| Frequently asked questions. | |||
| Who
are AAA Mortgages? Why come to AAA Mortgages when the high street is full of lenders? How much will my mortgage cost to arrange? What about insurance? What information will you need from me? How long do I have to repay my mortgage? What happens if I move? Can I repay my mortgage early? What happens if things go wrong? Can I get payment protection? What is the Mortgage Code? What types of interest products are available? What happens if I change my mind? How do I repay my mortgage? What else should I know? Q. Who are AAA Mortgages? A. AAA Mortgages are administered by Norton Mortgages one of the fastest growing companies in the UK. AAA Mortgages act solely on the behalf of their clients. We use a lender panel made up of between five and eight lenders whom we consider best meet the needs of the majority of our clients. Norton Mortgages are registered with the Mortgage Code Compliance Board ("MCCB"). 
back to topQ. Why come to AAA Mortgages when the high street is full of lenders? A. We specialise in finding mortgages for clients who may have difficulty getting a loan from a traditional bank or building society. We have schemes to suit people that have mortgage arrears, credit problems, no proof of income, unusual properties and hundreds of other situations that might cause banks to say 'no'. What ever your circumstances we can normally find a mortgage to suit you.
back to topQ. How much will my mortgage cost to arrange? A. You may incur some or all of the principal transaction costs described below when taking out a mortgage with us. Full details of costs will be provided with your mortgage quotation. If you are re-mortgaging there may be redemption charges or other fees payable on redemption of your current mortgage. It is important that you are aware of these costs and have considered them fully before proceeding with a new advance. If you are re-mortgaging and any of the funds raised are being used to repay or consolidate existing unsecured debt then you should be aware that these will now be secured by way of a first charge on your property and you will pay more over the long term. If your payments lapse then your home maybe at risk. High Percentage Lending Fee If your mortgage represents a high percentage of the price or valuation of your property (typically 75% or more), you may have to pay a high percentage lending fee. Some or all of this fee may be used by the lender, at its discretion, to obtain mortgage indemnity insurance to act as extra security for its sole benefit. If this is the case, the lender will give you a written explanation confirming that you are still liable to pay all sums under the mortgage and this cover will not protect you if your property is subsequently taken into possession and sold for less than the amount you owe. You will remain liable to pay all sums owing, including arrears, interest and the lender's legal fees. If a claim is paid to the lender under such insurance the insurers generally have the right to recover any amount paid from you. Legal Fees You may need to instruct a solicitor to act on your behalf and you will be responsible for paying their costs. Arrangement Fee We may charge you an arrangement fee, which will be deducted from the mortgage advance. This payment is for the time we spend researching the market, giving advice and for the administration involved in submitting the application to the appropriate lender on your behalf and ensuring the transaction is completed to suit your requirements. Any fee payable will be notified to you in advance of any chargeable work-taking place and will be subject to a separate agreement.
back to topQ. What about insurance? A. A mortgage is one of the largest financial commitments that most people take out. It therefore makes sense to ensure that you have adequate protection in case things go wrong. Would your family's home be protected if something happened to you? We will tell you if your mortgage is conditional upon arranging any insurance policy. We are able to offer advice on the following insurance plans: 
Payment Protection Plans. Life Insurance.
Buildings Insurance.Help to secure your future by getting the right advice. For more information talk to one of our friendly mortgages staff, who will be happy to answer any questions. Mortgage Payment Protection Insurance. Although it is not a condition of the mortgage we strongly recommend that you take out payment protection insurance to ensure that your mortgage payments are maintained in the event of accident, sickness or redundancy (for employed) or hospitalisation (for self employed) Life Insurance. You may also decide that you need life assurance protection to ensure that your family are protected in the event of your death. We recommend that you approach an Independent Financial Advisor to help you select an appropriate policy to meet your needs. Buildings Insurance. In all cases your lender will require details of buildings insurance, which should provide sufficient cover to meet the reinstatement costs of the property. The required sum insured will be detailed on the valuation report. It is your responsibility to ensure that the premiums and therefore the cover are maintained on these plans. If cover is arranged through or by us then we may receive commission from the company concerned. Details are available on request.
back to topQ. What information will you need? A. As we proceed with your enquiry we will provide you with a detailed quotation relevant to your mortgage needs. During our initial call with you we will complete a detailed mortgage questionnaire so that we can give you appropriate advice on your mortgage and related products. Once we have made our recommendations to you we will confirm our advice in writing. Details of your mortgage will also be confirmed in your lender's formal offer.
back to topQ. How long do I have, to repay my mortgage? A. We can arrange mortgages over terms from 5 to 40 years. A Typical example is, a £75,000 mortgage over a 20-year period. We do not recommend that your mortgage continue beyond your intended retirement dates unless you have adequate income to continue to meet your mortgage commitments in retirement.
back to topQ. What happens if I move? A. If you decide to move before the end of the mortgage term then your situation regarding the transfer of your mortgage to a new property will depend on whether your mortgage is portable or not. Portable If you want to move home in the future it will generally be possible to transfer the mortgage to the new property subject to your lenders underwriting criteria at the time of the move. You may be charged an administration fee for this service. Not Portable If you want to move home in the future it will be necessary for you to repay your mortgage and then to start a new mortgage on the new property. You may have to pay early redemption charges in this situation. We will confirm in writing if your mortgage is portable prior to completion.
