our web platform that allows you to view your Offset Savings and Offset Mortgage balances online. If you pay your mortgage repayments by direct debit, you can also transfer funds to your nominated bank account. In addition, you will be able to add any other savings accounts you hold with us and view those balances too.

When your mortgage has completed you will be sent details of how to register.

Higher lending charge

A charge made when you take out a high Loan to Value Mortgage (usually over 80%) paid by the Society.

Homebuyers report

A more detailed inspection than a Property Assessment for Mortgage purposes, but not a full Structural Survey.

Intermediary/Introducer

Someone other than a financial institution who offers advice and information on Mortgages and arranges Mortgages through different lenders.

Can I change the due date for my mortgage repayments?

You can choose the Direct Debit payment date from one of the following monthly options: – 8th, 15th, 22nd or the last banking day.

How can I protect myself against fraud?

Please see advice relating to fraud prevention by clicking here

Interest Only Mortgages

You pay just the interest on the loan each month to the Society and nothing off the capital.  You must arrange an adequate Repayment Vehicle to pay off the loan at the end of its term.

Clearing House Automated Payment System (CHAPS)

An electronic transfer system which allows you to make deposits into your savings account with same day clearance.

European Standardised Information Sheet (ESIS)

A document providing all the important information you need to help you decide if a Mortgage is suitable for you and enables you to make a comparison with other lenders

Leasehold

Property ownership where the property is leased by the owner to a Leaseholder or tenant for a fixed number of years.

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.

Lender

The organisation your Mortgage is with.

I have never dealt with the Society before/it has been a while since I last submitted a case to you – do I need to contact you by telephone to discuss submitting an application?

No. You can register/log in and undertake a DIP/produce a KFI/submit an application without needing to make any personal contact. You would only need to contact us if you have a residential case which falls outside of our lending criteria, for any BTL case (these all must be referred to us prior to submission), if you wish to check current processing times or if you need system support and we cannot answer your query in the relevant FAQ section.

Loan

The total amount you have borrowed.

Do you have a restricted broker panel?

No, we accept applications from most DAs & ARs. Please register on the system and you will receive an e-mail containing an activation key to conclude your registration. Instructions for using the system are also contained within this e-mail.

Loan to value (LTV)

The size of the Mortgage as a percentage of the property’s value.  For example: Loan amount of £180,000 divided by Purchase Price of £300,000 = 60% LTV.

Are your lending activities restricted to the Leicestershire area?

No, we lend throughout England & Wales. Full details of our criteria can be found in our ‘Guide to Terms & Underwriting Criteria’, which can be accessed via the Criteria & Terms button on the top green navigation bar.

Monetary Policy Committee

The committee that determines the Bank of England Base Rate every month.

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.

Monthly payment

The amount you pay each month over the term of the Mortgage. This may vary if your Mortgage is a variable rate Mortgage.

How do I submit applications to you – online or on paper?

We prefer online submission but will accept paper applications posted to us at 81 Upper Bond St, Hinckley, Leicestershire LE10 1DG. A PDF of the blank application form can be found on this website.

How do I find out if an application meets your criteria?

You can view our ‘Guide to Terms & Underwriting Criteria’, which can be accessed via the Criteria & Terms button on the top green navigation bar, or alternatively you can register on our online system and carry out a DIP. If it is a BTL case then please contact our Business Development Team for guidance using the ‘Request a callback’ link on this page – all BTL cases need to be referred individually prior to submission as we consider these individually.

Mortgage exit administration fee on redemption

Fee payable when repayment of the Mortgage loan in full is made.

I have previously registered but have changed club or network. What should I do?

Please re-register and send us an e-mail to development@hrbs.co.uk, asking us to make inactive the previous registration. Please note that you will lose any client details stored. We always request separate confirmation of which club or network you are part of on the Intermediary Declaration & Introduction Certificate when you submit an application to us.

Mortgage Offer

A document showing the terms and conditions applying to the Mortgage after approval of your application.

Mortgage term

How many years you choose to have your Mortgage over, eg 25 years.

