A straightforward guide to your mortgage Area for photographic placement (if needed)

A straightforward
guide to your mortgage
Area for photographic placement (if needed)
Mortgages – Reference Guide
Mortgages from Santander
This guide explains the important features of your mortgage or Additional Loan.
If you have any questions or require any further help in relation to understanding
your mortgage please call us or speak to an adviser in one of our branches.
Contents
Our range of mortgages
03
n
Joint borrowers
07
Benefit package
04
n
Your property
07
Mortgage repayment method
04
n
Early Repayment Charge
07
Mortgage process
05
Things to consider in the future
08
n
Arranging your mortgage
05
n
Borrowing more with an Additional Loan
08
n
Solicitors and Licensed Conveyancers
05
n
Mortgage deal coming to an end
08
n
Valuations and Surveys
05
n
Moving home
08
n
Your formal mortgage offer
06
n
Want to change something else on your mortgage?
08
n
Exchanging contracts
06
About our services
09
n
Completion
06
Confidentiality and use of your personal data
09
07
Your application and credit scoring
11
The things you should know about your mortgage
n
Mortgage Account Fee
07
Direct Debit Guarantee
14
n
Monthly payment
07
Making a complaint
14
n
Monthly payment date
07
How else can we help you?
15
n
Changes to interest rates – what happens if the interest
rate changes
07
Santander is one of the UK’s leading personal financial services
companies and one of the largest providers of mortgages in the UK.
Our aim is to create value for all our customers every day, and with
over 160 years’ UK mortgage experience and multiple awards to our
name, you can be confident that your mortgage is in safe hands.
We believe it’s important to make your finances as straightforward
and easy to understand as possible. That’s why our expert Mortgage
Advisers will listen to your needs and offer advice and recommend
the right mortgage for your circumstances from our wide range of
mortgages guiding you every step of the way.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
02
Our range of mortgages
We offer a range of mortgages to suit you.
n
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Do you want to pay the same amount each month? A fixed
rate mortgage gives you peace of mind that comes from knowing
exactly what your payments will be each month during the fixed
rate period.
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Do you want your mortgage to track the Bank of England
base rate? A tracker rate mortgage tracks the Bank of England
base rate so your payments will increase or decrease in line
with any changes.
Fixed rate
mortgages
Do you want flexibility with your finances? Our Flexible Offset
mortgage gives you the ability to under or overpay, take payment
holidays or use your savings pot to reduce the amount of interest
you pay. Your payments will increase or decrease in line with any
changes to the Bank of England base rate.
Below is a brief summary of the different types of mortgages we
currently offer. If you already have a mortgage with Santander your
conditions may vary, so please refer to your mortgage paperwork.
Tracker rate
mortgages
Lifetime Tracker
mortgages
Flexible Offset
mortgages
Tracks the Bank of England base rate
✘
✔
✔
✔
Fixed monthly payments
✔
✘
✘
✘
From two years
From two years
For the lifetime of the
mortgage term
For the lifetime of the
mortgage term
✔
✔
✘
✘
Up to 10% per
calendar year
(minimum £500)
Unlimited
(minimum £500)
Unlimited
(minimum £500)
Unlimited
✘
✘
✘
✔
✔ (note 1)
✘
✘
✘
Initial rate period
Interest rate reverts to Standard Variable
Rate (SVR) after the initial rate period
Overpayments
Underpayment/payment holidays
Early Repayment Charge
Note 1: On most fixed rate mortgages if you choose to repay your mortgage within the fixed rate period, or make a payment of more than 10% of your mortgage balance in a calendar year,
you may need to pay an Early Repayment Charge. Please refer to your Key Facts Illustration (KFI) for clarification.
Please note: where a mortgage has a benefit package, if you choose to repay your mortgage within the first two years, the cashback/paid legal fees will need to be repaid.
03
Mortgages – Reference Guide
Benefit package
Mortgage
repayment method
The majority of our mortgages come with the following
benefit package:
You can choose to repay the amount you borrow through a
Repayment or Interest Only mortgage, or a mixture of the two.
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Free standard valuation – on properties valued up to £2.5million
And either:
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£250 cashback when you move into your new home; or
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We’ll pay your standard legal fees when you move your
mortgage to us.
You’ll only need to repay the cashback/paid legal fees if you repay
your mortgage within the first two years.
04
If you have a Repayment mortgage, your monthly payment is
made up of ‘capital’ (the amount you’ve borrowed) and interest.
As long as you keep up with your payments your mortgage will be
paid off when your mortgage term ends.
If you have an Interest Only mortgage, your monthly payment
only pays the interest you owe. As you’re only paying interest,
you’ll still have to repay the ‘capital’ (the amount you’ve borrowed)
at the end of your mortgage term. Therefore you must ensure
you have a way to pay this off when your mortgage ends. It’s
important that you check, on a yearly basis, that this arrangement
is still on track to pay off your mortgage when your mortgage term
ends. If at any point you think that you will not be able to repay
the ‘capital’ at the end of your mortgage term, it’s important that
you contact us to find out what your options are regarding your
mortgage and payment arrangements. The sooner you take action,
the easier it will be to address any issues.
Mortgage process
1 Arranging your mortgage
if either:
During your mortgage appointment, you’ll be asked some
important questions about you, your needs, your circumstances
and your finances so we can complete a full assessment of your
income and outgoings. This enables us to confirm how much
we can lend to you and confirm that it is affordable.
