General Underwriting
and
Processing Guide
Quick links:
Blemain Finance
Cheshire Mortgage Corporation
Lancashire Mortgage Corporation
Please note: This pack, any details or information contained in it, either electronic or printed, is for
use only by professional finance and mortgage intermediaries for the purpose of
assessing consumer credit and other specialist secured loan and mortgage acceptance
criteria. Other persons should not place any reliance on the content. It must not be distributed to
potential borrowers. We reserve the right to refuse, decline or reject any applications we do not feel
are in the customer’s, broker’s or lender’s best interests.
(April 2014)
© Blemain Group 2014
WELCOME
to the Blemain Group of Lending Companies
For over 35 years Blemain Group has provided innovative products and flexibility in our underwriting for all of our
introducers. We endeavour to establish and maintain strong relationships with all of our brokers, regardless of size or
potential business volume. All brokers, with the relevant required status, are able to present cases directly to us across
all of our lending companies.
Facilities
We have a reputation as a motivated, pro-active lender which continually enhances core products and niches for the
benefit of our brokers. Our criteria have been developed to provide guidelines as to the acceptability of the case, but if
the case is outside of the plan, either at initial enquiry stage or nearing completion, by simply discussing your
requirements - we will always take a view.
The Blemain Group companies consider many client status profiles, many income sources and many property types or
land regardless of structure, usage, or valuation.
Service
You will be provided with immediate in-principle decisions, direct access to your Business Development Managers,
Executives and Underwriters, and your remuneration is paid per case, shortly after it completes, not periodically.
THE COMPANIES
Blemain Finance is the second charge residential, buy to let and semicommercial lending division of Blemain Group. We also provide buy to let
and semi-commercial first charges for both term and bridging finance. It is
authorised and regulated by the Financial Conduct Authority in respect of
consumer credit second charge loans.
Lancashire Mortgage Corporation is the commercial lending division of
Blemain Group for commercial mortgages and loans, buy to let, land
finance and bridging finance
Cheshire Mortgage Corporation is first charge lending division of
Blemain Group for regulated mortgage contracts and shared ownership.
It is authorised and regulated by the Financial Conduct Authority.
Whether you have Residential or Commercial enquiries, require first charge mortgages or second charge
secured loans, for either long term or as bridging finance Blemain Group has criteria for any permutation.
CONTENTS
COMPLIANCE AND SERVICE LEVEL AGREEMENT
4
UNDERW RITING PROCESSING GUIDE
7
Welcome to Blemain Finance
7
Blemain Finance Packaging Brokers
8
Blemain Finance Scottish Loans Procedure for Packaging Brokers
10
Welcome to Cheshire Mortgage Corporation
11
Welcome to Lancashire Mortgage Corporation
12
Welcome to The Introducer Centre
13
GENERAL UNDERWRITING CRITERIA
15 - 21
COMPLIANCE AND SERVICE LEVEL AGREEMENT
The defined terms contained within this Agreement shall have the same meaning as prescribed to it in the Packager
Accreditation Agreement.
To act as a broker to the Lender you must apply through your Business Development Executive (“BDE”) for
accreditation. In respect of consumer credit business and regulated first charge mortgage contracts, we require
a note of your FCA reference number and detail of the permissions held.
By entering into the appropriate agreement you are also confirming you have read and accepted the terms contained
within the Lending Criteria and the Lending Policy a n d yo u w a rrant a nd u nd erta ke that you have understood and
agreed to all of the requirements and that you confirm you are aware and will comply fully without reservation the
contents of the same.
Audits of the actions taken and the customer service provided by brokers will be conducted regularly by the Lender. Any
broker who is found to be acting fraudulently, unethically or acting in anyway contrary to good practice will have their
brokerage with the Lender i m m e dia tel y revoked. If you are unclear on any matter detailed in this section please
contact your BDE, who will refer you to the appropriate department.
You also acknowledge and confirm that you are not authorised to use the name of the Lender in any advertising
material. You will not promote yourself as the duly authorised agent of the Lender. You also confirm that you are
aware we operate a monitoring system and will take up customer's complaints of any alleged unsatisfactory broker
practice with the broker. Should any such complaints upon investigation prove well founded, we reserve the right
(depending on the nature of such complaint) to revoke the brokerage agreement.
You ha ve no authority to enter into any contract, make any representation, give any warranty, or incur any liability on
behalf of the Lender. You also have no authority to pledge the credit or collect any payment on behalf of the Lender
without prior written consent.
Please refer to the current Product Plans or other communications for terms relating to remunerations that are paid when
a case completes. Please note that the Lender will not be responsible for any costs, fees or expenses which you may
have negotiated with anyone else, including any sub-broker or other intermediary.
As a broker submitting business to the Lender you must ensure that, where appropriate, you are aware of and act
strictly in accordance with all FCA rules regarding regulated mortgage contracts and Consumer Credit agreements and
activities, promotions and general insurance, the provisions of the retained Consumer Credit Act Regulations, the spirit of
that statute, retained Office of Fair Trading Guidance, the Data Protection Act and any other relevant regulation or
legislation or as re-enacted, amended or extended or any subordinate legislation made from time to time under it.
You must also abide by the retained Consumer Credit (Advertisement) Regulations and the retained Consumer Credit
(Agreements to enter Prospective Agreements) Regulations.
Customers have no rights of cancellation under retained sections of Consumer Credit Act 1974 and 2006, the Timeshare
Act 1992 or the Financial Services (Distance Marketing) Regulations 2004 where the loan is secured on land. However,
where the sale is made by distance means (e.g. phone or internet) there are information requirements that must be
provided to the Applicant before completion of the loan. To comply with the Distance Marketing Regulations you should
provide written details of your firm's name and address, the nature of your business (e.g. mortgage broker) and your
Financial Conduct Authority firm reference number (if applicable). We will provide all other information that the Applicant
requires to meet the requirements of this legislation.
By law you must act in a lawful manner, abide by the current FCA Regulations, retained Office of Fair Trading Guidelines,
Data Protection Act, any regulations laid down by the Government and act in the best interests of your customer at all times.
You further understand that you can only act for the Lender for the following purposes:
I.
collation and submission of information and/or documentation required in connection with the loan or mortgage
application and the processing thereof;
II. the obtaining of any existing first or subsequent mortgage balances and for confirmation of balances or settlement
figures from other mortgagees;
III. arranging for a valuation to be carried out by an approved surveyor.
GUPG - April 2014
4
The Broker warrants and undertakes to:


















ensure that each member of its Staff have the appropriate skills, knowledge and expertise necessary to discharge the
responsibilities allocated to them, including appropriate ethical behaviour.
ascertain a clear and accurate purpose of the Loan or Mortgage.
complete an income and expenditure assessment for the Applicant to ensure they can afford the Loan or Mortgage
payments, challenging any amounts that seem implausible and information provided on their bank statements
should they be required.
give clear and accurate advice or information which is suitable and appropriate to the needs and circumstances of
the Applicant.
advise the Applicant to take independent legal advice before signing any documents or agreements and not
discourage them from doing so.
advise the Applicant that the Loan or Mortgage is secured on their property by a mortgage and that their
property may be repossessed if they do not keep up the repayments set out in the Loan or Mortgage Offer.
explain to the Applicant in full that any fee you may charge for your services is NOT a condition of the Loan or
Mortgage. We will need the Applicant’s request and instruction in writing for us to deduct this fee and send it to you.
You may also receive a payment from us in respect of the Loan or Mortgage, which you should advise the Applicant
of and hold conversation on file.
explain to the Applicant that it will often be desirable for any mortgage arrears to be paid from the Loan or Mortgage
and that if they are in agreement with this then the arrears will be deducted and cleared by the advance. Should the
Applicant not wish to clear any arrears from the advance you must inform your Underwriting Relationship Manager
at the earliest opportunity for further risk assessment.
explain to the Applicant that if they pay off the Loan or Mortgage early, they may incur an early repayment
charge (this is explained in the Legal Agreements).
explain how long the Loan or Mortgage you have offered to the Applicant will last and specifically whether it is
intended as a short-term loan or, alternatively, whether it is for a period of years rather than months.
be as accurate as possible when supplying information to the Lender and to the Applicant and you must not
falsify any documentation or information as we will contact the Appli can t and any third parties where
information has been provided prior to completion.
use the Quick Quote Calculator which we provide in order to calculate the interest rate, APR, etc.
not visit the Applicant’s home without receiving a prior written invitation to call from the Applicant.
not mislead th e Ap p licant, persuade them to sign any documents they do not want to sign or influence them in any
way to falsify any part of their income, application or other related documentation.
not obtain the signature of the Applicant on blank forms.
not use promises of cheaper subsequent re-mortgages as a selling point.
not discriminate against a prospective customer for reasons of gender, colour, race, religion or disability.
In respect of FCA regulated business, the Broker warrants and undertakes to meet the principles and fundamental
obligations of the regulatory system, including but not limited to the following, where applicable;

