Your guide to our full range of Second Charge loan products

Transcription

1 1 Your guide to our full range of Second Charge loan products With competitive Prime and Near Prime residential rates, in addition to our Standard and Consumer Buy to Let product range, we ll have a solution to meet the needs of your client. Correct as at: 12 April 2017 All rates and product criteria are correct at the time of going to print For use by professional intermediaries only

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3 3 Our comprehensive second charge loan range Prestige Finance is the longest established second charge lender in the UK Prestige Finance is the longest established second charge lender in the UK. Initially established as a loans management company, Prestige Finance has grown consistently since the mid-1980s and has always specialised in second charge loans. Now a key part of the London Stock Exchange listed OneSavings Bank group, Prestige Finance offers a range of second charge products to both prime and non-prime applicants at competitive rates. We deal exclusively with the intermediary sector and are active members of the Finance and Leasing Association (FLA), whose Lending Code we follow. A secured loan offers a great way to raise finance and may provide a good alternative to a remortgage. Prestige s dedicated and experienced team of industry professionals work closely with broker partners to offer a simple and transparent solution to help customers raise finance for a variety of purposes.

4 4 Contents Prime Residential 5 Prime Residential Terms and Conditions 7 Near Prime Residential 8 Near Prime Residential Terms and Conditions 10 Buy to Let 11 Buy to Let Terms and Conditions 13 Fees and Charges 14

5 5 Prime Residential Our Prime Residential range combines market leading variable and fixed rates with attractive fees, flexible underwriting and a simple application process, all of which ensures your client will receive their loan quickly. Under no circumstances should this document be copied, given to or distributed to customers or potential customers. This product guide does not include APRCs which are required for consumers to compare mortgage products.

6 6 Prime Residential 90% Rates from 4.15% 5 Year fix stress-tested at pay rate Up to 90% LTV* No increased rates & fees for large loans Product PF PF1 PF2 PF2a PF2b PF2c Maximum gross loan 2,500,000 2,500,000 2,500, , , ,000 LTV 65% 70% 75% 80% 85% 90% Variable rate % 4.15% 4.40% 5.05% 6.45% 7.95% 9.90% 2 year fixed rate % 4.90% 5.15% 5.55% 6.95% 8.45% 10.45% 5 year fixed rate % 5.30% 5.55% 5.95% 7.35% 8.85% 10.85% Revert rate Base +390bp Base +415bp Base +480bp Base +620bp Base bp Base + 965bp Minimum credit score Current mortgage arrears None None None None None None Mortgage arrears 0 in last 12 0 in last 12 0 in last 12 0 in last 12 0 in last 12 0 in last 36 CCJs/Defaults 0 in last 12 0 in last 12 0 in last 12 0 in last 12 0 in last 12 0 in last 36 Unsecured Credit Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing 0 in last 36 Commission (on net loan) 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% *available on loans up to 200,000 Minimum property value of 75,000 applies. Where the property is worth between 75,000-99,999, a maximum LTV of 60% applies therefore only PF is available. Maximum 15 year term on net loans up to 20,000. CCJ s/defaults less than in total can be ignored on loans up to 85% LTV, regardless of the date registered and satisfied.