We’ll also find out what’s important to you, take details of the
property, your solicitor and what type of survey you’d like.
You’ll go through a full mortgage application and receive a
Key Facts Illustration (KFI) for the mortgage deal – this is your
quotation. This shows you the monthly payment and the
different costs and fees associated with your chosen mortgage.
Booking fee
Booking fees are charged on some of our mortgages. You
have a choice of either paying the booking fee upfront when
you apply for your mortgage or you can choose to add the
booking fee to the mortgage. If you decide to add the booking
fee to the mortgage you’ll pay interest on this over the term
of the mortgage. You can however repay this fee within 14
days following completion of the mortgage without incurring
any interest on the booking fee. If you don’t know the exact
amount of the fee, please contact us on 0845 6000 346 and
we’ll confirm this figure. Simply send us a cheque payable to
yourself (with your mortgage account number written on the
back and stating that this is for payment of your mortgage
booking fee), within 14 days of completion to: Santander,
Mortgage & Loans Operations, Bridle Road, Bootle, L30 4GB.
Higher Lending Charge
The Higher Lending Charge (HLC) is a fee we may charge if
you wish to borrow more than 90% of the property valuation
or purchase price (known as the Loan to Value or LTV). The
actual Higher Lending Charge is calculated as shown in the
table below:
Mortgage LTV
Charging rate
Less than 90.10%
NIL
90.10% and up to and including
92.5% rate
7.25% (see note 1)
Greater than 92.5% and up to
and including 95%
8.00% (see note 1)
Note 1: The HLC is calculated on the proportion of lending above 75% LTV.
2 Solicitors and Licensed Conveyancers
There are legal costs involved in setting up your mortgage
which vary according to the circumstances involved. We can
let you know what solicitors or licensed conveyancers are in
your local area, which are on our approved list. However, if
you choose a solicitor or licensed conveyancer who isn’t on our
approved list, we’ll need to instruct another firm to act for us,
and you’ll be responsible for the additional costs.
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The solicitor or licensed conveyancer cannot provide an
unqualified report or title for the property; or
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By completion, your mortgage offer has any outstanding
conditions which need to be satisfied.
You may be responsible for our legal costs in connection with
your application, whether or not the mortgage completes.
3 Valuations and Surveys
Valuation
Once the mortgage application is completed we’ll arrange for
the property to be valued. The valuation is for our purposes,
so we know the value of the property is adequate for the
mortgage you require. Once the valuation is received we can
make you a formal mortgage offer, meaning your mortgage
has been approved.
The way we value your property will depend upon the type of
mortgage you require and the amount you’re borrowing. The
valuation can be completed by using an automated valuation
(AVM) or by instructing an independent registered valuer
to inspect the property externally or carry out an internal
inspection. Where a valuer has inspected the property internally
a copy of the valuation report will be enclosed with your
mortgage offer.
Please note: A mortgage valuation is not a survey. It
does not advise you on the condition of the property in
any detail.
Surveys
If you’re buying a property we strongly advise you obtain a
survey of the property so you’re aware of its condition before
you commit to the purchase.
We can arrange for an independent surveyor to provide you
with either:n
A RICS Homebuyer Report. This describes the condition of
a property and provides advice about defects which could
affect its value, repairs and ongoing maintenance. It’s
designed for standard properties in reasonable condition. It’ll
advise on legal issues that need to be addressed and provide
information about the location and local environment.
n
A Building Survey. This is more detailed and designed for
larger, older or run-down properties, buildings that are
unusual or altered, or if there is an intention to carry out
major works. This is the most comprehensive report and
provides in-depth analysis of the condition of a property.
Whichever survey you choose, it’ll be sent to you direct and
you’ll be able to discuss its content with the surveyor. We don’t
see survey reports as they’re intended for you when you buy a
property. The surveyor will complete a valuation report at the
same time and send it to us separately.
Please note that your mortgage offer will be withdrawn
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Mortgages – Reference Guide
Fees
Details of valuation and survey fees are included in the Tariff of
Charges. How much you pay depends on either the purchase
price or the estimated value of the property. The fee for the
Homebuyer Report includes the cost of providing a separate
valuation to us.
When a Building Survey is chosen only the valuation fee will be
collected and the surveyor will contact you directly to discuss
the appropriate additional fee for the survey element of the
work. This is because Building Surveys are tailor made to your
own requirements and the fee will depend upon the work
involved.
Fees are provided on request if the purchase price exceeds
£1m.
Please note, that if the purchase price is concessionary or a
reduced figure, eg when purchasing your council home, the fee
will be based on the valuation and not the price.
Valuation refund policy
We realise that in certain circumstances you may need to cancel
the valuation. If this happens, you may be entitled to a refund
of all or part of your valuation fee. Our policy on refunds is as
follows:
1. If you cancel the valuation prior to the valuer being instructed
to carry out the valuation we’ll refund the whole of your fee;
2. If you cancel the valuation after the valuer has been
instructed to carry out the valuation then you’ll be entitled
to a refund of the survey fee minus the applicable non–
refundable valuation fee as set out in the Tariff of Charges;
or
3. If the valuation has already been carried out then we regret
that we’ll not be able to make any refund.
