Shared Ownership Mortgages

Transcription

1 Shared Ownership Mortgages Page 1

2 checklist With minimal submission documentation, applications can be processed very quickly. Below is the checklist of items required from your client for a Shared Ownership mortgage: Completed emortgage application, including Direct Debit details and signed declaration Memorandum of sale Evidence of applicants deposit. If gifted deposit, confirmation that no interest or capital is repayable Latest month s bank statement showing salary credit Latest P60 required only if using non-guaranteed bonus, commission or overtime Latest full month s payslip (four if paid weekly) For self-employed applicants: Completed Accountant s Certificate, or Latest two year s finalised accounts, or Latest one year s accounts plus two SA302s. Any s where your client has not chosen to add them to the loan New Build form (required on all New Build properties). For all product queries contact your local Intermediary Relationship Manager or contact your Broker Support Team on the following: Page 2

3 Fixed Rate Shared Ownership Mortgages (New Purchase) Please read this table with all the information we ve provided at the end of this guide. 2 Year Fixed Rate Mortgages for New Purchase Pay Rates % Until 30/09/2020 the rate is fixed at % APRC Until 30/09/2020 the rate is fixed at % APRC Until 30/09/2020 the rate is fixed at % APRC A representative example for a 2 Year Fixed Rate Mortgage for New Purchases. The 4.6% APRC is calculated based on the following: A repayment mortgage of 108,000 payable over 27 years and 6 months, initially on a rate fixed until 30/09/2020 at 2.99% and then our RMVR variable rate currently % for the remaining term would require 24 monthly payments of and 305 monthly payments of f ollowed by a final payment of The total amount payable would be 188, made up of the loan amount plus interest and CHAPS of 6. The 5 Year Fixed Rate Mortgages for New Purchase Pay Rates % Until 30/09/2023 the rate is fixed at % APRC Until 30/09/2023 the rate is fixed at % APRC Until 30/09/2023 the rate is fixed at % APRC A representative example for a 5 Year Fixed Rate Mortgage for New Purchases. The 4.2% APRC is calculated based on the following: A repayment mortgage of 108,000 payable over 27 years and 6 months, init ially on a rate fixed until 30/09/2023 at 3.09% and then our RMVR variable rate currently % for the remaining term would require 60 monthly payments of and 269 monthly payments of f ollowed by a final payment of The total amount payable would be 182, made up of the loan amount plus interest and CHAPS of 6. The Page 3

4 Fixed Rate Shared Ownership Mortgages (Remortgages) 2 Year Fixed Rate Mortgages for Remortgages Pay Rates % Until 30/09/2020 the rate is fixed at % APRC Free standard legal s. Until 30/09/2020 the rate is fixed at % APRC A representative example for a 2 Year Fixed Rate Mortgage for Remortgages. The 4.6% APRC is calculated based on the following: A repayment mortgage of 108,000 payable over 27 years and 6 months, init ially on a rate fixed until 30/09/2020 at 2.99% and then our RMVR variable rate currently % for the remaining term would require 24 monthly payments of and 305 monthly payments of f ollowed by a final payment of The total amount payable would be 188, made up of the loan amount plus interest and CHAPS of 6. The 5 Year Fixed Rate Mortgages for Remortgages Pay Rates % Early Repayment Until 30/09/2023 the rate is fixed at % APRC Free standard legal s. Until 30/09/2023 the rate is fixed at % APRC A representative example for a 5 Year Fixed Rate Mortgage for Remortgages. The 4.2% APRC is calculated based on the following: A repayment mortgage of 108,000 payable over 27 years and 6 months, init ially on a rate fixed until 30/09/2023 at 3.09% and then our RMVR variable rate currently % for the remaining term would require 60 monthly payments of and 269 monthly payments of f ollowed by a final payment of The total amount payable would be 182, made up of the loan amount plus interest and CHAPS of 6. The Page 4

5 A guide to our service and completion s CHAPS Definitions & abbreviations Direct Debits Discounts LTV Offers Product Transfers SVR Valuation s Other Please refer to the rate tables for details of any s payable. Where your client has opted to pay upfront, these must be received before w e w ill issue any mortgage offer. Any s payable, w ith the exception of application and valuation, are refundable if the loan does not complete. It is our usual practice to send the loan to the conveyancer by CHAPS and a charge of 6 w ill be debited to your client s account if your client has elected to do this and w ill incur interest as part of the mortgage balance. Otherw ise your client must pay this prior to offer w here your client elects to pay up-front in order to avoid incurring additional interest. Definitions/abbreviations are found in Skipton Building Society s Mortgage Guide, available at skipton.co.uk. All our mortgages are conditional on monthly payments being made in advance by Direct Debit on the 1st of each month. All interest rates include a Direct Debit discount of 0.25%. If the Direct Debit is cancelled for any reason, the Direct Debit discount w ill be removed. All discount periods apply from the end of the month in w hich completion takes place if no fixed end date is quoted. A floor applies to all discounted products in this guide. Unless specifically stated otherw ise for a particular product, this floor is 0% i.e. no pay rate w ill ever be less than 0%. Where no ERC applies, or the ERC period has expired, unlimited overpayments can be made. Where there is a 10% overpayment allow ance, this is per annum and cannot be rolled over. The majority of remortgages qualify for free standard legal s providing your client uses the Skipton Remortgage Conveyancing Service and a free standard There may be some additional legal costs payable w here the loan is above 1,000,000 or if any non-standard conveyancing w ork is needed. A free standard mortgage valuation is available on properties valued up to 1,500,000. Please note, w here separate interest rates apply for different Values (LTVs), a c hange in the valuation or loan required may mean your client is ineligible for the rate they originally applied for. In this instance you w ill be advised of the change and asked if you still w ish to proceed w ith your client s application. Before submitting a full application you should use our Decision in Principle facility to ensure the case fits our criteria. Mortgage offers for purchases and remortgages are valid for six months are not transferable to different properties. All remortgage products (excluding cashback products) are available for product transfers via our emortgages system and w ill be eligible for a retention proc payment. SVR w as the base rate applying to mortgages taken out before 30 December The BRT revert rate applies to mortgages taken out betw een 30 December 2009 and 13 November RMVR is the base rate applying to mortgages taken out from 14 November Should your client be on a product linked to, or w hich changes to SVR or the BRT revert rate, and move to a product w hich is linked to or changes to RMVR, it is not possible to subsequently move back to SVR or BRT. If applicable, these are payable w ith the application except w here stated, and include a non-refundable Valuation Panel Management Fee of 26 for arranging and administering the Society s This should be show n in your client s Mortgage Illustration. Minimum property valuation/purchase price (w hichever is the low est) is 50,000 (mortgage report and valuation only). The valuer s standard mortgage valuation report is for the benefit of the Society for mortgage purposes only and does not guarantee that the property is free from defects. Your client may require a Home Buyers Report or full Buildings Survey if they are purchasing a property. A higher charge is payable for this type of valuation, w hich is a contract directly betw een your client and the valuer. If your client changes the property to another during the mortgage process, and the original proper ty has already had a free standard mortgage valuation, a valuation w ill apply to the second property or any further property. The references in this document to valuation mean the mortgage valuation and not the Housing Association s valuation report. Housing Association consent is needed w hen applying for a Shared Ow nership mortgage. Borrow ers must be permitted to staircase to 100% ow nership under the terms of the lease. Staircasing must be conducted in minimum shares of 10% w ith prior approval from the scheme provider. Page 5