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The Financial Conduct Authority, who regulates financial services in the UK, has introduced new rules for mortgage lenders and advisers. The new rules came into force on 26 April 2014.

As a result of these changes, in certain circumstances, you can apply for a mortgage without taking advice. This is known as an 'execution only' mortgage application. You can only do this online; however, you will need to know the details of the mortgage you want, and be able to deal with the application yourself without speaking to an adviser.

What service will I receive

We will keep you updated by email on how your application is progressing. We will also email you if we need any extra information.

The case manager, who will process your application, will provide you with updates on how it’s progressing. However, they cannot provide advice about your mortgage.

If your circumstances change and you need to talk to someone about how you should proceed with your application, visit your local branch or speak to our customer contact centre. They will be able to provide you with the advice you need.

What happens to my application?

If you decide to speak to one of our advisers they will provide you with a fully advised service. This ensures they recommend the most suitable mortgage for your needs. They will also provide you with updates throughout your application.

As the adviser will be undertaking a full assessment of your needs and circumstances they will not have access to the information submitted through the website.

You must inform our adviser that you have previously applied online. You will also need to provide them with your account number.

Your online application will be cancelled. Any fees you have paid will be transferred to your new mortgage application.

We can only transfer any fees within 90 days of starting your original online application.

If we have already carried out a valuation and this was done within the last 90 days then we can proceed using this valuation. This is subject to your mortgage application being in relation to the same property.

Making Changes to your application

During your mortgage application you may want to make changes. The case manager dealing with your application cannot advise you on these changes but can take instruction from you on what changes you require. All requests to make changes must be made by email or by post.

We have a range of online tools to help you in making decisions regarding your mortgage application:

• Find out how much you could borrow with our online affordability calculator
• Work out much it could cost with our repayment calculator
• Find out what you need to know before you apply with our lending criteria

FAQs

What do I do if the property being purchased has been down valued?

The valuer has used their professional opinion and in the current market does not think the value of the property matches the purchase price. This may mean that you no longer qualify for a product with a specific Loan to Value (LTV) limit. If you wish to proceed with your application you can either:

• Reduce your borrowing amount to remain within the specific LTV limit of that product
• Keep the amount you wish to borrow, but switch to another product with a higher LTV limit.

The property being purchased has been deemed as not suitable for mortgage purposes. What does this mean?

There may be occasions where a property is not suitable as security for a mortgage. You may still be able to proceed with your application if you choose an alternative property.

Some reasons why a property may not be acceptable are:

• The construction of the property has been made using non-standard materials
• Title defects such as inadequate rights of way
• Tenure/property types – such as studio or freehold flats

Why have you asked for specialist reports following the valuation?

When the valuer visited the property they identified some possible work required to the property. You will need to obtain the reports that have been requested. A copy of the reports will be sent to the valuer, who will confirm if the work identified needs to be carried out as a condition of the loan.

In some cases, it is possible we will hold back some of the loan until you supply evidence (usually in the form of an invoice) that the work has been carried out. The funds being held back until completion of the work is called a retention.

To be paid the remaining funds, you will need to send us the invoices, which confirm the work has been completed. We will refer these to the valuer, who will confirm if the retention funds can be issued.

You have said you are unable to proceed with my application because the source of the deposit does not meet your lending criteria. What does this mean?

All deposits must be from your own funds. If a deposit is a gift, this must be from a direct family member.

You have stated the amount of incentives I’m receiving as part of my purchase exceeds the limits allowed.

The maximum amount of incentives we allow on a new build property is 5% of the purchase price. If the amount exceeds 5% we will deduct the difference from the purchase price and recalculate the LTV.

For example:

Purchase price = £100,000, Loan Amount = £ 85,000, Current Loan to Value = 85%

Incentives = £10,000

This would be 10% of the total property value; therefore this exceeds the maximum allowed by 5% (£5,000)

We will therefore deduct £5,000 from the purchase price to calculate LTV.

Purchase price – incentive amount exceeding 5% = ‘New Purchase Price’

£100,000 - £5000 = £95,000

Loan amount ÷ Purchase Price x 100 = new LTV

£85,000 ÷ £95,000 x 100 = 89.47%

This may mean that you no longer qualify for a product with a specific Loan to Value (LTV) limit. If you wish to proceed with your application you can either:

• Reduce your borrowing amount to remain within the specific LTV limit
• Keep the amount you wish to borrow, but switch to another product with a higher LTV limit.

The loan amount I requested is not affordable. Can I still proceed with my application?

If you wish to proceed with your application you can:

• Reduce the amount you wish to borrow
• Extend the term, providing this doesn’t take you to retirement age

Use our online calculator to find out the maximum you could borrow.

Can I apply online when I am retired or where my mortgage term will end when I am retired?

No. If you are already retired or the mortgage will end after you have reached retirement age (65 or declared - whichever is earlier) your application must be carried out on an advised basis. You will need to make an appointment with one of our branch based advisers or speak to someone in our customer contact centre.