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Mortgages |
The Council of Mortgage Lenders (CML) Handbook Requirements
When you are buying a property with the assistance of a mortgage, the Mortgage Company will usually instruct your solicitor or conveyancer to act for them also. Most mortgage companies will insist that we act for them under the Council of Mortgage Lenders (CML) Handbook.
The handbook is issued in two parts. Part One contains the standard requirements for all lenders and Part Two contains specific requirements for each individual mortgage company.
Identification Required under the CML Handbook
We are required under the Council of Mortgage Lenders Handbook, and as a matter of good practice, to confirm the identity of our clients upon instruction.
Please therefore produce one of the following as identification:
a valid full passport
a valid HM Forces identity card with a photograph
a valid full UK driving licence with a photograph
And please produce two of the following as identification:
a cheque guarantee card, credit card, American Express, or other Major High Street Bankers card
a firearm and shot gun certificate
a receipted utility bill less than 3 months old
a council tax bill less than 3 months old
a council rent book showing the rent being paid for the last 3 months
a mortgage statement for the mortgage accounting year just ended
When we receive your Mortgage Offer, we may require further identification from you, dependant on what their additional requirements are.
If you are unable to physically come into this office with the originals of the above, then you should go to another Solicitor and ask them to provide you with certified copies of the above.
We are under an obligation to ensure that you are who you say you are, in order to protect ourselves and other involved parties against any fraudulent dealings.
Your Mortgage Valuation Report
Not all Mortgage Companies provide us with a copy of the Valuation Report. We would ask that you provide us with a copy of the Valuation Report as soon as you have received the same.
You should also be aware that there may be defects in the property which are not revealed by the Mortgage Valuation Report and we would always recommend that you instruct your own Surveyor to carry out a more thorough inspection of the property.
NOTE: Any queries you have in relation to any physical aspects of the property should always be raised with a Surveyor and not us.
The Mortgage Charge
The Mortgage Company instructs us on the basis that they will obtain a First Legal Charge on the property. If you have any other Mortgages on the property, then arrangements must be made to ensure that these are paid off, unless your Mortgage Company have agreed to a Second Legal Charge.
Bankruptcy
We are required to carry out a Bankruptcy Search. If you feel that entries will be revealed against you then please advise us at the outset to avoid any delays.
The Purchase Price
The purchase price must match that which you have told the Mortgage Company at the outset. If the purchase price changes, then you must advise the Mortgage Company accordingly. If you fail to do this, you may experience a delay in the transaction proceeding.
Occupiers
If anybody else will be living at the property besides yourself that are over the age of 18, they must be disclosed to your Mortgage Company at the outset to avoid any delays. Should you advise us that there will be occupiers over 18 years old, we are under an obligation to disclose this to the Mortgage Company. We are only able to do this with your permission, and if you refuse to allow us to tell the Mortgage Company, we will be unable to act for your in the transaction.
Most Mortgage Companies will insist that any occupiers take independent legal advice and sign an Occupiers Waiver.
Retention
If there is any retention made, you are obliged to carry out the repairs or improvements as stated in your Mortgage Offer. You must ensure that you have the means to make up the difference between any retention and the purchase price/mortgage advance.
Insurance
You must ensure that you have arranged buildings insurance to take effect from the date that Contracts are exchanged. You do not need to arrange this if the property is leasehold and the landlord or Management Company arrange the buildings insurance.
Mortgage Indemnity Insurance of High Loan to Value Fee
We remind you that you are the insured under any mortgage indemnity or similar form of insurance and that the insurer will have a subrogated right to claim against you should your Mortgage Company be paid out under the policy.
Your File
We will hold the papers in relation to your transaction for a minimum period of 6 years. We are unable to release the papers to you during this time in order to protect ourselves and the Mortgage Company against fraud.
Legal Costs
You are responsible for our costs in connection with the Mortgage. We will have advised you of our costs at the outset of the transaction.