Important Information - General Mortgages

The products displayed on this website are available for customers opening new accounts. Customers who wish to review existing accounts or require additional funds please contact us on 0845 3002627.

Calls may be monitored and recorded for security and training purposes. 0845 numbers may not be available outside the UK. Calls from BT landlines will cost a maximum of 4p per minute plus a 6p call set-up fee. The price of calls from other telephone companies and from outside the UK will vary. The call price is correct as at today's date.

These pages are for the use of those people who are resident and ordinarily resident in the UK and should not be regarded as an offer or invitation to sell Mortgage and Investment products in any jurisdiction other than the UK.

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Applicants

• Minimum age: 18 years
• Maximum age: 65 years

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Standard Income Multiples

The maximum borrowing is calculated using our affordability model. This takes into consideration the financial commitments of the customer and also their household expenditure. As a rough guide, multipliers of 3.25 x primary income + 1 x secondary income or 2.75 x joint income can be used to estimate the maximum lending.

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Definition of Income

100% of basic salary, mortgage subsidy, cost of living allowance, housing or rent allowance, service/state pensions and car allowance. We also consider up to 60% of regular or non-guaranteed overtime, bonus and commission. Exclusions - travel allowance and expenses.

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Minimum Loan

House purchase and remortgage: £25,001

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Maximum Loan

£2million - although loans of up to £4 million may be considered on an individual basis.

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Additional Borrowing

When applying for Additional Borrowing the product chosen must be from the same scheme as the main borrowing; the minimum Additional Borrowing is £1,000. A flexible product cannot be combined with any other product type.

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Term

5 - 40 years

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Repayment Methods

Repayment, interest-only or a combination. The method(s) for repaying interest-only element must be specified.

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Remortgage

BM Solutions cannot remortage a property if it has been owned for a period of less than 6 months.

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Life Cover

Customer to satisfy themselves that they have made proper provision for cover. Policies will not be assigned.

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Additions to Loan

The items that can be added on to the loan amount are the Higher Lending Charge (where payable), and product fee. The maximum loan including add-ons as a percentage of purchase price or valuation (whichever is lower) must not be more than 99%. Any items added to the loan will then go on to incur interest charges.

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Changing the basis of borrowing

When changing the basis of your borrowing with us, e.g. General to Self-certification/Buy to Let/Credit Solutions, you will not be able to continue with your existing interest rate product.Your existing loan conditions may require you to pay an early repayment charge.

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Conveyancers

Conveyancers must be on the Halifax panel of conveyancers and will also be instructed to act on behalf of Birmingham Midshires.

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Fees

Valuation fees.
House purchase and Remortgage (see table below).

Valuation Fees
Purchase Price up to:	£50k	£100k	£150k	£200k	£300k	£400k	£500k
Automated Valuation Model(AVM) Fee*	£215	£250	£280	£310	£360	£410	£460
Level 1 Standard Valuation Fee**	£290	£330	£365	£405	£480	£550	£615
Level 2 Survey & Valuation Fee**	-	£510	£540	£590	£710	£840	£980
Purchase Price up to:	£600k	£700k	£800k	£900k	£1m	£1m+
Automated Valuation Model(AVM) Fee*	£500	£550	£590 (Max £750k)	N/A	N/A	N/A
Level 1 Standard Valuation Fee**	£670	£730	£785	£840	£895	Available upon request
Level 2 Survey & Valuation Fee**	£1120	£1260	£1400	£1540	£1680
The above fees include a £150 administration fee and VAT if applicable.

^*Not available for Buy to Let. For full eligibility please see criteria below
^**Buy to Let valuations are applicable to an additional charge of £25.00 in view of valuers assessing for rental income

Cases eligible for Automated Valuation Model (AVM)

• LTV (based on purchase price) is less than or equal to 85% on new loan applications.
• LTV is less than or equal to 90% for remortgages.
• Application is not packaged.
• The scheme is not Buy to Let or Ex-pat Buy to Let.
• Application type is new loan (except where the property is in Scotland or Northern Ireland).
• Application type is a re-mortgage (except where the property is in Norther Ireland).
• Loan amount is no more than £500k.
• Property is not a new build.
• Purchase price/estimated value is no more than £750k.

Additional Borrowing Fee of £299.

If Birmingham Midshires agree to a request to change the choice of product after an offer has been made, an additional £250 administration fee will be charged.

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Household Insurance

Property will only form an acceptable security if insurance cover, under normal terms including subsidence and flood cover, is confirmed.

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Monthly payments

All payments, including property insurance premiums, must be made in sterling by direct debit through the UK direct debit system. The direct debit must be in place prior to completion.

