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The later life lender

04.20

Semi-automated valuations now on Capital Choice

All Capital Choice plans are now proceeding with semi-automated valuations, subject to the following:

Retentions
No retention for:  
• Capital Choice Lite
• Capital Choice Super Lite 1
• Capital Choice Super Lite 2
• Capital Choice Super Lite 3
Capital Choice will have a 10% retention on the maximum loan amount a customer is entitled to.  
Capital Choice Plus will have a 25% retention on the maximum loan amount a customer is entitled to.  
A full valuation is required on all properties when practical to do so.

Lump Sum
On lump sum plans, the applicable retention is in relation to the maximum the customer can borrow. 
For example, if a customer applies for a Capital Choice loan that is less than 90% of the maximum they can borrow, then they will receive all of the money immediately. If they ask for more than 90% of the maximum they can have, then they would only get 90% now and the remainder upon full valuation.
Example – maximum loan available £100,000 on Capital Choice
1) Customer asks for £100,000 – they receive £90,000 immediately and £10,000 on full valuation
2) Customer asks for £95,000 – they receive £90,000 immediately and £5,000 on full valuation
3) Customer asks for £90,000 – they receive £90,000 immediately (but a full valuation is still required but no money released and there is no money for repairs available)

Drawdown
If the initial advance is less than the maximum loan less the applicable retention, they will receive all of their initial loan and their drawdown facility will be reduced by applicable retention of the maximum loan available.  If the initial advance is more than maximum loan available less the applicable retention, then there will be a retention and all drawdown withheld.
Example – maximum loan available £100,000 on Capital Choice Plus
1) Customer asks for £50,000 initial advance and a £50,000 drawdown facility – they receive £50,000 immediately, £25,000 is available as drawdown immediately and further £25,000 drawdown will be available on full valuation
2) Customer asks for £75,000 initial advance anda  £25,000 drawdown facility – they receive £75,000 immediately and further £25,000 drawdown only becomes available on full valuation
3) Customer asks for £90,000 initial advance and a £10,000 drawdown facility – they receive £75,000 immediately, £15,000 is released on full valuation and the £10,000 drawdown becomes available after full valuation

Cashback
The full cashback on the loan applied for will be paid up front for all products (there will not be a retention on the cashback).

Permanent Lending Criteria Changes
• Age restricted property not accepted

Semi-automated valuations are not available on the following properties so will not be able to progress:
• built since 2017
• in Northern Ireland 
• grade II listed buildings
• built before 1850
• within 0.5 mile of the planned HS2 route or other major infrastructure projects
• valued over £750,000 outside of the M25
• valued over £1 million within the M25
• valued under £150,000
• with over 2.5 acres of land
• adjacent or above commercial premises
• within 500m of the coast or known to be at risk of coastal erosion
• of non-traditional construction including thatched roof and use of mundic
• ex-local authority
• barn conversion or self-build
• property has undergone significant alterations
New purchase and remortgage allowed.

Commission
Commission will be disclosed at the full amount to the customer, however commission will be paid in line with the amount initially released. If the product is subject to a retention, the same percentage of the loan that is retained will be applied as a retention to commission.  The extra commission will be paid to the IFA upon (a) a full valuation supporting the LTV and (b) the customer agreeing to receive the additional funds.
The same rules will apply to club fees.

Further Advances
To be confirmed.

Pipeline Rules
1. App already in, paused at valuation stage:
Will proceed now with semi-automated valuation (SAV) if property meets new criteria
Will be subject to a retention if Capital Choice (10%) or Capital Choice Plus (25%)
Will be subject to new criteria
Will get rates as per KFI 

2. App received by/before midnight on 08/04 with KFI done pre-01/04:
Will proceed now with SAV if property meets new criteria
Will be subject to a retention if Capital Choice (10%) or Capital Choice Plus (25%)
Will be subject to new criteria
Will get old (pre-01/04) rates

3. App received after 8th April or KFI generated after 1st April
Will proceed now with SAV if property meets new criteria
Will be subject to a retention if Capital Choice (10%) or Capital Choice Plus (25%)
Will be subject to new criteria
Will get current rates

4. App already valued and offered
Will proceed on old rates with no retention and accepted on the original criteria

This website is intended for intermediaries only and has not been approved for customer use. more2life Limited. Registered in England No 5390268. Registered Office: Baines House, 4 Midgery Court, Fulwood, Preston PR2 9ZH. more2life is authorised and regulated by the Financial Conduct Authority.