Important Information - Secured Loans
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.
Applicants
- Minimum age: 18 years
- Maximum age: 65 years
Standard Income Multiples
3.25 x primary income + 1 x secondary income or 2.75 x joint income.
Definition of Income
100% of basic salary, mortgage subsidy, large town allowance, car allowance (not expenses), PLUS 60% of regular overtime, shift allowance, bonus or commission.
For self-employed applicants annual income will be assessed from the accounting information supplied. Provided the income is steadily increasing the income taken will generally be the net profit from the latest year's accounts.
Where the applicant is the director of a company and has a shareholding of 33% or more income will be taken as per employed applicants plus dividends where this is appropriate.
Minimum Loan
£1,000
Maximum Loan
£2million - although loans of up to £4 million may be considered on an individual basis.
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.
Term
2 - 40 years
Repayment Methods
Repayment, interest-only or a combination. The method(s) for repaying interest-only element must be specified.
Life Cover
Customer to satisfy themselves that they have made proper provision for cover. Policies will not be assigned.
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.
Fees
Further Advance 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.
Household Insurance
Property will only form an acceptable security if insurance cover, under normal terms including subsidence and flood cover, is confirmed.
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.
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).
Exposure Limits
Birmingham Midshires exposure on any single development must not exceed 20%. In addition, HBOS exposure cannot exceed 30% on any single development.
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.
Accounts
For loans of up to £100,000, accounts provided by a bookkeeper will be accepted.
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.
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.
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.
Maximum Loan to Values
| 95% | Up to £150,000 |
|---|---|
| 90% | £150,001 to £500,000 |
| 85% | £500,001 to £1,700,000 |
| 75% | £1,700,000+ |
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 a complete product and are therefore not available for properties in Northern Ireland.
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 further advances. Only accounts whose main loan is Flexible can have a further advance on the Flexible product. The drawdown facility will not be available on further advances.
- Secured personal loans cannot be taken on a Flexible basis.
- Further advances 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 a further advance for £25,000, you must use the £10,000 drawdown facility and take a further advance for £15,000. In addition, stored overpayments will also need to be used prior to a further advance 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).
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
Your home may be repossessed if you do not
keep up repayments on your mortgage.
