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Contact Details
1st Source Direct
NORTHERN ROCK PLC
HEAD OFFICE
Northern Rock House
PO Box 2
Gosforth
Newcastle Upon Tyne
NE3 4PL
Tel : 0845 6001516
Fax : 0191 279 4693
Call Decision Centre when your client :
Wants to borrow more than the minimum criteria
Needs an urgent decision in principle
Needs to fast track and application
Tel : 0870 2413088
fax : 0191 522 3876
In Scottish cases when a valuation is instructed by the intermediary, lender
charges a 225 admin fee.
ACCEPTABLE INTRODUCERS
1st Source only
SERVICE/PROC PAYMENTS
Yes, Contact local Sales Manager for details
BROKER PACKAGING REQUIREMENTS
Broker to submit fully completed and signed application form,
valuation and application fee if applicable
SOLICITORS
Will use applicants solicitor. All partners must hold current
practising certificate and be in practice. They must also
be registered with the Law Society. Licensed Conveyancers are
acceptable if on lenders panel. Sole Practitioners are also
acceptable
ADDITIONAL CASE INFORMATION
This table provides details of the documents we will require to verify
income. Please ensure that all paperwork, including fees, are in order
and forms are signed and dated before submission. This will help us to
process the application quickly.
Customer Credit Score Customers with an LTV up to and including 85%
(80% for loans over 500,000)
High Credit Score Fully completed Confirmation of Identity and
Affordability Forms required.
Medium Credit Score Fully completed Confirmation of Identity and
Affordability Forms required.
Low Credit Score Employed: 3 of the last 6 months payslips plus
last P60. If paid weekly 4 of the last 8 weeks
payslips plus last P60.Self Employed: Accountant
certificate or last 3 years accounts or last
3 years tax assessments.In addition, last
mortgage statement or lender reference.
Customer Credit Score Customers with LTV greater than 85%
(80% for loans over 500,000)
High Credit Score - Employed: last monthly payslip or two weeks payslips.
Self Employed: accountant certificate, last 2
years accounts or last 2 years tax assessments.
Medium Credit Score - Employed: 2 of the last six monthly payslips plus
last P60. If weekly paid, 4 of the last 8 weeks
payslips plus last P60.
Self Employed: accountant certificate or last 2 years
accounts or last 2 years tax assessments.
Low Credit Score - Employed: 3 of the last 6 months payslips plus last
P60. If paid weekly 4 of the last 8 weeks payslips
plus last P60.
Self Employed: Accountant certificate or last 3 years
accounts or last 3 years tax assessments.
In addition, last mortgage statement or lender reference.
The Additional Case Information required for Low Credit Scores will also
be required for the following applications:
. All applications for together products - irrespective of LTV or Credit Score
. All FTB applications - irrespective of LTV or Credit Score
. All BTL applications at 70% LTV or above
. All applications with an Unsecured Cash Reserve where the combined
LTV exceeds 85%.
For loans over 500K above 80% LTV we will also require the last 3
months bank statements in addition to all other requested case
information.
For Customers employed less than 6 months, an employers reference will
be required.
Northern Rock reserves the right to seek additional information where
we believe the lending risk requires further investigation. Northern
Rock reserves the right to carry out occupation and income reasonability
checks on any case at application stage. Following completion, Northern
Rock will, from time to time, seek retrospective confirmation of income
for loan performance monitoring purposes. This is in accordance with FSA
Best Practice guidelines. These application and post completion checks
will involve contacting employers in some instances.
It is an offence to knowingly make a false, inaccurate or misleading
declaration when applying for a mortgage. If you make such a declaration
you may face criminal prosecution and/or civil action for recovery of
any losses incurred by Northern Rock.
Proof of what the money is being used for is required by means
of estimates etc..
Acceptable Purposes
Home Improvements (Max 95%)
Marital Settlement (Max 95%)
Re-Finance (replace existing loan - Max 95%)
Dependents Home (Max 95%)
Self Build Home (Max 95%)
Education Fees (Max 95%)
Holiday (Max 95%)
Holiday Home (Max 95% - Must remortgage main residence)
Purchase car, boat, caravan etc.. (Max 95%)
Second Home (Max 95%)
Debt Consolidation (Max 95%)
RAPID REMORTGAGE
Available on all products excluding HERMS and Buy To Let. They will
aim to ensure that the customers remortgage completes within one
month from receipt of a fully completed application form and fee.
This is subject to access to the property on request in order to
complete a valuation and by the customer returning promptly any
documents or requestes for further information from either the
solicitor or Northern Rock. A solicitor chosen from the panel will
undertake the legal work involved in a standard re-mortgage without
charge to the customer. The customer will have to pay for any
non-standard costs that may arise or any seperate legal advice
required during the transaction. The offer excludes complex cases
e.g. but not limited to where a transfer of equity is required or
existing second charges are not to be repaid.
