Frequently Asked Questions

Frequently Asked Questions Index

1. Does Bradford & Bingley offer online mortgage advice?
2. How will you know we have received your online application?
3. How do we check your application for mistakes?
4. Can you get a mortgage if you have a County Court Judgement (CCJ)?
5. What should be included in the 'monthly outgoings' section of the application form?
6. What evidence do you need to give to confirm your identity and earnings?
7. How do we handle your mortgage application?
8. How are Early Repayment Charges calculated?
9. What is a Higher Lending Charge and will you have to pay it?
10. What costs are associated with taking out a mortgage?
11. What is an Initial Disclosure Document?
12. What is a Key Facts Illustration (KFI)?
13. What is Mortgage Regulation?
14. How are mortgages currently regulated?
15. What type of companies are affected by Mortgage Regulation?

Does Bradford & Bingley offer online mortgage advice?

No, our online service does not give advice. Our aim is to provide you with the right information to find the mortgage you believe best suits your needs. After you apply online, your dedicated Customer Services Associates will contact you to help you through the process.

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How will you know we have received your online application?

When your application reaches us, you should immediately get an e-mail message back telling you the application has been successfully transmitted. This message will be labelled "New Application". If you have not received this e-mail, we may not have received your application. Please contact us before you submit it again by calling 0845 602 7009.

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How do we check your application for mistakes?

We correct obvious mistakes on your application and post it to you to be initialled where the correction has been made. More serious errors should be picked up by our Mortgage Wizard software and prevent you from initially submitting mistakes in your application.

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Can you get a mortgage if you have a County Court Judgement (CCJ)?

Yes – a number of products that we offer cater for people who have had previous CCJ’s – so if you have been subject to a County Court Judgement, this does not necessarily prevent you from obtaining a mortgage.

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What should be included in the 'monthly outgoings' section of the application form?

You need only include loans that have more than 6 months left before they are paid off and loans that are secured on your property. Household bills, such as electricity, gas and groceries should not be included.

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What evidence do you need to give to confirm your identity and earnings?

Typically, the documents we will need to see include: payslips, bank statements, birth certificate, driving license, utility bills, savings statements, existing mortgage statement (if applicable) and business accounts if you are self-employed.

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How do we handle your mortgage application?

As soon as we get your application, we assign a dedicated Customer Services Associate to your case, backed up by a 'buddy' in case they are ill or away. This means you have a named contact and someone who is familiar with your case to call on. Your Customer Services Associate will follow your application through from start to finish and tackle any problems that arise on the way.

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How are Early Repayment Charges calculated?

Early Repayment Charges can be calculated in several different ways. The charge will be based on the amount of the mortgage you redeem and will usually either be a percentage of this amount or a number of months' interest.

If you are charged a number of months' interest, the rate used in the calculation is based on the Standard Variable Rate (SVR) or the actual fixed / capped / discount rate being paid, or the higher of the two.

Sometimes the Early Repayment Charge remains the same during the whole period of the special rate; for other mortgages it decreases over the special rate period. However, there are some mortgages where the Early Repayment Charge actually increases during the special rate period. These are normally discount mortgages.

If you use our online facility to search for a mortgage, we'll make it clear which Early Repayment Charges apply to each mortgage (if any), and how they are calculated. We'll also show you, for the amount you wish to borrow, what the Early Repayment Charges will be (if any) if you repay the mortgage early over various years.

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What is a Higher Lending Charge and will you have to pay it?

A Higher Lending Charge (formerly known as Mortgage Indemnity Guarantee or MIG) is a one-off premium paid by the lender to an insurance company on high Loan To Value (LTV) mortgages so that if your property is ever repossessed and sold at a loss, the lender can recoup any losses incurred.

This premium is sometimes passed on to the borrower, either by adding it to the mortgage or by requiring the borrower to pay it on completion or over a specified period: usually 12 months or by the end of the lender's financial year.

Illustrations on our site will always show you if a Higher Lending Charge is to be added and if so how much it will be.

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What costs are associated with taking out a mortgage?

Any associated costs will be clearly shown on your personal illustration, before you apply for a mortgage. Generally, other costs you will, or may, have to pay are:

• Mortgage arrangement and valuation fee (payable on application).
• Product fee (usually added to the mortgage or payable on completion).
• Legal costs, including stamp duty (a Government tax) on the purchase of properties over £125,000, land registry fees and various search fees.
• Life insurance (recommended, but not always compulsory).
• Accident Sickness and Unemployment insurance (recommended, but not compulsory).
• Buildings insurance and Contents insurance (recommended, but not compulsory).

You should always look at the total mortgage package and not focus just on costs or just on the interest rate.

Bear in mind that on the purchase of properties over £125,000 the biggest single cost will normally be the stamp duty.

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What is an Initial Disclosure Document?

The FSA have designed the Initial Disclosure Document to provide information about firms that is easy to compare. The document should provide a clear understanding about any service being offered and enable consumers to make informed decisions as to which company and whether or not to accept their service.

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What is a Key Facts Illustration (KFI)?

The FSA have designed a Key Facts Illustration to ensure that consumers receive consistent illustrations, with content shown the same way, from all mortgage providers, allowing them to compare like with like.

Consumers must have personalised product information, in the form of a KFI, at an early stage in the buying process, to ensure an easy comparison of different products. It also ensures consumers receive the information they need to decide whether to apply for a particular mortgage.

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What is Mortgage Regulation?

The Financial Services Authority (FSA) has regulated Mortgage Lending, sales and administration since 31st October 2004.

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How are mortgages currently regulated?

Some mortgage activities were regulated under a (non-statutory) voluntary arrangement. This changed on the 31st October 2004.

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What type of companies are affected by Mortgage Regulation?

• Mortgage brokers
• Mortgage lenders and administrators

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