Broker Bulletin January 2022
Forthcoming Rate Change
You will no doubt be aware that the Bank of England recently increased the Base Rate to 0.25%. As a result, Pepper will be increasing the Lender Base Rate to 0.20% with effect from February 1st, 2022.
How does this affect Sales I have made or will make?
1. If your customer has already received a Mortgage Offer from us, then you need do nothing. Where applicable, we will write to the applicants advising them of the pending Lender Base Rate change.
2. If you have produced a Mortgage Illustration (ESIS) on our system after January 19th then you need do nothing, the ESIS will have the correct Lender Base Rate
If you have produced a Mortgage Illustration (ESIS) on a VARIABLE or DISCOUNTED product prior to January 19th and an offer has not been produced by January 31st, you will need to do the following on February 1st;
- Go to the quote screen in our SWAN system and REQUOTE;
- Then SELECT your product;
- For cases already sent to Pepper, e-mail your newly selected ESIS to [email protected] quoting the application number in the subject line, as well as sending the new ESIS to your applicants.
- For cases that you have not sent to Pepper you will need to send the ESIS directly to your applicants.
5. If you have made any sales or produced a quote since January 19th, you do not need to do anything and can follow your normal sales process.
Further Advances and Processing updates
We would like to remind you about certain processes that you should be aware of when selling and processing Pepper second charge mortgages.
When selling a further advance it is your responsibility to take into account any potential ERC that may be applicable on the existing loan in your advice. We would strongly advise that you obtain a redemption figure from us in order to ascertain this.
ERC’s will apply when:
- The new product selected has a lower fixed or discount term to the original loan. For example, if the original loan was a 5 year fix and the new application is a 2 year fix
- The original product had an ERC, but the new product does not (eg 2 year fix to variable or 5 year fix to 5 year fix with no ERC)
- The original product was an XLTV product but the new application is on our Prime or Plus product range
You can obtain a settlement figure by emailing our team at [email protected] with customer authority.
If you submit a new case to us that does not have the system updated, we will be sending the case back to you in order for you to complete. This includes but not limited to; telephone numbers and employer details.
You should also submit our submission checklist with every case.
When Pepper issue an offer to yourselves, can you please ensure you check that the offer matches the advice that you have given to the customer. If the information is incorrect, please advise us before completion so that we can rectify any difference. As with any first or second charge lender, this is a more difficult thing to amend after completion has taken place.