On all products with an arrangement fee, remortgage customers wishing
to raise additional capital will be charged an additional arrangement
fee of 95. This fee will not be charged on Arrangement Fee Save
products.
UK Tax Payers ||: Not compulsory
Arrears Outstanding ||: No
Arrears Settled ||: Consider 1 mths arrears in last 3
||| years
CCJ's Outstanding ||: No
CCJ's Satisfied ||: Consider 1 CCJ upto 500
Retired Applicants ||: Considered providing sufficient
||| income to cover mortgage
Past Bankruptcy ||: No
Ex-Patriates ||: UK Nationals abroad - If family live
||| in property
Foreign Nationals ||: If now permanently resident in UK
DSS Payments ||: No
Diplomatic Immunity ||: No
Debt History ||: No
Max age on application||: None
Interview Required ||: No
Guaranteed Overtime ||: Consider upto 50%
Regular Overtime ||: Consider Upto 50%
Commission ||: Consider 50% - Must be regular
Rent Allownace ||: 100%
Second Job ||: Maximum 50% taken into consideration
Large Town Allowance ||: Consider All
Investment Income ||: Not considered
AGE
The minimum age for all applicants is 18yrs, there is no maximum
however, if the applicant is aged 55 or over and the loan goes
into retirement age Northern Rock must be satisfied that the applicant
will have sufficient pensionable income to cover the loan. For the
together products the minimum age is 21.
LIFE COVER REQUIREMENTS
Endowment|: Low Cost / Low Start / With Profits / Unit Linked
Repayment|: No requirements
Int Only |: no requirements but need to know how loan will be
|| repaid
PEP |: Term Assurance required
Pension |: Personal - With Profits / Unit linked plus Term
|| Assurance
|| Company - N/A
|| Executive - N/A
ISA || Term Assurance required
INCOME MULTIPLES
GROSS BASIC HIGH CREDIT MEDIUM CREDIT LOW CREDIT
INCOME BAND SCORE SCORE SCORE
single/joint single/joint single/joint
Over 100K 4.90 / 4.40 4.60 / 4.10 4.00 / 3.00
32,501 - 100K 4.60 / 4.10 4.30 / 3.80 3.80 / 2.90
25,001 - 32,500 4.30 / 3.80 4.00 / 3.50 3.70 / 2.80
17,501 - 25,000 4.00 / 3.50 3.80 / 3.30 3.60 / 2.80
10,000 - 17,500 3.80 / 3.30 3.60 / 3.10 3.50 / 2.80
0 - 10,000 3.50 / 3.00 3.50 / 3.00 3.50 / 2.80
TOGETHER PRODUCTS
GROSS BASIC HIGH CREDIT MEDIUM CREDIT LOW CREDIT
INCOME BAND SCORE SCORE SCORE
single/joint single/joint single/joint
Over 100K 5.40 / 4.90 5.10 / 4.60 4.30 / 3.20
32,501 - 100K 5.10 / 4.60 4.80 / 4.30 4.10 / 3.10
25,001 - 32,500 4.80 / 4.30 4.50 / 4.00 4.00 / 3.00
17,501 - 25,000 4.50 / 4.00 4.30 / 3.80 3.90 / 3.00
10,000 - 17,500 4.30 / 3.80 4.10 / 3.60 3.80 / 3.00
0 - 10,000 4.00 / 3.50 4.00 / 3.50 3.80 / 3.00
The table above sets out the income multiples that will apply to applications
subject to credit score and product taken.
Please note that it is only the applicants gross basic income that will
determine which income multiple their application will receive. However,
all acceptable income (i.e including 50% of bonuses and overtime) will be used
in the multiplier.
In addition, for applicants taking together or longer term fixed rate products
the amounts listed in the table on below will be added to the relevant
category in the table above.
PRODUCT single / joint
add x income add x income
Together 0.30 0.20
All 5 year or longer
Fixed rate products
(excluding together prods) 0.50 0.20
PLEASE ALWAYS CONSIDER US FOE CASES OUTSIDE STANDARD POLICY - WE WILL BE HAPPY TO
ADVISE WHAT WE WOULD BE PREPARED TO OFFER YOUR CLIENTS. Multiple applicants will
be considered on application.
Refer to our specialist team in our Decision Centre for a Decision in principle,
by calling 0870 241 3088
25 charge if lenders Buildings Insurance is not taken.
