Troubleshooting
The FAQs below will help to answer any queries you may have in relation to Further Advances and Product Transfers. If you have any further queries, have a look at our online demo or contact your Business Development Manager.
Can I do a Further Advance / Product Transfer on FSA Regulated and Non-FSA Regulated mortgages?
Yes. A regulated mortgage will stay regulated regardless of a Further Advance or Product Transfer.
A Non-FSA Regulated mortgage will stay Non-FSA Regulated if a Product Transfer is carried out. Where there is to be a Further Advance on a Non-FSA Regulated mortgage, we shall take the opportunity to refinance the whole mortgage account, including the existing debt and the Further Advance, to give customers the benefit of regulation for the total mortgage.
Back to topCan the KFI be printed locally, if so, how?
Yes, once you have created and submitted an online Further Advance or Product Transfer KFI, you will receive an email with a link to a printable KFI. This is the same as the current online mortgage application process.
Will the Higher Lending Charge appear on the KFI, offer and completion letter?
Higher Lending Charge is not charged on any Further Advances and it does not apply to Product Transfers, therefore, it will not be shown on the KFI, the offer or on the completion letter.
Can the Further Advance funds be drawn down by you on behalf of the client?
Only if we have received the document to authorise this completed and signed by the client(s). The form of this document goes out with the offer.
When does the days period for Securing Products begin?
The product is secured within days providing the Product Transfer full application is submitted within 30 days of completion of the Further Advance (i.e. KFI is accepted and full application submitted). If it is submitted after the 30 days, any product arrangement fee applicable on the product will be charged.
What if the product selected is withdrawn within the 30 days securing period?
If the Product Transfer full application is keyed within the 30 day period the product selected at the Further Advance stage will be available to be secured, even if the product has been withdrawn.
An application for a Product Transfer was submitted but it was not offered immediately due to a referral. There is some outstanding information to pass to the Local Processing Centre but the original date of effect the client chose has now passed, can the Local Processing Centre amend the date of effect?
No, as the date has passed, you must contact the Local Processing Centre and explain what has happened, the case would need to be NPR'd (not proceeded). You can then key a new KFI/application and choose a new date of effect.
A KFI for the Product Transfer has been prepared and submitted, but the clients did not accept it immediately. They have now decided they would like to proceed, however the date of effect they chose has now passed. Can the existing KFI be converted to a full application and the date of effect amended?
No, you will need to prepare a new KFI - please note you cannot amend the date of effect in the accepted KFI.
Is it possible to have part Interest Only and part Repayment for a Further Advance, if the account is FSA Regulated?
There are two examples:
- If the existing mortgage is Part Interest Only and Part Repayment, then the Further Advance can only be on a repayment basis.
- If the existing mortgage is Interest Only, then this is the only time a Further Advance can be taken out on an Interest Only basis or Part Interest Only and Part Repayment.
The signed declaration has not been sent in yet, however both you and the client have received the offer already. Does the declaration still need to be returned?
Yes, whilst not offer significant, the declaration must be received before the Further Advance funds can be released.
How does a Further Advance or Product Transfer affect the regulatory status of a mortgage?
An FSA Regulated mortgage will stay FSA Regulated regardless of a Product Transfer or Further Advance. A Non FSA Regulated mortgage will stay Non FSA Regulated if a Product Transfer is carried out. A Non FSA Regulated mortgage would become FSA Regulated on completion of the Further Advance as the existing debt is refinanced.
What happens if any data is incorrect on the Customer Summary Screen?
You or your client can contact your Local Processing Centre for assistance.
How will I know that the Further Advance or Product Transfer has been offered/completed?
You will receive an e-mail advising you that the 'status' has changed on the application and can be viewed in Case Tracking.
What Documents will I receive?
- KFIs for all application types (via e-mail).
- Offer documentation for Further Advances only (via post).
- Please note that there is no change to existing documentation issued for Mortgage Applications.
When do I get 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.
I have not received the correct procuration fee, what do I need to do?
You will need to ring the existing Intermediary Sales help line or contact them via e-mail.
On an FSA Regulated mortgage where the client wishes to apply for a Further Advance and Product Transfer, can the product for both application types be reserved?
No. The product cannot be reserved for the Product Transfer.
My client has received a letter after completion of the product transfer asking for initial interest on the further advance to be paid, why?
On FSA Regulated Mortgage accounts Further Advance and Product Transfer applications must be processed as two transactions. In some circumstances the processing of the Product Transfer results in the payments advised in the Further Advance completion letter being replaced on completion of the Product Transfer.
Customers will therefore be advised that either:-
- The next payment to be collected will include the initial interest on the Further Advance
or - If it is too late for us to change the next payment before the collection date, they will need to make a separate payment to cover the initial interest
Will a Product Transfer application on a Non-regulated mortgage account make the account regulated?
No, we will still issue a document like the KFI but it does state that the account is not regulated by the FSA. This would only occur if the client was borrowing additional funds at the same time.
Can a product transfer be completed on accounts that have a Consent to Lease?
No, this is on the list of exceptions in the guides and a message will be returned when the Intermediary requests a Customer Summary enquiry which will direct the customer to the RCC. No referral fees are paid. This is also the case for accounts where the customer is in the Armed Forces.
At what point does the Product Transfer completion letter go to the customer?
Once a full application is submitted, assuming no rules are fired into the ISC/Premier the application will go direct to completion status and a letter issued automatically.
Will I receive a copy of the Product Transfer letter?
No copy letter is produced for a Product Transfer for but an email will be automatically produced each time the status on account changes to let you know what stage the application has reached.
Can I key a Product Transfer where a retention is present?
Product Transfers cannot be keyed where a retention is present.
Can I key a Product Transfer if there are more than 2 applicants?
Yes, we are now able to accept more than 2 applicants on Further Advances and Product Transfers applications (more than one Data Capture form will be necessary to capture all the customer details).
How can I future date a Product Transfer?
When future dating a Product Transfer you will be provided with 3, 1st of the months i.e. on Tuesday 25th July you will be able to select 1st August, 1st September, & 1st October.
On the 25th of each month it becomes too late to choose the 1st of the following month, because of this the earliest date drops away and the next 1st of the month gets added for selection within the online system.
Keying Date |
Dates of effect available |
|---|---|
25th July 2006 |
1st August / 1st September / 1st October |
26th July 2006 |
1st September / 1st October / 1st November |
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 and so the variable base rate will apply until the end of the 1st month.
