How to get an application right first time.

Transcription

1 How to get an application right first time. All the hints and tips that make your life easier, our responses faster & your clients applications more successful. Remarkably honest Get honest answers on or visit us at securetrustbank.com/intermediaries THIS INFORMATION IS FOR INTERMEDIARIES ONLY

2 Secure Trust Bank Mortgages The Intermediary Guide to Getting an Application Right First Time This guide provides you with a number of hints and tips to help speed up the application process, enabling us to process your client s application more efficiently. For help or assistance please call the Intermediary Support team on or ; intermediarysupport@securetrustbank.co.uk If you require any help or technical assistance with using our online portal please visit the User Guides here: or call the Intermediary Support team on Prior to Submitting a Case Please read our Lending Policy Guidelines or quick search the A-Z Guide for intermediaries which represents the bank s current approach to lending. Both guides can be found here: Our affordability calculator is aligned with our Decision in Principle (DIP) affordability calculation. As long as you input the same information, the results should match. We always recommend that you complete the affordability calculation on prior to submitting a DIP Ready to Submit a Case Please login to our online portal which can be found here Accurate data is a key factor to assist us in processing your application efficiently. Please ensure that all data is input accurately, for example, when entering any personal information, it must be entered correctly to avoid additional credit searches: Enter your client s full name including any middle names or maiden names Make sure that the address history provided is accurate and ensure that the dates they moved are correct Please ensure that all client data including address, telephone number and personal details are correct to avoid delays in processing your application The question permanent rights to reside in the UK is answered correctly Enter the applicants in the order of their total earnings (highest earner first) An applicant is not a dependant and must not be entered as a dependant Affordability Calculation Please input annual gross income details for employed applicants Rental income should only be added to the other source of income field if a mortgage does not exist on the property or the rent exceeds 135% of the existing mortgage payment. If no mortgage exists on the property we will consider up to 100% of the rental income and, in the case of a mortgaged property, we will only consider the surplus rental income over and above 135% of the existing mortgage payment. Please note, all rental income will be assessed as self-employed income For self-employed applicants you will need to know their net profit before tax (please input this in the Earned Income box) and if they are company directors with more than a 25% shareholding, their salary and dividend income. For contractors we will use their daily rate x 5 days x 46 weeks All items detailed in the household expenditure screens must be completed On purchase applications please ensure that the amounts entered relate to the costs of the new property and not the current costs Please also complete the dependants questions for both non-applicant adult and child dependants THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 2 of 8

3 Application Submission Hints Electronic verification of an applicant s identity is included as part of the online decision ID is only required where we have been unable to electronically validate an applicant s identity. A list of acceptable proofs of name can be found at the end of this guide Proof of Residency is only required where we have been unable to validate the applicant s last 3 years residency electronically. A list of acceptable proofs of address can be found at the end of this guide Where the document being sent is not the original, we will accept certified copies from one of the following: FCA regulated mortgage broker or IFA SRA regulated solicitor Qualified accountant (see supporting documentation self-employed, below) Post Office as part of the Post Office Certification Scheme Each copy document must be clear, legible and must have been certified within the previous 3 months at the time the application is made using the following words: I certify this is a true likeness of the original document (where no photograph is included); or I certify this is a true likeness of the original document and the photograph is a good likeness of the individual (where photograph included and customer seen in person) The certifier must sign and date each document and include: Their full name The name of their firm, business address and telephone number Profession Name of Regulatory Body / Association (where applicable) Registration / membership number (where applicable) Supporting Documentation You can download a variety of forms in the Literature & Documents section of the website: Only upload documents that appear on the checklist items on the online portal and please ensure that all scanned pages are legible before uploading to the specific checklist item showing We will always require a mortgage application declaration signed by all applicants (including the Third Party Customer Authority Form) and a signed Direct Debit mandate Where additional borrowing is for capital raising we may require full information and a checklist item will be added for you to upload the details, if required We do not require supporting documents to be certified We will always ask for the latest 3 months consecutive full bank statements evidencing salary credits and daily expenditure items. Note if the applicant has salary credited into a separate bank account we shall require sight of the accounts where the salary is credited together with the bank account used for daily banking expenditure THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 3 of 8

