Correct as at: July 2014
Packaging Guide
Date Details of Amendment
24/07/13
1.8 Debt Management. We are unable to lend if the applicant(s) are currently in a debt management plan. If the applicant(s) have recently come out of debt management, please refer the deal to an underwriter.
24/07/13 3.2 Self-employed applicants. Professional body corrected to Association of Certified Public Accountants – AAPA/FAPA.
24/07/13 3.7 Other income. Income received from foster care will not be accepted. 24/07/13 4.1 Valuations. Addition of Gateway Surveyors. 24/07/13
4.2 Hometrack Valuations (AVM’s). AVM’s must be produced by Hometrack using the Prestige Finance template. Property exclusions: flats, maisonettes and named properties with no number. See criteria sheet for terms and conditions.
02/08/13 4.1 Valuations. Addition of drive by valuations.
11/09/13
1.3 Credit history. If the applicant does not appear on the voters roll for the previous years, we require proof of residency for each year that they do not appear. This must be in the form of a utility or council tax bill, or a bank or mortgage statement. Internet downloads are not acceptable.
11/09/13 1.5 Proof of address. Addition of validation limits for proof of address.
11/09/13
2.7 Income assessment. Mail order, public utilities and communication suppliers can be ignored from the affordability calculations 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. Please note that arrears on utilities will be subject to underwriter referral.
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.
11/09/13
3.2 Self-employed applicants. If the applicant does not have an accountant or the accountant is not suitably qualified then we will accept the two most recent years SA302’s as proof of income. Applicants will be treated as self-employed if they own more than 25% of the company shares.
11/09/13 4.1 Internal and drive by valuations. Addition of Walker Fraser Steele (e.surv) in Scotland. 11/09/13 4.4 Coal mining reports. Coal mining reports are not required.
11/09/13
4.8 Solar panels. We may consider lending on a property where solar panels have already been installed, subject to the panels having been purchased outright and not subject to a lease. Please refer the deal to an underwriter.
04/11/13 1.3 Equifax credit score - 10 point tolerance below minimum score. 04/11/13 1.3 Mortgage history - minimum history reduced to 12 months. 04/11/13 1.6 Signature ID - current UK/EU driving licence - applicant must provide evidence of rights to reside
if place of birth is a non-EU country.
04/11/13 2.3 Broker fee - maximum broker fee increased to £7,500 on large loans. 04/11/13 2.4 Lender administration fee - maximum lender administration fee reduced to £500 on standard
loans.
Packaging Guide Amendment Log
04/11/13 3.5 Benefit income - state pensions now accepted providing not the main source of income. 04/11/13 5 BSQ/mortgage reference - mortgage history reduced to 12 months. 26/02/14 1.1 Age - Applicants can be no older than 85. 26/02/14 3.2 Self-employed applicants - Association of Authorised Public Accountants. 26/02/14 3.4 Pension income - State pensions (retirement, widow and war) will be accepted in full providing
this is not the main source of income.
26/02/14 4.7 Ex-local authority properties - We are unable to lend on ex-local authority flats/maisonettes. 26/02/14 10 Consideration Period - The broker, sub-broker or courier cannot witness the applicant’s signature on the mortgage deed during the consideration period. 26/02/14 10.1 Use of rep’s/couriers - new wording for whole section.
26/02/14
12 Regulation -We are regulated and authorised by the Financial Conduct Authority.
We are members of the Finance & Leasing Association (FLA) and follow their lending code, copies of which are available on request from the Compliance Department.
If a loan is deemed not to be in the interest of the borrower, as a responsible lender we reserve the right to decline the application or ask for additional documents to support the application.
02/04/14 1.5 Proof of residency requirements amended. 02/04/14 1.6 E.ID acceptable as proof of signature ID. 02/04/14 2.3 Maximum broker fee increased on net loans up to £25,000. 02/04/14 4.1 Hardies added to valuation panel.
