For the use of mortgage intermediaries & other professionals only

Combined product transfer and further advance

The combined further advance and product transfer application provides an easier and quicker solution when doing a product transfer with further advance.
 
Once the further advance funds have been released the product transfer will take effect from the 1st of the following month.
 
If early repayment charges currently apply a combined application can only be keyed inside the last 4 months of the existing product.  

  • If you apply in the 4th month before the end of the existing product the further advance funds will not be able to be requested until in the last month of the existing product, so the product transfer does not take effect until the existing product has ended.
  • If you apply inside the last 3 months of the existing product the customer could choose to not request the further advance funds until in the last month of the existing product, so the product transfer does not take effect until the existing product has ended, but they have the option to request the further advance funds at any time inside the last 3 months and the product transfer will take effect from the 1st of the following month.

Please note - if the further advance funds are not requested by the end of the required month the PT will NOT take effect from the following month as may have planned.

Most combined product transfer and further advance applications will follow our improved process:

  • Instant decisioning with a Decision in Principle that has a ‘soft footprint’ credit search.
  • Create and review illustrations instantly.
  • Amend the term of the existing sub-accounts if required.
  • Save and resume keying.
  • Ability to amend the loan amount and other details before you submit the application in full.

Some applications will follow a different process where the application needs to be fully submitted, and you will then receive an email update with a decision and the mortgage illustration. This applies on certain schemes, where any element is on interest only, or where the loan purpose means a conveyancer will be required e.g. purchase the freehold, land or extension to the lease or repaying subsequent charges.

Please check the further advance will meet our criteria before applying:
 

  • Minimum further advance amount is £10,000.
  • Further advance not permitted within 6 months of completion of original mortgage.
  • No arrears - where the existing mortgage is in arrears a further advance application cannot be accepted. The customer should be advised to bring their account up to date.
  • Acceptable reasons for a further advance – see Criteria section for a list of acceptable reasons. Where for debt consolidation consider if there are any second charges on the property e.g. shared ownership schemes. Further advances are not accepted on shared equity schemes.
  • Maximum 85% Loan to Value - existing loan plus further advance amount must not exceed 85% LTV; where above 80% LTV (based on current indexed valuation) a revaluation will be required and a revaluation fee will be due.
  • Repayment plans – where current mortgage has an Interest Only amount acceptable repayment plan(s) must be held or no further advance will be available.

Points to note:

  • Only key a single application. Select ‘Create Combined PT/FA’ to key the application.
  • Select the correct payment route required.
  • Check the customer details including names are spelt correctly.
  • If applicant is self-employed then please include most recent tax year overview dates, within the 18 month limit.
  • Include details of the further advance amount required, reason(s) for the further advance, and check that a new product has been requested for the full amount including the further advance value.
  • You must return the declaration issued with the Mortgage Illustration signed by your client(s). If the declaration is not returned an offer document will not be produced and the application cannot be completed.
  • A further email update will advise when the offer document is available online.
  • You will receive just one Mortgage Illustration and Mortgage Offer documents that includes details of both the product transfer and further advance. For a combined application the wording on the mortgage documentation will refer generically to ‘Mortgage Offer’ it will not call out ‘Product Transfer‘ or ‘Further Advance’.
  • When your client is ready to receive their funds, they should call the Halifax Refinance team on 0345 901 3161 and select option 2.
  • If individual client circumstances dictate, you can submit separate further advance and product transfer applications but you must wait 24 hours after the completion of the first transaction before the second application is keyed.