4 Bank Statement Current Account Statement A N Other Sort Code Example Street Account Number Example City Start balance 4,100,00 AB12 3CD End balance 3, Your account summary for 30 November 2016 to 1 January 2017 Your transactions Overdraft limit 2, Date Description Paid Out Paid In Balance 30 Nov 2016 Supermarket , Transfer to Joint Account , Dec 2016 Standing Order Mr Smith , Cash Machine , Cheque 5,500-2, Cheque (returned unpaid) 5,500 3, Car Insurance , Dec 2016 Clothes Store , Petrol Station , Direct Debit , Lottery , Dec 2016 Gym Membership , Dec 2016 Supermarket , Cash Machine , Dec 2016 Salary COMPANY NAME 1, , Direct Debit Council Tax , Dec 2016 Cinema , Dec 2016 Restaurant , We will look to ensure the Name; Address & Account Details match the application and Direct Debit Mandate. The Direct Debit must be in the name of one or more of the applicants 2. We will accept Online Bank Statements provided the statement shows the applicant s name, account number, sortcode and the http address. 3. If the applicant operates an overdraft we will review the conduct and any unauthorised fees may adversely affect our underwriting decision. 4. We will question any noticeable outgoings not declared on the application. 5. Returned items e.g unpaid Direct Debit / Cheque will be dealt with cautiously and may affect our underwriting decision. We will review reasonable explanations. 6. Any unidentified regular payments should be clearly explained if not already factored into affordability. THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 4 of 8

5 Payslips Payslip 1 2 Employee No. Employee Pay Date Tax Period Tax Code 3 National Insurace No. Annual Salary 321 A N Other L DF123445R 24,593,70 Payments Units Rate Amount Deductions Amount Basic Pay Income Tax Overtime National Insurance Shift Allowance Personal Pension Bonus Childcare Vouchers Mr A B Jones Totals for this period Totals YTD 123 Example Street Total Payments 1, Taxable Gross Pay 4, Example City Total Deductions Income Tax AB12 3CD National Insurance Company 1 Net Pay We will always ask for the last 3 months consecutive payslips for employed applicants. 2. If an applicant is paid weekly we will require the last 8 weeks consecutive payslips. 3. Payslips need to show pay date and tax period. 4. Net pay should match the salary figure in the applicant s bank statement. If an applicant is reliant upon a high percentage of overtime, commission and / or bonus to support the affordability calculation, the most recent and previous P60 s should be submitted to evidence the income declared is reasonable. Please note, the bank reserves the right to request an employers reference. Additional Evidence If an applicant is reliant upon income from rented property that is unencumbered or the rent exceeds 135% of the mortgage payment, it will then be assessed as self-employed income (see self-employed section below) For self-employed applicants we will require evidence of income by: Latest 2 years accounts, with the latest year dated within the last 18 months, together with an accountant s certificate. An accountants reference may also be requested. For self-employed applicants who have been trading for less than 2 years we may be able to accept the latest full years accounts; please contact an underwriter to discuss Acceptable accountants qualifications are: ACA; ACCA; ACMA; CPFA; FCA; FCCA; FCMA; CIT. Other qualifications may be acceptable but please call the Intermediary Support Team on for consideration If no accountant is retained by the applicant we will accept the last 2 years HMRC SA302s together with the HMRC Tax Year Overview. For self-employed applicants who have been trading for less than 2 years we may be able to accept the latest HMRC SA302 and Tax Year Overview; please contact an underwriter to discuss For Contractors we will annualise their daily rate over a 46 week period, please enter the annualised figure in to the Earned Income box: Example 500 per day x 5 = 2,500 2,500 x 46 weeks = 115,000 THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 5 of 8