Schedule of the policy is required. No minimum property
value stipulated, but the re-instatement value is required
for insurance purposes
Insurance Cancellation Fee 25
PURCHASE
Main Residence House / Flat
Second Home House / Flat
Home for Dependent House / Flat
Holiday Home House / Flat
Council RTB House / Flat (not high rise block) - 100% DPP
maximum 95% OMV. Over 100% DPP may be lent for home
improvements. If borrowing more than 75% OMV normal MIGP's
apply
TENURE
Freehold House
Leasehold House / Flat
Feuhold House / Flat (Scotland)
Minimum lease required on application is 30 years + mortgage
term
Minimum lease required on redemption is 30 years
CONSTRUCTION
Conventional Brick / Tile
Brick on Wood
Steel Frame (depends on type - considered individually)
Concrete (Depends on type - considered on an individual basis)
Timber Frame House
PROPERTY
Flat upto 4th floor (with / without a lift)
OTHER
Converted Flat
Ex Council House / Flat
No inside WC (subject to suitable retention - Refer - only if
WC to be installed)
Single Bedroom - Refer
Thatched House
NHBC required if property less than 10 years old
No bathroom (Retention - Funds would be released once bathroom
had been fitted)
LOCATION
England (inc Isle of Wight) Wales, Scotland and Northern Ireland
~ Purchase Price Valuation
~ Fee
~
The cost of the valuation report includes a non-refundable Application
Fee of 75 and commission of 270 which is earned by Northern Rock for
facilitating, accepting and assessing the valuation report for
mortgage purposes. The commission cannot be refunded once the
valuation has been instructed. The balance is the valuers fee, which
cannot be refunded once the inspection has been carried out. A
valuation cannot be instructed until this fee is paid.
Where the valuer is not instructed by Northern Rock immediately
following receipt of an application form, for example in Scotland,
the 75 Application Fee and 270 commission will be debited to the
mortgage account on completion.
For applications for a CAT Standard Mortgage, there will be no
Application Fee and the commission which is earned by Northern Rock
for facilitating, accepting and assessing the valuation report for
mortgage purposes will be 150.
For loans where the advance exceeds 1million, and additional desktop
valuation will need to be carried out for a fee of 75. Reinspection
fee 55.
Purchase Price HouseBuyer
Fee
0 - 60000 515
60001 - 100000 555
100001 - 150000 595
150001 - 200000 640
200001 - 250000 685
250001 - 500000 750
500001 - 750000 800
750001 - 1000000 850
1000001 - 1500000 1050
1500001 - 2000000 1250
2000001 - 2500000 1450
2500001 - 3000000 1750
3000001 and above By Negotiation
For loans where the advance exceeds 500,000 a desktop
valuation will need to be carried out - Refer for fee
Valuations by panel valuer
Reinspection fee - Refer for fee
Further Advances - Refer for fee
| (Known to Lender as Risk Charge Fee)
| Lender pays Risk charge upto & including 95%
Max loan 5000000 ( by negotiation / refer to lender )
Bridging Finance ||: Closed
Drawdown Facility ||: Yes - Flexible choice standard product
Equity Release ||: Depends on purpose - Refer
Premium Funder ||: No
Self Build ||: Refer
Group Build ||: Refer
Shared Ownership ||: No
Top Ups ||: No
Further Advances ||: Existing Borrowers - 299 Fee
||| includes valuation (185
||| Scotland)
Split Loans (End / Rep) ||: Yes
Negative Equity ||: Existing NRBS Mortgage Customers
ERP Refund / Waiver ||: If porting existing product to a
||| new loan / property redemption is
||| waived, if taking a new product
||| redemption is halved
Legal Fees Package ||: No
Secured Loans ||: Yes
Semi / Full Commercial ||: See Commercial Finance
Second Charges ||: No
Minimum Term ||: 7 years
Maximum Term ||: 35 years / 30yrs Together Range
Reference Fee ||: 80
Questionnaire Fee ||: 75
Telegraphic Transfer ||: 30
Northern Rock BTL products;
PLease note that the minimum income required is 25k.
Non EEA Nationals - must have permenant right to remain in the UK.
Maximum LTV is restricted to 75%, and all products are available
except Together, HERM and Cash Reserve.
EEA Nationals - standard lending policy applies. All products
available except Together and Unsecured Cash Reserve.
CURRENT ACCOUNT, Customers can opt to receive
Connections Benefit, no interest is earned on the customers
account instead, we calculate the average monthly cleared
credit balance on the current account. Then, interest on the
mortgage / unsecured loan is only calculated on the amount
above the average monthly cleared credit funds in the current
account
SAVINGS ACCOUNT, Customers can opt to receive
Connection Benefit, no interest is earned on the customers
account instead, we calculate the average monthly cleared
credit balance on the savings account. Then, interest on the
mortgage / unsecured loan is only calculated on the amount
above the average monthly cleared credit funds in the savings
account
Connection Interest, Only available on the savings account.