22/04/14 4.1 Pure added to valuation panel. Connells removed from valuation panel. 22/07/14 1.3 Credit score – Clarification regarding credit score and other exceptions. 22/07/14 1.6 Removal of certificate of ID. Case must be referred to an underwriter if the applicant is unable
to supply signature ID.
22/07/14 3.2 Self-employed applicants. Accountant must have acted for the applicant for at least 1 year. We require a minimum of 2 years trading figures. 22/07/14 4.1 Internal and drive by valuations. Increased radius from 20 to 25 miles. 22/07/14
4.9 Properties with land. Properties with land holdings in excess of 3 acres should be valued on the assumption that only the property and 3 acres of land is included.
22/07/14 4.10 Property types. Properties with 100% flat roofs will be considered on referral. 22/07/14 5.4 Lifetime/Equity release mortgages. We are unable to lend behind Lifetime/Equity release
1. Applicant
1.1 Age 1.2 Applicant status 1.3 Credit history 1.4 Other occupiers 1.5 Proof of address 1.6 Signature ID1.7 Lending into retirement 1.8 Debt management
2. The Loan
2.1 Purpose 2.2 Term 2.3 Broker Fee
2.4 Lender Administration Fee 2.5 Repayment
2.6 Disbursement of funds
2.7 Income assessment – Affordability – Unsecured credit
3. Income
3.1 Employed applicants 3.2 Self-employed applicants 3.3 2nd jobs 3.4 Pension income 3.5 Benefit income 3.6 Child maintenance 3.7 Other income 3.8 Other mortgages4. The Property
4.1 Internal and drive by valuations 4.2 Hometrack valuations (AVM’s) 4.3 Extensions and alterations 4.4 Coal mining reports 4.5 Other specialist reports
4.6 Leasehold properties – England/Wales only 4.7 Ex-local authority properties
4.8 Solar panels 4.9 Properties with land 4.10 Property type
5. Mortgage Information
5.1 BSQ/mortgage references 5.2 Consent
5.3 Open plan and flexible mortgages 5.4 Lifetime/Equity release mortgages 5.5 Secured charges
5.6 Existing priorities
5.7 Removal of existing charges
5.8 Non-conforming mortgage companies
6. Land Registry/Scottish Searches
7. Independent Legal Advice
8. Vulnerable Borrowers
9. Documentation
10. Consideration Period
10.1 Use of reps/couriers11. Further Advances
12. Regulation
Contents
1. Applicant
1.1 Age
Our minimum age requirement is 21. Applicants can be no older than 85 at the end of the term of the loan.
Applicants aged over 70 will be considered on a case by case basis. Independent Legal Advice (ILA) will be required on these applications – please refer to the ILA section for further guidance.
1.2 Applicant status
Where the applicant is married but the property is not jointly owned, we will consider lending in the sole name of the owner, subject to the spouse signing a deed of consent which must be witnessed by a solicitor.
Where the applicant is co-habiting but the property is not jointly owned, we will lend in the sole name of the owner, subject to the partner signing the waiver on the general information and authority form.
If the applicant is separated, we may ask for sight of the divorce papers/separation agreement. We reserve the right to ask the spouse to sign a legal waiver.
We are not able to lend where we are relying on a power of attorney.
The maximum number of applicants is 2. Both applicants must reside at the security address. If a marriage or death certificate is required for any reason, we will always require the original document. Our solicitors will hold this information on file until our charge is registered and then return the document to the applicant by Royal Mail special delivery.
1.3 Credit history
An Equifax search is required on all applicants. This must be dated within the last 60 days and should provide a minimum of 3 years address history. If the applicant does not appear on the electoral roll for the previous years, we require proof of residency for each year that they do not appear on the roll. This must be in the form of a utility or council tax bill, or a bank or mortgage statement. Internet downloads are not acceptable.
An Equifax Risk Navigator Credit Score is required on every application. Please refer to lending criteria for plan specific scores. We will allow a 10 point tolerance below the minimum score stated. Referral not required – subject to all other aspects meeting criteria.