6 To verify the income a copy of the applicant s current contract should be supplied to validate their daily rate We will always require the latest 6 months business bank statements for all self-employed applicants in addition to their latest 3 months personal bank statements Evidence of deposit will be required for all purchase transactions unless the full deposit is derived from available equity in the current property A gifted deposit is acceptable from a close family member provided they retain no interest in either the sum provided or the purchased property. Close family members are defined as someone who is related to the applicant by: Blood / birth Marriage or civil partnership Co-habitees occupying the property as a spouse or partner Where a deposit below 15,000 is being gifted a letter must be obtained from the donor stating that the sum is a gift, there are no repayment terms and they will retain no interest in either the sum provided or the property. A Confirmation of Gifted Deposit template letter can be found in the Literature & Documents section of the website: Where a deposit greater than 15,000 is being gifted a special condition will be added to the mortgage offer instructing the solicitor to obtain a Deed of Gift from the donor If your client has a history of adverse credit please provide an explanation to support the application on the notes when submitting the FMA If any exisiting mortgages are not shown on the credit search we will require a copy of the last mortgage statement and evidence of payments to date. We may also request a mortgage reference Property Specialist Reports The following may be deemed necessary to obtain prior to offer if they are recommended by the valuer within the valuation report: Arboriculturist / Tree Surgeon Report - For any issues raised by the valuer regarding the proximity of trees a report may be requested. To ensure competency the report should be produced by a member of the Arboricultural Association: Damp & Timber Report - If a Damp & Timber Report is deemed necessary then this must be provided by a contractor who is registered with Property Care Association: Drains Report - Where the valuer has highlighted possible issues with the drains a specialist report will be required from a qualified drainage contractor Electrical Report - Any electrical reports requested must be supplied by a qualified electrician registered with the NICEIC (National Inspection Council for Electrical Installation Contracting): Gas Services - Any gas services work required must be implemented by Gas Safe registered contractors: Mundic Block / Red Ash Report - If the valuer advises there is Mundic Block material or Red Ash it is likely that we will decline the application. The cost to the applicant of obtaining the above reports are prohibitive and future saleability is restricted Roofing - Any competent building contractor or roofing contractor can provide a roofing report. There is a trade body NFRC (National Federation Roofing Contractors) However, we are not insistent upon a roofer being a member of this organisation to report and carry out remedial repairs provided they are a competent roofer / building contractor Structural Engineers Report - Where it has been identified that there is a structural defect or potentially one exists, it is a requirement that the services of a structural engineer are employed. We will accept a structural engineer or a Chartered Building Surveyors report. Equally we will accept a Chartered Civil Engineers Report. Acceptable qualifications are: MIStructE Member of Institute of Structural Engineers MICE Member of Institute of Civil Engineers CIOB Chartered Institute of Building THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 6 of 8

7 Acceptable Proofs of Identity and Address If we have been unable to electronically validate an applicant s identity and / or last 3 years residency we will require proof of name and residency from the approved list below: Acceptable proofs of name (list A) Acceptable proofs of address (list B) Valid and current government issued passport that has the Machine Readable Zone (MRZ)* Valid and current photo or paper driving licence* Valid and current national identity card that has the Machine Readable Zone (MRZ)* Valid and current fire arms licence* HM Revenue & Custom (HMRC) correspondence detailing name, address and National Insurance number (less than 12 months old) Benefit or pension entitlement letter detailing name, address and National Insurance number (less than 6 months old) One item is required from list A and two from list B. Valid and current photo or paper driving licence (if not used to verify name in list A) A bank, building society or credit card statement displaying the customer s name and address (dated within the last 3 months - online statements or store card statements are not acceptable) UK annual mortgage statement displaying the customer s name and address (less than 12 months old - online statements not acceptable) HM Revenue & Customs (HMRC) correspondence displaying the customer s name, address and National Insurance number (less than 12 months old and if not used to verify name in list A) Benefit or pension entitlement letter detailing name, address and National Insurance number (less than 6 months old and if not used to verify name in list A) Utility bill detailing the customer s name and address (less than 3 months old - online statements are not acceptable) Council Tax bill detailing the customer s name and address (valid for current year) Local Authority / Housing Association tenancy agreement (private tenancy agreements are not acceptable) Where an item marked * has been provided from list A, one item of proof from list B will be accepted. THIS INFORMATION IS FOR INTERMEDIARIES ONLY Page 7 of 8

8 At a Glance Standard Submission Requirements Standard documentation requirements per applicant Residential purchase Residential remortgage Signed mortgage application declaration (including signed third party customer authority form) Employed applicant Self-employed applicant Employed applicant ü ü ü ü Self-employed applicant Signed Direct Debit mandate ü ü ü ü Last 3 full months payslips ü x ü x Latest 3 full months bank statements showing salary credits, utility bills, mortgage / rental payments (if applicable) and day-to-day expenses Last 2 years accounts, if available or last 2 years HMRC SA302s together with HMRC tax year overview Latest six months business bank statements (if latest accounts are over three months old) Most recent and previous years P60 (if applicant is reliant upon a high percentage of overtime, commission and / or bonus) ü ü ü ü x ü x ü x ü x ü If applicable, please refer to the checklist items for each case Get honest answers on or visit us at securetrustbank.com/intermediaries THIS INFORMATION IS FOR INTERMEDIARIES ONLY STBMO004_0717