Initial DisclosureThank you for choosing to apply for your second mortgage with My Sort of Loan. This Initial disclosure document will set out the services that we will provide to you. The document should be read in conjunction with your Mortgage illustration.
Service through My Sort of Loan
My Sort of Loan Ltd is authorised and regulated by the Financial Conduct Authority, our financial services registration number is 724841. Our permitted business is advising on and arranging second charge mortgages. You can check this on the Financial Services Register by visiting the FCA's website www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768. We will advise and make a recommendation for you after we have assessed your needs on second mortgages, consumer buy to let mortgages and unsecured loans. We offer a limited panel of lenders which represents a comprehensive range of second mortgages from across the market, but not deals that you can only obtain by going direct to a lender. Our Lenders are: Shawbrook Bank; Optimum Credit; Paragon Personal Finance; Masthaven Loans; Central Trust; Norton Finance; Spring Finance; Equifinance; Finsec; Together; Loan Logics; Evolution Money; Firststop. Should you accept our recommendation we will carry out all of the administrative work to process your Second Mortgage through to completion, if your second mortgage does not complete we cannot accept any liability for this. You have the right to cancel your application during this time without being charged any fees.
Products We Don't Offer
We don't offer advice on first mortgages or re-mortgage options; neither do we offer debt management plans or individual voluntary arrangements. It is important that you consider other options before proceeding with a second mortgage. To obtain further advice please contact the Citizens Advice Bureau, Consumer Credit Counselling Service or seek independent advice. We do not give advice, arrange or offer insurance products. You will still have to pay your monthly repayments if you lose your job or if illness prevents you from working. You should consider the affordability of your second mortgage if your income falls. My Sort of Loan does not offer payment protection insurance but you could consider this as a way of protecting yourself against unforeseen circumstances. Please refer to www.moneymadeclear.fsa.gov.uk or an independent financial advisor.
ChargesWhen your second mortgage has completed, a broker fee will be charged of 12.5%, an example £15,000 mortgage the fee would be £1875. The maximum fee is capped at £5,000. The lender may also charge a fee, this will vary dependant on the lender selected, and any fee charged will be disclosed to you and clearly shown on your mortgage illustration.
The fees can be paid at completion or added to your second mortgage advance and this would be incorporated within the monthly repayment and interest is charged. Interest is charged on the total mortgage facility including the fees if added. If you choose to add our fee to the loan this fee is paid directly to us by the lender and there is nothing for you to pay up front.
Our lenders, in most cases, do not advertise and rely on brokers to advertise on their behalf and incur all the costs associated with customer acquisition. My Sort of Loan may therefore also receive a commission from the lender for introducing you to them. Any commission is paid direct to us by the lender and does not alter the terms described in your agreement. Generally this commission is 2% of the net advance.
Your Mortgage IllustrationYour offer is set out in your Mortgage Illustration document and is based upon you providing accurate information. Any changes to the information you have given us, including the valuation report, could alter this second mortgage Illustration.
Data ProtectionWe will treat your personal information as private and confidential (even when you are no longer a customer) We will also explain that you have the right of access under the Data Protection Act 1998 to your personnel records whether held manually or electronically. If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information to prevent fraud and money laundering.
Use of Your Second MortgageIf you are using your second mortgage to pay off other debts including some unsecured credit. The repayments on your new second mortgage may be lower than the combined monthly repayments on your other debts, but over a longer term you will end up repaying more in total. Think carefully before securing a mortgage against your home. It is important to note the difference between secured and unsecured credit; your home may be repossessed if you do not keep up repayments on a second mortgage. You should consider taking independent advice from the Citizens Advice Bureau (www.citizensadvice.org) or a Solicitor.
Arrears/Missing PaymentsIt is important to maintain your monthly repayments of your second mortgage, on time and in full. Continuing to miss payments or increase your debts under the contract the consequences of missing payments or under paying are explained in your Terms and Conditions, this can include default charges and in extreme circumstances, repossession of your property. This can also affect your credit rating leading to credit being more difficult or more expensive to acquire in the future.
Important - Next StepsBy signing below you acknowledge your acceptance and understanding of the initial disclosure stated within the document.
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Disclosure and use of your InformationMy Sort of Loan Ltd collects and processes your personal data in order to provide you with a second mortgage broker service. As a credit broker we will use your personal data provided by you on completed enquiry form or during the fact find to carry out the following functions:
- Process the application itself by reference to lender information.
- Provide your information to a lender for them to assess your suitability.
- Provide your information to a credit reference agency for searches to be made for example Equifax Plc who may keep a record of that information.
- The credit reference agency may disclose your information to your chosen lender and other organisations for the purpose of assessing the risk of giving credit.
- The data provided by you will be searched by one or more lenders who will search, link and record information relating to you with credit reference and fraud agencies. If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information. Your chosen lender and other organisations may also access and use this information to prevent fraud and money laundering.
The credit broker processing your application is My Sort of Loan Ltd
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Is there any further information, for example in relation to your health or general well being, that you might wish to bring to our attention at this time that you think may be relevant to our consideration of your application for credit?