Once your client has accepted their new deal, this is binding. The only exception to this is for residential mortgages if the interest rate reduces before their new deal starts.
What if rates fall after they've switched their deal?
Your residential clients can request to switch to a new rate, on a like-for-like basis, up to 14 calendar days prior to their new deal starting. It’s important to note, only the rate can change. Everything else must remain the same.
Here’s an example:
Current transfer product: 2 year Fixed at 75% LTV with £995 fee and Free Valuation at 6.99%
New like-for-like request: 2 year Fixed at 75% LTV with £995 fee and Free Valuation at 6.49%.
It’s your client’s responsibility to check our current range of deals before their new deal starts. It’s also their responsibility to ask to switch their deal.
Clients also want to borrow more?
If your clients want to borrow more, as well as switch to a new deal, we’ll need to have released the additional borrowing first before you apply for the product transfer. Find out more about our additional lending.
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Things to be aware of
You can submit a Transfer Request for your client at any time. Please note: where this is more than 90 days before the product period end date, Early Repayment Charges may apply (see below). If your client has not accepted a mortgage illustration offer from Accord 90 days before maturity, we write to the borrower directly outlining the ways in which they can apply for a new product.
Accepting the offer
To secure their new product, you can accept the transfer offer on behalf of your client/s after it has been downloaded. If the offer is not accepted at this point, it will become invalid and a new offer must be created. Where product fees are payable and not added to the loan, these must be paid within 7 days or the acceptance will be cancelled. Any products withdrawn in the 7 day period from the acceptance will therefore not be available if fees are not paid within this time.
We will transfer your client's mortgage to the new product on the product expiry date to avoid early repayment charges, unless specifically requested otherwise.
Product switching – Once the product has been agreed for a product transfer, we won't allow clients to switch products between then and completion, unless rates reduce on a like for like residential product.
PT Cancellation – Once the product has been agreed, there is no way to retract that offer without incurring ERCs. These ERCs will be applied automatically at redemption.
Product Transfer criteria
If the ERC period ends within the next 90 days, you can apply for a transfer on behalf of your client now but it will not take place until after the ERC period has ended, unless your client agrees to pay the charge. Any early repayment charges applicable to the existing mortgage product must be paid on completion of the transfer.
Prime Borrowers including Self-cert
Borrowers previously on a Prime self cert product who can now fully prove their income can select a full status product. Borrowers previously on a Prime self cert product who cannot prove their income must select a self cert product.
For Prime product transfer applications, there must be no more than 1 missed/late payment in the last 12 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment at the time of applying for a transfer and completion of transfer.
Credit Repair Guarantee
Borrowers previously on a Credit Repair self cert product, who have no more than 1 missed/late payment, and can now prove their income, can select a full status prime product transfer. Borrowers previously on a Credit Repair self cert product, who have no more than 1 missed/late payment, and still can't prove their income, must select a self cert prime transfer.
In order to qualify for a Prime Transfer product, there must be no more than 1 missed/late payments in the last 12 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment at the time of applying for a transfer and completion of transfer.
Minimum loan size is £3,000
More than one product can be taken to make up the loan, provided that the product minimum loan size is met -see the individual product for details.
The minimum term remaining on the mortgage in order to take a product is dependent on the products available at the time and the term remaining on the mortgage.
For example, where a customer has 5 years remaining on their mortgage term they can choose a 2, 3 or 5 year product (if these are available), but the customer could not select a 10 year product.
Accord pays a procuration fee of 0.30% gross for Product Transfers - to recognise the work you do for your client to make sure they get the right deal to meet their needs.
Our Transfer product range now takes into account your client's mortgage balance compared to the estimated value of their property. We calculate this estimated value by using our House Price Index, which is recalculated every quarter. We'll use this valuation when assessing your client's eligibility for our products unless your client requests a revaluation, which can be requested if your client believes that their property's actual current value is different to the estimated valuation on our records.
Products can be withdrawn at any time and your client will only be able to choose from the range available once their current valuation is confirmed.
If a re-valuation is required, a non-refundable fee £70 is payable. This fee is payable upfront on request of a re-valuation. This can be paid by credit/debit card over the phone.
If your client currently has any part of their mortgage on an Interest Only basis, as part of the transfer process we will contact them directly to check that they are happy that their repayment strategy is on track to repay their loan.
Offset and non-offset products cannot be mixed.
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