Registration
You need to be registered in Mortgage Hub to apply for a rate switch.
Rate switch products
You can find all available products on your sourcing system. When you're processing the rate switch, a list of eligible products for the client will be available for you to choose from.
Yes. Your client will be eligible for our standard residential products.
Submitting a rate switch
You can apply for a rate switch up to 180 days before your client's current product ends.
If your client wants to apply for a rate switch outside of 180 days, they'll need to call us on 03450 50 50 75.
You can complete the application in as little as 5 to 10 minutes.
You'll get the offer as soon as you complete the rate switch application online, except in cases where the valuation is challenged. You can view the offer straight away on Mortgage Hub.
Please read our question on valuation challenges for more details.
When submitting a rate switch, Mortgage Hub will produce an offer both for your records and which you can share with your clients. For cases where the valuation is challenged an illustration will be produced.
To accept to offer:
- Tick the box to confirm the applicants are happy to proceed
- Click the “submit” button
The overview section of the Case Summary screen will then show the case at stage 5 or greater, up to 11.
Just remember, if you don’t tick the box to confirm the applicants are happy and click the “submit” button, the rate switch has not been secured.
If you have further questions, please call the team on 03458 48 00 61.
Yes it will.
If your client isn't eligible, you'll see a message explaining what action you or your client can take.
In some cases your client may need to contact us directly on 03450 50 50 75 for their rate switch.
Your client will need to call if:
- They're making changes to their mortgage like changing the term or repayment method
- They want additional borrowing
- They're adding or removing borrowers
- Their mortgage term has less than two years remaining
- They have a Retirement Interest Only (RIO) mortgage
- They want to change the mortgage type, Residential to Buy to Let or vice versa
- They have an early repayment charge and want to pay it
Unfortunately, in these circumstances we can't pay you a procuration fee.
Yes, but due to the differing end dates of their existing products this will need to be processed as two separate requests, one for each part. Take care when you choose the product as this could mean that any product fees are charged twice.
You can challenge the valuation as part of the rate switch application. We’ll need a valuation to be carried out, which is free. This will delay the rate switch being offered whilst the valuation takes place. We'll then generate the offer once an underwriter assesses the valuation report.
Please only challenge the property valuation if the estimated property value will return a different product range for your client.
If the valuation is lower than expected it could result in the product selected no longer being valid and we’ll contact you to discuss your next steps.
On a Shared Ownership mortgage, the estimated value of share can be calculated by multiplying your client's percentage share by the valuation figure displayed on screen.
For example: the full market value shows as £200,000 and your client owns 50%. The estimated value of share value is therefore 50% of the full market value (i.e., £100,000).
On a Shared Equity (including Help to Buy) mortgage the estimated value of share is the share of the property value that is not the equity loan.
For example: the property is worth £250,000 and the equity loan is 20% of the full market value. The estimated value of share is therefore 80% of full market value (i.e., £200,000)
When staircasing to 100%, your client will move from the Shared Ownership scheme to a standard residential scheme. This changes the terms and conditions and the products available for the mortgage.
To support your client’s journey, key the case as a new lending residential mortgage in Mortgage Hub. The products available are from our new lending standard residential range.
The offer is valid for 180 days.
Product fees can be added to the loan or paid upfront as part of the application process.
Yes, clients can make capital payments at any time. It'll be subject to restrictions on their current product.
If they're within their 180 day rate switch period and want to make the capital payment that exceeds their overpayment allowance to allow a rate switch on to a lower product, please ask your client to call us on 03450 50 50 64.
Mortgage Hub will allow you to see the lower mortgage balance the next day. To see the updated balance, please start a new rate switch application in Mortgage Hub. You can then submit the rate switch application as normal.
Before submitting the rate switch application, Mortgage Hub will display 6 possible switch dates.
If your client’s current product has early repayment charges, please pick the day after the early repayment charges finish.
If your client’s current product doesn't have early repayment charges, please select the date that's suitable for your client. For further details, please see "When will the new product start?"
If you apply before your client's current product ends, the new product will start on the day after the current product ends.
If the current product has already expired or expires at the end of the current month:
• If you apply on or before the 14th day of the current month, the new product should start in place on the 1st of the following month. For example, if you request a rate switch on 13 October, it should be put in place on 1 November
• If you apply after the 14th day of the current month, the new product should start on the 1st of the month after next. For example, if you request a rate switch on 15 October, it should be put in place on 1 December
• If you start to apply on or before the 14th day of the current month, but don't finish the application until after the 14th, the switchable date displayed may not be correct. If the switch date displayed is a date in the past, we recommend you cancel the existing application and start a new application to ensure the correct date is displayed on screen and in the documentation
• If your client’s existing product has no early repayment charges, the earliest switchable date will show in line with the examples given. Should your client wish to remain on the existing product until the end date, please select the day after the current product expires to the question “When does the applicant want to switch?”
Amending a submitted rate switch
Yes, you can. Please call us on 03458 48 00 61 to cancel the original rate switch application. You can then submit the new rate switch application.
Post submission
We generate the offer when you submit the application. If you challenge the estimated value, we won't generate the offer until an underwriter assesses the valuation report. You can view the offer in Mortgage Hub using the View all case documents link. We also post this to the client.
We'll pause both applications and contact the relevant parties to confirm which rate switch the client wants to proceed with.
The rate switch offer is based on the balance on the day the rate switch is submitted. When the new rate is applied to the account, we'll recalculate the monthly payment based on the up to date balance and term. Your client will receive the actual monthly payment in a letter up to 30 days before the rate switch date.
Procuration fees
We'll pay a 0.20% procuration fee of the loan amount as shown in the offer. We'll pay the procuration fee on the 8th day of the month following completion of your client's rate switch to your chosen payment route.
If the 8th lands on a weekend or bank holiday, the procuration fee will be processed on the next working day.