From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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Part 1: England and Wales

Last modified: 01/07/2017

Part 2: The Mortgage Works

Last modified: 04/04/2019

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Part 2 only

1.7 Contact point to see if the lender will lend when borrower and mortgagor are not one and the same.

We will not lend

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1.11aContact point for standard documents.

Issuing Office - as shown on front of Offer

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1.11bContact point if standard documents are inappropriate.

Issuing Office - as shown on front of Offer

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1.14 May your firm act if the person dealing with the transaction or a member of his immediate family is the seller?

Yes, provided that a different fee earner or partner of no less standing acts for us, there is no conflict of interest and Law Society guidelines are followed.

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1.15 May your firm act if the person dealing with the transaction or a member of his immediate family is the borrower?

Yes, provided that a different fee earner or partner of no less standing acts for us, there is no conflict of interest and Law Society guidelines are followed.

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3.1.3 Does the lender require notification of the name and address of the solicitors firm or licensed conveyancers firm acting for the seller?View all answers to this question

3.1.4 If different from 1.11, contact details if the lender needs to be notified when the seller does not have legal representation.

Yes - contact the Issuing Office

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3.1.5 What other documents are acceptable for verifying identity?

List A
1) Signed Employers Photo ID card, provided the employer is known to the Conveyancer
2) Debit/cheque guarantee card (UK issued) together with original account statement, less than 3 months old.

List B
1) Inland Revenue Notice of Tax Codes (less than 12 months old)
2) Residence Permit issued by the Home Office to EU Nationals

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3.2.3 Does the lender require notification of the name and address of the solicitors firm or licensed conveyancers firm acting for the seller?View all answers to this question

3.2.4 If different from 1.11, contact details if the lender needs to be notified when the seller does not have legal representation.

Yes - contact the Issuing Office

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4.1 Is there a valuation report and if so, does the lender provide it?

Yes, a copy for the applicant is enclosed with your instructions

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4.3 If different from 1.11, contact point if assumptions stated by the valuer are incorrect.

Originations

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4.5aIf different from 1.11, contact point if re-inspection required.

Originations

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4.5bWhere should the certificate of title be sent?

Originations

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5.1.1 If different from 1.11, the contact point if the seller has owned the property for less than 6 months:

We will not normally lend where there is a sub-sale or back to back transaction or one where the contract for sale is to be assigned to a third party. All circumstances where the owner/registered proprietor has owned the property for less than 6 months from purchase should be referred to the issuing office, ensuring that the following details are provided:

The name and address of the person who sold, or will be selling the property to the applicant`s vendor;
The amount paid for the property by the applicant`s vendor;
Details of any connection between the original vendor and the applicant`s vendor, or between either vendor and the mortgage applicant;
Details of any work carried out to the property between the two transactions;
When the two transactions took place or will take place.

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5.2.1 If different from 1.11, the contact point if the seller is not the owner or registered proprietor and is not listed in the exceptions above:

We will not normally lend where there is a sub-sale or back to back transaction or one where the contract for sale is to be assigned to a third party. All circumstances where the seller is not the owner or registered proprietor other than those listed in Part 1 under 5.2.1 should be referred to the issuing office with full details.

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5.4.4 Does the lender want to receive environmental or contaminated land reports?

No, nor do we require any ancillary reports (e.g. flooding, contamination and energy and infrastructure reports) that you have requested for the borrower, even if adverse information is revealed, provided the borrower is aware and you have advised them that full disclosure must be made to the insurer prior to completion and they must obtain insurance under normal terms.

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5.4.5 Does the lender accept personal searches and, if yes, what are the lender's requirements?

Yes, providing the requirements under section 5.4.7 and 5.4.8 in Part 1 are satisfied. We recommend that any firm carrying out a personal search is registered under The Search Code as monitored by the Property Codes Compliance Board.
If there is a possibility of chancel repair liability:
No liability registered at Land Registry and the property has been transferred for valuable consideration since 13 October 2013 - no indemnity insurance required.
Properties being registered for the first time or first transfer for valuable consideration since 13 October 2013 - indemnity insurance is required to protect us (see paragraph 9 parts 1 and 2 for our requirements).
If there is known chancel repair liability:
We will require indemnity insurance to be in place. If there is no policy and one will not be obtained where there is a known risk, please refer details back to us including the number of properties that are subject to the liability.

