These common questions will help to answer any queries you have about further advances. If you have any further questions, contact your business development manager.
Q1 Can I do a further advance on FSA regulated and non-FSA regulated mortgages?
Yes. A regulated mortgage will stay regulated regardless of a further advance.
A non-FSA regulated mortgage will stay non-FSA regulated if a product transfer is carried out. Where there is a further advance, we refinance the whole mortgage account, to give customers the benefit of regulation.
Q2 Can the KFI be printed locally? If so, how?
Yes, once you have created and submitted an online further advance KFI, you'll receive an email with a link to a printable KFI.
Q3 Can I draw down the further advance funds on behalf of the client?
Only if we have received the completed and signed authorisation form. This form goes out with the offer.
Q4 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.
Q5 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 or part interest only and part repayment basis.
Q6 The signed declaration has not been sent in yet, but the client has received the offer. Does the declaration still need to be returned?
Yes. The declaration must be received before the further advance funds can be released.
Q7 How does a further advance affect the regulatory status of a mortgage?
An FSA regulated mortgage will stay FSA regulated regardless of a further advance.
A non-FSA regulated mortgage will stay non-FSA regulated if a product transfer is carried out. It would become FSA regulated on completion of the further advance.
Q8 What happens if any data is incorrect on the customer summary screen?
You should contact your local service centre for assistance.
Q9 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.
Q10 What documents will I receive?
A
- 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.
Q11 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.
Q12 I haven't received the correct procuration fee. What do I need to do?
Call 0845 608 0038 or email the intermediary sales help line.
Q13 On an FSA regulated mortgage where the client wishes to apply for a further advance, can the product for both application types be reserved?
No. The product cannot be reserved for the product transfer.
Q14 My client has received a letter after completion of the product transfer asking for initial interest on the further advance to be paid. Why is this?
On FSA regulated mortgage accounts further advance applications must be processed as two transactions. In some cases this results in the payments advised in the further advance completion letter being replaced.
Customers will therefore be advised that either:-
- The next payment to be collected will include the initial interest on the further advance
or
- They will need to make a separate payment to cover the initial interest
Q15 Can I key a product transfer or further advance if there are more than two applicants?
Yes. More than one data capture form will be necessary to capture all the customer details.
Q16 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.