Re-inspection
Sometimes we may retain part or all of a mortgage advance
until work recommended by the surveyor is completed. In
a re-inspection, they will check the work has been done
but won’t examine or comment on the standard of the
work. You’re responsible for ensuring the work meets any
relevant standards.
A re-inspection fee as set out in the Tariff of Charges is
charged when one of the valuers has to make an additional
visit to a property in order for us to release money we have
retained.
06
4. Your formal mortgage offer
In your formal mortgage offer pack we’ll send you:
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Offer Key Facts Illustration and Important Information
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Tariff of Charges
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Mortgage Account Fee information
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Terms and Conditions
Once you’ve received a formal offer, your solicitor or licensed
conveyancer will carry out all the required checks and searches
on the property.
5. Exchanging contracts
If you’re moving home, when you’re happy with the contract
and you’ve signed it, your solicitor or licensed conveyancer will
‘exchange’ your contract with the seller’s solicitor - this is then
legally binding. The solicitors will then agree a completion date.
At this point, you’ll also need home insurance. Buildings
insurance is a requirement of your mortgage and is essential
to protect you against damage caused by things like fire and
flooding etc. It is also advisable to protect your belongings with
contents insurance.
If you’re buying in Scotland, when a binding contract has been
agreed this is called ‘concluding missives’ (a formal letter).
Your solicitor will complete the conveyancing procedures and
prepare the documents to transfer ownership of the property
to you. The ‘missives’ will specify a date when you have to pay
the seller the purchase price of the property in return for the
‘Disposition’ (the transfer documentation) and the keys to the
property.
6. Completion
If you’re moving home, this is the day when money changes
hands and you’re able to pick up the keys and move in!
A mortgage deed is lodged with the Land Registry.
If you’re moving your mortgage to us, we’ll arrange for the
solicitor to complete the transfer from your existing lender
to Santander.
The things you should know
about your mortgage
Mortgage Account Fee
Your property
The Mortgage Account Fee is charged for providing and
administering your mortgage. The fee as set out in the Tariff of
Charges is payable on completion, however you can defer this fee
until the end of your mortgage.
The property must be occupied as your main residence unless
we’ve agreed otherwise in writing.
Monthly payment
You must make a payment each month. The amount of your
monthly payment will depend on how much you borrow, the
interest rate applicable to your mortgage, the period of time in
which you must repay the mortgage and whether you have a
Repayment or Interest Only mortgage.
Monthly payment date
You must pay your monthly payments on the payment date in
every month. You can choose any date between the 1st and
28th of the month as your payment date. If you don’t indicate
a preferred date, your payment date will correspond to the day
of the month when your mortgage was completed, unless you
completed after the 28th, in which case your payment date will
default to the 1st of the month.
You may ask us to change your payment date at any time
(maximum of four requests per 12 month period). Please note that
we normally require 14 days to process a change to the payment
date and that we won’t normally allow the interval between the
last of the old payment dates and the first of the changed payment
dates to be less than 14 days. The monthly payment which we
collect on the first of the new payment dates will be larger or
smaller than usual, depending on whether the change has caused
the interval between the last of the old payment dates and the
first of the changed payment dates to be longer or shorter than
a month. From then on, the monthly payment should revert to
the same amount as you were paying before the change in the
payment date.
You must not leave the property unoccupied for longer than the
period specified in your insurance policy or you may not be able to
make a claim on your buildings or contents insurance policy. Please
check the terms of your buildings or contents insurance policy to
see how long you’re allowed to leave the property unoccupied.
You must not take in tenants or let the property or any part of
the property without first obtaining our written permission unless
we’ve already discussed this with you and agreed to provide you
with a Buy to Let mortgage.
Early Repayment Charge
If your mortgage offer states an Early Repayment Charge applies
to your mortgage and you wish to repay the money you owe
us during the period when the charge applies (which will be
specified in your offer) the applicable Early Repayment Charge will
be payable. You’ll also have to pay this charge in certain other
circumstances which will be set out in your offer and the terms and
conditions booklet.
Even where your mortgage offer states an Early Repayment Charge
applies, you can still repay up to 10% of the money you owe us
(subject to a minimum capital payment of £500) in each calendar
year without having to pay an Early Repayment Charge. You can’t
carry forward any unused element of the 10% concession into
future years. You also can’t take advantage of the 10% allowance
if you’re repaying all of the money you owe us upon the sale of
your property. If you added your booking fee to the mortgage,
you can repay this within 14 days following completion, without
affecting the 10% allowance.
After completion, we’ll send you some information which will
include when your first payment should be made and how much
it’ll be.
Changes to interest rates – what happens if the
interest rate changes
If your interest rate changes we’ll write to you and inform
you about the change and what it means to your monthly
payments in the future. We’ll give you notice of any change in
payment amount.
Joint borrowers
If there are two or more of you, your obligations under the
mortgage are binding on all of you together and on each of you
on your own. This means that each one of you is responsible for
repaying the whole of the money owing under the mortgage.
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Mortgages – Reference Guide
Things to consider
in the future
We understand that from time to time you might need to change
your mortgage to ensure it continues to meet your needs.
Moving home
Borrowing more with an Additional Loan
n
Take your current deal with you to your new property – this is
sometimes known as ‘porting’. This could save you money if
your interest rate is lower than other mortgage rates currently
available, and you wouldn’t have to pay any Early Repayment
Charge that may apply as long as you ‘port’ the same amount.