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5.4.6 Does the lender accept search insurance and, if yes, what are the lender's specific requirements?

Yes providing the search insurance adequately protects us and you are satisfied that you will be able to certify that the title is good and marketable.

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5.5.3aIf different from 1.11, contact point for reporting if evidence of breach and all outstanding conditions will not be satisfied by completion:

Originations where issues will not be resolved on or before completion. If you can provide a clear COT, or an indemnity policy is being taken out to protect us from any breach there is no requirement to inform us, other than to notify us of the indemnity policy number and the company name and address. The applicant(s) must inform their insurance company and ensure full cover is available.
If under Section 9 - Legal Requirements of the Valuation Report , the valuer has requested the conveyancer to confirm appropriate building and/or planning consents, then receipt of your COT will confirm our instructions herein have been applied and no further confirmation or clarification is required.

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5.5.3bDoes the lender require an original/copy of the planning permission?

No, borrower is to retain

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5.5.3cDoes the lender require an original/copy of the building regulation consents?

No

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5.5.3dDoes the lender require certificates of lawful use or development/established use certificate?

No

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5.5.4 If different from 1.11, contact point if the property is subject to restrictions which may affect its value or marketability.

Originations

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5.7.1aDoes the lender lend on flying freeholds?

Yes, where only part of the subject property is affected (there is no requirement to report these flying freehold to us).
No, not where the whole of the subject property is affected (100%).

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5.7.1bDoes the lender lend on freehold flats?

No, except for coach house flats where there is one flat above garages and/or access way

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5.7.1cIf the lender is prepared to accept a title falling within 5.7 and the property is a freehold flat or flying freehold, to which contact point must this be reported?

Originations

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5.8.1 Does the lender accept security which comprises a building converted into not more than four flats where the borrower occupies one of those flats and the borrower or another flat owner also owns the freehold of the building and the other flats are subject to long leases?

Yes

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5.8.5 Does the lender accept security which comprises one of two leasehold flats in a building where the borrower also owns the freehold reversion of the other flat and the other leaseholder owns the freehold reversion in the borrower's flat? If so, are there any specific requirements?

Yes, we require the borrowers leasehold interest in their flat to be charged and we also require a charge over the borrowers freehold interest in the other flat subject to the leasehold interest

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5.9.1 Does the lender lend on commonhold?

No

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5.10.1 If different from 1.11, contact point if there is a restriction on use.

Originations

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5.13.1 If different from 1.11, contact point if borrower is not providing balance of purchase price from funds/proposing to give second charge.

Originations

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5.14.1 What minimum unexpired lease term does the lender accept?

Minimum unexpired lease term is 70 years with 30 years remaining at the end of the mortgage term. Report to the issuing office if the lease term is shorter than that stated within the Offer and has less than 100 years remaining.(There is no requirement to report if the lease term is lower than that stated on the Offer but still has 100 years or more to run, or if the lease term is longer than that stated on the Offer).

NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
- Starting ground rent is more than 0.1% of the property value
The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed.
Ground rents and event fees:
Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us.

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5.14.9 If different from 1.11, contact point for matters connected with the lease:

Originations
NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
- Starting ground rent is more than 0.1% of the property value
The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed.
Ground rents and event fees:
Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us.

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5.14.10 If different from 1.11, contact for service charge matters:

Originations

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5.14.11 Does the lender accept indemnity insurance where the terms of the lease are unsatisfactory?

Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1 at the full purchase price/value whichever is the higher.

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5.14.12 Does the lender require a clear ground rent/service charge receipt to be sent to you?

No, borrower is to retain

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5.14.13 Does the lender require a receipted copy of notice or evidence of service to be sent to you?

