Debt Consolidation

As  you are consolidating debt, I need to make you aware that;

• I’m not qualified to give advice on the debt consolidation or whether it is appropriate to consolidate. It is your decision whether to consolidate any debts into your mortgage.
• That it might cost you considerably more to repay the debt over a longer period and;
• That by securing a previously unsecured debt against your home this could put your home at risk if you fail to make the repayments.

Where the customer has previously had payment difficulties: Whether it would be more appropriate to negotiate an arrangement with creditors rather than take out a regulated mortgage contract.

Where the customer is currently in financial difficulty: The customer cant proceed without written recommendation from a professional debt counsellor. They should be signposted to Step Change or Citizens Advice for debt advice & support. If they are advised to consolidate the debt then we’d need this in writing before proceeding with the application.

Initial Disclosure Residential Advised

Before we get started I want to explain a little information about the service I’ll provide. You’ll receive a copy of this with your application.

• The Loughborough Building Society is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority.
• We provide an advised service – this means I’ll advise and make a recommendation based on your current needs and circumstances and any foreseeable changes to your future circumstances.
• There is no fee for my advice, however there may be fees associated with the product recommended.
• We only offer Loughborough Building Society products therefore I can’t discuss mortgages from any other providers.
• We’ll provide you with an illustration within 5 working days. You may request an illustration for any product for which you are eligible.
• We have a complaints procedure in place. Please come back to us in the first instance, but if you’re not satisfied with the way that we resolve your complaint, you may have the right to refer to the Financial Ombudsman Service. 
• Do you have any questions? Are you happy to proceed?

Initial Disclosure BTL

About our Mortgage Services

Before we get started I want to explain a little information about the service I’ll provide. You’ll receive a copy of this with your application.

• The Loughborough Building Society is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority.
• This mortgage is not regulated by the FCA, which means you will not receive advice and recommendation. We will be providing you with information on our mortgage products. You will then make your own choice about how to proceed. 
• There is no fee for this service, however there may be fees associated with the product recommended.
• We only offer Loughborough Building Society products therefore I can’t discuss mortgages from any other providers.
• We have a complaints procedure in place. Please come back to us in the first instance, you can also register a complaint on our website.   
• Do you have any questions? Are you happy to proceed?

Consumer BTL IDD

Before we get started I want to explain a little information about the service I’ll provide. You’ll receive a copy of this with your application.

• The Loughborough Building Society is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority.
• The mortgage is supervised by the FCA and regulated by HM Treasury.  This means you will not receive advice and recommendation. We will be providing you with information on our mortgage products. You will then make your own choice about how to proceed.
• There is no fee for this service, however there may be fees associated with the product recommended.
• We only offer Loughborough Building Society products therefore I can’t discuss mortgages from any other providers.
• We have a complaints procedure in place. Please come back to us in the first instance, you can also register a complaint on our website.   
• Do you have any questions? Are you happy to proceed?

Regulated BTL IDD

Before we get started I want to explain a little information about the service I’ll provide. You’ll receive a copy of this with your application.

• The Loughborough Building Society is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority.
• We provide an advised service – this means I’ll advise and make a recommendation based on your current needs and circumstances and any foreseeable changes to your future circumstances.
• There is no fee for my advice, however there may be fees associated with the product recommended.
• We only offer Loughborough Building Society products therefore I can’t discuss mortgages from any other providers.
• We’ll provide you with an illustration within 5 working days. You may request an illustration for any product for which you are eligible.
• We have a complaints procedure in place. Please come back to us in the first instance, but if you’re not satisfied with the way that we resolve your complaint, you may have the right to refer to the Financial Ombudsman Service. 
• Do you have any questions? Are you happy to proceed?

Lending into Retirement Factsheet

Where capital raising takes place – We need to make you aware that because you are releasing capital this may affect your entitlement to any means- tested benefits you currently receive or those you may receive in the future. This could affect your tax position. If you are unsure then you can speak to the Pension service, HM Revenue & Customs, or Citizens advice bureau to establish your position. 

Where the term exceeds 85th birthday for any borrower – It is possible that the mortgage may exceed the average life expectancy it is therefore important for us to make you aware that the debt may not be reduced at all if you don’t live to the end of the mortgage term.

Legal Advice if applicant/s will exceed 80 at the end of the mortgage term

Sole applicant (only if aged 80 and above at application) – we need you to meet with a solicitor face to face to receive independent legal advice to ensure you understand the responsibility and commitment you are making.

