Product Guide - Key Brokers 21.03.14

Underwriting Guide for Intermediaries
●The Home Solutions Mortgage is a variable rate mortgage designed
to help your clients who do not fit our standard lending criteria. Please
contact our Business Development Team for more details on 0345 601
2744.
*Features ‘switch to fix’ facility: Borrower can transfer to a Cambridge
Building Society fixed rate mortgage deal at any time during the initial
term without incurring an early repayment charge. A product fee for the
fixed rate product may apply.
**Application fee is non-refundable and payable upfront - this is waived
for existing Cambridge mortgage customers.
♦ Completion fees may be added to the loan. However, for our Buy To
Let products, the total LTV including fees must not exceed 75%. If your
customer is already a member with The Cambridge they may qualify for
reduced completion fees on certain products. Please contact our BDM
team to discuss this further.
LENDING AREA: Cambridgeshire (Except PE1 – 4 and PE7 0 and PE7
8 for BTL cases), Bedfordshire, Buckinghamshire, Hertfordshire,
Norfolk, Suffolk, Northamptonshire & Essex (except Canvey Island).
PROPERTY: All FREEHOLD considered (except flats and
maisonettes).
LEASEHOLD: Lease must have a minimum of 60 years to run after the
completed term of the loan.
NEW BUILD: The Society defines a New Build property as one which
been first registered within the last 2 years. Max LTV 60% flats,
maisonettes or apartments. Max LTV 80% Houses. Vendor / Builder
Deposits not taken into consideration.
INSURANCE: You will be required to take out buildings insurance to
insure your property against the usual perils. A copy of the policy and
schedule must be supplied to your Solicitor before completion.
LOW VALUE PROPERTY: For properties valued below £120,000,
please contact your BDM for guidance.
MORTGAGE TERM: Minimum 5 years. Maximum 30 years (BTL Max
25 years).
STATUS: All loans are subject to status and valuation. Borrowers must
be aged 18 years or over. Maximum age at end of mortgage term 75
years.
CREDIT HISTORY: Cambridge Building Society do NOT credit score.
Applicants must have had no late mortgage payments within the last 12
months. CBS will consider 1 late (non-secured) payment within the last
12 months. CCJs & Defaults must be less than £500 and satisfied for
over 12 months.
PROPERTIES IN BACKGROUND: The maximum LTV available to any
applicant with a property in the background (including a self funding
BTL or unencumbered property) is 80%.
AFFORDABILITY: Please note, for the purpose of the income and
expenditure breakdown, the monthly mortgage payment will be calculated at the Society’s Standard Variable Rate, plus 1.5% or the product
pay rate plus 1.5% if higher.
Dependent upon the total net monthly income, a minimum of either 10%
or 15% residual income is required, after all outgoings including the
mortgage payment have been made – please refer to our affordability
Guide handout for further information.
FOREIGN NATIONALS: All applicants must have permanent rights to
reside in the UK.
LOAN SIZE: Minimum loan is £5,000 for purchases. £20,000 for Remortgages. See overleaf for maximum loan on each product.
PORTABILITY: All of our current mortgage products are portable.
SHARED OWNERSHIP: For pre-approved schemes only. Available on
selected products only. Subject to Lease meeting Society’s Shared
Ownership terms and conditions. Please contact your BDM for guidance.
RIGHT TO BUY: Available on all products. Maximum LTV 80% of open
market value. 100% of discounted purchase price available.
BUY TO LET: Maximum portfolio 5 properties with Cambridge Building
Society including new application. Total loan to individual/joint borrowers with Cambridge Building Society not to exceed £2,000,000. 100%
rental cover required on existing portfolio. 125% rental cover required
on new application based upon pay rate or revert rate, whichever is
greater. Minimum income £35k joint applications / £25k sole
application.
BTL Requirements:
•
‘First Time Buyer’ Landlords Not Acceptable
•
•
•
•
•
New build BTL max 60% LTV
Properties must be let on an approved Assured
Shorthold Tenancy
Properties must NOT be houses in multiple occupation
(HMOs) which require licensing
The let will be to an individual (includes couples and families) but not to a company or business
DSS tenants are not acceptable
Applicants must:
•
not be in arrears with any mortgage they currently have
INTEREST: Interest is calculated on a daily basis. Additional payments
over and above the monthly repayment immediately result in a reduction of the amount on which interest is charged.
REPAYMENT METHODS: Loans can be taken on a repayment, interest only or part repayment/part interest only basis. Interest Only with an
established repayment vehicle – Max 70%. To enquire if your clients
repayment vehicle meets our criteria, please call the support team on
0345 601 2744. Sale of Property as repayment vehicle max 66% LTV
with a minimum of £200,000 equity.
