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Features & Benefits

• Basic Information - the essentials
• 5% Drawdown
• Chequebook
• Overpayments
• Underpayments & Payment Holidays
• Borrow-back
• Additional Credit Facility
• Benefits for you and your client

Essential product information table

5% Drawdown

• On top of the loan amount your client has an additional 5% drawdown facility.
• Personal Choice offers clients an initial 5% drawdown facility when the mortgage completes. Your client is given an automatic credit facility of the initial loan +5% of the property value.
• They can access this 5% whenever they choose using their unique Personal Choice chequebook.

Chequebook

• On completion of the mortgage your client receives a chequebook.
• This unique chequebook means they can access the additional 5% drawdown - at any time simply by writing a cheque.
• Clients can even write cheques to themselves.
• The chequebook can also be used to borrow-back overpayments and access any credit line without the need to apply for additional funds.

Overpayments

• To reduce their mortgage debt your client may wish to make overpayments.
• Ideal for clients who receive lump sums such as a quarterly bonus or for self-employed clients with a fluctuating income.
• Any overpayment made will instantly reduce the capital balance outstanding, reducing the amount on which interest is charged from the very next day.
• The minimum lump sum payment is £500.

Underpayments & Payment Holidays

• Clients can take a payment holiday or underpay up to the value of 6 months mortgage payments every year, ideal for clients whose income is seasonal.
• Interest is charged during any payment holiday and on payments due during the holiday which will be added to the mortgage to be repaid over the remaining mortgage term.

Borrow-back

• Clients can redraw any overpayments they have made by writing a cheque without the need to apply for additional funds, providing real flexibility and convenience. 
• There is no need to apply for additional funds making this simple and quick.

 

Additional Credit Facility

• Clients can apply for an additional credit limit subject to income and LTV. They can access this at any time using their Personal Choice chequebook.

Benefits for you and your client

Q: How would my Self-Cert Clients benefit from Personal Choice?

A: Clients who self-certify their income often have complex financial situations. They may be Self-Employed, on commission, earn annual or regular bonuses or have non-standard employment terms. Personal Choice is ideal for these clients who may need a break from their mortgage commitments during quiet periods or who would like to overpay to save for an annual tax bill.

Q: Is this product also suitable for my Full Status and Mainstream Clients?

A: Yes, for mainstream clients, like for anyone, the cost of moving home is expensive. Clients can be hit with extra, unforeseen bills that are not budgeted for. They may want to buy new items for their home or make home improvements. Personal Choice provides a great way to help with the cost of moving home. By providing the 5% initial drawdown they are able to pay for the unexpected such as a new heating system or damp proofing they had not anticipated.

Q: My mainstream clients are becoming more aware of the cost of their mortgage over the long term, can Personal Choice help them reduce the total cost of their mortgage?

A: Yes, as house prices are increasing clients are aware of the need to pay off as much of their mortgage as possible. When clients are feeling flush, they can make overpayments to their mortgage, reducing the length of their mortgage term. On the other hand, if they need to reduce their payments for a short period, Personal Choice allows the customer to underpay on their mortgage. Increasingly clients are taking sabbaticals or career breaks to live their dream - such as travelling the world. Personal Choice can allow your clients to take a payment holiday for up to six months.

Personal Choice can also help with life changing events such as a wedding, having children, paying school and university fees etc. When your clients needs additional funds they can simply write a cheque from their Personal Choice chequebook.

Q: Is Personal Choice suitable for High Net Worth Clients?

A: Large Loan customers often have less than typical income streams. Their incomes are often boosted by bonus and lump sum payments, which can fluctuate.

Personal Choice is ideal; the flexibility allows the customers to use their bonuses or lump sums to overpay on their mortgage, thus reducing the interest owed. This is an excellent alternative to placing this money into a savings or current account where the interest rate is typically lower and any interest gained would also be taxed. These overpayments are not stuck in the mortgage account. The product allows the client to draw these funds back by simply using their Personal Choice chequebook.

High net worth customers are financially savvy. They may use their Personal Choice mortgage as a way of accessing additional money to fund investments, holidays, cars, and property investment at a lower interest rate than is available elsewhere.

Q: What is the benefit to me?

A: Personal Choice is a perfect simple solution for your customers who are looking for a flexible mortgage, together with the ability to have additional borrowing available to them when they require. You are paid the full procuration fee for the loan amount and any agreed drawdown facility (procuration fee is not paid on additional 5% Automatic Further Advance).