back to topQ. Can I repay my mortgage early? A. Yes, you are able to repay your mortgage early, but there may be redemption charges associated with your mortgage if you wish to repay it early. Details of any redemption charges will be provided prior to completion.
back to topQ. What happens if things go wrong? A. You should find your dealings with us to be prompt, efficient and friendly. Our aim is to provide you with a world class, professional and confidential service. If you have a complaint we do have a formal complaints procedure to ensure that your complaint is dealt with quickly and efficiently.
back to topQ. Can I get payment protection? A. Our payment protection plan offers a simple and effective way to protect your monthly repayments and give you peace of mind. I am self-employed. Can I apply for Payment Protection Insurance?Yes you can. The policy will, however, exclude cover if your company goes into voluntary liquidation. I work on a part time basis. Can I get payment protection?This depends on the number of hours you work each week. Employment is defined in the policy as working for at least 16 hours per week. If, however, you do not qualify and your partner works full time and is named on the mortgage, then he/she could cover themselves for 100% of the loan. I am 65 years old. Can I apply for Payment Protection Insurance?No. The policy provides cover only for borrowers aged between 18 and 64.
back to topQ. What is the Mortgage Code? A. The Mortgage Code is a voluntary code that sets minimum standards of good lending and advisory practice. Their 'You and Your Mortgage' leaflet may be downloaded from this web site. In subscribing to the code we promise that we will: · Act fairly and reasonably in all our dealings with you · Ensure that all our services and products comply with the Code even if they have their own terms and conditions. · Give you information on our services and products in plain language and offer help if there is anything you do not understand. · Help you choose a mortgage to fit your needs unless you have already decided on your mortgage. · Help you understand the financial implications of a mortgage. · Help you understand how your mortgage account works. · Ensure that the procedures our staff follow reflect the commitments set out in the Code. · Correct errors and handle complaints speedily. · Consider cases of financial difficulty and mortgage arrears sympathetically and positively. · Ensure that all our services and products comply with relevant laws and regulations.
back to topQ. What interest products are available? A. Variable Rate MortgageThis means that your monthly mortgage payment will rise and fall in line with any increase or decrease in interest rates. Discounted Rate MortgageThis means that your monthly mortgage payment can rise or fall in line with any increase or decrease in interest rates at a guaranteed discount on the lenders basic variable rate for a specified period. At the end of the discount rate period your interest rate would normally revert to the lenders standard variable rate. It may also be a condition of your discounted rate that the mortgage must remain on the lenders standard variable rate for a period after the discount period ends. Fixed Rate MortgageThis means that the interest rate you are charged remains the same for a set period of time and your mortgage payment does not change in that time. At the end of the fixed rate period your interest rate will normally revert to the lenders standard variable rate. If this is higher than your fixed rate your payments will increase accordingly. It may also be a condition of your fixed rate that the mortgage must remain on the lenders standard variable rate for a period after the fixed period ends. Flexible MortgageThis means that you can vary your mortgage payments. The terms of a flexible mortgage may vary with each lender. However, subject to the lenders terms and conditions, mortgage payments may be varied by making overpayments and lump sum payments and by making underpayments and taking repayment holidays. Base Rate Tracker MortgagesThis means that the interest rate you are charged will be linked to the lenders base rate and will rise and fall in line with base rates.
back to topQ. What happens if I change my mind? A. You are under no obligation to proceed, and there will be no cost or fees incurred, provided you have returned your original application within 7 days as we will have paid the valuation fee.
back to topQ. How do I repay my mortgage? A. Unless you request otherwise we will arrange a repayment mortgage for you. Repayment Part of the monthly payment pays off the interest on your mortgage and the balance of your monthly payment pays off part of the capital of your mortgage. The monthly payments will first go towards paying the interest and then towards paying off the capital. With this arrangement you are guaranteed to repay the loan in full by the end of your mortgage term, provided that you have maintained your repayments in full. Interest OnlyThe monthly payment covers only the interest on the mortgage, no reduction is made in the capital outstanding. With this option the whole of the mortgage will remain outstanding at the end of the mortgage term. It is important that in the case of an interest only mortgage you put in place a suitable repayment vehicle such as an endowment policy, ISA or pension. If you wish to go ahead on an interest only basis we recommend that you approach an Independent Financial Advisor to help you select an appropriate repayment vehicle.
back to topQ. What else should I know? A. SolicitorsWhere the lender's own solicitor is being instructed to carry out the legal work in respect of the mortgage transaction you should be aware that they will be working predominantly on behalf of the lender. In this situation you may wish to seek independent legal advice. Packaging and Marketing Allowance. We, (or other companies in the AAA Mortgages group) may receive payment from your lender in recognition of the work we do on their behalf. We will tell you if we receive a fee for arranging your mortgage and we will tell you the amount of the fee in writing. In addition to the above the lender may also pay us an additional lump sum and/or other benefits based on the overall levels of business we introduce to the lender over the course of each quarter. Further details of these benefits are available from us on request.
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