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Search

Use your browser to search for ‘Experian Statutory Credit Report’. This should bring up a link to the correct page in the search engine results. That link looks like this (below). Do not click the ads at the top of the engine results as they are trying to sell you something.

Visit

The front page is set out as below:

Order

Use the ‘order now’ button which will take you to the terms, read the privacy statement, and click the link which says ‘Order your £2 Statutory Credit report Online’.

Request

Complete the order form which requests details that you will know off the top of your head.

Wait

On completion of the form, Experian will send you a letter that contains your ‘Pass Key’ to obtain your credit report (an example letter is shown below).

Prepare

When using the Pass Key to obtain your Statutory Credit Report go to the link specifically provided by Experian by email. This takes you to the correct page. Use the wrong link, or search online, and you may end up on a standard login page for account holders where your Pass Key won’t work.

Log on

The correct login page is set out as below. Use your details to log in.

Download

The login takes you to a simple download page, from here you can easily download your full Experian Statutory Credit Report.

View

Once downloaded, your full report should be anything between 12 and 50 pages long, the front page looks like this.

Uploading your credit file to A Mortgage Now

Go to amortgagenow.wetransfer.com

Read the terms and click the ‘I agree’ button to agree to the site terms before use. You can then see the upload fields.

Use the + Add files section to navigate to your newly saved credit file and select it.

Our notification receipt address of enquiries@amortgagenow.co.uk is already completed in the ‘Add more friends section’.

Enter ‘Your email’ (the one you used when you enquired to us initially). You will then receive an acknowledgement email once our team has securely downloaded your file.

You may wish to add information for us in the ‘Message’ section before clicking the ‘Transfer’ button.

If you have saved your credit file on a shared computer, we suggest you permanently delete the file after use.

Credit reports are published by three main providers in the UK; Experian, Equifax, and Call Credit (Noddle). There will be circumstances where your mortgage broker may ask for copies of all three reports from all three companies. This is because the data on the three reports can vary, and different mortgage lenders refer to different credit report providers.

If we here at A Mortgage Now specifically ask you for an Experian report, you do not need to provide the other reports unless we later specifically request them.

The early pages of your credit report show ‘Your Experian Credit Score’, which is a score out of 999, and these are rated by Experian, for example, ‘Excellent’, ‘Good’, ‘Poor’, ‘Very Poor’. Please note that these ratings are simply a marketing tactic by the credit report providers. The mortgage lender does not make any decision based on the credit provider’s opinion of your credit file.

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The above are examples only and should not be considered legal advice. Always obtain qualified legal advice when gifting funds to help your children purchase property

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New EU ESIS mortgage illustration document – how to find what you need

Confused by the new EU ESIS mortgage illustration document which replaced the old style document for many mortgage lenders earlier this year?

Can’t find the key information you need?

We are not surprised, the layout is a new ESIS document bears little similarity to the old KFI document.

Where can I find what I need on the ESIS Document?

Product details

A single-line description of the recommended product can be found in section 3 (main features of the loan)

It would be in bold type and look something like this Offset 3 year 2.19% Fixed until 31/08/2019 Purchase 75% LTV

For good measure, this information is also quoted in section 4

How much are my monthly payments?

Handily our European Beaurocrat friends have decided to split this key information across two boxes (5 and 6) which often also gets split across two pages.

Box 5 quotes the repayment frequency (which is monthly), Box 6 quotes the amount of each instalment.

It looks something like this:

36 payments at a fixed rate of 2.19% £1,407.79 GBP
264 payments at a variable rate, currently 3.99% £1,678.83 GBP

Your income may change. Please consider whether you will still be able to afford your monthly
repayment instalments if your income falls.
The interest rate on part of this loan can change. This means the amount of your instalments could
increase or decrease. For example, if the interest rate rose to 10.99% your payments could increase to £3,183.02.

Don’t panic about the ridiculous figure in the last sentence (refer to paragraphs on this page regarding APR/APRC)

DO YOU NEED A MORTGAGE QUOTE?