If you also want to borrow more, you can take a new deal from
our current range which includes exclusive deals for you; or
n
Choose a new deal for the total borrowing from our range
of competitive deals including exclusive deals for you. It could
save you money if your existing rate is higher than our current
mortgage rates. You won’t pay an Early Repayment Charge
if you have less than six months left on your existing deal at
the time you apply for a new mortgage for at least the same
amount. In future we may withdraw this offer. If you have
more than six months left on your existing deal at the time
you apply for a new mortgage, you’ll need to pay an Early
Repayment Charge if one applies to your mortgage.
If you’re moving home you have a couple of options available:
To arrange an Additional Loan you’ll need to book a mortgage
appointment with us, which can be done either in branch or over
the telephone.
During your appointment, you’ll be asked some important
questions about you, your needs, your circumstances and your
finances so we can complete a full assessment of your income and
outgoings. This enables us to confirm how much we can lend to
you and confirm that it’s affordable.
You’ll go through a full application and receive a Key Facts
Illustration (KFI) for the specific deal we recommend – this is
your quotation. This shows you the monthly payment and the
different costs and fees associated with your Additional Loan.
Once you’ve signed and returned your application form along
with all requested supporting documents we’ll complete all
the necessary checks. If we require the property to be
re-valued this report will be for our use only and you won’t
be charged separately.
We’ll then send you a formal offer which you’ll need to sign
and return as soon as possible. Once we’ve received your signed
acceptance of the offer we’ll usually release your money within
three working days.
Once you’ve completed on your Additional Loan, we’ll send
you a letter confirming all the details, including your new
mortgage payment.
Mortgage deal coming to an end
If your current mortgage deal is coming to an end, or you’re
paying our Standard Variable Rate, you can call one of our team
of Mortgage Advisers who’ll be happy to advise you on the
options available to you. Alternatively, if you are happy to not
receive advice you could use our Online Mortgage Transfer Service
on www.santander.co.uk/changing-deals. It’s easy to use and
you could select a new mortgage deal online in under 15 minutes.
Mortgage deals can be booked up to four months in advance.
The process of changing to a new deal with us is simple. There
are no new Direct Debits to set up, and with no legal or valuation
fees, it could save you time and money, compared to moving your
mortgage elsewhere.
08
A new mortgage on a different property will be subject to status
and our lending criteria at the time.
Want to change something else on your mortgage?
If your circumstances have changed, you may wish to
request a change to the way your mortgage is set up.
This may include changing your repayment method, term of
your mortgage or the people named on it. If you want to
discuss this call our Mortgage Service Team on 0845 600 3530 –
we will carry out a full review of your circumstances to see
how we can help. Alternatively, to see how a change could
affect your monthly mortgage payment use our calculator on
www.santander-products.co.uk/mortgagechanges
About our services
Confidentiality and use of
your personal data
Please read the following section carefully. If there is anything that
you do not fully understand please contact us.
We treat any personal or business information given to us as
confidential. We may share information with other companies in
the group of companies to which we belong (the Santander Group)
and our associated companies, service providers or agents who
may be located in other countries. This includes information about
the conduct (including details of transactions) of any account that
you have with a Santander Group company. We’ll ensure that your
information is only used in accordance with our instructions and
our own strict internal confidentiality policies. If we transfer your
information to another country, we’ll ensure that it is given the same
levels of protection as required under the UK Data Protection Act.
Who regulates us?
We are authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential
Regulation Authority.
Which services will we provide you with?
Santander will always offer you advice when discussing your
mortgage requirements.
There are a limited number of customer types where a mortgage
application can be completed on an Execution Only basis. In all
instances you must meet the eligibility criteria and choose to
complete an application on an Execution Only basis foregoing
the protection of advice through one of our telephone Mortgage
Advisers.
If you are unsure about the level of service you have received,
please refer to Section 2 of your Key Facts Illustration (KFI) or speak
to one of our Mortgage Advisers.
Whose product do we offer?
We only offer our own mortgages.
What will you have to pay us for this service?
There is no fee for this service.
You will receive a Key Facts Illustration (KFI) when considering
a particular mortgage, which will tell you about any fees relating
to it.
Are we covered by the Financial Services Compensation
Scheme (FSCS)?
We are covered by the FSCS. You may be entitled to compensation
from the scheme if we cannot meet our obligations. This depends
on the type of business and the circumstances of the claim.
Mortgage advising and arranging is covered for 100% of the first
£50,000, so the maximum compensation is £50,000.
Further information about compensation scheme arrangements is
available from the FSCS.
This information will be used to provide you with products and
services, for administration or marketing purposes and to help
develop and improve products and services that we offer you and
other customers. Your information may also be made available to
our regulator, the Financial Conduct Authority, to help as part of
their monitoring activities.
Your application
If you are applying for a mortgage, or an Additional Loan on
an existing mortgage, the information you give will be used by
us to carry out an Assessment of Borrowing Potential/Full Risk
Assessment/Decision in Principle. We will make an assessment
from the information you have provided as to the amount of a
loan, which may be made subject to any references and survey,
and additional information which may be required. It does not
guarantee that the loan will be available.
