Northern Rock

Notes: The following information is provided by a third party organisation. We have not verified this information with the lender. Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Advances

Advances
Upto £1,000,000 70% LTV

Notes

Mortgage is Portable

You can apply to transfer the remainder of this mortgage product and its terms and conditions to your next property. The acceptance of the application will be at the sole discretion of Northern Rock plc under its lending policy at that time.
If we agree that the remainder of this mortgage product can be transferred to your next property.
Additional borrowing will not be available.
Once a customer has had their mortgage with us for 7 years, a loyalty discount is available, this will be at least 0.25% off Northern Rock plc's Standard Variable Mortgage Rate for the rest of the life of the loan. This is providing that mortgage payments are up to date. They do not continue to benefit from a special rate (such as a product discount, a guaranteed rate, or fixed rate) or other product benefit (such as a cashback) and they are not within an Early Repayment Charge period.

Payment Holidays Allowed. You may apply for 1 month payment holiday for every 9 consecutive full monthly payments you make. The maximum payment holiday period is 3 months, which can be applied for once you have made 27 consecutive full monthly payments.
The number of consecutive payments is reset to zero if you do not make a full monthly payment in the month it is due, or we agree for an underpayment to be made.
Interest will continue to be charged during a payment holiday and you will be advised of your revised monthly mortgage payment which will apply following your payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.
When deciding if we allow a payment holiday, we will assess your ability to repay the revised total mortgage balance and the associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. All payment holidays are subject to Northern Rock plc's prior agreement.

During the Early Repayment Charge period you are allowed to make overpayments of up to 10% of the outstanding balance in each calendar year without incurring an Early Repayment Charge. In the year that your mortgage product commences, the 10% allowance will be calculated from the original loan balance. In subsequent years, the 10% allowance will be calculated from the balance as at the 31st December of each calendar year.

If, during the Early Repayment Charge period, you make overpayments of more than 10% of the outstanding balance in any calendar year, an Early Repayment Charge will be payable on the amount repaid that is in excess of the 10% allowance.

For example, if your outstanding balance was £100,000 at 1st January, you would be entitled to make overpayments of up to £10,000 in that calendar year without incurring an Early Repayment Charge. If you overpaid by £12,000 in that year, you would be charged an Early Repayment Charge on the £2,000 that is above the annual allowance.

Please note that the annual 10% allowance cannot be rolled on from one year to the next.

Following receipt of an overpayment, your outstanding balance and the interest charged will be recalculated with immediate effect. Please note that for an overpayment made by cheque, interest is adjusted two business days after we process the cheque.

If you pay by Direct Debit and the overpayment is more than £500, your monthly payment will be changed automatically. You have the option to leave your monthly mortgage payment unchanged, which will have the effect of setting up a regular overpayment and further reduce your outstanding mortgage balance. To arrange this you would need to contact Northern Rock plc.

If you pay by Standing Order you will need to contact your bank if you want to change your monthly mortgage payment following an overpayment. Alternatively, if you wish to set up a regular overpayment you can leave the payment unchanged.

There are no restrictions on making overpayments after the Early Repayment Charge period has ended.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) No
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment Yes

Fees

Arrangement : None
Booking : None

Early Repayment Charges
refer

Higher Lending
None

Valuation
Basic:
upto £60,000 - £211
upto £100,000 - £231
upto £150,000 - £262
upto £200,000 - £287
upto £250,000 - £313
upto £500,000 - £374
upto £750,000 - £430
upto £1,000,000 - £476
upto £1,500,000 - £609
upto £2,000,000 - £762
upto £2,500,000 - £916
upto £3,000,000 - £1069

Homebuyers:
upto £60,000 - £369
upto £100,000 - £410
upto £150,000 - £451
upto £200,000 - £497
upto £250,000 - £543
upto £500,000 - £609
upto £750,000 - £660
upto £1,000,000 - £711
upto £1,500,000 - £916
upto £2,000,000 - £1120
upto £2,500,000 - £1324
upto £3,000,000 - £1630

The valuation fees include an application fee of £99. This fee is non-refundable.
Early repayment charge applies to the outstanding secured loan balance at the time of redemption. Any overpayments in excess of the 10% annual allowance will also be subject to the early repayment charge..

For loans where the advance exceeds £1million, and additional desktop valuation will need to be carried out for a fee of £75.


Lenders Conveyancing Fee - £300.00 Payable on completion. Legal fees due to your solicitor for acting on Northern Rock plc's behalf in setting up this mortgage. This fees are payable at the time your mortgage starts and are not usually refundable. The figure quoted is an estimate and relates only to this part of the legal work. You should ask you solicitor for further details.