We require a minimum of 12 months mortgage history. The current mortgage must have been running for at least 6 months.
We are unable to lend to pending or existing bankrupts. We may consider lending to discharged bankrupts providing they have been discharged from all financial liabilities. The same applies with sequestrations. If the applicant has entered an IVA or Trust Deed, we can only lend if the agreement has been satisfied. We will require confirmation that the account was conducted satisfactorily. Please refer the deal to an underwriter.
Searches should be kept to a minimum to ensure multiple footprints are not left on an applicant’s credit record. A full search should only be carried out when the applicant has confirmed that they wish to make an application in full and you have their permission to do so.
1.4 Other occupiers
Where there are other parties residing in the property between the ages of 17 and 64 who are not party to the loan, they will be required to sign the waiver section of the general information and authority form.
Anyone over the age of 65 residing in the property will be required to sign the deed of consent which must be witnessed by a solicitor.
1.5 Proof of address
If the applicant(s) are not on the current voters roll, a utility bill, council tax bill, mortgage or bank statement is required for each applicant to confirm they currently reside at the security address. The bill or statement must be dated within the following limits:
•
Utility bill or bank statement must be dated within the last 90 days.•
Mortgage statement must be dated within the last 6 months.•
Council tax bill must be the most recent and dated within the last 12 months.We will accept either the original bill/statement or a copy certified by the broker – not the sub-broker. If the applicant is unable to provide proof of their address, we may not be able to lend.
1.6 Signature ID
In order to comply with Anti-Money Laundering (AML) requirements we will require the applicants to provide proof of their signature. We will accept any of the following:
•
Equifax AML profile with a minimum of two residency matches, one identity match and no alerts (a 2:1:0 profile).•
Current UK/EU Passport.•
Current non UK/EU Passport – with confirmation of the holder’s right to reside.•
Current UK/EU Driving Licence (old style and provisional licences are acceptable. Only photocard required). If the applicant was born in a non-EU country, we will require confirmation of their right to reside.We will accept either the original ID, or a copy certified by the broker – not the sub-broker. If the applicant is unable to provide proof of signature, please refer the deal to an underwriter.
1.7 Lending into retirement
If the applicant reaches the age of 65 during the term of the loan, they will need to complete the lending into retirement form detailing how they will maintain their repayments should their income change.
1.8 Debt management
We are unable to lend if the applicant(s) are currently in a debt management plan. If the applicant(s) have recently come out of debt management, please refer the deal to an underwriter.
2. The Loan
Lending is permitted on residential properties throughout England, Wales and Scotland. Lending is by way of 2nd charge. We may consider lending by way of 3rd charge, providing the first two charges are with the same mortgage company. This only applies where the mortgages are with a high street bank/building society
– please refer the deal to an underwriter. Loans are not portable.
2.1 Purpose
We will lend for most purposes excluding business use, transfer of equity, investment or financial speculation, bridging or to install solar panels.
Where the loan is being used for debt consolidation, cheques will be made payable to the creditors as per the details supplied on the debt consolidation form. The cheques will be posted to the applicants to forward on to the creditors.
The details entered on the debt consolidation form must be consistent with the details on the Equifax search.
A maximum limit of £50,000 cash out to the borrower applies – please refer the deal to an underwriter if the cash out amount exceeds £50,000.
2.2 Term
The minimum loan term is 3 years and the maximum is 25 years.
2.3 Broker Fee
On standard loans a Broker Fee of up to 12.5% on net loans of up to £25,000 can be charged. This fee is restricted to 10% thereafter capped at £5,000. On large loans a fee of up to £7,500 can be charged. This fee must be included within the LTV calculation.
2.4 Lender Administration Fee
On standard loans a Lender Administration Fee will be added to the net loan advance. This is calculated as a percentage of the net loan plus any Broker Fee – 3.5% with a maximum fee of £500. On large loans a fee of £995 applies on loans up to £250,000, £1,995 thereafter. This fee must be included within the LTV calculation.
