This agreement sets out the terms under which our services are to be provided, including details of the specific services and a summary of our charges for those services.
If you have a question or concern about any aspect of our services please contact us at:
• Telephone: 0207 317 2820
• Email: firstname.lastname@example.org
• Website: www.privatefinance.co.uk
• In writing: Operations & Compliance Manager, Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG
This agreement shall commence once it has been signed by all parties and shall remain in force until terminated in accordance with Section 5 – Cancellation below.
- OUR SERVICES AND HOW WE CHARGE FOR THEM
Private Finance is able to advise and make arrangements on mortgages including: Regulated Mortgage Contracts, Consumer Buy to Let Loans, Business Buy to Let Loans, Second and further charges and Development Finance, as well as non-regulated mortgage arrangements. We offer a comprehensive range of mortgages from across the market, but not mortgages which you can only obtain by going direct to a lender.
The firm may also advise on non-investment insurance protection including products such as term (both level and decreasing), critical illness cover and health insurance. The firm advises on non-investment insurance products from a range of insurers acting as an intermediary on your behalf to provide a personal recommendation after a fair and personal analysis of the market.
You should obtain advice on matters including but not limited to legal and taxation on any arrangements you might be recommended by the firm and in particular on second properties whether to be let out or otherwise.
We offer you an initial discussion (without charge) at which we will describe our services and charges in more detail.
You will receive a written illustration, detailing the application and percentage brokerage fee, which will apply in your particular case. The Firm reserves the right to increase or decrease its fees and charges in an individual case, favourably or otherwise to reflect its particular characteristics. This might be due to factors such as: especially straightforward or complex requirements when assessing the likes of your requirements, geographical location, income structures etc.
These fees will be formally set out when within a fee agreement personalised to you.
The following is a statement of the typical fees and is provided for illustrative purposes only:
1) An application fee is payable to Private Finance Ltd upon instructing the firm; this is based on the loan amount as follows:
Type of application
Residential: Lower limit £295, Higher limit 0.5% of the loan amount
Buy to Let: Lower limit £395, Higher limit 0.5% of the loan amount
2) A brokerage fee is payable when the lender issues its mortgage offer, typically the charge is 0.5% (standard residential) or 0.75% (standard consumer buy to let) of the amount borrowed. The Firm will normally agree to credit any commission it might receive from a lender to your outstanding fee account. The lender commission varies between lenders however the Firm might expect to receive commission in the region of 0.35% of the loan for standard residential and 0.4% for standard buy to let.
For example: on a standard residential loan of £500,000, this would be £1,045 (i.e. £2,795 less £1,750) including the £295 application fee. A standard consumer buy to let mortgage of £500,000, this would be £2,145 (i.e. £3,850 less £2,000) including the £395 application fee.
Insurance – There is normally no fee as the firm usually receives commission from the product provider, the amount of which will be disclosed to you in full. In the event that it is necessary to charge a fee, this will be based on an advisor hourly rate of £250 per hour and it is anticipated that for all types of protection the provision of the service will take up ten hours of advisor time resulting in a fee of £2,500 per contract.
You will receive a written quotation which will tell you about all fees relating to any particular insurance policy.
We will not charge you until we have discussed your payment options and agreed with you how we are to be paid. We will also let you know if there are any other costs that might arise in connection with the services we provide to you.
Our charges/fees are usually VAT exempt unless the work we provide for you only involves advice and/or for example, preparing a report, in which case VAT may be applicable. We will always tell you if you have to pay VAT before we undertake any work for you.
If the firm charges a fee you will not normally receive a refund.
Private Finance may receive a fee for recommending a third party such as a solicitor or surveyor, if this is the case the full amount will be disclosed to you.
You should note that where we provide services in relation to increased borrowing on an existing mortgaged property there may be alternative options available to you that may be more appropriate. For example, you may be able to obtain a further advance from your existing lender, or
obtain an unsecured loan for the additional funds. Where your existing mortgage is a first charge against the property, a second or further charge mortgage may be available and where there is an existing second charge a new first charge loan may be available.
- OUR OBLIGATIONS TO YOU
We will confirm to you in writing the basis of our recommendations. We will also provide you with a ‘Key Facts’ Illustration (KFI) or an European Standardised Information Sheet (ESIS) which is a personalised description of the costs and features of the mortgage / product that we are recommending. You may ask us to provide you with additional KFIs or ESISs for any mortgage / product for which you are eligible.
Any advice or recommendation that we offer to you, will only be provided after we have assessed your needs and considered your circumstances, financial objectives and attitude to any risks that
may be involved. We will also take into account any restrictions that you wish to place on the type of products you would be willing to consider. The services that you have selected and the charges for those services are confirmed in Section 8 - Your Consent at the end of this agreement. We agree to provide the services selected and you agree to pay us for those services.