7 Prime Residential terms and conditions 7 Applicant Minimum age of applicants is 21. Applicants can be no older than 85 at the end of the term of the loan. Applicants aged over 70 considered on referral. A minimum of three years address history must be supplied. Fees and Loan purpose A Broker Fee of 12.5% can be charged, capped at 5,000. A Lender Administration Fee of 300 will be added to the loan. We will lend for most purposes excluding business use, transfer of equity, investment or financial speculation, bridging or to install solar panels. Affordability All residential loans must pass the affordability test using the bank s own model. Maximum LTI ratio 6 on loans up to 85% LTV Maximum LTI ratio 4.5 on loans up to 90% LTV Income Customer income will need to be evidenced via the provision of appropriate documentation. Income from other sources such as second jobs, personal pensions or maintenance may be accepted subject to documented evidence. Once gross income is known the lending assessment will net-down to a monthly/annual tax paid position using the government provided tax tables for the relevant tax year assessed. Expenditure Office for National Statistics (ONS) data for household expenses is used as the primary assessment model and at the published rates. If the ONS assessed expenditure means the application will fail, upon referral, Prestige can accept evidence of borrower declared expenditure in the form of the previous three months bank statements. If the referral is approved either full verified expenditure for all elements or all assessed ONS data must be used, there cannot be a mix of the two. Unsecured Credit 3% of any credit/store cards and CCJ s - whether live or in default. Loan or hire purchase payment as stated on the credit search whether live or in default. Accounts with less than 12 months to run can be ignored. Mail order, public utilities and communications suppliers can be ignored from the affordability calculations (DTI) providing they are currently up to date. Where an account is in arrears, 3% of the balance should be taken into consideration for DTI purposes. Up to 85% LTV, mail order and communications suppliers, if in arrears, will not be treated as adverse units as long as the cumulative balance outstanding does not exceed 500. General The first mortgage must have been running for at least six months - see plan for overall mortgage history required. Valuation Hometrack (AVM): gross loan 50,000 or less, where the LTV is 50% or less the minimum confidence level is 4, and where the LTV is 50.01% - 65% a minimum confidence level of 5 applies. Property exclusions flats, maisonettes and named properties with no house number. Drive by: gross loan 100,000 or less, where the LTV is 70% or less. Property exclusions: none. Full internal valuation required in all other instances. A Long Form Valuation will be required where The LTV exceeds 50% for any property with a Market Value in excess of 2m. Early Repayment Charges Variable rate: None 2 Year Fixed: 3% in years one and two. 5 Year Fixed: 5% in year one, 4% in year two and 3% in years three, four and five. Overpayments up to 499 per month can be made without incurring an early repayment charge Please refer to the packaging guide and submission checklist for further guidance.

8 8 Near Prime Residential Our Near Prime Residential products cater for borrowers with less than perfect credit profiles, but can still accommodate those with existing mortgage arrears at competitive rates. Under no circumstances should this document be copied, given to or distributed to customers or potential customers. This product guide does not include APRCs which are required for consumers to compare mortgage products.

9 9 Near Prime Residential 75% Rates from 5.75% Up to 3 current mortgage arrears Loans to clear unsecured credit Up to 75% LTV Product PF3 PF4 PF5 PF6 Minimum net loan 10,000 10,000 10,000 10,000 Maximum gross loan 100, ,000 75,000 50,000 Loan term 3-25 years 3-25 years 3-25 years 3-25 years LTV 75% 70% 70% 65% Variable rate % 5.75% 6.50% 7.25% 8.00% 2 year fixed rate % 6.10% 6.85% 7.60% 8.35% 5 year fixed rate % 6.10% 6.85% 7.60% 8.35% Revert rate Base + 5.5% Base +6.25% Base +7.00% Base +7.75% Minimum credit score N/A N/A N/A N/A Current mortgage arrears 1 Current 2 Current 2 Current 3 Current Mortgage arrears 1 in last 12 months 0 in last 6 months 2 in last 12 months 0 in last 6 months 2 in last 12 months 1 in last 6 months * 3 in last 12 months 2 in last 6 months* CCJs/Defaults 1 in last 12 months 2 in last 12 months 1 in last 6 months Max total value 5,000 3 in last 12 months 1 in last 6 months Max total value 7,500 4 in last 12 months 2 in last 3 months Max total value 10,000 Commission (on net loan) 1.1% 1.1% 1.35% 1.6% Minimum property value of 100,000 applies. Maximum 15 year term on net loans up to 20,000. CCJ s/defaults less than in total can be ignored regardless of the date registered and satisfied. *not the last 2 months