No, borrower is to retain

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5.14.15aIf different from 1.11, contact point if there is an absentee/insolvent landlord:

Originations

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5.14.15bDoes the lender accept indemnity insurance if the landlord is absent or insolvent?

Yes, for the full purchase price/value whichever is the higher

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5.15.2aIf different from 1.11, contact point if there are apparent problems with the management company:

Mortgage Services - Completions

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5.15.2bDoes the lender need to be sent the management company share certificate?

No, borrower is to retain

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5.15.2cDoes the lender need to be sent the signed blank stock transfer form?

No

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5.15.2dDoes the lender need to be sent the management company's memorandum and articles of association?

No

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5.16.2 If different from 1.11, contact point if unable to certify search entry does not relate:

Originations

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5.17.5aDoes the lender need to be sent the power of attorney?

No

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5.17.5bDoes the lender need to be sent the statutory declaration of non-revocation of power of attorney?

Yes

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5.19.1 If different from 1.11, contact point for lending on affordable housing, shared equity and shared ownership and where relevant your requirements:

Originations

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5.20.1 Does the lender require me to report to them where the lease does not meet the UK Finance minimum requirements for leases of roof space for solar PV panels?

Please arrange for a deed of variation to be entered into on or before completion to ensure the CML minimum requirements are met. If this is not possible, advise both the issuing office and applicants that the CML minimum requirements cannot be met and the case cannot proceed.

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5.20.3 Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they?

The minimum CML requirements must be met. For post completion requests the borrower should be advised to ask the energy provider to correspond with TMW Mortgage Servicing Portman House Richmond Hill Bournemouth BH2 6EP using the CML requirements template

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5.20.4 Does the lender require you to disclose the details of any existing Green Deal Plan(s) on a property?

Where a green deal loan balance is currently more than £10,000 please provide the issuing office with the following: the balance, monthly payment, term remaining, list of works that were undertaken, copies of any guarantees for the work and a copy of the Energy Performance Certificate.

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6.1.3 If different from 1.11, contact point if borrower is not taking up the mortgage offer:

Originations

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6.2.1 If different from 1.11, contact if any discrepancies in property's description:

Originations

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6.3.1 If different from 1.11, contact point for any issues relating to purchase price:

Originations

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6.4.4 Does the lender require me to report incentives?

Yes, including any guaranteed rental payments

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6.4.5 If different from 1.11, contact point if we will not have control over the payment of all the purchase money:

Originations

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6.5.1 If different from 1.11, contact point if vacant possession is not being given:

Originations

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6.6.1 If different from 1.11, contact point if property is let/to be let and to check you lend on buy-to-let:

TMW is a buy to let lender. Rent back is not acceptable, you should report to us if the existing tenant has owned or retains an interest in the property or if the seller is to remain or retain an interest in the property.
Where the property is subject to selective licensing as designated by the Local Authority we will lend only if the licence is in place or will be granted on or before completion.

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6.6.2 If different from 1.11, contact point when you do not have details of current letting or letting to take place at completion:

Originations

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6.6.3 Does the lender require counterpart/certified copy tenancy agreement to be sent to you?

No,not required for properties let under a standard Assured Shorthold Tenancy within the meaning of section 20 of the Housing Act 1988 as amended by the Housing Act 1996 and subject to a maximum tenancy term of up to 36 months. If the AST is of 13-36 months duration please notify TMW accordingly but there is no requirement to send in the tenancy agreement.
Where the tenancy is to be with a private individual on a non-AST basis, such as where the annual rent exceeds £100k pa, these maybe acceptable to TMW by exception. A copy of the agreement must be sent to TMW for further consideration.
Where the tenancy is not in the standard form(non AST) and let to a Local Authority,Housing Association, Government Department, Corporate Company or University we will require a copy of the agreement to be sent to us to verify the suitability of the tenant. In such cases you must confirm that the tenancy agreement meets the following requirements:
1)the tenant must be letting the property to a current employee of its organisation (if NHS, government department or limited company) or
2)the tenant must use the property to provide accommodation for homeless persons under the Housing Act 1996 or similar legislation (if local authority or housing association) or
3)the tenant must use the property to provide accommodation to students (if a University)
4)the tenant must not use the property for business or create any business tenancy.
5)there must be no security of tenure afforded to the occupier or tenant.
6)the agreement recognises the existence of a mortgage and the potential for the mortgagee`s right to repossess.
7)the agreement provides for rent to be diverted to the mortgage lender or their representatives.
8)the tenancy is no more than 3 years in duration.
9)the agreement must contain no other provisions which adversely affect the lender`s security or its right to enforce its remedies under the mortgage deed executed by the borrower.
Tenancy agreements or tenants that do not meet the above requirements are not acceptable and TMW must be informed immediately.