With this option, interest is earned on the savings account at
the same rate as the together connections mortgage. As interest
is being earned it will be subject to tax as appropriate
HELP WITH COSTS OPTION (refer to lender for products that will
have this incentive)
Upto 1000 Help With Costs benefit - Refer,this benefit will now only
be clawed back should the borrower change their mortgage product within
the first 3.5 years following completion.
PURCHASE
Home Purchase customers can also use the Panel Solicitors, and
prices will be agreed on an individual basis. These Fees
cannot be added to the loan
LOYALTY DISCOUNT
A Loyalty Discount is also available for existing borrowers
who have held their current loan for more than seven years,
guaranteed to give at least 0.25% discount off their current
rate for the remaining term of the loan.
SERVICE/PROC PAYMENTS
Refer to Lender
Early Repayment Charge
Early repayment charge in years 1 to 5 will be on the orginal loan
amount borrowed, in years 6 to 10 it is applied to the outstanding
mortgage balance on full redemption or on any capital repayments made
All Products are portable, i.e. the remaining terms and conditions
of the original loan are transferable to a new property when a
customer moves home. Where the loan is ported the Early Repayment
Charge relating to the balance transferred will be refunded.
If the new loan is for less than the amount required to redeem the
original mortgage you will be required to pay the Early Repayment
Charge on the reduction in balance. All transfers must take place
within 3 months of redemption of the original loan.
250 will be charged on completion of the loan where the balance
is increased. Any increase in balance will be subject to the original
terms and conditions.
If the customer moves home and takes out a new product with Northern
Rock within 3 months of redemption of the original loan then half the
Early Repayment Charge will be Refunded. For Cashback mortgages a
refund of a quarter of the Early Repayment Charge is available
following year 2 while the loan must have been in existence for 3
years for the half refund to apply
For remortgage customers wishing to raise additional capital an
additional arrangement fee of 95 will be charged
INCOME MULTIPLES
Refer to Lender for full explanation of Income Multiple Calculations
Multiples shown are just a guideline
ADDITIONAL CASE INFORMATION
This table provides details of the documents we will require to verify
income. Please ensure that all paperwork, including fees, are in order
and forms are signed and dated before submission. This will help us to
process the application quickly.
Customer Credit Score Customers with an LTV up to and including 85%
(80% for loans over 500,000)
High Credit Score Fully completed Confirmation of Identity and
Affordability Forms required.
Medium Credit Score Fully completed Confirmation of Identity and
Affordability Forms required.
Low Credit Score Employed: 3 of the last 6 months payslips plus
last P60. If paid weekly 4 of the last 8 weeks
payslips plus last P60.Self Employed: Accountant
certificate or last 3 years accounts or last
3 years tax assessments.In addition, last
mortgage statement or lender reference.
Customer Credit Score Customers with LTV greater than 85%
(80% for loans over 500,000)
High Credit Score - Employed: last monthly payslip or two weeks payslips.
Self Employed: accountant certificate, last 2
years accounts or last 2 years tax assessments.
Medium Credit Score - Employed: 2 of the last six monthly payslips plus
last P60. If weekly paid, 4 of the last 8 weeks
payslips plus last P60.
Self Employed: accountant certificate or last 2 years
accounts or last 2 years tax assessments.
Low Credit Score - Employed: 3 of the last 6 months payslips plus last
P60. If paid weekly 4 of the last 8 weeks payslips
plus last P60.
Self Employed: Accountant certificate or last 3 years
accounts or last 3 years tax assessments.
In addition, last mortgage statement or lender reference.
The Additional Case Information required for Low Credit Scores will also
be required for the following applications:
. All applications for together products - irrespective of LTV or Credit Score
. All FTB applications - irrespective of LTV or Credit Score
. All BTL applications at 70% LTV or above
. All applications with an Unsecured Cash Reserve where the combined
LTV exceeds 85%.
For loans over 500K above 80% LTV we will also require the last 3
months bank statements in addition to all other requested case
information.
For Customers employed less than 6 months, an employers reference will
be required.
Northern Rock reserves the right to seek additional information where
we believe the lending risk requires further investigation. Northern
Rock reserves the right to carry out occupation and income reasonability
checks on any case at application stage. Following completion, Northern
Rock will, from time to time, seek retrospective confirmation of income
for loan performance monitoring purposes. This is in accordance with FSA
Best Practice guidelines. These application and post completion checks
will involve contacting employers in some instances.
It is an offence to knowingly make a false, inaccurate or misleading
declaration when applying for a mortgage. If you make such a declaration
you may face criminal prosecution and/or civil action for recovery of
any losses incurred by Northern Rock.
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