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Security

First mortgage on freehold properties in England,Wales and Northern Ireland, feudal properties in Scotland or leasehold properties in England,Wales and Northern Ireland with at least seventy years remaining on the lease at the time of application. If a flat is part of a conversion where the total number of flats in the scheme is above 8, the valuer must confirm that the whole conversion project has been or will be completed to a high standard. Freehold flats/maisonettes are unacceptable. Residential security only. We require that a newly built property (or one being occupied for the first time) has the benefit of a 10 year warranty from the National House Building Council or Zurich Municipal Insurance.The Zurich warranty may be extended to fifteen years. The only exception to NHBC or Zurich Municipal cover is where an architect or qualified surveyor is employed by the applicant to supervise the building of the property (Certain other qualified consultants may be acceptable - please refer).

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Exposure Limits

We would not normally allow the HBOS exposure on any development to exceed 30%.

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Proof of Residence

If the applicant(s) are not on the voters' roll at the current address, proof of residence must be provided: e.g. bank/building society statement, credit card statement, or Council Tax statement.

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Accounts

For loans of up to £100,000, accounts provided by a bookkeeper will be accepted.

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Minimum employment period

Employed applicants will be expected to have been employed for a minimum of 6 months in their current role.

Self-employed applicants will be expected to have been self-employed for a minimum of 2 years.

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Higher Lending Charge

If your loan is for 90.01% or more of the purchase price or valuation, a one-off risk associated fee will be charged that can normally be added to your loan.

A Higher Lending Charge of 8.50% of the amount borrowed above 75% applies for loans of 90.01% or more.

If your property is ever taken into possession and sold for less than the amount you owe (including arrears, interest and costs), then it remains your responsibility to pay any shortfall.

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Documentation required

• All First Time Buyers - 3 months' bank statements.
• All existing mortgage holders / local authority tenants - Latest lender's or landlord's statement.
• If employed - P60 and last 3 payslips.
• If self-employed - last 2 years' accounts.

Each case is considered on an individual basis. We may request additional information where considered appropriate and relevant to the lending decision.

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Maximum Loan to Values

Purchase and remortgage:

95%	Up to £150,000
90%	£150,001 to £500,000
85%	£500,001 to £1,700,000
75%	£1,700,000+

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Free Remortgage Service (where applicable)

The free Remortgage Service is only available on properties in England, Wales and Scotland using Birmingham Midshires designated remortgage service through ENACT.

An additional charge will be made for any non-standard legal work including deeds of postponement, transfers of equity and registering of title. Any additional charges will be advised by ENACT to the borrower prior to the work being carried out.

Please note remortgage products offering the Remortgage Service and other incentives must be taken as complete product and are therefore not available for properties in Northern Ireland.

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Flexible Mortgage Conditions

• We will accept a minimum of 14 days and up to 3 months notice of your intention to use any of the features.
• A regular instruction cannot be accepted, e.g. miss every December's payments.
• Drawdown facility must be for a minimum of £25,001. There must be sufficient equity, in addition to the minimum initial advance of £25,001 to offer a drawdown facility. The drawdown facility must be taken in withdrawals of not less than £1,000.
• This mortgage is not available for stand alone Additional Borrowings. Only accounts whose main loan is Flexible can have Additional Borrowing on the Flexible product. The drawdown facility will not be available on Additional Borrowing.
• Secured personal loans cannot be taken on a Flexible basis.
• Additional Borrowing will only be allowed once the drawdown facility has been used up, e.g. should you have a £10,000 drawdown facility remaining and you would like Additional Borrowing for £25,000, you must use the £10,000 drawdown facility and take Additional Borrowing for £15,000. In addition, stored overpayments will also need to be used prior to Additional Borrowing being agreed.
• Flexible mortgage cannot be mixed with any other product type.
• Flexible features will be withdrawn under certain circumstances outlined in the terms & conditions.
• A Flexible loan is fully portable to a new home purchase, but the drawdown facility will need to be re-assessed on each application.
• Drawdown facility is valid for three years after completion.
• You can miss two payments per rolling 12 month period subject to no arrears within the last six months and six consecutive payments have been made since taking the mortgage.
• You will receive written notification of any agreement to adjust payments/take payment holiday, etc.
• Underpayments may be made providing you have made previous overpayments, and at least six months consecutive payments have been made since taking the mortgage. You may reduce your payments until the effect of any overpayments have been eroded.
• Flexible mortgage is also available to both expatriates residing in the U.K. and British expatriates abroad (subject to expatriate terms and conditions).
• Overpayments, drawdown facility, drawdown of overpayments and daily interest are available immediately.
• Repayment holidays and underpayments are available after the first six monthly payments have been made (subject to terms and conditions).

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Our tracker rate mortgages are linked to Bank of England base rate (also know as Bank of England repo rate). Details of this rate can be found on the Bank of England website or in the Financial Times or other leading newspapers.

All our products are SUBJECT TO AVAILABILITY and can be withdrawn at any time