2.5 Repayment
Loans are written on a capital and interest repayment basis. Interest rates are variable, and in the event of a change in rate the borrower will be given 14 days’ notice before payments are altered. Interest is calculated on a daily basis, with payments made monthly in arrears. We request that all payments be made by way of direct debit, although other payment methods are available upon request. The first payment falls due one month from the date of completion unless the borrower requests an alternative payment date. Early redemption charges are calculated in accordance with the Consumer Credit Act 1974. 2.6 Disbursement of funds
Upon completion of the loan the balance of funds due to the borrower can be issued by cheque or electronic transfer. The fee for electronic transfers is detailed in the general information and authority form and will be deducted from the balance of funds payable to the borrower.
Any mortgage arrears and/or secured debt will be paid directly to the mortgage company/creditor upon completion. Where the loan is being used for debt consolidation, cheques will be made payable to the creditors and posted to the applicant. The applicant is then responsible for forwarding the cheques to settle the accounts.
2.7 Income assessment Affordability
The Prestige Passport will generate two monthly instalments.
The first monthly instalment should be quoted to the applicant and will be displayed on the loan documents as the contractual monthly instalment (CMI).
The second monthly instalment should be used to calculate the debt to income ratio (DTI). This figure is displayed on the Prestige Passport as ‘Debt to income instalment’ and should not be quoted to the applicant. This figure is calculated based on the annual interest rate plus 1%. For example on plan one the annual interest rate is 6.75%, therefore 7.75% will be used to calculate the debt to income instalment.
The DTI should be calculated as follows:
(1st mortgage payment + debt to income instalment + monthly payment on any outstanding unsecured credit) / monthly net income x 100
A maximum DTI of 50% applies.
All income calculations are based on net income, with a minimum annual net income of £12,000.
Contract workers must have had their contract renewed at least once with a minimum of 6 months to run on the current contract.
Income received from agency/temporary work will not be accepted.
3.2 Self-employed applicants
Where the applicant is self-employed, they must complete the declaration of income form. The current income stated must be evidenced by an accountant’s reference supporting the income declared.
We require a minimum of 2 years trading figures and therefore the applicants must have been self-employed trading in the same occupation for a minimum of 2 years.
The accountant’s reference must be completed by a member of one of the following bodies and must have acted for the applicant for at least 1 year:
If the applicant does not have an accountant, or the accountant is not suitably qualified, then we will accept the two most recent years SA302’s as proof of income.
Applicants will be treated as self-employed if they own more than 25% of the company shares. Accounts and/or bank statements are not acceptable as proof of income.
3.3 2nd jobs
Where the applicant has a 2nd job, 50% of the income can be taken providing the job is permanent and has been held for at least 12 months. If it is unclear from the payslips how long the applicant has been in this employment, we may require the previous year’s payslips, P60 or an employer’s reference.
3.4 Pension income
Personal or occupational pensions will be accepted in full.
State pensions (retirement, widow and war) will be accepted in full providing this is not the main source of income.
Unsecured credit
Unsecured credit commitments not being settled from the proceeds of the loan will be calculated as follows:
•
3% of any credit cards or store cards whether live or in default and CCJ’s.•
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 communication suppliers can be ignored from theaffordability calculations 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. Please note that arrears on utilities will be subject to underwriter referral.
•
Mail order and communications suppliers, if in arrears, will not be treated as adverse units as long as the cumulative balanceoutstanding does not exceed £500.
•
Where the applicants are partially settling an account, we will take 3% of the remaining balance on credit/store cards, or the full monthly payment on loans/hire purchase accounts.3. Income
3.1 Employed applicants
Where the applicant is employed, we require three most recent payslips. Income will be calculated on the net payment received. Where an applicant has been employed by their current employer for less than 12 months, we require previous employment history for the balance of the year.
If the applicant is in receipt of regular overtime, guaranteed bonuses and/or regular commission, we will accept 50% of the amount received. Suitable proof of the frequency of these payments will be required. This may be in the form of payslips, an employer’s reference, or the previous year’s P60. For annual bonuses a 2 year track record must be evidenced. Please refer to an underwriter to confirm what will be considered as suitable.