Any Joint application – you will need to see a separate solicitor for independent legal advice. This is to ensure you both understand the responsibility and potential implications if income was reduced due to ill health or bereavement during the mortgage term. You must each confirm individually that you accept the risks and are willing for the loan to be made. There will be costs for this advice and you should obtain quotes. The advice must be given by a solicitor who is not involved in the purchase/conveyancing of your property.

Where downsizing is mentioned for the sole survivor – ask will there be sufficient equity for you to be able to complete this mortgage free? 

•              We may ask for examples to be provided for the application

Joint Borrower Sole Proprietor Guidance

Independent Legal Advice

All parties to the mortgage must obtain independent legal advice so that they are aware of their responsibilities and rights and what might be involved should there be a change in circumstances and the supporting borrower wants to have their name removed from the mortgage at some future date.  This will be a condition of the mortgage offer.

The supporting borrowers don’t have rights over any equity or any profit made on the property as they are not legal owners. They will however be ‘jointly and severally’ responsible for the mortgage payments and for obliging by the terms and conditions of the mortgage.

Cash Security

If you offer money as collateral security for a mortgage:

• We call this a cash security
• The amount required will be held in a Deposit Guarantee Account with the Society
• The account will only be in the name(s) of the supporting borrower(s)
• BUY FOR UNI – You will not be entitled to withdraw all or part of the original balance unless we are satisfied that the mortgage debt is less than 75% LTV and the mortgage payments have been made when due for at least the previous 6 months, AND if a guarantee on income also exists we are satisfied that the assisted borrower is able to afford to continue to make the monthly payments
• DEPOSIT GUARANTEE – The guarantee monies will be released after 7 years provided there have been no missed payments in the previous 12 months and no more than 2 missed payments in the 7 years. The society may consider releasing the guarantee monies before 7 years subject to a property valuation confirming the LTV is less than 80%
• You could be restricting access to your money for some time because a mortgage is a long-term debt. You should therefore assess what future demands you may need to make on your investment. THIS MEANS THAT THE MONEY YOU OFFER IS AT RISK

The cash held in the account won’t be used to make the monthly mortgage repayments, but would be called upon to make up any shortfall if we had to repossess the property and if when sold, the proceeds are less than the mortgage debt plus any costs. This liability is limited to the amount of the security held in the Deposit Guarantee Account.

• The Deposit Guarantee Account will need to be opened 14 days before completion can take place and the application forms are sent out to the solicitor with the mortgage offer.
• The supporting borrower(s) must obtain independent legal advice before signing the Deposit Guarantee Agreement.  The advice may be provided by a solicitor at another firm from that representing the occupying borrower or from the same firm, so long as the individual solicitor giving the advice is not also advising the occupying borrower. The solicitor will send the signed Agreement to us before completion. 
• You should obtain quotes for this.

Collateral Charge

If you’re offering property as collateral security:

• The Society will only take a First or Second charge on your property where it’s your main residential home
• The maximum LTV (your current mortgage balance plus the amount of the collateral charge) must not exceed 75% of the current valuation
• In the event of default by the borrower, any loss incurred by the Society can be recovered by calling on the collateral security. In the case of property, we can take legal action to obtain possession of your property and sell it to recover the money owed. THIS MEANS THAT YOUR HOME IS AT RISK
• Your ability to sell your property will be restricted by a collateral charge
• It may affect your ability to borrow money against your home in future
• BUY FOR UNI – We will not release the charge unless we are satisfied that the mortgage debt is adequately secured by the principal security and the mortgage payments have been made when due for at least the previous 6 months
• DEPOSIT GUARANTEE – The charge will be released after 7 years provided there have been no missed payments in the previous 12 months and no more than 2 missed payments in the 7 years. The society may consider releasing the charge before 7 years subject to a property valuation confirming the LTV is less than 80%
• Where your property is provided as security then this residential property may be repossessed by us to recover the debt if the borrower’s mortgage goes into arrears and we have to repossess the mortgaged property and the proceeds are less than the mortgage debt plus any costs. This liability is limited to the amount of the security.
• The supporting borrower (s) must obtain independent legal advice before signing the Collateral Mortgage Deed.  The advice may be provided by a solicitor at another firm from that representing the occupying borrower or from the same firm, so long as the individual solicitor giving the advice is not also advising the occupying borrower. The solicitor will send the signed Agreement to us before completion. 
• You should obtain quotes for this.