![]() ![]() Keep the offset feature and borrow more when buying a new property.The application needs to be for the total of the old mortgage balance plus the further borrowing (the total mortgage amount). You’ll need to submit an application for a new offset mortgage from our offset product range. Keep the offset feature and borrow more against the same property.They’ll need to choose from one of these options, based on their circumstances. If a customer already held ten or more accounts before this date, please call the Intermediary Business Centre on 03 – Monday to Friday, 9am to 5pm.Ĭlients who already have an offset mortgage with us and want to borrow more can’t keep their current offset product. Since 16 October 2019, customers can only hold up to nine accounts in addition to their main mortgage.Additional borrowing is not allowed to support any demolish and re-build scenarios which are seen as a clear breach in Mortgage Terms & Conditions entered into by the borrower.For any applications involving the consolidation of an existing MCA Reserve debt, a condition of offer must be accepted by the customer that their MCA Reserve limit shall be reduced to zero/capped and any rebalancing feature be switched off.This applies whether the additional lending is on an interest-only or repayment basis Repayment plan and LTV – changes in the repayment plan that the lending was already assessed against must meet the current interest-only standards.Interest only – the total new aggregate amount of interest-only borrowing, including any existing borrowing, must meet current interest-only standards, including for the repayment plan, plausibility assessment and minimum income requirements.For Family Springboard mortgages, additional borrowing can’t be taken while the deposit is locked, or exceed 35 years Additional borrowing applications can exceed the term of the main mortgage account but must not exceed 40 years from the date the mortgage originally began, or 25 years for a mortgage with any element that is interest only.* Maximum LTV for additional borrowing on interest only will depend on the repayment vehicle selected, see interest-only policy section.įor all new lending requests a valuation must be carried out irrespective of when the original valuation was undertaken. A maximum LTV of 80% applies where the purpose of additional borrowing (ie further advance) is for debt consolidation. There are two exceptions to this (age and term) where policy requirements only apply to the additional amount borrowed.Ī maximum LTV of 85%* may be considered (subject to product availability). Current policy rules apply to the combined total of the mortgage and additional lending. You need to treat requests for additional borrowing by existing mortgage customers as new lending, with the reason fully explained.
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