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What will my mortgage rate be?

In section 3 your initial rate and ongoing rate will be quoted in this format

Step 1 of your mortgage is a fixed interest rate of 2.19% that will apply from completion until 31 August 2019.

Step 2 of your mortgage product starts after 31 August 2019, and the rate that will apply is XYZ Bank’s Standard Variable Rate, currently 3.99% for the remaining term of the mortgage.

For good measure, this information is also quoted in section 4

How much will I pay in total?

For those of you who like to frighten yourselves seeing the total figure to be paid over the term of the mortgage this is in section 3 and is quoted in this format

Total amount to be reimbursed: £496,250.56

The amount is illustrative and may vary, in particular in relation to the variable of the interest rates

This means that you will pay back £1.53 for every £1 borrowed.

Where do I find fees payable?

Lender’s application fees are listed in section 4 under ‘costs to be paid on a one-off basis’

Example

Costs to be paid on a one-off basis:
• Transfer of Funds Fee: £25.00 payable up front.
• Redemption Fee: £195.00 payable on redemption.
• Booking Fee: £1,499.00 payable up front.
• Valuation Fee: £465.00 payable upfront.

There will be a section underneath which says ‘Costs to be paid regularly’

Example

Costs to be paid regularly
• None.

This section has little value and will probably quote ‘None’ as UK mortgages do not usually have regular costs levied other than the interest payable.

Where can I find APR (annual percentage rate)

What we used to call APR is now quoted as APRC (annual percentage rate of charge). This is the total cost of the loan expressed as an annual percentage.

Some clients get focused on this figure which, within the UK market, can mean very little.
If you are taking a 25-year mortgage with a two-year fixed rate to start, your APRC may be based on 2.19% interest for two years followed by 3.99% interest for 23 years. Clearly you are unlikely to stay on a 3.99% interest rate for 23 years after your initial fixed-rate ends.

Take APRC with a pinch of salt.

All you can do is pay off your mortgage as soon as possible. This is the best way to reduce your total cost.

My illustration says I have to pay 11.66%!

Have you seen a paragraph in section 4 that says?

Because part of your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate
rose to 10.99%, the APRC could increase to 11.66%.

Or similar?

Don’t panic

The new rules require that the lender quotes a potential cost to your mortgage if interest rates rise to their highest level over the past 20 years.
That highest level may come back, it may not, if it comes back without warning we will all be in trouble!

Are there early repayment charges?

Early repayment charges are set out in section 9 in very much the same format as on the previous KFI-style document.

Can I overpay without charge?

Details of overpayment options will be set out in section 10 ‘flexible features’

Also outlined here would be any option to port the mortgage.

Reflection period

Under section 11 ‘the rights of the borrower’ you will find details of your right to reflect before committing yourself to the mortgage.

What is the point of this reflection period?

Little point in the UK, we understand it has more relevance in some places elsewhere in the EU where a borrower may have two or three mortgage offers on the table of which some must be discounted.

Who is the ‘Supervisor’?

In section 15, for Supervisor read regulator, in case of the UK, the Financial Conduct Authority.

How much will my capital reduce by each year

Section 7 gives a repayment table showing your capital reducing.

The most common question we get asked is why the reduction in capital is a few hundred pounds to start with and then becomes several thousand pounds.

This is because the table quotes month-by-month reduction through year one with subsequent years based on annual reduction.

You will see that the level of capital reduction increases as your mortgage matures. This is normal and to be expected. As your mortgage size reduces, the interest payable reduces, and therefore more of your payment goes to reducing capital.

Further points to note

At the bottom of section 3 you may see a security address quoted for the lending “This loan would be secured against 65a, Bath Road, Bristol, B53 7LH”

Do not panic if this address is incorrect. Some industry mortgage illustration systems will generate your illustration with a current residential address if no specific property address is entered. Speak to your broker.

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