provision of Initial Disclosure and the Brokers scope of service;

to act honestly, fairly and professionally in accordance with the best interests of customers;

that appropriate Staff hold the relevant examination from the list of recommended examinations maintained by the
Financial Skills Partnership;

to comply with Chapter 3 of MCOB and CONC in relation to Financial Promotions;

where the FCA’s Training and Competence provisions apply, that Staff be either deemed competent to carry on the
relevant activity(ies), or are appropriately supervised at all times;

to provide the Applicant with illustrations for a regulated mortgage contract, prior to submission of the application to
the Lender, and on a basis that precisely matches the Lending Criteria and Product applied for in every respect;

that regulatory requirements for Advised and Execution-only sales are met;

that advice provided to the Applicant for a Product or product variation is suitable;

appropriate complaint handling procedures are in operation.
Please note that until we have satisfied ourselves that the security is acceptable and that the prospective Applicant
would be a suitable covenant, there is no obligation on us to proceed with the transaction.
GUPG - April 2014
5
Consideration Period Timetable for residential secured loans
A consideration period, also known as a cooling off period, is applicable to all Regulated Loans under the Consumer Credit
Act (CCA, Consumer Loan) unless a Business Exemption applies (See Business Loan).
The Consumer Credit Act lays down a strict procedure for the introduction of a regulated secured loan which must be
complied with in order for the loan to be enforceable.
DAY
0
The Applicant re ce i ve s copies of the loan documentation, including the Loan or Mortgage Offer and Insurance).
Ea ch Applicant should receive a copy. The consideration period starts: A clear seven days is then given to the
Applicant to consider the agreement.
1-7
No contact with the Applicant may be made by the Lender or Broker once the consideration period starts unless
responding to an enquiry by the Applicant. If the Applicant gives notice that the agreement is to be cancelled,
the consideration period ends.
If further information is required and the Applicant is contacted or if an error in the documentation is found the
advance copies must be re-issued and the consideration period started again. Errors include the misspelling of
names and addresses.
8
The first period ends on the expiry of 7 clear days after the Loan or Mortgage Offer was posted to the
Applicant. The signature copies must be sent by post from the originator to the Applicant. Each Applicant should
receive a copy plus one for all to sign.
9-16
The second period starts.
A clear seven days is then given to the Applicant to consider the agreement further before signing.
No contact with the Applicant may be made by the Lender or Broker unless responding to an enquiry by the
Applicant.
If further information is required and the Applicant is contacted or if an error in the documentation is found the
consideration period starts again.
If the Applicant gives notice that the agreement is to be cancelled, the consideration period ends and it is now
possible to initiate contact with the Applicant.
If the Applicant returns the agreement signed, the consideration period ends and it is now possible to contact
the Applicant and complete the Loan or Mortgage.
17
The consideration period ends on expiry of the 7 days after the signature copies were posted to the Applicant.
It is now possible to initiate contact with the Applicant.
It is recommended that as much supporting information as possible is obtained prior to issuing the Loan or Mortgage
Offer as no enquiry can be made to the Applicant during the consideration period.
Please note: Upon forwarding an application it is deemed that you have agreed to all of the requirements in the
Lending Criteria and Lending Policy a n d you confirm that you are aware and will comply fully without reservation with
the contents.
GUPG - April 2014
6
UNDERWRITING PROCESSING GUIDE
Welcome to Blemain Finance
Blemain Finance is the second charge residential and semi-commercial lending division of Blemain Group.
Providing flexible products for over four decades, Blemain Finance has become a specialist in secured loans for almost
any purpose. We have continued to enhance our secured loan criteria as often they are considered to be better advice
than a re-mortgage. Whether short or long term finance is required we can provide loans from 3 to 30 years and bridging
finance for up to 24 months.
Our products cater for most credit status of client, income source, property structure, or valuation. When other
lenders will not even consider the case, Blemain Finance has specific plans for most circumstances.
Strong relationships are often the key to success in business and we always listen to your requirements when
underwriting a case. You'll be provided with immediate in-principle decisions, direct access to your Business
Development Managers, Executives and Underwriting Relationship Managers and your remuneration will be paid per
case, shortly after it completes, not periodically.
Our criteria has been developed to provide strict guidelines as to the acceptability of the case, but if the case is outside of
the plan; either at initial enquiry stage or nearing completion; by simply discussing your requirements - we will always
take a view. We offer finance from £3,000-£1,000,000 with term loans from 3 to 30 years and bridging finance for up to
24 months with a combination of options to suit most circumstances.
Our promise to you:

High service standards

To provide innovative plans

To build a strong relationship

To be as motivated as you are to getting a result

To improve your conversion from enquiry to funding

To improve efficiency, speed and cost savings, e.g. Bypass Schemes

Excellent remunerations

Competitive facilities, criteria and several niche products

To provide you with an advantage over your competitors

To complete the facility, providing the applicant can afford the repayments, owns a suitable security address with a
title deed and has usable equity
For any purpose:

First charges

Secured Loans

Non FCA regulated buy to let and semi-commercial properties
Residential owner occupied – predominantly consumer purpose, buy to let and semicommercial properties
Bridging Finance first charge non FCA buy to let and semi-commercial properties
Second charge residential owner occupied, shared ownership, equitable charges, buy to let
and semi-commercial properties
Multiple charges
Applicants:
Security:
CCJs and mortgage arrears accepted 
Employed including part-time income 
Self-employed

