Questions & Answers

Bank of Scotland Mortgages

Q: What is changing?

A: At 8pm on 1st September, the process for arranging further advances and product transfers via the E-service application system was removed.

Q: Why is this change happening?

A: Following our decision to streamline our intermediary mortgage business, our intermediary brands are Halifax, BM Solutions, C&G and Scottish Widows Bank. Bank of Scotland continues to operate as a direct brand. These changes provide a clear intermediary proposition by removing any overlap.

Q: What does this change mean for me and for my clients?

A: Those clients with an A/ mortgage account number who are planning to make a change to their mortgage through borrowing more, moving home or reviewing their rate are able to contact you and transfer to Halifax using a new process.

Alternatively, you may refer clients to Bank of Scotland directly on 0845 850 0842.

Clients who do not wish to make any changes to their mortgage will not be impacted and will remain with Bank of Scotland.

Q: What is the new process?

A: Clients who

• want to move home and port their product within an ERC (Early Repayment Charge) period can apply for a home mover mortgage application as normal. Instead of keying their existing product code, you should use the substitute product code for the amount of their current mortgage product.
• want to borrow more or change their rate within an ERC period can be remortgaged to Halifax. You should apply for a remortgage in the usual way, keying a substitute product code for the amount of their current mortgage product.

Please see further details on the process, which demonstrates our continuing commitment to Treating Customers Fairly.

Q: Can a client port via the new process if they are on SVR?

A: No, SVR is not a product and as such is not portable. Clients can only transfer a product in a special rate period to a substitute product.

Q: What are substitute products and where do I find them?

A: We have created a range of products for your clients who are within an ERC period. These products are similar, but not identical to the products that your clients may have on their existing mortgage and aim to maintain your clients' current financial position within the ERC period.

You will need to identify the client's current product code first, and then key the new product code that is provided when placing the mortgage application. The new product details will only be available when the new code is entered into Halifax Intermediaries Online application system.

Q: How do I establish the existing loan amount and product code?

A: As with a standard remortgage process, your client will need to advise you of the correct loan amount. Clients can contact 0845 850 0842 to obtain this information.

If you or your client do not know their existing product code or correct loan amount, you can contact 0845 306 0031 to obtain this information.

We will also check this when we receive the application, to ensure the information is accurate.

Q: Will the client have to pay any ERCs?

A: Clients will only need to pay an ERC if they are closing their mortgage product and not transferring their full product amount to a substitute Halifax product. The substitute product will carry any relevant ERC.

Q: Will my client incur any fees?

A: Yes, there will be some fees associated with the new process as detailed below:

• A deeds release fee will be charged where applicable.
• Substitute products do not carry a product fee. However, the client will need to pay any product fees applicable on any balances on a new mortgage product.
• Clients will need to pay for any additional legal services that they may require.
• We will pay our associated valuation and conveyancing costs for the remortgage.
• On remortgages, outstanding Mortgage Application Fees (MAF) / Mortgage Exit Administration Fees (MEAF) will be carried forward to Halifax in the form of a MAF. When advising on this process, please bear in mind that the existing MEAF may be lower than the new MAF.
• All fees associated with a standard home mover case will be applicable.
• Clients who apply to Bank of Scotland directly will continue to be subject to the £99 Further Advance fee.

Q: Will I be able to use Halifax Intermediaries Online?

A: Yes, you should submit Halifax applications using Halifax Intermediaries Online.

Q: What cases will Halifax accept?

A: Cases will be fully underwritten by Halifax and must meet their lending criteria at the time of application. Also, they will be subject to Halifax credit scoring.

Q: Will the client's new mortgage be on the same terms and conditions as their existing Bank of Scotland mortgage?

A: No. The terms and conditions will be for a new Halifax mortgage. Details will be sent to the client. Please note when the substitute product period ends, the mortgage will revert to the applicable rate, which will be detailed on the Key Facts Illustration. This may be higher than Bank of Scotland's Standard Variable Rate.

Q: Does this process apply to my Self Cert and Buy to Let clients?

A: No. You can apply for a mainstream home mover or standard remortgage (i.e. no substitute product involved) for existing Self Cert clients, but you will need to be able to provide verification of their income. Alternatively, they can call Bank of Scotland directly on 0845 850 0842.

There is no change for Buy to Let clients.

Q: How can a person be added to or removed from a mortgage?

A: Clients must contact Bank of Scotland directly on 0845 850 0842 to discuss this process.

Q: How long does the new process take?

A: This will take the same period of time as current mover or remortgage applications.

Q: Is there a minimum loan amount for clients requiring additional borrowing?

A: Yes, the client needs to borrow at least an additional £5,000 if remortgaging to Halifax to borrow more money.

Q: What is the impact on proc fees?

A: We will pay a proc fee in the usual way for all home mover mortgage completions.

For remortgages using a substitute product, we will pay for any lending that is in addition to the amount of a substitute product. For example, on a remortgage for £150,000 using a substitute product for £50,000, we would pay a proc fee for £100,000.

Q: How does this affect my pipeline business?

A: Any new business cases submitted prior to 8pm on 1st July will be processed as normal. Any further advances or product transfers keyed prior to 8pm on 1st September will also be processed as normal.

Q: How do I refer clients to Bank of Scotland directly?

A: Clients can call Bank of Scotland directly on 0845 850 0842.

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