Who can I talk to about existing borrowers of yours who are moving house and wish to port their current product or who require a further advance?

The client will need to call our Central Mortgage Unit on 0800 4346343 and ask for the mortgage processing department.

Offset Mortgage

Could allow you to save money and reduce the term of your mortgage by using your savings – the amount of your savings is offset against your mortgage and, over the life of your mortgage, you are only charged interest on the difference.

Who can I talk to about getting updates on existing cases being processed?

Please call the case owner in our processing team directly. If you do not have their specific contact details then please call 01455 894035 and ask for mortgage processing department.

Overall cost for comparison

Please see Annual Percentage Rate of Charge (APRC).

How do I submit applications to you – online or on paper?

We prefer online submission but will accept paper applications posted to us at 81 Upper Bond St, Hinckley, Leicestershire LE10 1DG. A PDF of the blank application form can be found on this website.

Overpayments

An additional payment to a Mortgage account, over and above the required monthly Mortgage payment.

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.

Payment holiday

A facility on a Flexible Mortgage allowing you to miss your normal monthly Mortgage payments for a period of time agreed with the lender.

How can I check if I am registered with you?

You only need to register if you wish to use our online system. We have held the current system since July 2011 so, if you have not dealt with us since then, you will not be registered. The system asks you to choose your own username and password, rather than the generic log in details which used to be issued.

Portability

The facility to take your current Mortgage terms and conditions with you if you move from one property to another.

I am trying to register but my club/network isn’t included in your list. What should I do?

If your network isn’t included in the list, please select ‘none’. This will not affect who we pay the procuration fee to, as this will be taken from the Intermediary Declaration & Introduction Certificate when you submit an application to us.

Property Assessment Fee

Fee for a property inspection to establish its value for securing a Mortgage.

Why do I get a server error when trying to submit my new registration?

Apologies for this – it happens occasionally. Please try the following possible solutions:

If you are using a favourites page please try and log into the system directly from our website www.hrbs.co.uk/introducers

Please attempt to delete your temporary internet files and try again.

Please try another link https://www.hrbsbroker.co.uk/register.aspx

If you have access to another computer please try using the website from there.

Please ensure you are using Internet Explorer as the website is not compatible with other browsers such as Google Chrome.

If you still encounter a problem please contact our Business Development Team for guidance using the ‘Request a callback’ button on this page.

Redemption

The point at which the repayment of a Mortgage loan in full is made, leaving no outstanding borrowing.

I have forgotten my username and/or password, what should I do?

If you know your username but have forgotten your password, please click the log in button then use the ‘Reset password’ link and follow the instructions.

If you have forgotten your username please contact our Business Development Team for guidance using the ‘Request a callback’ button on this page.

Repayment Mortgage

You repay part of the capital and the interest on the Mortgage each month. Under this option, if all repayments are made, your Mortgage will be repaid in full at the end of the agreed term.

How long does it take to receive my activation key?

Activation keys are automatically generated and should be with you within a matter of minutes. It is very rare for the key not to be received but, if this is the case, please check your ‘Junk’ or ‘Spam’ folders.

If you cannot find the email after checking all folders please contact our Business Development Team for guidance using the ‘Request a callback’ button on this page.

Repayment Vehicle

Savings plans or other forms of investment that you must have to pay off your Mortgage at the end of the term if you have an interest-only Mortgage.

Why does my activation key not work?

There has never been a genuine case of an activation key not actually working, although many have been reported! Firstly, please ensure that you are not trying to enter the key into the password field – the activation key field only appears as a third box after the username and password have been input correctly. If you have entered the key manually, then please try to copy and paste instead and vice versa. When copying and pasting please ensure that you are not copying an extra space, as this is often done.

Remortgage

Term used to describe when you move a Mortgage from one lender to another without moving house.

Can I create a mortgage illustration without doing a DIP?

No, our system always asks you to complete a DIP before producing a mortgage illustration 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.

Stamp duty

A Government tax based on the property purchase price, which has to be paid by the buyer wherever it is applicable. This currently applies to properties priced at £125,000 and above.

Can I create a mortgage illustration without doing a DIP?