All DWP benefits including DWP contributing to the
mortgage

Ex-bankrupts, pending action and IVAs

Parent and child co-borrowers

Divorced/separated couples











Standard construction, owner occupied residential
dwellings
Council properties
Ex-council properties
High rise flats
Low valued
Non-standard construction
Investment properties
Semi-commercial properties
Retail units
Shop/flat units
IMPORTANT NOTE: All introducers of Consumer Credit Loans to Blemain Finance must hold the appropriate
Financial Conduct Authority interim or full permissions. Blemain will not accept an application in cases where a debt
counselling service has been provided and the Broker does not hold the Debt Counselling permission.
As a member of the Finance and Leasing Association (FLA), we would like to make you aware of and ask that you
follow the FLA Lending Code and its principles. The latest version of the FLA lending code is available at
www.fla.org.uk
GUPG - April 2014
7
Blemain Finance - Packaging Brokers
Packaging Brokers have the authority of Blemain Finance to issue all the documentation including Offer of Loan and
Legal Documentation. The procedure, in most cases, for Packaging Brokers should follow the steps described below.
Decision In-principle
1.
2.
You will need to underwrite the case and agree the rate, term, etc.
It is essential that a true and clear purpose of loan is established at the outset of any application. CCA regulations
determine that all loans, regardless of amount, are now regulated initially with some exemptions that can be applied.
In particular the PREDOMINANT purpose of loan and the loan amount determines the terms and conditions that
Blemain Finance will offer.
We have categorised loans into three sectors -Consumer Loans, Business Loans and Unregulated Loans
Consumer Loans are when the loan is secured on property and at the time the agreement is entered into, the
customer (or a member of the customer’s immediate family) occupies or intends to occupy 40% or more of the
property. If the loan is predominantly for consumer purposes (i.e.>50% of the loan will be for personal use), the loan
will be CCA regulated irrespective of the amount (FCA regulated if a first charge).
Business Loans are where the loan is secured on property and at the time the agreement is entered into, the
customer (or a member of the customer’s immediate family) occupies or intends to occupy 40% or more of the
property. If the loan is predominantly for business purposes (i.e.>50% of the loan will be for business use), the loan
will be CCA regulated if less than £25,001. If the loan amount is more than £25,000 the client can apply for a
‘Business’ exemption from the CCA Regulations. This exemption is included in the terms and conditions on the legal
agreements, and so it is imperative that before issuing any documentation a clear understanding of the purpose of
the loan is established. As the Business loan is exempt from CCA Regulation no consideration period is required. A
written explanation of the purpose of the loan may be required if the funds are to be used in connection with the
business. Loans for any purpose to business partnerships of more than 3 persons and limited companies will always
be unregulated.
Unregulated Loans are where the loan is secured on property and at the time the agreement is entered into, if less
than 40% will be occupied by the customer (or a member of the customer’s immediate family) then the loan
will be unregulated. This would include loans (irrespective of the amount) that are secured on Buy to Let, semicommercial and commercial property.
Should Blemain Finance establish at any stage the incorrect documentation has been issued we will request that the
correct documentation be issued and the relevant regulation be applied.
If the security address is in Scotland then please refer to “Scottish Loans Procedure for Packaging Brokers”.
Documents to Client
3.
4.
When you issue the offer of loan each customer should receive a copy.
We do not require details of the advance copy but you must abide by the Compliance and Service Level Agreement
and Consideration Period Timetable. Failure to do so will result in the customer having to go through consideration
again, by re issuing the offer and getting the Legal Agreements re-signed.
5. On the eighth day the Legal Documentation Pack can be forwarded to the customer. This must include the Legal
Agreements together with two copies (which are for the customer's retention) and all other required documentation
(Legal Documentation Pack).
You may issue the final documents for them to sign automatically on day 8 of the consideration period, but the
customer must not be contacted until the clear expiry of 17 days. The legal documentation pack must include the
Legal Agreements together with two copies (which are for the customer’s retention) and all other required
documentation.
6. Although it is not a requirement of regulation, for Business Loans exceeding £25,000, Blemain Finance Limited
considers it good practice to issue an offer to the customer and receive acknowledgment from
them before the final documentation is issued. This allows the customer a period in which to consider the offer,
even though the loan is a Business Loan. Should you wish to do so, you are free to send the offer of the loan and
the final Legal Agreements at the same time.
7. Although it is not a requirement of regulation, for Buy to Let Mortgages and Loans, Blemain Finance Limited
considers it good practice to issue an offer to the customer and receive acknowledgment from them before the final
documentation is issued. This allows the customer a period in which to consider the offer, even though the loan is a
Buy to Let Loan. Should you wish to do so, you are free to send the offer of the loan and the final Legal Agreements
at the same time. A solicitor will be instructed by Blemain Finance, to act on their behalf, on all Buy to Let Loans
and the solicitors cost should be added to the advance, as these will be deducted on completion.
GUPG - April 2014
8
8.
Having had the Legal Agreements signed, please return this to The Introduction Centre, Lake View, Lakeside,
Cheadle, SK8 3GW, immediately together with any remaining documentation which is detailed in the Submission
Checklist which you should already have.
If the day for the issue of the legal documentation falls on a Sunday then please issue the documents on the
preceding Friday. If the day due falls on a Saturday and your offices are open then please issue on the due day. If
your offices are closed then please issue on the preceding Friday.
Final Requirements
9.
All redemption statements, first mortgage questionnaires, Surveyors' indemnity letters, etc. are to be addressed to
Blemain Finance Limited, care of you. Mortgage References must be valid for 2 months and Valuations for 2
months. It is the responsibility of the Packaging Broker to ensure that all redemption figures are valid and updated
should a case not proceed to payout within the expected timescale.
10. The full Legal Documentation Pack should then be forwarded to the Introduction Centre, Lake View, Lakeside,
Cheadle, SK8 3GW.
Once the pack is ready to be submitted, meeting our minimum requirements and is complete it should be forwarded
to THE INTRODUCTION CENTRE, LAKE VIEW, LAKESIDE, CHEADLE, SK8 3GW.
All cases that are received will be assessed by The Introduction Centre to ensure that they have been packaged and
submitted by one of our Accredited Brokers.
They will make an initial appraisal of the case to ensure that it contains our minimum requirements, that it fits our
current lending criteria and that it is suitable to be underwritten by a member of our underwriting team.
Once it is established that it meets with this criteria then it will be sent to your Underwriting Team who will review the
case in its entirety and your Underwriting Relationship Manager will update you of any requirements.
If the case is not complete or unsuitable to be underwritten then the case will be returned to the broker by The
Introduction Centre with a note pointing out the missing minimum items and it will then need to be resubmitted only
when those items are available and the case can be forwarded as a full pack.
Any outstanding items that are subsequently sent to us for existing cases will be worked after the perfect packs.
11. A full Legal Documentation Pack will include most of the following:
Submission Checklist; fully completed and signed Application Form and Data Protection Form; Legal
Documentation; including the Legal Charge - signed and witnessed; Mortgage Reference or by-pass & Consent with Redemption Figure; Surveyors Valuation and Report or by-pass (if applicable); Proof of ID - with Confirmation of
Names (if applicable); Proof of income - with Affordability Assessment (if applicable); Solicitors Witness & Advice
Certificate (if applicable); Occupier's Consent for each person aged 17 or over resident in the property except the
customer; Copy of Last Conveyance (if applicable); Copy of lease (if applicable); Deeds (if applicable); Maximum
Liabilities Confirmation; Direct Debit Mandate; Tenancy agreements.
12. We will then proceed to approval.
Approval & Funding Procedure
13. "Speak Withs” can be attempted as a result of either an incoming or outgoing call directly from or to the customer.
We will not accept calls transferred in from a broker. They can be carried out either by a dedicated Customer Agent
or a dedicated Underwriter. Speak Withs can be attempted at any point from receipt of the Full Pack.
14. Pre Approved Title: Upon receipt of a Full Legal Documentation Pack that includes copies of the following items
which have been clearly identified for the purpose of Pre Approved Title, we will arrange for our legal department to
check the documents at the same time as the case is being processed within the Underwriting department. The
photocopied items required for the Pre Approved Title Process are: Application Form, Photographic and Signature
Identification, signed Credit Agreement and Legal Charge, Land Registry Office Copies. This process will result in
reduced processing times and once the final technical and mandate checks ( Final Loan approval) have been
completed within the Underwriting department the case will be classed as funded. Please Note: Should the Legal
and Documentation pack not be a full pack, after the initial appraisal, the pack will not be reviewed again until all
outstanding items have been received. Please ensure that all outstanding items are sent, at the same time, for the
attention of your Underwriting Relationship Manager. This will assist in us providing an efficient and quick service to
you.
15. Cases outside of standard lending criteria and others that are deemed to be a high risk will be referred to the Credit
Committee as soon as they are identified. This may result in day one updates being delayed and mandating may be
delayed by up to 72 hours. These cases are then outside of your underwriter’s control however they will endeavour
to keep you updated as the case progresses.
Completion
16. Upon Completion all disbursements including broker fees and remunerations will be sent out by first class post
before the end of the following day.
Telegraphic transfers may be considered for client advances in exceptional circumstances. There will be a charge
and we will require the client's bank account details with their separate authority to send the monies in this manner.
Cases in excess of £150,000 will be paid out via our external solicitor. These are instructed after the case has been
mandated and may delay completion of the case by up to 48 hours. Your client will be responsible for external
GUPG - April 2014
9
solicitor's costs which will have been added to the loan. Telegraphic transfers are available for these cases. There
will be a charge and we will require the client's bank account details with their separate authority to send the
advance.
17. The disbursements will be made on behalf of the customer and where appropriate will be forwarded to the relevant
parties (including your broker fee and commission/remuneration cheque) on the day of funding unless the facility has
been completed by a solicitor which may delay the remuneration aspects by 48 hours. Any unsecured credit items
being repaid from the loan should be settled by the Applicants.
Please note: This process relates to Blemain Finance Second Charge Term Residential business only.
Full explanations of requirements can be found in General Underwriting Criteria.
Blemain Finance - Scottish Loans Procedure for Packaging Brokers
You must obtain a Scottish Search from our search provider prior to issuing all final documents for signature to the
applicants. You may obtain a Scottish Search directly from our Search Provider. If you do not have an account with them,
you may contact them directly to open an account. Your Business Development Manager will be able to provide you with
the details.
1.
2.
3.
4.
5.
6.
If you have Scottish Search facilities then please obtain your Scottish search from our search provider (up to 48
hours turnaround time).
You will then receive your search result which will include the correctly completed Standard Security. Take care to
ensure that if you reprint the Standard Security for any reason that you copy the search result exactly.
Matrimonial Homes Affidavits are not required for second charges but ARE required for ALL first charges.
Process the loan in your normal manner and submit it to us as a full case with a copy of the search results.
Upon finalisation of all matters we will request a Certificate to Proceed from our Scottish solicitors which are returned
within 24 hours. Please note that funds will not be released until we have the Certificate to Proceed.
Customer Advance, Broker Fees and Remunerations will be distributed in the usual manner following payout.
GUPG - April 2014
10
Welcome to Cheshire Mortgage Corporation
Cheshire Mortgage Corporation is the FCA authorised lending division of Blemain Group for regulated mortgage
contracts and non-investment insurance contracts. Cheshire Mortgage Corporation Limited is authorised and regulated
by the Financial Conduct Authority registered number 305253.
As an alternative to the mainstream lenders we provide innovative and flexible products to suit clients with a range of
credit profiles.Whether short or long term finance is required we can provide mortgages from 3 to 30 years.
Our products cater for all status of client, property structure, type or valuation. When other lenders will not even consider
the case, Cheshire Mortgage Corporation has specific plans for most circumstances.
Strong relationships are often the key to success in business and we always listen to your requirements when
underwriting a case. Our criteria have been developed to provide guidelines as to the acceptability of the case, but if the
case is outside of the plan; either at initial enquiry stage or nearing completion; we will always take a view.
Finance is available from £3,000 - £150,000
Facilities
First Charge Mortgages
Whether your clients are looking to purchase or
remortgage their property, we can provide a quick
decision and they can use the funds for almost any
purpose, including shared ownership purchases.
Almost any purpose
Purchase, Re-Mortgage including on Shared
Ownership Properties.
Applicants
Many status profiles, including CCJs and mortgage
arrears, DWP, parent/child/co-borrowers.
Security
All Regulated Mortgage Contract qualifying properties.
Any construction type.
To act as a broker to Cheshire Mortgage Corporation you must be regulated by the FCA.
IMPORTANT: Please note, at present these products are limited to a restricted panel of packagers.