If you apply for a credit product such as a:
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Credit card
n
Mortgage
n
Current account
n
Unsecured personal loan
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Or you request an increase in your credit limit
we will give information to and get information back from specific
credit reference agencies. This is called a ‘credit search’.
When we carry out a credit search, whether or not the application
proceeds, the credit reference agency keeps a record of it against
your name. This record (but not the company that made the
search) may be seen by other organisations when you apply for
credit in the future. If you make several credit applications within
a short time, this may temporarily affect your ability to get credit.
You will find out more about credit searches and filing information
at the credit reference agencies in general in the ‘Your application
and credit scoring’ section.
If you have previously made a joint application for credit, have
a joint account or state that you have a financial associate or
a partner/spouse, information about you both (including any
previous and subsequent names) will be recorded at the credit
reference agencies. An association linking your financial records
will be created at the credit reference agencies and these linked
records will be searched and taken into account in assessing this
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Mortgages – Reference Guide
application. Unless a notice of disassociation is recorded at the
credit reference agencies, they may be taken into account if either
or both of you apply for credit in the future. Very occasionally, if
there is insufficient information to enable us to assist you, we may
also use information about other members of your family.
If you are applying for a home insurance product, as part of the
calculation of your premiums on application and at renewal, the
insurer or its agents will check your details against publicly available
information. This could include information such as:
–
Electoral roll
–
County Court Judgments (CCJs)
–
Bankruptcy orders
–
Repossessions
Similar checks may also be made in assessing any claims you make.
The searches made by the insurer will appear on your credit report
whether or not your application proceeds. The searches will be
available to other organisations that search your file for insurance
purposes but they will not affect your ability to get credit.
We may use information about the conduct of any of your
accounts and the information you supply, including details of any
convictions relating to you or others, to assess your application and
any future increase in the credit limit that is available to you. You
must confirm that you have the specific consent of anyone else
involved in the application to disclose their personal data.
When you give us information in connection with a joint
application we may give this information to the person you are
applying with.
We exchange information with other organisations, including
insurers, through various databases and through fraud prevention
and credit reference agencies to help us check information and
prevent or detect fraud. Further information can be found in the
‘Is the information I provide used in any other way?’ section of the
‘Your application and credit scoring’ section.
In order to confirm the accuracy of the income information
provided as part of an application, we may share information about
you and your application with HM Revenue and Customs (‘HMRC’).
HMRC will help us to validate whether income information
provided by you is accurate. HMRC may also use the information
that we provide to inform its risk profiling activities and to establish
any mismatch with declared income.
10
Your marketing preferences
We’d like to tell you by:
Post
Telephone
Electronic media (email and SMS)
about products and services, which we and other companies in
our group or our associated companies, think may interest you.
(When deciding whether to provide you with details of a credit
product we may search the files of credit reference agencies. A
record of this search will not be made available to other lenders
who search your file.)
We may also invite you to take part in market research surveys
carried out on our behalf. You can choose not to receive marketing
information or be involved in market research. Please let us know if
you don’t want to be involved in market research or don’t want to
receive marketing from us.
Government Schemes
If you take out a mortgage that is covered by a Government
Indemnity or other Scheme including Help to Buy, information about
you and your property, your mortgage application and the conduct
of your mortgage account (including any arrears) may be shared
with and used by the Scheme Administrators and other third parties
(including any insurers) for the purpose of auditing the management
of the Scheme and for the processing of any claims made.
What are my rights of access to any information
held about me?
You have the right under the Data Protection Act 1998 to see
certain records we hold about you on payment of a fee. This
is known as a subject access request and an information sheet
explaining your rights is available from any branch.
However, subject access requests are not designed to deal with
general queries that you may have about your account. If, for
example, you want to find out some specific information about
your account, you should contact your local branch or Mortgage
Adviser. We aim to provide you with the information you require
without you having to make a subject access request.
Details of how you can obtain a copy of the information held about
you by a credit reference agency are given in the next section.
Your application and
credit scoring
What happens when I apply?
Private information (including):
Whenever we receive a request for a bank account, mortgage,
credit card, an unsecured personal loan or credit facilities from a
personal customer, we consider each application carefully.
n
Details of existing credit or loan agreements.
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Records of any closed or settled credit agreements within
the past six years.
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Details of any current or previous arrears – including
arrangements to repay outstanding amounts.
n
Details of any default, write-off or property repossession
within the past six years.
n
Records of any searches made by other loan/credit providers.
The two main questions we have to ask ourselves are:
n
n
Does it make sense for the individual(s) concerned to take on the
financial commitment – will they be able to honour it?
Is the risk acceptable?
Should the answer to either of these be ‘no’, we have to
decline the application which will be disappointing for both
us and our customer(s).
How do we decide whether or not to accept
an application?
When you apply, we will ask your permission to approach a credit
reference agency to see if it has any information about you. Our
decision will be based on the details you provide, together with
information we receive about you from the credit reference agency.
Information you give us, for example your age, occupation, details
about your business and so on, are all taken into consideration.
We also take into account details obtained from the credit
reference agency such as how well you’ve managed previous
and existing accounts with other organisations.
We do not discriminate on grounds of sex, race, colour, religion or
disability. We do not refuse credit simply because of the place or
area that you live in either.
Your application is compared to groups of similar customers who
applied to us in the past, making it a fair and objective process.
Using this method, we make reliable decisions which are more
consistent than relying upon personal impressions alone.
