Mortgage Guide

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE

How many times have you read that buying a house is one of the most stressful events that will happen in your lifetime?

Well we do not disagree, although there is one sure way to reduce the level of stress significantly, and that is to arrange your borrowing through the Holmesdale Building Society.

With our single office in Reigate, we can proudly boast that spanning over 150 years we have helped many people to buy or improve their homes.

This page is only intended as a guide, for more detailed information about the terms and conditions of our mortgage business please contact the Society. You are strongly recommended to refer to the Society's Rules and Mortgage Conditions.

Choosing a Mortgage
Choosing a mortgage may be your most important financial commitment. The Society will provide you with information on the different types of mortgage product we offer so that you can make an informed choice of which to take.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

Before you take out your mortgage, we will provide you with a Key Facts Illustration which will give all the details of your proposed mortgage. If your application is received via an intermediary, they will advise you of the most suitable product and provide you with a Key Facts Illustration. The Society does not offer advice and recommendation on any other products available in the market place.

The Society will only accept introduced business from mortgage intermediaries who are authorised by the Financial Services Authority. If you have dealt with the Society through an intermediary we will tell you whether we have paid an introduction fee and how much it is upon your request.

Where Do I Start?
Whether you are looking to set up home for the first time, hoping to move to a larger house, looking to improve your existing house, or even looking for a new lender because you are unhappy with your existing one, you need to establish how much you can borrow, and how much it will cost you every month.

So How Much Can I Borrow?
The amount we may be able to lend you will depend on the level of your regular income and, of course, the value of the property to be mortgaged. However, to give you an idea, on a loan of up to 75% of the value of the property, we are able to lend you up to 3.49 times your basic annual salary if you are buying on your own. Joint loans would be either 3.49 times the higher income and 1.0 times the lower, or 2.74 times your combined incomes if this is higher. For loans in excess of 75% of the value of the property, the multiples would be 3.0 times your single income, or either 3.0 times the higher and 1.0 times the lower income, or 2.5 times the combined incomes if this is higher. In addition, if either you or your partner receives overtime, commission or bonuses, we can take this into account, but only if this other income can be shown to be either guaranteed or a regular feature of your monthly pay.

Please note that the above is only a guideline and the income multiples are subject to the Society's discretion.

How much deposit will I need?
Unless you are purchasing as a sitting tenant and are therefore paying quite a lot less for your property than its current value, you will find that the Holmesdale Building Society does not consider 100% mortgages.

The most we will lend you - as long as you can afford it of course - is 90% of the lower of the purchase price or valuation and therefore you will need a deposit of at least 10%.

Right to redeem
The borrower(s) may exercise this without prior notice in accordance with the Society's Mortgage Conditions clause 20 subject to clause 5(f) and Rule No 11 and Additional Rule 4 (see below).

Affordability
Whilst you may fit the Society's criteria in respect of the size of mortgage you are considering, when applying for a mortgage you should complete a budget checklist. This will take into account all of your regular outgoings and anticipated purchase/moving costs so that you can be sure that you can afford the mortgage installments. Consideration also needs to be given to any increase in mortgage interest rates.

Redemption Fee (Rule No 11 and Additional Rule 4)
The Society reserves the right to charge up to 3 months' interest on either full or partial redemptions within the first 5 years. This is reduced by one fifth for each complete year that the mortgage has been in force or is waived if a new mortgage is taken out with this Society. Further the value of any discounted rate concession or benefit in lieu of the concession will be recovered, if applicable to the individual account. Redemption interest will not be charged in the event of early repayment of the mortgage for all mortgage offers issued after 26th November 2001 unless specified in your formal Offer of Advance.

Right of sale (Possession)
The Society's power arises from the Mortgage Conditions clauses 13 and 14 and should this action be taken the Society will close the account but without prejudice to any liability under the borrower's Personal Covenant.

Personal covenant
The borrower is personally liable for all sums due to the Society whether or not any security held by the Society is sufficient to meet that liability.

Cases of hardship
The Society will wherever possible give sympathetic consideration in cases of hardship and would encourage borrowers who find themselves in financial difficulty to contact the Society immediately.

Guarantees and Third Party Security
Any person willing to act as Guarantor must be aware that they are equally as liable for the debt as the borrower and that the potential liability is unlimited. Independent Legal advice is strongly recommended before entering into the undertaking to act as a Guarantor.

Data Protection Act 1998
Borrowers have the right of access to their personal details held on our computer files and within manual files, although we may make a reasonable charge for providing this.

Confidentiality
The Society will at all times exercise strict confidentiality regarding your personal details and conduct of your account, except as authorised in the mortgage application form.

Marketing
Please confirm in writing if you do not wish to receive advertising or general material relating to the services the Society or an associated body can provide.

Complaints Procedure
We hope that you are fully satisfied with the service you receive from the Society. However, if you are not, we have a complaints procedure which is designed to help resolve your complaint in a fair and speedy manner.

Making a complaint
You may make a complaint by any reasonable means, for example, by letter, telephone, e-mail or in person. All complaints should be directed to the Chief Executive and confirmed in writing.

We will send a written acknowledgement of your complaint within five working days (working days exclude weekends and bank holidays).

Within four weeks of receiving your complaint, the Society will either send you a final response, or a holding response which will explain:-

• why we are not yet in a position to resolve the complaint, and
• indicate when the Society will make further contact, which will be no later then eight weeks after the complaint was received.

By the end of eight weeks after receiving your complaint, the Society will send you either:-

1. a final response which

• accepts the complaint and, where applicable, offers redress;
• offers redress without accepting the complaint; or
• rejects the complaint and gives reasons for doing so, including information about your right to complain to the Financial Ombudsman Service or;

or

2. a response which

• explains that the Society is still not in a position to make a final response, give reasons for the further delay and
• indicates when the Society expects to be able to provide a final response, and
• informs the complainant that he/she may refer the complaint to the Financial Ombudsman Service if he/she is dissatisfied with the delay, and encloses a copy of the Financial Ombudsman Service's explanatory leaflet relating to complaints.

If you decide to pursue your complaint through the Financial Ombudsman Service you must do so within six months of the date of the final response.

Further information relating to the current Financial Ombudsman Service complaints scheme is available from this Society or direct from the

Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR

Telephone number: 0845 080 1800
E-mail: enquiries@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk.

Charges
These may be made in connection with the operation of your mortgage account, some examples are as follows:-

(i)	An insurance administration fee when buildings insurance is arranged independently.
(ii)	Changing the method of repayment.
(iii)	Administration fee on redemption of the mortgage.
(iv)	Other charges associated with the granting of further advances, re-advances or similar and the enforcement of the Society's security.
(v)	The Society's legal fees whether or not the advance is completed.

We shall be pleased to provide details of current charges on request.