Principals will be responsible and authorised under the Finance Services & Markets Act 2000 for Regulated Mortgage
Contracts.
With authority from Cheshire Mortgage Corporation you will have the capabilities of providing a Key Facts Illustration and
Application to the customer.
Packagers can present Regulated Mortgage Contract business once approved by Cheshire Mortgage Corporation.
The Procedure
Upon acceptance of a signed application, we will advise you of all underwriting requirements that will need to be fulfilled
before acceptance and Mortgage Offer. (Please refer to the General Underwriting Criteria and your Underwriting
Relationship Manager).
We will require from you a copy of the KFI and a signed Application Form. Upon receipt of the full case, containing all
underwriting requirements, we will also require details of any costs that have been charged to the customer (e.g.
valuation costs). This is to ensure they are included in the APR calculations and Mortgage Offer.
The case will then follow this process, assuming all underwriting criteria have been met and are satisfactory.

Broker submits full case for Underwriter approval and all the information is checked and validated.

The CMCL underwriter will assess the application to ensure that the payments are affordable and sustainable.

A valuation, Drive By or Automated Valuation will be instructed by the underwriter once they are satisfied with the
customers ability to repay the mortgage.

If th e a p p l i ca ti on i s a re -m ortg ag e o ve r £ 1 5 0 ,0 00 o r a p u rch a se tra n sacti o n, th e formal Mortgage Offer
will be forwarded to the customer(s) Solicitor. The Mortgage offer will include an Offer Letter, Legal Charge and
Mortgage Conditions.

Upon receipt of a correctly signed Legal Charge, and once all the offer conditions have been met, the mortgage
completes and all funds are released.