Acceptable Property Types

 
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop No
Maisonette Refer
Studio Flat No
Flying Freehold No
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Max Discount% 100
Max Market Value% 95
New Build acceptable. Northern Rock will consider self build properties on an individual basis.
Funds are released in three stage payments:
- Wind and weather tight
- Plastered out
- Completion
Please note: Northern Rock do not release mortgage finance on the security of land only. Therefore the applicant must have sufficient resources to progress the property to wind and weather tight stage. Suitable new build warranty / architects certificate required.

Interest Only - maximum of 75% LTV.
All residential products
New Build flats up to 70% LTV
New Build houses up to £500,000 valuation/purchase price up to 85% LTV
New Build houses above £500,000 valuation/purchase price up to 80% LTV

Please note:
The maximum LTV is based on the lower of the valuation or purchase price.
Any incentives offered by the house builder will be deducted from the purchase price before the maximum LTV limit is applied.
The product fee can be added to the loan, and is allowed to take the maximum LTV above that determined above.
Purchases by way of sub-sale agreement are not normally acceptable. Refer to Northern Rock if further guidance is required.
Northern Rock no longer accept builders incentives of up to 5% of the purchase price.
Ex council houses accepted if 50% minimum in owner occupation, no local authority blocks of flats.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements

Bank Statements 1 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan
Max Loan £1,000,000
Max Portfolio of BTL Loans £3,000,000
Min Age 18 years
Max Age 75 years
Min Term 7 years
Max Term 35 years
The maximum age for applicants is 75 years, at the end of the mortgage term.


Your property must be adequately insured under an acceptable buildings insurance policy.
Foreign Citizens Refer
Ex-Patriates Not Accepted

Income Multipliers
Based on Income > 1
3.5 + 1 or 3.2 joint

Based on Income > 17500
4 + 1 or 4.7 joint

Based on Income > 32500
4.5 + 1 or 4.2 joint

Min months in current position none
Min months in continuous service none
Min no. of years accounts 3
Average years taken to calculate income 3
Will consider declining profit Refer

Outgoings
Please note that income multiples no longer apply. For an indication of maximum borrowing, please use our online affordability calculator at northernrock.co.uk.
The income verification differs depending on credit score - refer to Northern Rock plc.
Customers with LTV greater than 70% (including all applications for first time buyers and where the property is worth less than £100,000):

High Credit Score: Employed- Last monthly payslip or two weeks payslips.
Self employed: accountant certificate or last two years’ accounts or last two years’ tax assessments.
Medium Credit Score: Employed two of the last six monthly payslips, plus last P60. If paid weekly four of the last eight weeks payslips, plus P60. Self employed: accountant certificate or last two years’ accounts or last two years’ tax assessments.
Low Credit Score: Employed three of the last six monthly payslips, plus last P60, if paid weekly four of the last 8 weeks, plus last P60. Self employed: accountant certificate or last three years’ accounts or last three years’ tax assessments. In addition, last mortgage statement or lender reference.

Customers with LTV up to and including 70%:

High Credit Score: Fast Track Service for eligible customers, see Fast Track Lending criteria. Confirmation of identity and affordability is required for on line and paper applications you must complete the confirmation of identity and affordability sections of the application form. For Northern Rock online applications you must tick the relevant boxes on submission of a full application.
Medium Credit Score: Employed – 2 of the last six months payslips plus the latest P60. If paid weekly, 4 of the last 8 weeks payslips plus latest P60.
Self Employed – Accountant certificate or last 2 years accounts or the last 2 years tax assessments.
Low Credit Score: Employed three of the last six monthly payslips, plus last P60, if paid weekly four of the last 8 weeks, plus last P60. Self employed: accountant certificate or last three years’ accounts or last three 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 all First Time Buyers. Customers with medium or low credit scores are no longer eligible for Fast Track Service applications.

For loans over £500,000, a high credit score will be required.

For customers employed for less than six months an employers reference will be required

Maintenance payments to be taken into account.

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 50% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage Max LTV Max% increase

Capital Raising 80%
Home Improvements 80%
Debt Consolidation 80%
School Fees 80%
Holidays/Cars 80%
Buy Other Property 80%
Business Purposes Not accepted
Divorce Settlement 80%
Unencumbered 80%
Rapid Remortgage - excluding Lifetime. We will aim to ensure that your client's remortgage to Northern Rock plc
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 the customer returning promptly any documents
or requests for further information from either our solicitor or us. This is only available when one of our
remortgage panel solicitor firms is instructed. Your client will be required to pay the panel solicitor directly. This
will be at the standard rate of £200 in England and Wales (£250 per property for Buy to Let cases). £300
Northern Ireland (£335 per property for Buy to Let cases) and £350 in Scotland (£400 per property for Buy To
Let cases) Figures inclusive of VAT and standard disbursements.

Adverse Credit

CCJs : Not Acceptable
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

A credit check will be made on all applicants and the loan will be declined where an adverse credit history is registered. In addition, credit scoring will be used as part of the decision-making process.
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.