10 Near Prime terms and conditions Applicant Minimum age of applicants is 21. Applicants can be no older than 85 at the end of the term of the loan. Applicants aged over 70 considered on referral. A minimum of three years address history must be supplied. Fees and Loan purpose A Broker Fee of 12.5% can be charged, capped at 5,000. A Lender Administration Fee of 300 will be added to the loan. We will lend for most purposes excluding business use, transfer of equity, investment or financial speculation, bridging or to install solar panels. Affordability All residential loans must pass the affordability test using the bank s own model. Maximum LTI ratio 6 Income Customer income will need to be evidenced via the provision of appropriate documentation. Income from other sources such as second jobs, personal pensions or maintenance may be accepted subject to documented evidence. Once gross income is known the lending assessment will net-down to a monthly/annual tax paid position using the Government provided tax tables for the relevant tax year assessed. Expenditure Office for National Statistics (ONS) data for household expenses is used as the primary assessment model and at the published rates. If the ONS assessed expenditure means the application will fail, upon referral, Prestige can accept evidence of borrower declared expenditure in the form of the previous three months bank statements. If the referral is approved either full verified expenditure for all elements or all assessed ONS data must be used, there cannot be a mix of the two. Please refer to the packaging guide and submission checklist for further guidance. Unsecured credit We will ignore the payment profile of unsecured credit accounts (unless in default). Where unsecured credit commitments are not being settled from the proceeds of the loan, the monthly commitment will be calculated as follows: 3% of any credit/store cards and CCJ s - whether live or in default. Loan or hire purchase payment as stated on the credit search whether live or in default. Accounts with less than 12 months to run can be ignored. Mail order, public utilities and communications suppliers can be ignored from the affordability calculations (DTI) providing they are currently up to date. Where an account is in arrears, 3% of the balance should be taken into consideration for DTI purposes. Mail order and communications suppliers, if in arrears, will not be treated as adverse units as long as the cumulative balance outstanding does not exceed 500. General The first mortgage must have been running for at least six months - see plan for overall mortgage history required. Valuation Hometrack (AVM): gross loan 50,000 or less, where the LTV is 50% or less. A minimum confidence level of 5 is required. Property exclusions flats, maisonettes and named properties with no house number. Drive by: gross loan 100,000 or less, where the LTV is 70% or less. Property exclusions: none. Full internal valuation required in all other instances. A Long Form Valuation will be required where The LTV exceeds 50% for any property with a Market Value in excess of 2m. Early Repayment Charges Variable rate: None 2 Year Fixed: 3% in years one and two. 5 Year Fixed: 5% in year one, 4% in year two and 3% in years three, four and five Overpayments up to 499 per month can be made without incurring an early repayment charge 10

11 11 Buy to Let Our market leading Buy to Let product range is not just aimed at professional investors - it is also available where a loan is classed as Consumer Buy to Let, with a simple application process and no additional rates or fees applicable. Under no circumstances should this document be copied, given to or distributed to customers or potential customers. This product guide does not include APRCs which are required for consumers to compare mortgage products.

12 12 Buy to Let 75% Rates from 5.49% Loans up to 1,000,000 Up to 75% LTV Consumer BTL acceptable Product PBTLPF PBTLPF0 PBTLPF1 PBTLPF2 Minimum net loan 25,000 25,000 25,000 25,000 Maximum gross loan 1,000,000 per property 1,000,000 per property 1,000,000 per property 1,000,000 per property Loan term 3-25 years 3-25 years 3-25 years 3-25 years LTV 60% 65% 70% 75% Variable rate % 5.49% 5.59% 6.09% 6.59% 2 year fixed rate % 6.19% 6.29% 6.59% 7.09% 5 year fixed rate % 6.59% 6.69% 6.99% 7.49% Revert Rate Base +524bp Base +534bp Base +584bp Base +634bp Minimum credit score Current mortgage arrears None None None None Mortgage arrears 0 in last 12 months 0 in last 12 months 0 in last 12 months 0 in last 12 months CCJs/Defaults 0 in last 12 months 0 in last 12 months 0 in last 12 months 0 in last 12 months Unsecured Credit Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Worst status 1 in last 12 months providing Commission (on net loan) 1.1% 1.1% 1.1% 1.1% Minimum property value of 75,000 applies. Where the property is worth between 75,000-99,999, a maximum LTV of 60% applies therefore only PBTLPF is available. CCJ s/defaults less than 300 in total can be ignored regardless of the date registered and satisfied.