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6.6.4 Does the lender lend where the property comes within the definition of a house in multiple occupation? If yes, what are your requirements?

No, unless expressly covered within the mortgage offer. If so, HMO licence will be required

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6.7.1 What new home warranty schemes are acceptable to the lender?

NHBC, HAPM, LABC, Premier Guarantee, BLP formerly known as Building Life Plan (excluding self builds under construction), Build-zone, Checkmate`s Castle 10 (where outbuildings such as a detached garage are also being constructed an endorsement to include these in cover is required), Build Assure (New Home Structural Defects Insurance), Global Home Warranties (Structural Defects Insurance), The Q Policy for Residential Properties, The Q Policy for Bespoke Properties (detached only),
Advantage (Note: there must be no more than 10 units in any continuous structure),
Protek,
International Construction Warranties (ICW),
Ark Residential New Build Latent Defects Insurance (where a detached garage/outbuilding has been constructed at the same time as the main building the policy must include an endorsement confirming cover for the detached garage/outbuilding),
Aedis (there must be no more than 20 units in the structure).
CRL new build 10 year structural defects insurance policy for residential property:
New properties where the insurer is International General Insurance Company (UK) Ltd and Ark have signed the final certificate. Please see the final paragraph on the final certificate which will confirm Ark details and the fact they are signing on behalf of the insurers: Acceptable.
New build properties underwritten by Alpha: Not acceptable.
Second hand properties being sold by first or subsequent owner and property is under two years old, with warranty underwritten by Alpha: Unacceptable.
Second hand properties over two years old: Acceptable

Refer all other warranty schemes to Issuing Office.

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6.7.2 What new home warranty documentation should be sent to the lender?

None, borrower to retain

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6.7.3 Should any assignments of building standards indemnity schemes be sent to us?

None, borrower to retain

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6.7.4 Will the lender proceed if the property does not have the benefit of a new home warranty scheme?

Yes, provided a professional consultants certificate is available with suitable indemnity insurance

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6.7.6 Does the lender need to be sent the professional consultant's certificate?

Yes

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6.8.1 If different from 1.11, contact point if no agreement and bond for an unadopted road or sewer:

Newly built properties: we do not insist on any such agreement and bond being in place or you making a retention, providing the roads and sewers are to be adopted eventually or managed by residents or a management company (see 6.8.4 part 1) and so we do not need to be made aware of such circumstances. However, you should ensure all borrowers are aware of their potential liability.
Second hand properties: whether managed by residents or a management company or not (see 6.8.4 part 1), all borrowers must be made aware of the practicalities of the situation and of their future or potential liability, we do not need to be advised of the situation. For un-adopted sewers the vendor must confirm the system is currently working and there have been no disputes regarding servicing and maintenance of the system.

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6.9.1 If different from 1.11, contact point if necessary easements are absent:

Originations, but providing suitable indemnity insurance is in place on completion there is no requirement to advise us (see section 9 below)

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6.10.2 Who will the lender release any retentions (or instalments of the advance) to?

Solicitor/Licensed Conveyancer

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6.11.1 If different from 1.11, contact point if property is affected by redevelopment or road proposals:

Originations

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6.12.1 If different from 1.11, contact point if pre-emption rights, resale restrictions, options etc will affect the lender's security:

Originations
Overage Agreements are not acceptable

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6.13.1 If different from 1.11, contact point if property is affected by improvement/repair grant which will not be discharged:

Originations

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7.3 Does the lender require a consent to mortgage from all occupants aged 17 or over?