Where payslips are not available, or are not sufficient, we will require an employer’s reference confirming the applicant’s position, length of time at the company, annual gross salary and whether their job is held on a permanent or temporary basis. We may also require bank statements. Applicants must be UK based, paying UK tax in sterling.
Applicants in a probationary period may be considered – please refer the deal to an underwriter.
Maternity/Paternity pay may be considered – please refer the deal to an underwriter.
Body Membership Level/Qualification
Association of Chartered
Certified Accountants ACCA or FCCA Institute of Chartered
Account-ants in England & Wales ACA or FCA Institute of Chartered
Account-ants in Scotland CA
Chartered Institute of
Management Accountants CIMA Association of Authorised
Public Accountants AAPA or FAPA Chartered Institute of Public
Where pension income is being used, we require three most recent bank statements confirming regular receipt of the pension. If we are unable to identify the credit on the account or the payments are inconsistent we will require the award letter. 3.5 Benefit income
State benefits will not be considered as acceptable income. We will not be able to lend where the applicant is benefitting from pension credits, income support or the DWP are contributing towards the mortgage.
3.6 Child maintenance
Child maintenance will be considered as acceptable income, providing the child is below the age of 14 at the start of the loan. If the income is being received for more than one child, one of whom is over the age of 14, a percentage of the income will be taken. For example if the applicant has 2 children aged 10 and 16, we would only be able to take 50% of the income.
Where maintenance income is received, we will require a copy of the court order and three most recent bank statements confirming regular receipt of the maintenance.
3.7 Other income
Investment income or income received from share dividends may be considered – please refer the deal to an underwriter.
Income earned on rental properties will not be accepted.
Rental income from lodgers/children/partners will not be accepted.
Income received from foster care will not be accepted.
3.8 Other mortgages
Where the applicant(s) own additional properties on a buy to let basis, we will assume these are self-funding on the basis that the credit search shows a clear payment profile. If the mortgage is currently in arrears, we will require evidence that the mortgage is self-funding in the form of the current tenancy agreement, recent bank statement showing the rent being received and a copy of the land registry.
4. The Property
4.1 Internal and drive by valuations
Where an internal or drive by valuation is required, the valuation must be carried out by one of the following approved companies:
•
DM Hall•
Esurv (Walker Fraser Steele in Scotland)•
Gateway Surveyors•
Hardies•
Metropolis Surveyors•
Principality•
Pure Panel Management Limited•
Sonas Chartered SurveyorsThe valuer must be located within a 25 mile radius of the property. If the property is located in a rural area and you are unable to find a valuer within the 25 mile radius, please discuss the case with an underwriter.
Valuation reports must be typed on a Prestige Finance Ltd Valuation Form.
We require colour photographs of the bathroom, kitchen, front and rear elevation and street scene on full internal valuations, front elevation and street scene only for drive by valuations.
Please note we are unable to complete a loan if the valuation has been carried out during the applicant’s consideration period. The valuation should only be carried out before the consideration period starts or has come to an end. We are unable to accept letters of invitation from the applicant requesting for the valuation to be carried out during their consideration period.
This does not apply to drive by valuations. 4.2 Hometrack valuations (AVM’s)
AVM’s must be produced by Hometrack using the Prestige Finance template. Property exclusions: flats, maisonettes and named properties with no house number. See criteria sheet for terms and conditions.
4.3 Extensions and alterations
If the valuation report mentions extensions or alterations to the property, we may require sight of the planning permission or building control certificate.
4.4 Coal mining reports
Coal mining reports are not required. 4.5 Other specialist reports
We will always speak to the valuer to discuss the necessity of these reports. Please refer the case to an underwriter before instructing any specialist reports. Where possible, we will try to take a view to completing without obtaining the recommended report.