What is a credit reference agency?
An independent company licensed by the Office of Fair
Trading under Consumer Credit Act 1974, to hold information
on individuals.
The agency holds details about almost every adult in the UK,
which includes facts concerning the customer’s financial
background. This information helps lenders to verify the identity
of the customer and provides details of their past and present
financial commitments and/or credit relationships.
What kinds of information do they provide?
The two kinds of information provided are:
Like most financial organisations, we supply data to, and receive
data from, specific credit reference agencies for the purposes of
assessing applications and credit account maintenance activities.
Could information from the credit reference agency
be the only reason for declining my application?
Possibly, but if this is the case, we will tell you. The information
received from the credit reference agency is only one part of the
decision-making process. Sometimes, there may be no detrimental
information held about you at the agency but we still may not be
able to accept an application simply because it does not meet all of
our business criteria at the time.
Is the information from a credit reference agency
always negative?
Not at all. Credit reference agencies only supply factual
information. They do not state any opinion regarding a customer’s
creditworthiness and they do not make the decision as to whether
or not to accept an application. That is our responsibility. Agencies
do not know which applications are successful or declined either,
so they cannot tell why an applicant may have been refused credit.
Credit reference agencies do not hold, as is commonly believed,
a blacklist of people or properties – instead, the information held
usually helps people get credit.
Obviously, our decision will be affected if information received from
a credit reference agency shows that you are in arrears on a credit
or loan agreement or that you want to borrow too much in relation
to your income. Similarly, we take evidence of County Court
Judgments or other credit defaults very seriously.
We always try to be a responsible lender but we won’t
automatically decline an application just because there may have
been some problems in maintaining past commitments.
On the other hand, information that you have existing
credit agreements and which shows that you are managing
your commitments well will enable us to look at your
application favourably.
Public information (including):
n
Voters’ Roll (Electoral Register).
n
County Court Judgments and Scottish Decrees.
n
Bankruptcies, Individual Voluntary arrangements,
Administration Orders and Debt Relief Orders.
11
Mortgages – Reference Guide
Your application and credit scoring
continued
What information do we supply?
n
to undertake statistical analysis and system testing;
We provide information about how your account is managed.
n
to manage credit and credit related accounts or facilities;
n
to recover debt and trace my whereabouts;
n
to check details on proposals and claims for all types of
insurance; and
n
to check details of job applicants and employees.
What we supply is in accordance with the Data Protection Act
1998 and the Data Protection Statement you are given when you
apply or when you sign the formal agreement to be bound by the
terms and conditions of the account. For mortgages NO default is
registered at the agencies until the property is repossessed. Adverse
CAIS are supplied whilst the account is in arrears until possession
is confirmed.
If, unfortunately, it were necessary for us to take possession of
your property, due to a breach of the terms and conditions of
a mortgage or secured loan, we would also disclose this fact to
a credit reference agency. Your name would be placed on the
Council of Mortgage Lenders Possessions Register and, as a result,
be passed on to other lenders.
The UK credit industry has established an agreement for the
purpose of regulating the sharing of credit account performance
and related data on individuals. This agreement is called ‘The
Principles of Reciprocity’. We comply with this agreement
concerning the supply and use of data.
Records shared with credit reference agencies will remain on file for six
years after they are closed, whether settled by you or defaulted. This
information may affect your ability to obtain credit.
We may also search and use your internal records for
these purposes.
We and other organisations may search and use from other countries
the information recorded at fraud prevention agencies. Further
information on the credit reference agencies and fraud prevention
agencies we use is available by telephoning 0845 602 0319.
If you open an account with us, your information will be kept
after your account is closed. Your information may be shared with
and used by the group of companies to which we belong (the
Santander Group), our associated companies, service providers or
agents for administration purposes and to:
n
Provide and run the account or service you have applied for and
develop and improve our products and services.
n
Identify and advise you by post, telephone or electronic media
(including email and SMS) of products or services which our
group of companies and our associated companies think may
interest you. (For credit products this may involve releasing your
details to a credit reference agency.)
n
Release your name, address and telephone number to market
research organisations for the purpose of confidential market
research surveys carried out by post or telephone on our behalf.
Details of your accounts that we supply to a credit reference
agency may be used by other lenders for credit assessment of you
and other people with whom you are financially associated.
Information held may occasionally be used for debtor tracing and
fraud prevention.
Is the information I provide used in any other way?
Before we can open an account for you in order to prevent or
detect fraud we will check and share the information you provide
in your application or at any stage with fraud prevention agencies
and may make searches at credit reference agencies who will
supply us with information including information from the electoral
register, to verify your identity.
Scoring methods may be used to verify your identity. A record of
this process will be kept that may be used to help other companies
to also verify your identity. If you give us false or inaccurate
information and fraud is identified, details will be sent to fraud
prevention agencies. Law enforcement agencies may access and
use this information.
We and other organisations may search and use the records held
by credit reference and fraud prevention agencies about you, to
prevent and investigate crime, fraud and money laundering and
for example:
n
to check details on applications for credit and credit related or
other facilities;
n
to verify your identity if you or your financial associate applies for
other facilities;
12
If you do not want to receive any such information or have your
details disclosed to a market research company then please write to:
Santander UK plc, Freepost, MK1482,
Milton Keynes MK9 1LZ (No stamp required)
Please note that if you ask us not to contact you about any of our
products or services, you may not hear about a new product which
may offer you a better rate or something which saves you money.