No, our system always asks you to complete a DIP before producing an illustration 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.

Standard Variable Rate (SVR)

The Variable Rate of interest at which a lender’s standard mortgage is set.

How do I create a new customer?

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

Structural Survey

A detailed inspection of a property to check that it is structurally sound.

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.

Subject to contract

Occurs when an offer has been made for a property but is subject to a formal contract being entered into.

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.

Tracker Mortgage

Benefits you by tracking the independently set Bank of England Base Rate for an agreed period of time, by a pre-arranged amount – this means your monthly payment will automatically change in line with any adjustments made to the base rate.

How do I create more than one mortgage illustration?

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.

Underpayments

A facility on a Flexible Mortgage allowing you to make a smaller payment agreed with the lender.

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.

Variable Rate Mortgage

Offers an interest rate that can fluctuate – if the mortgage interest rate falls your monthly mortgage payment also reduces but, if the mortgage interest rises, so will your monthly payment.  Our variable rate mortgages are based on our Standard Variable Rate, which is usually (but not always) based on the movement of the Bank of England’s Base Rate.

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.

Vendor

The person who is selling the property.

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 mortgage illustration?

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 illustration I’m taken back to the ‘Create mortgage illustration’ screen – why?

Your mortgage illustration 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.

Do you accept paper applications?

Yes, we prefer online submission but will accept paper applications posted to us at 81 Upper Bond St, Hinckley, Leicestershire LE10 1DG. The PDF of the blank application form can be found on this website.

I am unable to submit my online application as it says all the mandatory fields have not been completed though I’m sure I did complete them all. What shall I do?

There will definitely still be one or more fields somewhere with missing information, or an anomaly. Often this is the intended means of repaying the capital on a repayment mortgage (input N/A to get past this); the question regarding any future anticipated material changes to income; or the second line of the current residential address for applicant 2. You need to go into each section from the summary page and find the section marked with a asterix (mandatory) which is incomplete.

You should also check that there are no anomalies confusing the system, such as an intended retirement date before the date of birth or an extra box added at the monthly commitments or other properties owned stage.

You can return to the summary at any time by clicking on the button at the top of the page. You do not have to go through all of the screens once you have found the omission.

If you still cannot find the missing entry, please contact our Business Development Team for guidance using the ‘Request a callback’ button on this page. We will endeavour to find the missing information for you but this may have to be out of normal business hours.

I am applying for a remortgage but the application form is asking for vendor information and other things not relevant for a remortgage.

Our application form is used for both remortgage and purchase applications, so some questions may not be relevant depending which application type you are submitting. If it’s a remortgage application, please put N/A or 000000000 (for phone numbers) in the purchase-specific sections such as vendor details, estate agent etc.

I do not have all of the answers to the questions in the application form. Can I just answer the questions which are mandatory and come back to you with the other information later?

Sorry, but no – we will not assess a partially completed application form. You can save and exit the application form at any time and then go back to it once you have collected all the information from your clients.

Is there a blank application form I can use to capture the client’s information and signatures on?

Yes, there are PDF applications forms on this website. There are different versions for BTL and residential applications.

I have submitted my application online – what happens now?

Use the link that appears immediately after the case has been submitted to print off a full copy of the application and obtain the client’s signature on the declarations page and direct debit mandate if you have not already captured these on a paper form. If it is a BTL application, then please ask all applicants to also sign at the end of the BTL supplementary sheet. The adviser will need to sign and date the completed ‘Intermediary Declaration & Introduction Certificate’.

You will need to upload all the standard supporting documentation securely using your online account via ‘Document Store’ or alternatively you can fax or e-mail the documents, please send the supporting documentation ASAP to avoid any delays in processing. Please then post the original signatures to 81 Upper Bond Street, Hinckley, Leicestershire LE10 1DG.

Please click here for standard documentation required.

 

If I submit payslips and P60s with the application form, does this mean you will not need to contact the employers for confirmation of income?

Commonly we will no longer require an employment reference if satisfactory payslips and P60s have been received.

Why is there nowhere on the online application form to input credit card details for fees?