4.6 Leasehold Properties - England/Wales only We will only require a copy of the lease if the title is not registered as Title Absolute. Please refer to section B of the land registry report or discuss with an underwriter.
We require a minimum of 50 years remaining on the lease at the end of the loan term. The valuer must be made aware if the term remaining on the lease is less than 100 years.
If the lease has less than 50 years remaining, we will not be able to lend unless the loan is being used in part to purchase the freehold or extend the lease. Please refer the deal to an underwriter.
4.7 Ex-local authority properties
We will consider lending on ex-local authority houses, providing the pre-emption period has expired. There are no restrictions on the LTV providing the property is mortgageable and the demand is no worse than fair.
We are unable to lend on ex-local authority flats/ maisonettes.
4.8 Solar panels
We may consider lending on a property where solar panels have already been installed, subject to the panels having been purchased outright and not subject to a lease. Please refer the deal to an underwriter. Sight of building regulation or planning permission may be required.
4.9 Properties with land
Properties with land holdings in excess of 3 acres should be valued on the assumption that only the property and 3 acres of land is included.
4.10 Property type
All property must comprise a single residential dwelling unit.
Flats/Maisonettes/Apartments must be self-contained with private facilities and direct access to the highway via common parts. We may consider lending on properties above commercial units, subject to the valuation report. Please refer the deal to an underwriter.
We will only lend on high-rise flats where there is a maximum of 6 floors, excluding the ground floor. Flats in blocks must be of modern construction. We are unable to lend on flats which are less than 2 years old, and/or studio flats below 30sqm.
We are unable to lend on the following property types:
•
Property designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licensed repair scheme).•
Properties constructed with high-alumina cement.•
Timber framed property with no brick skin or 100% steel or timber framed property.•
Property where material environmental hazards are present.•
Any property of Modern Method of Construction (MMC); eg a POD type construction where units are built off site, craned onto site and secured, serviced and connected etc, then externally clad.•
Any property containing Mundic concrete.•
Any property deemed unsuitable security by the valuer.•
Any property where there is ongoing movement/monitoring is required.•
Freehold flats/maisonettes.•
Flying freeholds that exceed 10% of the total area.•
Mobile homes & houseboats.•
Grade 1 listed buildings.•
Property whose saleability may be adversely affected by local planning or by an unsatisfactory mining search.•
Shared ownership/shared equity.•
Semi commercial and commercial.•
Leasehold properties with less that 50 years remaining on the lease at the end of the term of the loan – unless the loan is being used to extend the lease or purchase the freehold. This will be considered on a referral basis only.•
Buy to let/tenanted properties.Properties with planning or occupancy restrictions are not generally acceptable as security – please refer the deal to an underwriter.
Properties with 100% flat roofs will be considered on referral.
If the valuer advises that the property type is listed on the Defective Housing List, the locality is poor and/or the demand is poor we will not be able to lend.
If the valuer has recommended a retention for repairs to the property we are unlikely to be able to lend.
5. Mortgage Information
5.1 BSQ/mortgage references
If the mortgage profile appears on Equifax, we will not require a BSQ/mortgage reference providing:
•
The search confirms sufficient payment history as specified in the relevant plan.•
The information has been updated within the last 6 weeks.•
The search confirms the monthly instalment and the current balance.•
The mortgage is not in default or arrangement. If the mortgage does not show on the credit search then we will require a 12 month statement, written confirmation of the balance outstanding and confirmation that the account is up to date. If the current mortgage has not been running for long enough to show sufficient payment history as specified in the relevant plan, we will require previous mortgage history. This can be evidenced on the credit search, or by obtaining a previous mortgage statement.The same payment proof is also required for any existing secured loans.
The LTV will be calculated on the balance outstanding. A redemption figure is not required. If the mortgage is currently in arrears, we will require written confirmation of the arrears balance from the mortgage company.
5.2 Consent
Where a restriction is registered on the Land Registry in favour of the 1st mortgage company, we will require their consent to register a 2nd charge in favour of Prestige Finance Ltd.