We may disclose details relating to your mortgage account
to a credit rating agency to enable it to issue a credit rating
on our behalf.
If my application is declined, are other lenders
likely to do the same?
Not necessarily. Other companies may apply different criteria
to applications and use different methods of credit risk assessment.
In some instances, they may place a different emphasis on
the same information. This should not discourage you from
applying elsewhere.
The fact that we have asked a credit reference agency for
information about you will be recorded by that agency. Other
credit providers may learn of this if they use the same agency and
take it into consideration when assessing an application from you.
It is unlikely that a single enquiry would cause problems.
Can I check the information a credit reference
agency has about me?
Yes. Under the Data Protection Act 1998 you may request details
held about you by the credit reference agency. Simply send them
a written request, stating all names that you have been known by
(include full forename and other initials), your date of birth and the
address(es) that you have lived at within the last six years together
with a cheque/postal/money order for £2.
We mainly use Experian Ltd, but we may also use Equifax Plc and
CallCredit. You can ask for an application form at any of our
branches or contact each agency directly at:
Experian,
PO Box 8000, Nottingham, NG80 7WF
Can I appeal against your decision?
Yes, if you think we have made a mistake, or you have further
information to support your case.
Mortgages and Additional Loans
Please contact your Mortgage Adviser to arrange for it to be
reviewed. You will be required to provide a detailed budget planner
and three full months’ bank statements.
Note re: credit repair companies
Please be careful when dealing with companies which claim they
can ‘clean up’ your credit history. You’ll find the advertisements
in newspapers and magazines and even on the TV or the radio.
You can sort out your credit file yourself or with expert help.
You can get free advice about County Court Judgments,
bankruptcy, defaulted accounts or other arrears. It’s also free to
find out how to sort out your debts and how to apply for credit
even if your past is not perfect. You have the right to write to any
of the credit reference agencies and ask for a copy of your credit
reference file, which will cost you £2.
For more information or advice, contact:
n
Citizens’ Advice Bureau (look in your local telephone
directory for details of the nearest CAB branch) or view
www.nacab.org.uk
For help with debt or credit problems, contact:
www.experian.co.uk/consumer/statutory-report.html
n
Equifax Credit File Advice Centre, Equifax plc,
PO Box 1140, Bradford BD1 5US
Consumer Credit Counselling Service telephone:
0800 138 1111 or view www.cccs.co.uk
n
National Debtline telephone: 0808 808 4000 or view
www.nationaldebtline.co.uk
www.equifax.co.uk
CallCredit, Consumer Services Team
PO Box 491, Leeds LS3 1WZ
You can even obtain a free booklet ‘Credit explained’
from the UK Office of the Information Commissioner,
telephone: 0303 123 1113 or view www.ico.gov.uk.
www.callcredit.co.uk/stat-report-online
With a copy of your credit file you will be sent a booklet which
explains how to interpret the information held and what your
rights are. You can, for example, challenge the accuracy of any
details shown. If you believe that what you see is not correct then
you can contact the organisation that supplied the information
and tell them what you believe is wrong and why. If, after
investigation it is agreed that the information is not accurate,
then it will be changed.
Even if there is accurate information held which affects your ability
to obtain loans or credit, you have the right to put a ‘notice of
correction’ on your credit file. This is your opportunity to make a
statement, if you wish, to explain your version of events. Once this
‘notice’ has been placed, every lender who looks at your file must
read the ‘notice’ before making any lending decision about you.
Naturally, it is up to the lender to make its own decision, but at least
they will have taken your statement into account.
13
Mortgages – Reference Guide
Direct Debit Guarantee
Making a complaint
Your mortgage payments must be made by Direct Debit. Please
read the Guarantee information below carefully:
At Santander we strive to keep our customers happy, however,
we realise that sometimes we make mistakes.
n
This Guarantee is offered by all banks and building societies that
accept instructions to pay Direct Debits.
n
If there are any changes to the amount, date or frequency of
your Direct Debit, Santander will notify you five working days in
advance of your account being debited or as otherwise agreed.
n
n
If you request Santander to collect a payment, confirmation
of the amount and date will be given to you at the time of
the request.
If an error is made in the payment of your Direct Debit by
Santander or your bank or building society you are entitled to
a full and immediate refund of the amount paid from your bank
or building society.
–
n
If you receive a refund you are not entitled to, you must pay it
back when Santander asks you to.
You can cancel a Direct Debit at any time by simply contacting
your bank or building society. Written confirmation may be
required. Please also notify us.
Telling us when you are unhappy is important as it means we have
an opportunity to put things right and improve the service we offer
in the future.
How to contact us
The best way to contact us is over the phone so that we can talk to
you in person and take action to resolve the issue for you.
You can call us on 0845 600 6014 or
0345 600 6014 (mobile), selecting option 1;
If you would prefer, you can contact us using one of these other
methods. It is important that you provide us with a daytime contact
number so we can call you to discuss the matter with you if we
need to:
Send us a secure message via your Online Banking; or
if you are not registered for Online Banking you can
email us via the Complaints section of our website
www.santander.co.uk
If you would prefer to speak to someone in person, you
can visit any of our branches across the country
Alternatively you can write to us:
Complaints
Santander UK plc
PO Box 1125
Bradford
BD1 9PG
If you’d like more detailed information about our complaints
process, a leaflet detailing how we deal with complaints promptly
and fairly is available upon request free of charge from any of
our branches, or you can request one by contacting us using the
contact details provided above.
