Common Questions

  1. Home
  2. Placing business
  3. Common Questions

This page contains answers to some commonly asked questions about our products and services

Expand all | Collapse all

General questions

Q1 Where do I go to access KFIs and offer documents for cases?

Product transfer and further advance documents can be accessed in the 'Document Store' in the same way you access your main mortgage application documents.

Go to Intermediaries Online; select the 'green mortgages tab'. Under my applications, the product transfer or further advance will be listed, click on roll number and then 'next steps' to view a list of all documents.

These instructions can be found in the 'Ten easy steps to keying a product transfer guide'.


Q2 What happens once I've completed the mortgage account information or relevant KFI form?

Once we’ve completed your request for mortgage account information or for a KFI we'll send you an email with the mortgage information or link to access the KFI, and confirm the next steps.


Q3 Will my customer receive a copy of the KFI?

Yes, in addition to the KFI and declaration being produced for you to access on our online system as detailed above, your customer may receive a copy in the post.

The customer copy is produced for information only and there is no need for the customer to take any action when they receive this document. You should continue to provide your customer with the documentation as normal.


Q4 What happens if my customer does not agree with the indexed valuation?

We will use the Halifax indexed valuation to calculate loan to valuation for your customer. To find out what the indexed valuation is, you should complete step one of the product transfer process.

If your customer does not agree with the indexed valuation, we will arrange for an external valuation to be done. You should indicate that you need an external valuation to be carried out by completing the appropriate section of the KFI request form.

Once we have received the external valuation, we will let you know so that you can tell us what product the customer wishes to proceed on.

It should be noted that once the new external appraisal has been completed, this is the figure that will be used to assess loan to valuation. This applies even where the external valuation is lower than the original indexed valuation.


Q5 Why is there a discrepancy with my customer’s Direct Debit at the end of the month?

The product transfer or further advance is accepted when we receive the customers signed declaration. Occasionally this may happen close to due date for the next payment. In this case the direct debit may already have been requested and because it is not possible to amend this payment, an incorrect payment will be collected. Where this happens, you will receive an email letting you know what has happened and letting you know the steps your customer can take to ensure that the payment is corrected.

Product Transfers

Q1 An application for a product transfer was submitted but was not offered immediately or the customer did not accept it. The original date of effect has now passed. Can the local service centre amend the date of effect?

No, As the date has passed, you should submit a new product transfer KFI request and choose a new date of effect.


Q2 How will I know that the product transfer has been offered or completed?

You'll receive an e-mail advising you that the 'status' has changed on the application and the product transfer offer can be accessed online.


Q3 When will the procuration fee be paid and how will I know what amount I am being paid for each application?

The same procedures and timescales as mortgage applications are applicable. Statements will detail the fees and transactions for each application type.


Q4 What are the submission dates for product transfers?

Product Transfers can be submitted at any time in the month but the earliest date on which the Product Transfer could take effect will depend on when in the month the request is received.

The earliest a Product Transfer can take effect is the 1st of the following month as long as the request is received by the 20th of the month at the latest and all documentation required is received by the 22nd of the month.

If a Product Transfer request is received after 20th of the month this cannot be completed until the following month so the earliest the Product Transfer would take effect is the 1st of the month after next.

If all the documentation requested is not received by 22nd of the month the Product Transfer cannot be completed until the following month so the earliest this would take effect is the 1st of the month after next.


Q5 Does my customer need to complete a new product transfer declaration?

Yes, all product transfers require a declaration to be signed by all parties and returned to us. The declaration can be found in the documents store once a KFI has been produced. If any element of the mortgage is on interest only, a separate 'declaration of intent' is also required.

Further advances

Q1 How does my customer draw down the further advance funds?

When your customer is ready to receive their funds, they should call the Halifax Refinance team on 0845 600 0712 and select option 3.


Q2 Is it possible to have part interest only and part repayment for a further advance, if the account is FCA regulated?

There are two examples:

  1. If the existing mortgage is part interest only and part repayment, then the further advance can only be on a repayment basis.
  2. If the existing mortgage is interest only, then this is the only time a further advance can be taken out on an interest only or part interest only and part repayment basis.

Please note any new interest only lending must meet the current lending criteria.


Q3 How will I know that the further advance has been offered or completed?

You'll receive an e-mail advising you that the 'status' has changed on the application and can be viewed in case tracking.


Q4 When will the procuration fee be paid and how will I know what amount I am being paid for each application?

The same procedures and timescales as mortgage applications are applicable. Statements will detail the fees and transactions for each application type.


Q5 What interest rate is charged on the initial interest that is due following completion of a further advance?

For a further advance the new product doesn't take effect until the 1st of the month following completion. The variable base rate applies until that time.


Further advance & Product Transfer

Q1 What happens if my customer wants to take a product transfer and a further advance?

Your customer can apply for either the product transfer or the further advance first, however this application must complete before the other application can be submitted. Your customer will not be able to have the same product for both transactions. They will need to select a rate from the relevant range (product transfer or additional borrowing) for the first application and then select a separate product from the other range applicable at the time the second application is submitted.


Q2 When taking a product transfer and a further advance, will my customer have to pay two separate product fees?

Yes, if your customer is looking to arrange a further advance and product transfer, they are treated as two separate transactions. As such, your customer will have to pay any appropriate product fee on each separate transaction as applicable. In addition, please remember that the further advance administration fee of £99 will also apply.

Our tracker rate mortgages are linked to Bank of England bank rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website at www.bankofengland.co.uk.

For independent information on mortgages, visit the website 'Money Advice Service'.

If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise retail clients, you must ensure it conforms to the Financial Conduct Authority's advising and selling rules. This site is intended for UK residents unless otherwise stated.

Halifax is a division of Bank of Scotland plc. Registered in Scotland No.SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Copyright © , Halifax plc. All rights reserved.

Mortgage Trading Exchange

Financial Adviser Service Awards 2012 - 5 stars - Mortgage Lenders and Packagers