Change in Policy for:

Northern Rock plc

Change Date: 21/10/2010
Region: England and Wales

Change Detail

Regulator Date # Sections Changed
CML 21/10/2010 30
SectionOriginalNew Text
Updated 15/10/2010 21/10/2010
1.13.2 - May my firm act if the person dealing with the transaction or a member of his immediate family is the seller? No. In all cases the seller and the borrower must be represented by separate firms. No. Your firm must not act in transactions in which the partner or fee earner dealing with the transaction or a member of his immediate family is the seller.
1.14- May my firm act if the person dealing with the transaction or a member of his immediate family is the borrower? No. Your firm may not act in transactions in which the borrower is a partner or employee of the firm or a member of his immediate family. No. Your firm must not act in transactions in which the partner or fee earner dealing with the transaction or a member of his immediate family is the borrower.
4.1.1- Is there a valuation report? We rely solely upon the mortgage valuation report for our lending purposes. The valuation report is obtained for mortgage purposes only. A copy of the mortgage valuation is sent to the borrower only. We will not send a copy to you and you must obtain a copy from the borrower yourself.
5.2.5.1+- all personal searches without limitations Yes, subject to 5.2.5.1 Yes.
5.5.1- Do you lend on flying freeholds? Yes, but only if part of the title is a "flying" or "creeping" Freehold AND the property has the benefit of all necessary rights of support, protection and entry for repair. Not normally acceptable. Small areas of less than 20% of total floor area may be considered subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist. Refer to New Mortgage Completions, other details as 1.11.
5.5.1- Do you lend on freehold flats? No. Not normally acceptable. However, the following circumstances maybe acceptable:-
• where there is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block;
• where the other flat(s) in the block are all leasehold; or
• where there are reciprocating lease/freehold arrangements (such as Tyneside Flat situation). Refer to New Mortgage Completions, other details as 1.11.
5.5.3- Do you lend in these circumstances? Yes. We have no objection to this kind of security. However, where the borrower owns the freehold we will require a charge over that title also.
5.5.4.2- Do you lend in these circumstances? Yes, provided that both interests are charged to Northern Rock plc. Yes, provided that both interests owned by the borrower are charged to Northern Rock plc.
5.10.13- Do you accept indemnity insurance if the landlord is absent or insolvent? If there is an absentee landlord we are prepared to proceed upon your confirmation that the position is accepted by practitioners in the locality and provided the landlord is not obligated by the terms of the lease to maintain, repair and insure any common services or to enforce such obligations against a third party. In the case of insolvent landlords refer to our New Mortgage Completions. If there is an absentee landlord we are prepared to proceed upon your confirmation that the position is accepted by practitioners in the locality and provided the landlord is not obligated by the terms of the lease to maintain, repair and insure any common services or to enforce such obligations against a third party. In the case of insolvent landlords refer to our New Mortgage Completions, other deatils as 1.11.
5.11.2+- management company share certificate? No. Yes.
5.11.2+- signed blank stock transfer form? No. Yes.
5.13.3+- power of attorney? Yes, after completion with the Title Deeds. Yes, after completion with the Title Deeds. A certified copy is sufficient.
6.5.1- Contact point if property is let/to be let and to check you lend on buy-to-let. Contact not required if a Northern Rock plc Buy To Let mortgage, otherwise New Mortgage Completions other details as 1.11 Contact not required if a Northern Rock plc Buy To Let mortgage, otherwise contact New Mortgage Completions, other details as 1.11.
6.5.4- Do you lend where the property comes within the definition of a house in multiple occupation? Yes, but only on a Buy To Let basis. No.
6.5.4- If yes, what are your requirements? We will accept this as security provided the property is let to no more than four tenants and the property is let to them under the terms of a single Assured Shorthold Tenancy. Not applicable.
6.6.1- Please provide a list of new home warranty schemes acceptable to you. NHBC Zurich Municipal Premier Guarantee Building Life Plans Building Zone Limited Local Authority Building Control New Home Warranty Professional Consultants Certificates may also be accepted but refer to New Mortgage Completions other details as 1.11 NHBC Zurich Municipal Premier Guarantee Building Life Plans Building Zone Limited Local Authority Building Control New Home Warranty
6.7.1- Contact point if no agreement and bond for an unadopted road or sewer? Accepted provided that there is a firm intention to adopt and the development is subject to NHBC or Zurich Municipal. In all other cases refer to New Mortgage Completions other details as 1.11 Accepted provided that there is a firm intention to adopt and the development is subject to NHBC. In all other cases refer to New Mortgage Completions, other details as 1.11.
6.13.1- Do you need the buildings insurance in joint names/yours interest noted? Either. Joint names. We will only accept our interest to be noted where the insurer will not allow the lender to be named as a joint party.
6.13.3- What are your requirements if the total sum insured is less than the total number of flats multiplied by the amount set out in the mortgage offer? No objections provided that the landlord/management company is satisfied that the reinstatement value is adequate and up to date. New Mortgage Completions, other details as 1.11.
6.13.5- What is the maximum excess you will accept on buildings insurance policy? £1,000 for subsidence cover. £1,000 in all cases.
7.3- Do you require a consent to mortgage from all occupants aged 17 or over? Yes, use our standard pro-forma. Our pro-forma must be used and sent direct to the occupier. Under no circumstances should the form be sent to the borrower. You must advise us of any situation where you believe that the pro-forma will not adequately protect our interest in the property.
10.6- How long can I hold the mortgage advance before returning it? Funds must be returned immediately if completion is to be delayed. See 10.3.4 for details about how to return funds. Please contact us. If completion has not taken place within 24 hours of the completion date specified in the certificate of title funds must be returned to us.
16.3.3- Do you require the transfer of equity to be sent to you? Yes, we need to excute it where a borrower/guarantor is to be released from the mortgage covenants. A certified copy of a TR1 is required where a borrower is joining the mortgage covenants if we are not required to be a party to the deed. We require a certified copy of the transfer.
16.4.1- Does a copy of a proposed tenancy need to be sent to you? Yes, unless relating to a previously agreed Northern Rock plc Buy To Let mortgage. Yes.
16.5.3+- deed of easement As above. Deeds Manager, other details as 14.2.1.
16.5.3+- deed of rectification As above. Deeds Manager, other details as 14.2.1.
16.5.3+- deed of variation Deeds/Redemptions other details as 14.2.1 Deeds Manager, other details as 14.2.1.
16.5.3+- option agreements. As above. Deeds Manager, other details as 14.2.1.
17.2+- a DS 1 form For Part discharge only. Only in exceptional circumstances.
17.2+- direct with the Land Registry. By END1 for discharge of whole. Yes, except for a discharge of part which will be dealt with by way of a DS3.