COR Newsletter Issue 29 - Remortgage Business - Dec 2017

ISSUE | 29
CUSTOMER OUTCOME
REVIEW NEWS
December 2017
FOR INTERMEDIARY USE ONLY
Sesame® is the registered trade mark of Sesame Bankhall Group a company registered in England and Wales with company number 3573352 and registered office at
Pixham End, Dorking, Surrey RH4 1QA. Sesame Limited is entered on the FCA Register No 150427 at www.fca.org.uk/register. Registered in England with company
number 02844161. VAT number: 105 4373 00

ISSUE | 29
WELCOME
TO YOUR LATEST COR UPDATE
IN THIS ISSUE
Remortgage Business
When recommending a remortgage your file should demonstrate how switching to a new
lender is in your customer’s best interests. This month’s COR newsletter will help you capture
relevant information evidencing suitable advice has been given.
Comparing Existing & New Lender
An important part of the process is recording details of the existing lender helping you
compare this to potential new deals. This information should be recorded in the ‘Current
Mortgage’ section of the Key highlighted below:
Your research will then demonstrate how you have considered alternatives to your customers
existing lender and should be uploaded. If your research leads you to recommend a
remortgage, analysis of the existing and new deals should be provided.
We have produced a ‘Remortgage Cost
Comparison’ form allowing you to record your
analysis. Please download this from our website
> sales process > home finance > analysis &
research > forms and templates or follow the link
below:
Remortgage Cost Comparison - click HERE
FOR INTERMEDIARY USE ONLY
Sesame® is the registered trade mark of Sesame Bankhall Group a company registered in England and Wales with company number 3573352 and registered office at
Pixham End, Dorking, Surrey RH4 1QA. Sesame Limited is entered on the FCA Register No 150427 at www.fca.org.uk/register. Registered in England with company
number 02844161. VAT number: 105 4373 00

ISSUE | 29
Remortgage Cost Comparison Form
The ‘Remortgage Cost Comparison’ form can be used where a retention deal is available
matching your customer’s preferences. Alternatively a similar calculator can be completed if
you prefer. Crucially your comparisons should place your customer in an informed position
around the financial benefits of switching lenders and the true cost implications, not just
differences in interest rates or monthly repayments. Here are some important points to
consider when completing your comparisons:
You should record
details of any
retention deal
available from
your customer’s
existing lender in
the ‘current
lender’ column if
available.
Where no
retention deal is
available to your
customer you
should add a file
note explaining
why a like for like
comparison could
not be made.
There may be
occasions when
the details of a
retention deal are
not available to
intermediaries. It
is helpful to
include notes
explaining that
this information
cannot be
obtained.
FOR INTERMEDIARY USE ONLY
Sesame® is the registered trade mark of Sesame Bankhall Group a company registered in England and Wales with company number 3573352 and registered office at
Pixham End, Dorking, Surrey RH4 1QA. Sesame Limited is entered on the FCA Register No 150427 at www.fca.org.uk/register. Registered in England with company
number 02844161. VAT number: 105 4373 00

ISSUE | 29
Please record any
other reasons why
it is suitable for
your customer to
switch lender, e.g
if they have been
dissatisfied with
their service.
Guidance
To read Sesame’s guidance on recording suitable remortgage advice including the
completion of the ‘Remortgage Cost Comparison’ form see section 5.2 of the document
below:
Formulating your home finance advice: analysis & research – click here
Product Transfers
The suitable solution for your customer maybe a Product Transfer or Rate Switch. Your file
should provide evidence as to how your recommendation meets your customers
requirements. This is achieved by completing the normal advice process including fact find,
research and suitability report.
One part of the process which has been streamlined based on your feedback is the level of
income proof needed for product transfers. Instead of a P60 and 3 months wage slips being
required as standard evidence of income for employed customers, only wage slips are
needed. This is the only exception and where a Prooduct Transfer is your recommendation
you should ensure the normal advice process is followed, in order to establish the suitability
of your advice.
There may be occassions when a lender is unable to provide certain documentation for
product transfers. An example of this is where an application is not available. In such
scenarios it would be best practice to apply notes to the file explaining the lack of availability.
You may also be unable to get the neccesary comparison illustrations from the lender.
FOR INTERMEDIARY USE ONLY
Sesame® is the registered trade mark of Sesame Bankhall Group a company registered in England and Wales with company number 3573352 and registered office at
Pixham End, Dorking, Surrey RH4 1QA. Sesame Limited is entered on the FCA Register No 150427 at www.fca.org.uk/register. Registered in England with company
number 02844161. VAT number: 105 4373 00

ISSUE | 29
Where fees are being added to the mortgage you need to inform your customer of the
cost implications. This would be achieved by comparing two illustrations, one with the fees
added and the other without. If the lender cannot provide one of the comparison illustrations
then your customer should be given as much information as possible around the effect of
adding the fee using information available. It would be a best practice to add notes explaining
which documents were unavailable from the lender.
Evidence of Income for Self Employed Customers
We’ve recently updated our guidance around the evidence of income required for self
employed customers. This follows HMRC’s update of procedures regarding the production of
SA302’s. Paper copies of the tax calculations and tax overviews will no longer be issued
meaning that SA302’s can only be obtained by customer’s with a ‘Personal Tax Account’.
Where your customer is unable to provide a SA302, self-served copies of the tax calculation
from the HMRC online account or the commercial software used to file the self-assesment
return are suitable alternatives.
Below is the updated list of standard evidence of income for self-employed customers:
Self-served copy of tax calculation from HMRC online account or the commercial
software used to file the self-assessment return; or
HMRC SA302 tax calculation/tax overview; or
Last 3 years’ accounts; or
Accountant’s letter and business bank statements to demonstrate the level of income
being receive
Please read our guidance covering evidence of income by following the below links:
Home Finance advice Framework - section 6.3
Know your customer: home finance advice - section 13.1.2
FOR INTERMEDIARY USE ONLY
Sesame® is the registered trade mark of Sesame Bankhall Group a company registered in England and Wales with company number 3573352 and registered office at
Pixham End, Dorking, Surrey RH4 1QA. Sesame Limited is entered on the FCA Register No 150427 at www.fca.org.uk/register. Registered in England with company
number 02844161. VAT number: 105 4373 00