We may be able to complete on conditional consent if granted on the basis that any arrears are cleared from the proceeds of the loan – please refer the deal to an underwriter.
5.3 Open plan and flexible mortgages
Where the first mortgage company are obliged to make further advances, and a restriction has been registered on the Land Registry, we will require either a deed of postponement (DOP) or confirmation of the maximum liability on the account.
A DOP will be required when we are lending behind the following open plan mortgages:
•
Woolwich plc – please ensure the date of the charge on the DOP matches the registered charge date on the Land Registry. The original DOP must be submitted with the pack. If consent is required, we will obtain this on completion.•
Nationwide Building Society – please refer to an underwriter to order the DOP in advance of the case being submitted.Confirmation of the maximum lending limit and that no further monies will be lent without our consent will be required when we are lending behind the following open plan mortgages:
•
The Mortgage Business•
Halifax•
Northern Rock•
Chelsea Building Society•
Mortgage Express•
First Direct/HSBCPlease note these lists are not exhaustive. 5.4 Lifetime/Equity release mortgages
We are unable to lend behind Lifetime/Equity release mortgages.
5.5 Secured charges
We require a redemption figure for all secured charges being settled from the loan. The redemption figure must include an undertaking that the charge will be removed from the property upon receipt of the funds, and must be valid for at least 5 days from the date of completion.
We will require evidence of the payment history as detailed in the BSQ/mortgage reference section.
5.6 Existing priorities
We will require a letter of no further interest from the relevant company for any priority registered against the property.
5.7 Removal of existing charges
If the account has been settled but the charge is still showing on the Land Registry, we will insist that the relevant lending company remove their charge prior to our loan completing.
5.8 Non-conforming mortgage companies
We will not lend behind the following mortgage companies: Associates Capital AVCO Trust Ltd Blemain Finance Blackhorse Finance Cedar Holdings Central Homeloans Central Trust Ltd
Cheshire Mortgage Corporation Ltd Cheval Bridging Finance Ltd Church House Trust plc. Communitas Finance Ltd Egg Banking Ltd
Endeavour Personal Finance First Plus Financial Group plc. First National Bank
Hurstanger Ltd
Lancashire Mortgage Group London Personal Loans Limited London Scottish Finance Marlborough Loans Ltd Matlock Bank
Nemo Personal Finance Ltd Norton Finance
Ocean Money
Paragon Personal Loans Picture Loans
Progressive Financial Services Swift 1st Ltd
Swift Advances plc. Webb Resolutions This list is not exhaustive.
6. Land Registry / Scottish Searches
We require an office copy or Scottish search, to be submitted with the case. Please instruct Wilson McKendrick to obtain a Scottish search and Standard Security. If the property is unregistered, we require the original deeds from the mortgage company.
7. Independent Legal Advice
We reserve the right to request Independent Legal Advice (ILA) on any application.
The applicant will be required to obtain ILA at the start of their consideration period. The signable documents should be posted 8 days from the date that the applicant obtained ILA. Please refer to an underwriter for further information.
Applicants will be required to seek ILA in the following instances:
•
The applicant(s) has a poor understanding of the English language and we are unable to satisfy ourselves that they understand the terms and conditions of the loan agreement. In this instance, the applicant must obtain ILA from a solicitor who speaks their native language. If both applicants require ILA for this reason we would not be able to lend.•
The applicant(s) is aged over 70 at the start of the loan.•
We are lending to a parent and their child – on a referral basis only.•
The applicant(s) is blind and therefore cannot read the documentation. Under the Disability Discrimination Act, the applicant cannot be disadvantaged by their disability and therefore we will refund the cost of the legal advice upon completion of the loan subject to an invoice from the solicitor.These are only some examples where ILA will be required. If you are unsure whether ILA should be obtained, please refer the deal to an underwriter.
8. Vulnerable Borrowers
Mental capacity is a person’s ability to make a decision. Whether that person has the ability to understand, remember and weigh up relevant information will determine whether they are able to make a responsible decision based on that information. Mental capacity can be temporary or may fluctuate.