Yes

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7.4 If different from 1.11, contact point if doubts about accuracy of information disclosed:

Originations

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8.1 Does the lender allow me to advise any of the specified third parties?

No, however another Partner within the firm may if you are satisfied they can give independent advice and by doing so the document will not be open to challenge

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9.1 Does the lender need to be sent the indemnity insurance policy?

No, confirmation must be given that you are holding the actual policy on producing the Certificate of Title.
We do not require an indemnity policy to be taken out when the purchaser has received a cash gift which forms part or all of their deposit.

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9.2 What limit of indemnity insurance does the lender require?

The full purchase price/value of the property whichever is higher

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10.2aWill the mortgage advance be paid electronically or by cheque?

Electronically

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10.2bWhat is the minimum number of days notice lenders require?

5 working days or 10 working days if a re-inspection is required

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10.3 What are the standard deductions made from the mortgage advance?

As per the Offer of Advance

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10.7 On a delayed completion, when and how is advance to be returned?

Within 3 working days - electronically

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10.9 If different from 1.11, contact point if completion is delayed?

Originations

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10.10 How long can you hold the mortgage advance before returning it?

3 working days. An administration fee will be payable when the funds are re-released for the new completion date

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10.11 What, if any interest does the lender charge if return of the advance is delayed?

Interest at the contract rate

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12.3.1 If different from 1.11, contact point for release of retentions/mortgage advance instalments:

Originations

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14.1.4 Does the lender require me to make a form CH2 application?

No

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14.1.5 Does the lender need to be sent the original mortgage deed and/or any other original title documents?

No.

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14.2.1 Where should the title deeds and documents be sent?

Original mortgage deed to Land Registry, all other documents should be given to the borrower(s)

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14.2.2 Which documents must I send after completion?

Confirmation of Registration with Official Copies and Filed Plan & Consent to Advance, if applicable

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16.1.1 If different from 1.11, contact point for title documents:

Deeds Department, if not subject to dematerialisation

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16.3.1 Does the lender have a standard form of transfer/deed of covenant?

No

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16.3.2 If different from 1.11, contact point for finding out the debt amount:

Account Servicing

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16.3.4 Does the lender need to be sent the transfer of equity?

Yes - Account Servicing

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16.3.7aIf different from 1.11, contact point for obtaining execution of transfer equity:

Account Servicing

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16.3.7bWhat form of attestation clause does the lender use?

Signed as a deed by The Mortgage Works (UK) PLC by two duly authorised officials

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16.4.1 If different from 1.11, contact point for application for consent to letting:

Account Servicing

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16.4.2 Does the lender need to be sent a copy of the proposed tenancy?

Generally no as TMW mortgages are granted on a buy to let basis and must meet the following criteria: is an assured shorthold tenancy within the meaning of section 20 of the Housing Act 1988 as amended by the Housing Act 1996 or an alternative form of tenancy whereby vacant possession can be obtained as of right at the end of the term created by the tenancy, and complies with the terms of the Offer Conditions except that the maximum term of the tenancy must be no more than 12 months. The tenancy agreement should also give notice to the tenant that possession may be obtained under Ground 2 of Schedule 2 of the Housing Act 1988

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16.5.2 If different from 1.11, contact point for confirming proposed deed or agreement will not adversely affect the lender:

Accounting Servicing

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16.5.3aWhere should the deed of variation be sent?

Accounting Servicing

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16.5.3bWhere should the deed of rectification be sent?

Accounting Servicing

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16.5.3cWhere should the deed of easement be sent?

Accounting Servicing

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16.5.3dWhere should the option agreements be sent?

Accounting Servicing

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17.1.1 If different from 1.11, contact point for redemption statements:

Accounting Servicing

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17.2.1aWhere do you send the discharge and repayment remittance?

Documents - Accounts Servicing
Remittance - electronically

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17.2.1bDoes the lender send the discharge via a DS 1 form or direct with the Land Registry?

DS 1 form to Accounting Servicing

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