If we haven’t been able to resolve your complaint to your
satisfaction, you may be able to refer your complaint to The
Financial Ombudsman Service (Ombudsman Service). The
Ombudsman Service is an external body, an impartial and
independent organisation, which plays a key role in the complaints
process and helps settle individual disputes between consumers and
financial services businesses without taking sides.
14
How else can we help you?
We can help with more than just a mortgage for your home.
We can help with things such as coping with unexpected disasters
like burglaries, fires or floods to your everyday banking needs. To
find out more simply visit us in branch, go to www.santander.co.uk
or give us a call.
Life Insurance1 and Life & Critical Illness Insurance1
Life Insurance and Life &
Critical Illness Insurance
0800 100 888
Home Insurance
0800 670 680
123 Current Account
0800 234 6058
(administered by Aviva Life & Pensions UK Limited)
These can help make sure that you and your family are looked
after if you’re diagnosed with a critical illness or if the worst should
happen and you are no longer around. The cover aims to pay out
a lump sum if you die, become terminally ill or are diagnosed with
a specified critical illness during the policy term, depending on the
cover selected.
My mortgage appointment was with
(Phone number
Home Insurance1
(underwritten by Aviva Insurance Limited)
Buildings insurance is a requirement under your mortgage and
essential if you own a home to cover damage caused by things like
fire, flood, storm or subsidence. Contents insurance protects your
belongings. Our Home Insurance provides flexible cover, features and
benefits to suit you and your home, designed to provide peace of
mind when protecting your home and your belongings.
123 Current Account
With the 123 Current Account, you earn cashback on your
household bills, and get interest on your balance. This covers
your mortgage payments, where you’ll earn 1% cashback, up
to maximum monthly mortgage payments of £1,000, when you
pay your Santander mortgage by Direct Debit from your 123
Current Account.
To benefit from the 123 Current Account:
n
Pay a monthly account fee of £2
n
Pay at least £500 into your account each month
(minimum £1,000 to earn interest)
n
Set up at least two Direct Debits
n
For cashback, household bills must be paid by Direct Debit
Note 1: Cover is subject to terms and conditions, restrictions and exclusions. Full details are in
the policy document - please ask us for a copy. We reserve the right to refuse cover.
15
123 Current Account:
Cashback on household bills includes 1% on water, council tax and Santander mortgage payments, 2% gas and electricity bills and 3% on mobile, home phone, broadband and paid for TV packages.
The maximum mortgage payment amounts that qualify for cashback are limited to £1,000 per month (for either single or multiple monthly Direct Debits). Mortgage cashback applies to Santander UK
plc mortgages. The 1% cashback on water and council tax bills also applies to rates in Northern Ireland. Household bills do not include TV licence, maintenance or insurance contracts, commercial use
or commercial mortgages. Interest is paid on the first £20,000 of your entire balance once you have at least £1,000 in your account. Cashback and interest paid monthly. Interest and transfers into
the 123 Current Account from any other Santander account do not count towards the monthly funding amount. One single or one joint 123 Current Account (or one of each) per person only. You
must be 18 or over and a UK resident. For details of our fees and interest rates, visit www.santander.co.uk or ask for the latest Interest Rates and Fees Information leaflet at any branch.
Home Insurance
Santander Home Insurance is underwritten by Aviva Insurance Limited. Registered in Scotland No. 2116. Registered Office: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The insurer is covered by the Financial Services Compensation Scheme. You may be entitled to
compensation from the scheme if the insurer cannot meet its obligations. Please ask us if you would like more information about the Financial Services Compensation Scheme or vist www.fscs.org.uk
Life Insurance and Life & Critical Illness cover
Santander Life Insurance, Life & Critical Illness Insurance, Income Protection and Over 50’s Life Assurance policies are administered by Aviva Life & Pensions UK Limited. Registered in England No.
3253947. 2 Rougier Street, York, YO90 1UU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm
Reference Number 1858896. Member of the Association of British Insurers. www.aviva.co.uk
Santander is able to provide literature in alternative formats. The formats available are: large print, Braille and audio CD. If you would like
to register to receive correspondence in an alternative format please visit santander.co.uk/alternativeformats for more information, ask us
in branch or give us a call.
MORT 0007 JUL 14 HT
Santander UK plc. Registered Office: 2 Triton Square, Regent’s Place, London, NW1 3AN, United Kingdom. Registered Number 2294747. Registered in England. www.santander.co.uk. Telephone
0870 607 6000. Calls may be recorded or monitored. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Our Financial Services Register number is 106054. Santander UK plc is also licensed by the Financial Supervision Commission of the Isle of Man for its branch in the Isle of Man. Deposits held with
the Isle of Man branch are covered by the Isle of Man Depositors’ Compensation Scheme as set out in the Isle of Man Depositors’ Compensation Scheme Regulations 2010. In the Isle of Man,
Santander UK plc’s principal place of business is at 19/21 Prospect Hill, Douglas, Isle of Man, IM1 1ET. Santander and the flame logo are registered trademarks.
This item can be recycled.
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