|
Thursday 29th
May 2008
Dear
Intermediary,
With continued
volatility in our market and money market rates increasing, we
have had to review our pricing. The new rates and criteria
will be launched on Tuesday 3rd June 2008. Please see updated
product guide attached.
Additional
Criteria Update
Valuations
Criteria
Revised criteria on Minimum Property
Value:
- Non
Standard Construction Property Types: £100,000
- Standard
Construction Houses, Private Flats and Maisonettes: £80,000
with a maximum 80% LTV
Self-Cert
Applications
Being a prudent and responsible
lender we will review applications to ensure that there is a
reasonable alignment between occupation and income declared.
We will review this where income is less than £60,000 for NRM
to GEM 1 and less than £40,000 for GEM 2 to GEM 7.
Debt
Management Plans
Where an applicant is in or is
about to enter into a debt management arrangement the DTIR
must be calculated using the contractual monthly payment with
each creditor and not the reduced debt management arrangement.
Mortgage
/ Rental History – Policy reminder
Our current
policy requires 12 months proof of payments for all mortgage /
rental agreements involving any of the applicants.
Child
and Working Family Tax Credits
As of the 20 June
2008 we will require applicants that are using Child or
Working Family Tax Credits within their income calculation to
confirm that they will be in receipt of this benefit for a
further 3 years from date of application.
The igroup
Application form is being amended to include this declaration
and a further communication will be issued during June to
advise of its publication date.
Pipeline
Since the
introduction of IDOL (instant decision online), a high
proportion of applications submitted have had a decision in
principle issued. In order that we have a more managed
transition between different product ranges, you will be
required to obtain a decision in principle (DIP) for all cases
from IDOL prior to submitting a packaged case to us by a given
date. This will provide you with a better service at a time of
product transition.
So in this
instance, all applications on the 1708 range that have not yet
been received by ourselves (irrespective of LTV) must have a
DIP via IDOL by 5.30pm on 2 June 2008. After this time the
plans will no longer be available.
The fully
packaged submission deadline for these cases is Friday 13 June
2008. Cases where a material change is required to the DIP and
mortgage offers expiring after 20 June 2008 will be subject to
re-assessment against the revised criteria.
If you have any
questions on the above please contact your National Account
Manager, Business Development Manager or our Sales Liaison
team on 0845 610 6574. | 