To present business to Cheshire Mortgage Corporation and have the capabilities of producing KFIs please contact your
Business Development Executive.
GUPG - April 2014
11
Welcome to Lancashire Mortgage Corporation
Lancashire Mortgage Corporation is the Commercial lending division of Blemain Group.
At Lancashire Mortgage Corporation we pride ourselves on the range of commercial facilities that we offer and the high
degree of flexibility that our clients and introducers enjoy.
As an alternative to mainstream lenders we have provided innovative products for commercial and land finance for many
years. We endeavour to provide you with high standards of service and to keep the completion process as simple as
possible, as we understand your requirements and the speed you and your client require.
Loans, mortgages and bridging finance available from £26,000 - £1,000,000 with terms up to 30 years. Standard
Repayment or Interest Only (for the full term) can be chosen with a combination of options to suit most circumstances.
Facilities
For almost any purpose
First Charge Mortgages
Whether your client is looking to purchase or
remortgage their property or land for almost any
purpose, we can provide a quick decision.
Purchase
Any commercial property or land purchase.
Purchase at Auction
Often these require quick completion and we can
provide either bridging finance or a mortgage. Inprinciple decisions can be made before the auction.
Second Charge Secured Loans
It’s not always in the clients best interest to refinance
the whole of their secured borrowings. For this reason
we provide secured loans behind most lenders and
leave their mortgage in place.
Multiple Charges
Some clients may be equity rich, however this may be
over several different types of property. Often we can
provide one charge across many properties, rather than
have several agreements and payments, making the
transaction much easier for the client.
First Charge Bridging Finance
Ideal as a short term "chain breaker", where clients
haven't sold their property, but need to complete on
their new property purchase, or when they have to
complete the purchase quickly. Bridging Finance can
be used for almost any purpose.
Second Charge Bridging Finance
Your client may require short term interest only finance
for almost any purpose, with the knowledge that the
capital will be paid in full before the end of the term. A
second charge bridging facility is often an ideal way of
funding their project as, their mortgage will remain in
place.
High Speed Bridging Finance
As the name implies our high-speed bridging facilities
can be completed in 24 working hours. Open and
closed facilities are available, with deferred payments
considered.
Remortgage
If the client is looking to remortgage and raise some
funds these again can be completed either as bridging
finance or a term mortgage, dependant on the
requirements.
Land Finance
Both first and second charges on any type of land
including land with agricultural restrictions.
Buy to Let
No restrictions on portfolio size, location or value.
Portfolio investment
No restrictions on size, number, property combination
or value.
Pension Scheme
Financing property that is owned by a pension scheme.
Applicants
Many status profiles accepted, including CCJs and
mortgage arrears; Sole traders; limited companies;
Pension Schemes accepted; Discharged Bankrupts,
Pending Action, IVA and CVA are considered.
Security
Most commercial properties, developments and land.
Property structure and usage considered.
Part term/Part Bridging Finance
Terms from 1 month to 12 months. Provided when
bridging finance is the best option in the short term and
then turned into longer term finance when appropriate.
GUPG - April 2014
12
Welcome to The Introducer Centre
Non Packaging Brokers
In response to the demand of our brokers we have formed The Introducer Centre (TIC), a wholly owned division of
Blemain Group.
The Introducer Centre has been created to provide brokers with a full packaging service for your Blemain Finance and
Lancashire Mortgage Corporation cases.You simply submit an enquiry form to your Business Development Executive
either on the published fax number or by email. Your case will then be passed to The Introducer Centre which consists of a
dedicated sales team and underwriting team. These teams will sell, process and package the case right through to
completion on your behalf and you will receive commission/remuneration as agreed on completion, without you having to
do any of the work. Please note, we do not currently offer this service for Cheshire Mortgage Corporation.
For a Non Packaging Broker to have the authority to process an application you need to make a request through your
BDE for authorisation. Once received our Lending Committee will then need to approve your application. You will
normally be informed of the decision within 48 hours of us receiving your application. The committee‟s decision is final and
no correspondence will be entered into.
The Introducer Centre
will handle all of
your new cases.
full knowledge of all of the appropriate Blemain Group products, which will assist in the cases being worked
efficiently and speedily to completion.
will handle ALL aspects of the case, whether it is a residential secured Loan or a BTL/commercial Mortgage, Loan or a
Bridge.
liaise directly with your client and sell the Blemain Group products.
issue all necessary documentation, organise valuations, mortgage references, etc, and collate all associated paperwork
by liaising with your client.
will pay remunerations on completion.
has
Once the case has been fully packaged by The Introducer Centre, it will be presented to the Blemain Group as a fully
packaged case, for completion.
To submit business to The Introducer Centre you will need to compl ete an Introducer agreement, which can be obtained by
contacting your Business Development Executive on the published numbers. Please note, all introducers of Consumer
Credit Loans to Blemain Finance must hold the appropriate Financial Conduct Authority interim or full permissions.
Underwriting Decision In Principle Procedure
1.
2.
3.
4.
5.
Forward a fully completed Enquiry Form to The Introducer Centre (TIC), Lake View, Lakeside, Cheadle, SK8 3GW.
Please note that the purpose of a loan must be ascertained before maki ng an offer.
Your Business Development Executive will advise you of a decision in -principle within 1 hour.
The enquiry form will then be passed to TIC who will contact your client and agree an appropriate product, term, etc.
Where solicitor’s costs are applied they will need to be added to the advance for the costs to be deducted on
completion.
The Introducer Centre will then will issue an Offer of Loan and begin the consideration period (if applicable), along with
any other required client information.
Any Offer of Loan issued by TIC will be based on the information provided on the application form.
Documents to Client
6.
7.
The customers will receive their Offer of Loan.
Once the customer has confirmed a commitment to proceed TIC will access Land Registry records and ensure the title
of the property matches the information provided. We will also place a priority against the property at Land Registry.
Clients Proceeding
8.
9.
Documentation Pack for signature will automatically be sent to your customer at the appropriate time. This Pack will
include the legal documentation (if applicable), a request for ID, income, buildings insurance details, their deeds (if
applicable), occupier's consent, etc. It will also inform them if we require a solicitor to witness and advise them. On
unregulated cases a Documentation Pack may be sent immediately.
Upon receipt of the Documentation Pack TIC will advise the customer of any outstanding items.
GUPG - April 2014
13
Mortgage Reference & Valuation Request
10. TIC will then obtain a mortgage reference by-pass (if acceptable) or a mortgage reference, consent and redemption
figures (if required). TIC may also obtain a valuation by-pass (if acceptable) or instruct a valuation at this point or wait
until they have received a satisfactory mortgage reference.
11. Once TIC has received the valuation TIC will confirm its acceptability.
Final Requirements
12. Once all of the above items have been received TIC will confirm if they are satisfactory and within all Blemain Group
Underwriting requirements.
13. TIC will then submit the full case to the relevant Blemain Group company for approval.
Approval & Funding Procedure
14. The relevant Blemain Group Underwriting Relationship Manager will then arrange for a security check to be completed
with the applicant(s), a delay in completion may occur if the customer is not available. A "Speak with" is usually carried
out via an outgoing call within 48 hours of receipt of all outstanding required items. All "Speak with's" are recorded for
training and security purposes.
15. For Blemain Finance cases approvals, within criteria, will be authorised up to 3.00pm daily. Once a loan is mandated
by the Underwriting department it is transferred to our Legal Department. Provided the file is acceptable to our Legal
Department then the loan will be listed as completed by 5.30pm the next working day. For relevant Commercial cases
Lancashire Mortgage Corporation will instruct Solicitors to issue the legal documentation and obtain any required
undertakings.
16. Approvals, outside criteria, can take a little longer as the process also involves the Lending Committee which may
delay completion by up to 48 hours.
17. Should be paid out via our external solicitors. This may delay the completion of the case by up to 48 hours. Your
customer will be responsible for external solicitor's costs.
Completion
18. The disbursements will be actioned and all cheques on behalf o f the customer forwarded to the relevant parties,
including your commission/remuneration cheque TIC, on the day of funding unless the facility has been completed by a
solicitor which may delay the remuneration aspects by 48 hours. TIC will then forward you r commission/remuneration
cheque.
GUPG - April 2014
14
GENERAL UNDERWRITING CRITERIA
ACCEPTANCE FEE
may be charged. Please see plans for details.
AGE Minimum age is 18 years. Please see current terms and conditions for details of maximum age.
APPLICANTS Where an applicant is married or a couple living together in excess of 12 months, whether on the title or
not, the application should be in joint names, exceptions may be made subject to referral.
APPLICATION FORM/ENQUIRY FORM We will require a fully completed and signed Application for all loans and
mortgages. If a loan application was taken over the phone and for the purpose of an in-principle decision, we will accept
an unsigned application from the broker. This is providing authority has been obtained verbally from the customer and
recorded in the declaration section at the bottom of the Application/Enquiry Form by completing the relevant box. This is
a requirement under the Data Protection Act. A signed Client Authorities Form and a Data Protection Act Form will be
required before completion. Daytime, evening and work telephone numbers must be completed on all Application/Enquiry
Forms. IT IS MANDATORY THAT ON DAY 1 WE HAVE A FULL EXPLANATION FOR THE PURPOSE(S) OF THE
LOAN, AS IT MAY AFFECT THE LEGAL DOCUMENTATION.
APR Annual percentage rate calculated in accordance with current legislation.
ARREARS - MORTGAGE AND SECURED LOAN Explain to your customer that it will often be desirable for any
mortgage arrears to be paid from the loan and that if they are in agreement with this then the arrears will be deducted
and cleared by the advance. Should the applicant not wish to clear any arrears from the advance you must inform your
Underwriting Relationship Manager at the earliest opportunity for further risk assessment.
ARREARS EXPLANATION LETTER This is a letter in your customers’ own handwriting explaining why they are in
arrears and why they will not continue to be so once the loan is completed. This is required if the applicant is in arrears
with an existing mortgage or secured loan.
ASSESSING AFFORDABILITY
It is important that both the broker and the lender assess an applicant’s affordability
thoroughly to ensure that they can afford the loan both now and in the future. An assessment of affordability will be
required for all loans and mortgages. Refer to plans for details.
ASSESSING REGULATION – The following table shows which regulation to use:
Loan Amount
Regulation
>40%
immediate
family
occupancy
≤£25,000
>£25,000
FCA



CCA





CCA
Business
Exempt
Buy to Let


>50% for
business
purpose OR
Business
Partnerships
of more than
3 persons
and Limited
companies
First
Charge
Second
Charge







BANKRUPTCY/IVA REPAIR/CVA We may accept such cases, providing the purpose of the loan is to settle a pending
action of bankruptcy, an individual voluntary arrangement (IVA/CVA) or to annul a bankruptcy order and are considered
on merit. Bankrupts will be considered on merit once they have been discharged for one year. In the case of IVAs they
must have been conducted satisfactorily for one year. Loan to Value may be reduced. Clearing a bankruptcy can take
time. Please ensure that you provide the details of the solicitor that is acting for the Trustee in Bankruptcy as well as any
redemption figures that are required. Our legal department will liaise with the Trustee in Bankruptcy to obtain the
necessary undertakings to enable us to release the funds. Funds sufficient to release the charge will be released to the
Trustee in Bankruptcy in time for any hearing date. Once the bankruptcy has been annulled or discharged and we have
GUPG - April 2014
15
received notification from the Trustee then will release all of the remaining funds including broker fees and
remunerations. Please note that the customer’s first payment will fall due one month from the first drawdown of funds and
not when all the remaining funds are released.
BUILDING FIRE AND STORM DAMAGE INSURANCE In all first or second charges, we need to note our interest on
the customer’s buildings insurance policy.

On a first charge with Blemain Finance or Cheshire Mortgage Corporation, where customers have arranged their
own insurance, we must have details of the insurance company, the current insurance cover and confirmation in
writing that the relevant Blemain Group company has an interest in the property on a Noted on Insurance Form. This
should be included before completion.

For all second charge Blemain Finance applications we will contact the customer post completion to obtain this
information and note our interest. Should the customer not provide insurance cover with our interest noted we reserve
the right to insure ourselves and pass this cost on to the customer’s account.