In the event that we are unable to satisfy ourselves that the applicant has the mental capacity to understand the agreement or the implications of the agreement, we reserve the right to ask the applicant to seek further advice from a Health Practitioner or non-profit advisory service before completing the application.
Further information can be found on the Compliance section of our website. If you have any concerns about the applicant’s mental capacity, please refer to an underwriter.
9. Documentation
Please refer to the case submission checklist to confirm what documentation is required.
All loan documentation except for the application form must be printed via the Prestige Passport. We will accept your generic application form providing:
•
The correct loan figures are displayed – either the net or gross loan amount.•
The correct purpose of loan is stated.•
Length of time in employment is confirmed.All loan documentation must be originals, including the mortgage information, income and valuation report. We will accept certified copies of the applicant’s signature ID and proof of address.
The Fixed Sum Loan Agreement remains valid for 60 days from the date of the applicant’s signature. If the loan has not completed during this time, the Agreement must be reissued with a new consideration period.
10. Consideration Period
In accordance with the terms of the Consumer Credit Act, applicants are legally entitled to a consideration period. The following timetable must be adhered to:
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Initial loan documentation sent to the applicant(s) along with consideration copies of the Fixed Sum Loan Agreement (unsignables/section 58). Also referred to as the day ones.•
Eight days after the initial documentation was posted, the signable copy of the Fixed Sum Loan Agreement can be sent to the applicant(s).•
Sixteen days after the initial documentation was posted, the consideration period ends.No contact with the applicant(s) can be initiated by the broker, sub-broker, lender or third party during the consideration period. This includes the valuer.
The consideration period can only cease prior to the sixteenth day if the applicant(s) signs the ‘signable’ copy of the Fixed Sum Loan Agreement and the agreement is received at your offices. You are then able to contact the applicant(s).
The broker, sub-broker or courier cannot witness the applicant’s signature on the mortgage deed during the consideration period.
10.1. Use of reps / couriers
If you intend on using a rep/courier service to deliver documentation to the customer, we require the following process to be followed.
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A verbal offer of finance is made to the customer and the representative appointment arranged to collect documents.•
An “invitation to call” must be obtained in advance of the meeting. This can take the form of either (1) an email from the client to the broker requesting the representative to visit their home to collect documentation or (2) a recorded call where the client confirms they would like the rep to attend to collect documentation.•
The rep visits the property on the agreed date and delivers any documents which need to be signed by the customer, excluding the section 58 advance copies of the agreement, and collects any personal documents such as payslips, ID etc as well as obtaining a “signed customer checklist” confirming what documents werecollected.
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The Section 58 advance copies of the agreement must be sent by post on the day following the rep visit. At this point day one of the consideration period begins with the signable copies going out eight days later.•
A copy of the signed customer checklist must be submitted to Prestige with the pack.During this period the broker or the rep cannot make contact with the customer. A rep/courier service cannot be used to deliver the signable copy of the agreement. An independent third party should witness the applicant’s signature. Prestige will validate the above process as part of the pre-completion checks and if any doubt exists whether the process has been followed the documents will have to be re-issued and the consideration period re-started.
If you require any further information please contact an underwriter.
11. Further Advances
We may consider lending further money to existing borrowers providing they have a minimum of 6 months history on the existing loan. Please refer the deal to an underwriter.
12. Regulation
We are regulated and authorised by the Financial Conduct Authority.
We are members of the Finance & Leasing Association (FLA) and follow their lending code, copies of which are available on request from the Compliance Department. If a loan is deemed not to be in the interest of the borrower, as a responsible lender we reserve the right to decline the application or ask for additional documents to support the application.
or visit
prestigefinance.co.uk
Head office: Prestige Finance, Prestige House, 16 Melbourne Road, Bushey, Herts, WD23 3LN. Telephone: 020 8950 9393.
Registered in England (company number 1080632). 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 7312896).