EARLY REPAYMENT CHARGE (ERC): Some of our products have an
Early Repayment Charge - full details are overleaf.
HIGHER LENDING CHARGE (HLC):
If the loan exceeds 80% the Society will take out a mortgage indemnity
policy. The Society currently will pay this charge for loans up to 95%
loan to value (LTV).
PROPERTY VALUATION CHARGE: Where a product provides a
‘FREE’ valuation, we will pay for a standard mortgage valuation only,
provided our nominated valuer is used. Where a product states ‘legal
fees paid’ we will pay for standard remortgage work only, provided our
nominated solicitor is used.
BORROWING FOR HOME IMPROVEMENTS: up to a maximum 90%
LTV
BORROWING FOR CONSOLIDATION OF DEBTS: up to a
maximum 90% LTV (each case assessed on its own merits).
BORROWING FOR CAPITAL RAISING: (i.e. car etc): up to a
maximum 90% LTV (each case assessed on its own merits).
MONTHLY PAYMENTS: The mortgage payments must be made by
Direct Debit. The first payment will be debited approximately 14 days
after mortgage completion.
MORTGAGE OFFER: The Mortgage Offer document is valid for 3
months from date of issue. Should the mortgage not complete within
the offer period and the product selected has been withdrawn from our
current range, a new product will need to be selected and a new
product booking fee paid.
Contact our Intermediary Support Team on:
Telephone 0345 601 2744
Open 9.00am – 6.00pm Mon-Fri; 9am – 12pm Sat
Email - intermediary@cambridgebs.co.uk
The Cambridge Building Society,
Head Office Administration Centre,
PO Box 232, 51 Newmarket Road,
Cambridge CB5 8FF
Bedfordshire, Buckinghamshire, Norfolk, Hertfordshire and Northamptonshire
Michelle Stevens: 07423 432856
mstevens@cambridgebs.co.uk
Cambridgeshire, Suffolk and Essex
Kathy Bowes 07763 439215
Rates correct at 22nd March, 2014
Mortgage Product Guide for Key Intermediaries
Rates correct at 22nd March, 2014
Max LTV
Max LTV
Max LTV
Max LTV
Max LTV
Residential - purchase/remortgage
75%
80%
85%
90%
95%
Application
Fee**
Completion
Fee♦
ERC
Max Loan
Free Standard
Valuation?
Free Legals?
2 Year Discounted Rate
(switch to fix)*
2.49%
2.69%
3.14%
3.99%
-
£199
£500
3%
£500k to 80%
£400k to 85%
£300k to 90%
Remortgage only
Remortgage only
2 Year Discount—Remortgage Only
(switch to fix)*
-
2.29%
2.84%
3.59%
-
£99
£900
3%
£500k to 80%
£400k to 85%
£300k to 90%
Yes
Yes
2 Year Fixed Rate
2.69%
2.79%
3.24%
4.09%
-
£199
£700
3%
£500k to 80%
£400k to 85%
£300k to 90%
No
No
5 Year Fixed Rate
3.49%
3.69%
4.19%
4.89%
-
£199
£700
5%
£500k to 80%
£400k to 85%
£300k to 90%
Remortgage only
Remortgage only
3 Year Fixed Rate Large Loan
3.19%
-
-
-
-
£499
0.35% of loan
4%
£1 million to 75%
No
No
The Cambridge Variable Mortgage
Purchase and Remortgage
4.99%
4.99%
4.99%
4.99%
-
£199
£300
None
£1 million to 75%
£500k to 80%
£400k to 85%
£300k to 90%
Remortgage only
Remortgage only
Buy To Let
75%
80%
85%
90%
95%
Application
Fee**
Completion
Fee♦
ERC
Max Loan
Free Standard
Valuation?
Free Legals?
BTL 2 Year Discounted Rate Mortgage
3.59%
-
-
-
-
£199
0.5% of loan
3%
£750k
Remortgage only
No
BTL 3 Year Fixed Rate ‘Low Fee’
4.49%
-
-
-
-
£99
£200
4%
£750k
Remortgage only
No
BTL 5 Year Fixed Rate
4.49%
-
-
-
-
£199
1% of loan
5%
£750k
Remortgage only
No
BTL Variable Rate
5.39%
-
-
-
-
£199
£300
None
£300k
Remortgage only
No
Exclusives
75%
80%
85%
90%
95%
Application
Fee**
Completion
Fee♦
ERC
Max Loan
Free Standard
Valuation?
Free Legals?
95% LTV 2 Year Fixed Rate
-
-
-
-
5.39%
(Purchase
Only)
£199
£300
3%
£250k
Yes
No
(Select/ L&G/ SBG/ Intrinsic/ Paradigm/ PTFS/
Mortgage/ Next Intelligence)
For professional mortgage intermediaries only