For all commercial applications with Lancashire Mortgage Corporation we require a copy of the building fire and
storm damage insurance in all instances prior to funding.
CAUTIONS All cautions and equitable charges will need to be redeemed from the proceeds of the loan. In all cases we
will require a full and final settlement figure from the relevant parties and their undertaking to remove the caution or
charge at Land Registry.
CHEQUE IN SOLE NAME On joint applications where the applicants request the completion cheque to be made
payable to one applicant we will require a letter of authorisation signed by all parties to the loan. This must be addressed
to ourselves or the broker. Please note we cannot make cheques solely payable to an applicant who is not a registered
owner of the property.
CLIENT AUTHORITIES This is a form which the customer needs to sign to authorise us/you to obtain certain
information from third party companies that we may require to complete the facility. Please also refer to Application Form
/ Enquiry Form.
CO-BORROWER LETTERS On cases where the property is owned solely by one customer, but the application is
proceeding in two or more names and is reliant on the non-owner(s) for income, we will require a letter from both the
OWNER & NON OWNER confirming that they will be benefiting from the loan. They must also detail that they fully
understand they are responsible for the loan payments, that the property is offered as security and in the event of nonpayment the property is at risk. In the case of a non-owner they must confirm that they can afford the loan and that they
understand they are jointly & severally responsible for the full debt.
COMMISSIONS/REMUNERATION/QUALITY PACKAGING ALLOWANCE The maximum commission/ remuneration
payable on one case is detailed in the plans. For further details of QPA please see ‘Outstanding Item’( NOTE: this does
not include the broker fee). All remunerations are paid on the loan advance (not including fees) i.e. the amount paid to
the customer including the redemption of any finance. A Packaging Allowance may be paid. Please refer to plans. We
would not expect a loan to cancel or be refinanced within the first 12 months unless it is bridging finance. If a loan or
mortgage is redeemed within the first 12 months, 100% of ALL remunerations (except set Packaging Allowances) is
required as a refund. Quality Packaging Allowance (QPA)-should the loan redeem within the first twelve months
after completion (excluding bridging finance). The amount of refund will apply to the quality level 4 QPA, on a
sliding scale, over the 12 month period. The amount of commission refund required in 0-3 months = 100% of the
quality level 4 QPA, 3-6 months = 75% of the quality level 4 QPA, 6-9 months =
50% of the quality level 4 QPA, 9-12 months = 25% of the quality level 4 QPA, 12 months + no commission refund
required
Refunds are required irrespective of the reason for redemption. Refunds are required within 14 days of notification and
may be deducted from payable amounts. If the loan is fraudulent a full refund of the relevant remunerations will be
required. Further Advances: Should Blemain Group currently have an outstanding charge and a further loan be
presented and completed by a broker, remuneration will be paid on the whole advance or the Packaging Allowance will
be paid. The minimum further advance is £3,000.
CONFIRMATION OF NAMES (ONE AND THE SAME) In certain instances the names on the Credit Agreement, Legal
Charge or Standard Security might differ from the names recorded at Land Registry or in the deeds. In these instances
we need the customer to complete, in their own handwriting, a Confirmation of Names Form, which confirms they are
known by both variations and are in fact one and the same person. This should also contain the correct name for entry,
which should be the name on their birth certificate or Deed of Name Change.
CONSENT In certain cases, a first charge lender will register a restriction with the Land Registry which will be confirmed
on the office copy information (Please refer to Land Registry and associated items). In these cases we must obtain the
consent of the lender to the registration of a second charge. For cases where consent is required and is not confirmed on
the Mortgage Reference you must obtain this separately from the first charge lender.
COPY OF THE LAST CONVEYANCE / TITLE DOCUMENT When we are taking second charge or redeeming a first
charge on a property which is UNREGISTERED a Copy of the Last Conveyance must be obtained and forwarded. This
GUPG - April 2014
16
can be obtained via the first charge lender.
CREDIT SEARCHES When processing an application for a Blemain Group lending company we insist that only one
Credit Search that leaves a ‘hard’ footprint on the applicant’s credit profile is made per applicant. Other searches should
be used where appropriate such as a Quotation Search or a Subsequent Search.
e.g. When using Equifax Information Searches the ‘Credit Application Search’ must only be accessed once
Quotation Search
A search conducted at the point of enquiry
(not derogatory to the client’s credit profile).
Credit Application
Search
A search conducted at the point of application
(when the offer has been accepted).
This will leave a footprint on the client’s credit profile.
Subsequent Search
A search conducted to “refresh” any information
(not derogatory to the client’s credit profile).
DATA PROTECTION ACT FORM A Data Protection Act Form is included with the Application Form and must be signed
by all customers before the loan can be completed. Please refer to Application Form and Compliance and Service Level
Agreement.
DECEASED OWNERS Where customers jointly owned a property, but one has died, a copy of the Death Certificate will
be required. (The original will be required if it is a Scottish application). If the customer applying owns only part of the
property we will also require a copy of the Will or Probate of the deceased party to confirm ownership will pass to the
customer. In these instances please refer to your Underwriting Relationship Manager.
DEEDS Deeds should be provided as soon as possible when processing a first charge on an unencumbered
unregistered property.
DEED OF NAME CHANGE The original or a certified copy of the Deed of Name Change will be required if the customer
has formally changed his/her name from that shown on their birth certificate.
DIRECT DEBIT A direct debit mandate must be completed in all cases and should include accurate bank details,
including sort code and account number. The direct debit must be from the applicant’s bank account. Please ensure the
correct lending companies’ Direct Debit is provided.
DISBURSEMENT AUTHORITY This form must be completed by the broker and signed by the customer for all
Lancashire Mortgage Corporation cases where ANY of the following costs apply:

Broker Fee

Title Insurance

Legal & Documentation Fee

Arrears on first charge loan

Solicitors Costs

Valuation Fees

Acceptance Fee

Quantity Surveyor Fees
This confirms the customer’s authorisation for deduction of fees and payment direct to the relevant parties, where
applicable.
DUPLICATE APPLICATIONS Some brokers will issue documents themselves and we will issue for others. Customers
may contact several brokers within a matter of minutes. We will accept the first full pack or application that we receive.
Whilst we appreciate this is a difficult situation we believe it to be the fairest way. Alternatively the applicant will be asked
for written confirmation about which broker they wish to proceed with.
FOREIGN NATIONALS We will consider lending to foreign nationals and non UK passport holders provided that they
have both a UK mortgage and bank account. We may need to see evidence of their Rights to Reside within the UK.
Cases must be referred to your Underwriting Relationship Manager for approval.
FREEHOLD PROPERTIES We accept freehold properties as security. PLEASE NOTE: If the security is a freehold flat,
we will require details and confirmations of any service and maintenance contracts that are in place. Interest rates and
Loan to Value may be affected, dependent on the information supplied. Your Underwriting Relationship Manager will
advise you. Flying freeholds will be considered on merit.
FURTHER LOANS We would expect you to offer our mutual customer a further loan through ourselves, unless the
customer requires a complete remortgage. Please see Commissions/Remunerations also.
GUPG - April 2014
17
IDENTIFICATION (ID) and Know Your Customer
The Blemain Group of companies, incorporating Blemain Finance, Lancashire Mortgage Corporation & Cheshire
Mortgage Corporation, has procedures in place to protect itself and others from financial crime. It is our practice to verify
identification for every customer. As part of that process we must take reasonable steps to establish that a customer is
who he/she claims to be by obtaining sufficient evidence of identity.
In most cases Electronic Identification (EID) will satisfy our Know Your Customer (KYC) Requirements. The EID result must
be a pass and the applicant must be on the voters roll which will satisfy EID for that applicant. We will carry out random
audit checks on ‘Passes’, so we may require the standard KYC documentation in some instances. In cases where full KYC
requirements are needed certified copies of documents will b e acceptable from Accredited or FCA Authorised brokers. We
will also accept documents certified by the applicant’s solicitor provided they are registered with the Law Society.
INCOME
Income proof is required for all applicants in all cases.
Blemain Group reserves the right to make such enquiries as is deemed necessary to confirm the customer’s income.
Please note we accept internet bank statements as proof of income but not as proof of address or residency, however
where possible you should provide the Applicants latest award statements.
For acceptable proof of Income see plans for details.
Rental Income
It is acceptable to use rental income that is received from an investment property. There should be an Assured Shorthold
Tenancy Agreement in place and you should establish via Land Registry Office Copies that the Applicant(s) own the
property. See plans for details.
INDEPENDENT LEGAL ADVICE This should be recommended to all customers. This is a requirement when the
customer is of pensionable age, receiving pension/benefits, have a low income and the affordability is high,
partners/couples where the purpose of loan is for business investment or for any loan over £150,000 . Please refer to your
Underwriting Relationship Manager. It will also be required when any customer for any reason may not be able to
understand the terms and conditions of the legal agreement. As the documents are written in English a customer must be
able to read, write and converse in English. If they cannot, a practising solicitor who is bilingual in English and the
customer’s first language must advise the customer in their own language the terms and conditions of the agreement.
The solicitor must provide a letter confirming which language was used to explain the documents to the applicant(s). The
witnessing solicitor then needs to provide a Solicitors Witness and Advice Certificate. This must detail that they have
confirmed the identity of the customer, that they witnessed the customer’s signature on the documentation and that the
terms and conditions of the loan were discussed and understood by the customer. If the case is for parent and child,
divorced or separated couples a solicitor must witness and advise.
IRELAND
We presently lend in England, Scotland and Wales, but not Ireland.
KEY FACTS ILLUSTRATION (KFI) Can be produced according to our calculations and requirements on a Cheshire
Mortgage Corporation Key Facts Illustration. If you are directly regulated by the FCA, or are an appointed representative
of an FCA regulated firm, you can have the capabilities to produce a KFI.
LAND REGISTRY & ASSOCIATED ITEMS Certain Land Registry forms and information need to be obtained in all
cases. We will obtain all the items listed below.
Land Registry documents are:
Registered Titles
Office Copies
OS1
Bankruptcy Search
Title Plan
Required on all first and second charges (excluding purchases)
Required on all cases
Required on all cases
Required on all cases
Unregistered Titles
SIM
Required on all cases
K6
Required on all second charge cases
Copy Of Last Conveyance Required on all second charges and first charges where redeeming an existing charge
Full land charges search Required on all cases for each borrower
Title Deeds
Required on all first charges on unencumbered properties
GUPG - April 2014
18
LEASEHOLD PROPERTIES When a lease has less than 50 years left to run at the end of the term of the loan, please
contact your Underwriting Relationship Manager to fully discuss the situation, as we may not be able to lend.
On leasehold properties, please obtain the details of the freeholder from the customer. On all applications we require
confirmation of the amount of ground rent and any service and maintenance charges, and confirmation that they are up to
date. If there are any arrears or a Notice Fee we will deduct the amount from the loan advance to clear them and the
monthly payment will need to be included within the affordability calculation. We will require written authority from the
customer to disburse the arrears.
Please note we will deduct the costs of any notice fee charged by the freeholder.
LEGAL AGREEMENT
LEGAL CHARGE
Please refer to Regulated Credit Agreement (CCA) and Business Loans.
is required for all cases. Also refer to Unregulated Offer and Legal Charge.
LOAN TO VALUE CALCULATION (LTV) For the purpose of equity the following calculation will be used to ascertain
the Loan to Value. Also see plans for Shared Ownership example.
Mortgage Balance/Redemption + total loan amount required (inc. Broker Fee) x 100 = Loan to Value % Valuation
of Property (or purchase price in certain cases)
MAXIMUM LIABILITIES CONFIRMATION In certain cases, first charge lenders have an "obligation to make further
advances" on the security. Before we are able to complete the loan we will need to have a signed deed of postponement
or confirmation of what the maximum liabilities are and that it is capped at this level. Your Underwriting Relationship
Manager will advise you if this is required
MORTGAGE INDEMNITY may be charged. See plans for details.
MORTGAGE OFFER Cheshire Mortgage Corporation Mortgage Offer for Regulated Mortgage Contracts.
MORTGAGE REFERENCE A reference/questionnaire may be required where we are taking a second charge and on
some first charge cases. (Please see Mortgage Reference Bypass Schemes). This should be no more than two months
old. In most cases lenders will require the customer’s authority before providing any information. Our standard Client
Authorities Form may be useful to you. We reserve the right to confirm and update these figures on the day of completion
and will update the figures accordingly.
MULTIPLE DECLARATION FORM You may provide this to the applicant on Blemain Finance Applications to help you
obtain additional information regarding the application using a standard format.
OCCUPIER’S CONSENT (WAIVER/CONSENT) Where additional occupiers reside who are aged 17 years or more,
other than the customer, a waiver of their rights in the event of repossession is needed. This is an Occupier’s Consent
Form and also needs to be independently witnessed. One form is required for each additional occupant. A solicitor will
need to advise and witness this form if the occupant may not be able to understand the terms and conditions of the
Occupier’s Consent Form. If the customer is unable to read, write and converse in English, the solicitor (who must be a
practising English speaking person) must advise the customer in their own language the terms and conditions of the
agreement. If the occupiers are of retirement age, then the Occupier’s Consent form must be witnessed by a solicitor and
the occupiers given independent legal advice. A letter must be provided by the solicitor to confirm the occupiers
understood the advice given. Where a loan is over £150,000 the Occupier signing the consent form must be
independently advised by a solicitor and witnessed. We require original or certified Occupier’s Consent form. In addition
we may require original or certified signature proof for the tenant (as detailed above). If a waiver / occupiers consent form
has been witnessed by a solicitor then you will need to obtain an Occupiers Consent Solicitor to Witness Certificate
OFFER OF LOAN AND LEGAL AGREEMENTS
Legal Charge.
See Regulated Credit Agreement (CCA) and Unregulated Offer and
OUTSTANDING ITEM The Quality Packaging Allowance (QPA) payment is determined by the number of identified
‘Outstanding Items’ before Blemain Finance can complete a submitted case. The QPA has 4 levels of remuneration and
each level is determined by the number of ‘Outstanding items’. Please see the iDeal Pack for definitions and details.
PARENT AND CHILD APPLICATIONS See Witnesses and Solicitors to Witness and Advise.
PAYEE AUTHORITY LETTER In certain instances the customer may want the cheque payable in only one person’s
name. We will require a letter of confirmation from the customer explaining the reason and the customer’s name they
want the cheque making payable to. All customers must sign this authority. We will not make a cheque payable to a non
title owner.
PAYMENT OPTIONS We prefer and expect all loans to be paid by Direct Debit.
PRIORITY NOTICE This is placed against the registered title number to assure that no other lender can complete a
secured loan for the borrower before Blemain Group.
GUPG - April 2014
19
PURCHASES We will need to know if the customer will be living in the property when the loan is completed or what their
intentions will be with the property. We will need to know if more than 40% of the property will be occupied by the
customer or their immediate family as this constitutes a Regulated Mortgage Contract.
They must have a solicitor, conveyancer, etc. acting for them and are responsible for their own legal costs. We will base
the Loan to Value on the purchase price or valuation, which ever is the lower of the two and will need proof of purchase
price which can normally be confirmed via the solicitors.
REDEEMING SECOND CHARGES In certain instances the customer may have a first charge, which is remaining, and a