13 Buy to Let terms and conditions 13 Applicant Available to UK residents only - do not need to be owner occupiers of their residential home. Minimum age of applicants is 25. Applicants can be no older than 85 at the end of the term of the loan. A minimum of three years address history must be supplied. Fees A Product Fee of 2% of the net loan amount will be added to the loan advance. If a Broker Fee is being added to the loan, a maximum of 12.5% can be charged on gross loans up to 100,000 capped at 5,000. On gross loans above 100,000, a maximum fee of 7,500 can be charged. Affordability Debt Service Cover Ratio (DSCR) You will need to obtain the interest rate on the 1st mortgage. The Prestige Passport will apply individual stress tests on the 1st charge and proposed 2nd charge. The stress rate for each will be pay rate %, subject to a minimum 5.5%. Minimum DSCR of 140% required for non-portfolio landlords (owns fewer than 4 investment properties). Minimum DSCR of 155% required for portfolio landlords (owns 4 or more investment properties). General First mortgage must have been running for at least six months see plan for overall mortgage history required. Consumer buy to let mortgages are regulated by the Mortgage Credit Directive Order Passing Rent We are able to accept the passing rent for a property, rather than the Market Rent confirmed by the valuer. Criteria for accepting the passing rent: You will need to provide evidence of two rental periods (bank statements or letting agent confirmation). The passing rent adopted cannot exceed 10% of the Market Rent supported by the valuer. The passing rent must be on a fully exclusive basis. i.e. does not include cost of utilities, council tax etc. The tenant is an independent third party. Early Repayment Charges Variable rate: None. 2 Year Fixed: 3% in years one and two. 5 Year Fixed: 5% in year one, 4% in year two and 3% in years three, four and five. Overpayments up to 499 per month can be made without incurring an early repayment charge. Property Applies to property in England and Wales only. Product is available for loans in personal name only on standard Buy to let properties HMOs and loans to limited companies are not accepted. A standard property is defined as let as a single family unit. Full internal valuation required on all loans, confirming unfurnished monthly rental. A Long Form Valuation will be required where The LTV exceeds 50% for any property with a Market Value in excess of 2m. Please refer to the packaging guide and submission checklist for further guidance.

14 14 Fees and charges Under no circumstances should this document be copied, given to or distributed to customers or potential customers. This product guide does not include APRCs which are required for consumers to compare mortgage products.

15 15 Fees and Charges This tariff is provided for the benefit of our customers and is accurate at the date when you receive it. If it is changed we will send the customer a fresh copy showing the new charges. The tariff does not include certain fees which are payable as a result of law, usually when an Act of Parliament gives the customer a right to ask for something provided they pay a set fee. Charges will only be made for certain events, which will not arise if the customer s account runs normally. Event Arrears Management Fee Field Agent Visit Default Notice Charge 35 per month for each month your account remains in arrears unless you enter into and adhere to an agreed arrangement (or concession) to pay. Up to for instructing and corresponding with a Field Agent in relation to your account. You will only be charged the actual administration costs incurred. Up to for the costs associated with issuing a Default Notice where your account has fallen into arrears. Statement of Account Subject Access Request Discharge Fee Early Repayment Charge plus VAT for providing a 12 month transaction history, payable by a 3rd party only for dealing with a request under the Data Protection Act 1998 for personal details relating to your account plus VAT to release our charge or in Scotland, discharging our Standard Security. See your mortgage offer you may be charged this if you repay your loan in full before the loan term ends or you make an overpayment more than your mortgage terms allow. Fees are inclusive of VAT at the prevailing rate, unless otherwise stated. We may need to charge fees for other requests made by the customer which are not covered in this table. If this happens, we will tell the customer what the fee will be before it is charged so they may decide whether to go ahead with it. In addition, they may have to pay any costs we pay to third parties that we may instruct to recover money owing to us or to protect our security or in exercising our legal rights.

16 16 We look forward to working with you soon If you would like more information about our service to you, or about any of our products, please contact the Mortgage Desk on the details below. us Visit Call us For use by professional intermediaries only Head office: Prestige Finance, Prestige House, 16 Melbourne Road, Bushey, Herts, WD23 3LN. Telephone: Registered in England (company number ). Prestige Finance Limited is authorised and regulated by the Financial Conduct Authority. Registered office: Reliance House, Sun Pier, Chatham, Kent, ME4 4ET. Prestige Finance Limited is part of the OneSavings Bank plc group (company number ). 075/PRS/