We are required by the anti-money laundering regulations to verify the identity of our clients, to obtain information as to the purpose and nature of the business which we conduct on their behalf, and to ensure that the information we hold is up-to-date. For this purpose, we may use electronic identity verification systems and we may conduct these checks from time to time throughout our relationship, not just at the beginning. The check may leave a ‘footprint’ on your credit file but it will not affect your credit rating.
Conflict of interests
Although we will always try to act in your best interests there may be situations where we or one of our other clients has some form of interest in the business being transacted for you. If this happens or we become aware that our interests or those of one of our other client’s conflict with your own interests, we will write to you and ask for your consent to proceed before we carry out any business for you. We will also let you know the steps we will take to make sure you are treated fairly.
We have a conflicts of interest policy. If you want to see a copy of it please ask us.
Communicating with you
We may communicate with you by telephone, post, e-mail or in person. In certain circumstances, we may ask you to confirm any instructions in writing prior to implementation. All our communications with you will be in English (unless agreed otherwise).
Recording telephone calls
- To ensure we carry out your instructions accurately, to help us to continually improve our service and in the interests of security, we’ll record and may monitor your telephone communications or conversations with us.
- Copies of our telephone recordings will be available on request, for a period of 5 years after the recording was made.
Termination of this Agreement
You may terminate this agreement and our authority to act on your behalf at any time, without penalty. We may terminate this agreement and our authority to act on your behalf and must provide you with at least 1 months notice. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated which will be completed according to this agreement unless otherwise agreed in writing. You will be liable to pay for any services provided prior to termination and any fees outstanding, if applicable.
Product cancellation rights
Full details of the products we recommend to you including, for example, the minimum duration of the product, information on your right to cancel or whether no right to cancel exists, and any other early termination rights and penalties, will be covered in the relevant product disclosure information you will receive before the conclusion of any contract.
In most cases you can exercise a right to cancel by withdrawing from the contract. In general terms you will normally have a 30 day cancellation period for a life, protection or payment protection policy and a 14 day cancellation period for all other policies. Please note that there is no right to cancel a mortgage contract once the mortgage transaction has been concluded.
Instructions for exercising the right to cancel, if applicable, will be contained in the relevant product disclosure information which will be provided to you.
- HOW YOU ARE PROTECTED
Private Finance is authorised and regulated by the Financial Conduct Authority (FCA), 12 Endeavour Square, Stratford, London, E20 1JN.
Our Financial Services Register number is 310566. Our permitted business is advising on and arranging non-investment insurance contracts and mortgages. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768.
If you, or any other interested parties i.e. guarantors, are dissatisfied with a recommendation we have made you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us:
In writing: Operations & Compliance Manager, Private Finance Limited, 29 Lincolns Inn Fields, London, WC2A 3EG
By phone: +44 0800 980 8777
By e-mail: email@example.com
Please be assured we treat complaints seriously. For your further protection if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (‘FOS’). Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.
Financial Services Compensation Scheme
We are also covered by the Financial Services Compensation Scheme (‘FSCS’). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Please note that business buy-to let mortgages are NOT regulated by the Financial Conduct Authority (FCA) nor are they protected under the Financial Services Compensation Scheme (FSCS).
Advising and arranging is covered for 90% of the claim, without any upper limit.
Advising and arranging is covered up to a maximum limit of £85,000.
Further information about compensation scheme arrangements is available from the FSCS at www.fscs.org.uk.
This agreement is governed by and should be interpreted in accordance with English law and you agree to submit to the non-exclusive jurisdiction of the English Courts.
Neither our firm nor our employees are qualified to render legal or accounting advice or to prepare any legal or accounting documents. It is hereby understood and agreed that the onus is on you, the client, to refer to a solicitor or accountant any point of law or accountancy that may arise during the course of discussions with us.
We advise on mortgage products from the whole of the market. This means that we source the recommended mortgage from the range of mortgages available to “intermediary” firms. Certain lenders may offer products directly to the public, rather than via an intermediary firm, with more favourable terms. Accordingly, our recommendation to you will be based on the most suitable mortgage product incorporated within the range available to intermediary firms.
If there is a particular mortgage product that you are aware of which is available directly from a lender that you wish us to review and comment on, we are happy to do so. We may charge you a fee for providing advice in relation to this but would agree this with you at the time.
Where you have consented for us to do so, we may contact you in the future by means of an unsolicited promotion (by telephone, email or post) should we wish to discuss the relative merits of a particular mortgage product or service which we feel may be of interest to you.
Our advice will be based on the information that you give so it is important that you provide us with accurate and up-to-date information when we request details about your circumstances and objectives. This will allow us to provide you with the appropriate advice. If you limit the information provided it could affect the suitability of the advice we give.