second charge that we are redeeming as part of the loan. These cases will require a mortgage reference or by-pass (if n
acceptable) for the first charge and a redemption figure for the second charge being repaid. In certain underwriting
circumstances we will also require confirmation that the second charge has been conducted satisfactorily and is up to
date. Where possible all redemption figures should have at least 14 days left to run after completion. In certain instances,
as with fringe, non-conforming lenders, etc. a final day redemption figure is required. Packaging broker should obtain this
on the day of funding after you have obtained the initial redemption figure. We reserve the right to confirm and update
these figures on the day of completion.
REGULATED CREDIT AGREEMENT (CCA) These are regulated under the Consumer Credit Act, which means that the
customer must receive an Offer of Loan at least 7 days before they receive or sign the legal documentation. Each
applicant must receive an Offer of Loan. This 7 day period (The Consideration Period) is for the customer to consider the
terms and conditions of the contract and seek independent legal advice if they wish to do so. During this period no one
from Blemain Group or the Brokers are allowed to attempt to contact the customer. Under NO circumstances must this
regulation be broken. Each applicant must receive a copy of the Legal agreement for them to keep; plus an additional
copy for all applicants to sign and return. The Legals must be an exact copy of the Offer of Loan and all figures and
words must match exactly. All Offers of Loan and Legal Agreements must be correctly completed with all figures
including APR, term, etc., clearly visible in the relevant boxes. These figures should have been accurately recorded on
the original issue. Any figures outside the boxes could invalidate the forms.
The Legal Agreements must be correctly signed and witnessed. Any witnesses MUST include their signatures as well as
their names and addresses. One witness can witness the Legal Charge for both customers on a joint application.
SCOTLAND
Blemain Finance:
You must obtain a Scottish Search from our search provider prior to issuing all final documents for signature to the
applicants.
1.
2.
3.
4.
5.
6.
7.
8.
If you have Scottish Search facilities then please obtain your Scottish search from our search provider (up to 48
hours turnaround time).
You will then receive your search result which will include the correctly completed Standard Security. Take care to
ensure that if you reprint the Standard Security for any reason that you copy the search result exactly.
Matrimonial Homes Affidavits are not required for second charges but ARE required for ALL first charges.
If a registered owner of the property is deceased we will require a survivorship letter.
Process the loan in your normal manner and submit it to us as a full case with a copy of the search results.
Upon finalisation of all matters we will request a Certificate to complete from our Scottish solicitors which are
returned within 24 hours. Please note that funds will not be released until we have the Certificate to Proceed.
Customer Advance, Broker Fees and Remunerations will be distributed in the usual manner following payout.
The Title Deeds to the property are always required when lending on a first charge unencumbered property in
Scotland.
For Cheshire Mortgage Corporation and Lancashire Mortgage Corporation the lender will instruct the solicitor when the
case is submitted with the required information.
SECURITY CHECK (SPEAK WITH) In all cases a telephone security check for all applicants will be completed prior to
funding. We reserve the right to contact employers and confirm employment details. During these confirmations and
checks we will also obtain/confirm the customer’s National Insurance number. Calls may be recorded.
SHARED OWNERSHIP/EQUITY/SECURED LOANS Cheshire Mortgage Corporation can lend up to 100% of the
applicants share of the property subject to being granted protection under the Mortgagee Protection Clause of the
Housing Association. CMCL will only lend at a reduced LTV if a Mortgagee Protection Clause of the Housing Association
is not granted or where the shared ownership property is in Scotland. Please refer to Underwriting Relationship Manager.
Also see plans for details.
SOLICITOR’S COMPLETIONS Solicitors will be instructed to complete all purchases, right to buys, Scottish cases and
certain Unregulated loans We will issue the legal documentation to the customer’s solicitors for execution. We will require
the broker to collect all of the normal packaging requirements prior to completion. If a Solicitor is instructed to complete a
loan, to issue or complete a purchase, process or complete a complex case then all Solicitor's costs will be paid by the
customer. If a Solicitor is required to act for the customer, please refer to plans for acceptability. Should the client’s
solicitor not fulfil these requirements, please refer to Underwriting Relationship Manager. You need to advise the customer
they are liable for all Solicitors costs. We will require the name and address of their Solicitor. The completion monies will
be forwarded to the customer’s Solicitors net of any broker fees, and the solicitors must deduct their costs from the loan
GUPG - April 2014
20
proceeds. Fees and remunerations will be forwarded to the broker when we receive confirmation that the transaction has
completed. On these cases you will need to allow an additional 24-48 hours for completion.
SUB-BROKERS Many brokers have sub-brokers. We will in all instances refer the sub-broker back to the introducing
broker if they require details on the case or wish to present the case directly. Under no circumstances will we switch the
case from one broker to another and we actively encourage all brokers to advise their sub brokers to liaise directly with
them concerning the case and not to contact Blemain Group.
SUBMISSION CHECKLIST This lists most of the standard requirements a broker will need to collate for completion of
the loan facility. Some additional requirements may be needed which your Underwriting Relationship Manager will inform
you of.
SURVEYORS VALUATION AND REPORT
Residential Valuations:
The Market Value (MV) or Existing Use Value (EUV) will be used for the purpose of assessing residential Loan to Value.
Please see our Surveyors Panel on www.brokervenue.co.uk. All valuations should be on the relevant Blemain Group
company’s Surveyor’s Valuation and Report and should be accompanied with the required colour photographs.
Residential valuations must be carried out by members of our current Valuation Panel. Our preferred Valuer in London
postcodes (see Valuation Panel for details) is Ord, Carmell & Kritzler. A fee scale has been negotiated with them for
Blemain Finance and Cheshire Mortgage Corporation Residential Loans, a copy of which can be obtained from your
Business Development Executive.
We will accept valuations from other panel valuers in London but we may seek a second opinion from Ord Carmell Kritzler.
Commercial Valuations:
The market value subject to a Special Assumption of a defined marketing (DMV) period of 90 days with vacant
possession will be used to calculate the LTV. Commercial valuations will be completed by panel valuers on agreed
reports. A Commercial Valuation Panel is available from your Business Development Executive.
All Valuations:
If comments on the valuation detail that a specialist report is required typically we will not require them; however if the
comments state that the report is essential to provide a valuation figure, the LTV is > 50% or the property is structurally
unsound and could deteriorate further we may require the specialist report before final approval. Valuations must not be
more than 2 months old on the date of completion. We will confirm and update these figures accordingly on the day of
completion. We reserve the right on all valuations to contact the surveyor as this may affect the final decision. Loan to
value may be reduced if there is a large differential between the OMV (Open Market Valuation) and PMV (90 day forced
sale valuation), if poor; detrimental, adverse information or comments are registered, or the presentation of the property
is unacceptable on the Valuation. For semi-commercial and fully commercial loans the customer or broker will need to get
an up to date valuation, with colour photos, before we can make a defined offer.
TENANCY AGREEMENTS/TENANTED PROPERTIES Where the security property is tenanted we require a full copy of
the current tenancy agreement. This should be an Assured Shorthold Tenancy Agreement. Occupiers Consent forms
may also be required. See BTL plans for details.. Secure Tenant is defined as a person who resides in the property for
little or no rent, with or without the owner occupying the property or a person who has resided in the property for a period
without an Assured Shorthold Tenancy Agreement. Should the property have a secure tenant we will review each case
on its individual merits.
THE INTRODUCER CENTRE is the specialist team for brokers who are not accredited to package for one or more of the
Blemain Group companies. For further information please see earlier section ‘Welcome to The Introducer Centre’.
THE INTRODUCTION CENTRE is the specialist team dealing with all broker introduced business. All application forms,
documents and correspondence should be sent to The Introduction Centre, Lake View, Lakeside, Cheadle, SK8 3GW for
review before final underwriting is carried out. An acceptance Fee may be charged.
TITLE INSURANCE Title Insurance is compulsory when a customer completes a loan with Blemain Finance. The Title
Insurance Fee is either included in the Lender’s Acceptance Fee or charged separately – see plans for details.
Putting Title Insurance in place provides protection against defects in title including defective leases, enforcement notices
and lack of access issues. Defects in title would either void our charge or reduce the value of the title/security of which
our loan is secured against. In addition, Title Insurance speeds up the funding process by cutting down on the number of
requirements that would normally be expected in a conveyance e.g. local searches, full title enquiry and inspection of
leases therefore enabling a quick turnaround from application to funding in most cases.
WITNESSES Anyone who is not related to the customer, aged over 18 years, has a telephone number and is on the
Electoral Roll at home will be acceptable. Note: The witness must not be a resident at the security or correspondence
address. We reserve the right to contact witnesses before completion. Where a condition is applied to the loan for
Independent Legal Advice and Solicitors to Witness, a certificate must be signedand completed by the solicitor will
also be required.
Please note: This pack, any details or information contained in it, either electronic or printed, is for use only
by professional finance and mortgage intermediaries for the purpose of assessing consumer credit and
other specialist secured loan and mortgage acceptance criteria. Other persons should not place any
reliance on the content. It must not be distributed to potential borrowers.
GUPG - April 2014
21

City of Seattle

推 薦 書 - The Kyoto College of Graduate Studies for Informatics

VACANT PROPERTIES INITIATIVE

Download - St. Joseph County

MO 30/01/2015 Query sent to applicant RT 30/01/2015 Awai

The Karnataka Minodties Development Corporation Ltd.

Have You Got Your Apps Yet?

2014 Newsletter - WCR New York State

[PDF] 代理申請依頼書式3ページ目 - 慶應義塾大学 湘南藤沢キャンパス

Private Money Business Loan Program