This is for data security. Credit card details for any arrangement/valuation fees will be requested over the phone after the application has been submitted. Where a product has a completion fee this may be added on completion and not cause the new total to exceed the product maximum LTV.

Can I pay money/wages into my account by BACS, Faster Payments or Online Banking?

Yes. You need to use the following details: Account number: 74575938; Sort Code: 400530; Ref No: 11 digit account number shown in your passbook. Funds are available for immediate withdrawal.

Annual Interest

An account in which your interest is paid once per year, usually at the end of the Society’s financial year (30 November).

Can I open a savings account even though I live outside your local area?

All our savings accounts are available to any UK resident with the exception of Plain Sailing Easy Access and Starter 4 Ten accounts. These accounts are only available to savers living within the following postcode areas: LE, CV, NN, PE, NG, DE, B, ST, WV, DY, WR, WS, OX15, OX16, OX17, LN4, LN5, LN6.

Bank of England Base Rate

The rate of interest set by the Bank of England, which is reviewed each month by the Monetary Policy Committee.

What sort of things do you lend for?

The Society lends for house purchase or remortgages. If you already have a mortgage with the Society, we can also lend additional funds.

Clearing House Automated Payment System (CHAPS)

An electronic transfer system which allows you to make deposits into your savings account with same day clearance.

Capital

The original investment you make, for example into a bond. This will then attract interest for the life of the investment.

Capitalised interest

The interest your money has earned, which is added to your original investment.

Deposit account

An account which does not give you membership rights to the Society

Easy access account

An account which allows you to withdraw your money without incurring charges.

Faster Payments Service

An electronic transfer system which allows you to make transfers into your savings account from accounts held elsewhere by the next business day.

Financial Conduct Authority

The FCA regulates the financial services industry in the UK. Their aim is to protect consumers, ensure the industry remains stable and promote healthy competition between financial services providers. The FCA has rule-making, investigative and enforcement powers that are used to protect and regulate the financial services industry. Further information about the FCA can be found by clicking here.

Will I be charged if I repay or redeem my mortgage earlier than the original term?

We do not currently have early repayment charges on any of our mortgage products other than our fixed-rate products. A standard Mortgage Exit Fee/Sealing Fee/Administration Fee, currently £150, is payable at redemption of all our mortgages.

Financial Services Compensation Scheme

The Financial Services Compensation Scheme was established under the Financial Services and Markets Act 2000. Its purpose is to protect your savings, up to certain limits, currently £85,000, in the unlikely event that the Society became unable to repay it. Full details of the Financial Services Compensation Scheme can be found on the Important Information page within the Savings section of this website.

Do you consider mortgages from outside of the Society’s local area?

Yes. We offer mortgages for properties in England and Wales (subject to terms and conditions).

Gross interest

The contractual rate of interest to be paid on a deposit savings account without any deduction being made in respect of personal Income Tax liability

Individual Savings Account (ISA)

A tax-free savings account, launched on 6th April 1999. All individuals can receive gross interest on limited amounts of their savings each year through ISA accounts.

Maturity

The day when an investment placed in a fixed term account reaches the end of its term.

Monetary Policy Committee

The committee that determines the Bank of England Base Rate each month.

Monthly interest

An account in which your interest is paid at the end of each calendar month.

Passbook

A small booklet which details all deposits and withdrawals made on your account, along with the balance, which must be presented whenever you wish to make a withdrawal from your account.

Prudential Regulation Authority

The Prudential Regulation Authority (PRA) is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. In total the PRA regulates around 1,700 financial firms.

The PRA’s role is defined in terms of two statutory objectives to promote the safety and soundness of these firms and, specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders.
For more information about the PRA visit the Bank of England website 

Share account

An account which gives you membership rights to the Society.

Statement of Deduction of Tax

Shows the amount of interest your savings account has earned. The Society can provide you with this on request for the tax year ending April 2016 (or before).

Year end

The end of the accounting year, when interest is paid on annual interest accounts. This is 30 November for all annual accounts except ISAs, for which the year end is 5 April.