Mortgage Illustrations Explained This will reveal additional content
Key points you need to know
Mortgage Illustration Section 2 - The mortgage intermediary and which services you are providing your client with
This section details fees that the Lender pays to the intermediary, such as procuration fees and inducements. If you obtain a Mortgage Illustration from the Nationwide website, Nationwide will automatically disclose the gross procuration fee and details of the recipient(s) within this section of the Mortgage Illustration. This may not be the amount of money that you receive from your company/firm.
In addition Nationwide will calculate the value of any inducement you, your company and any network/club has received. Nationwide's definition of an inducement includes, for example:
- football tickets
- gifts - e.g. bottle of wine
Nationwide will only disclose inducements if the overall value of these exceed £50 per mortgage case completed.
Where using a mortgage sourcing system to obtain a Mortgage Illustration you will be required to complete the details yourself for Mortgage Illustration sections 2 & 4. Nationwide will provide information on any inducements over £50 to your company/network/club, who in turn will provide this information to you.
Please note: Although a Mortgage Illustration is an industry standard document in terms of format, content may differ due to lender interpretation.
Mortgage Illustrations also contain intermediary contact details. Please make sure you have updated your details on our database.
Mortgage Illustrations will not be branded 'Nationwide' as it is the intermediary's Mortgage Illustration and as such it can be printed on your own branded stationery. Mortgage Illustrations do not check an applicant's eligibility for a mortgage or our lending criteria, affordability, or credit information. Nationwide can only produce Mortgage Illustration calculations on the information supplied and the relevant product chosen on the day.
Nationwide for Intermediaries can only accept applications on an "Advised" basis.
Mortgage Illustration Section 4 - What fees are you charging?
This section details all fees that the client is required to pay to both the Lender and yourself. For example, any applicable valuation fees, booking fees and reservation fees that Nationwide charges. If you also charge fees, you must input these into the Mortgage Illustration.
These details must also be disclosed in the mortgage application in order for us to disclose them in the offer documentation.
Where to get Mortgage Illustrations This will reveal additional content
Under FCA regulation, Mortgage Illustrations have becomes an integral part of the mortgage sales process and as such it is vital that you know where to obtain a Nationwide Mortgage Illustration for any scheme.
Nationwide for Intermediaries can only accept applications on an 'Advised' basis, and this should be reflected in the level of service confirmed in section 2 of the Mortgage Illustration.
Mortgage Illustrations are available directly from Nationwide via:
Most Mortgage Illustrations can also be obtained by mortgage sourcing systems. These are stand-alone Mortgage Illustrations, produced by the relevant sourcing company with no interaction from Nationwide.
Where to get Mortgage Illustrations table Lending Schemes How Mortgage Illustrations can be generated NFI Online MTE Sourcing System Purchase Yes Yes Yes Remortgage Yes Yes Yes Rate Switch Yes No No Additional borrowing (further advance) Yes No No Shared Ownership Yes Yes Yes Unencumbered Remortgage Yes Yes Yes Right to Buy Yes Yes Yes Second Property Applications Yes Yes Yes Applications with other mortgages in the background Yes Yes Yes More than 3 addresses in the last 3 years Yes Yes Yes Equity Share Purchase Yes Yes Yes Portable products* Yes No No Nationwide Building Society Staff/Pensioners Yes Yes Yes Genuine Bargain Price Yes Yes Yes Restricted Resale Price Yes Yes Yes
* If you want to produce a Mortgage Illustration for a loan that is being ported to another property, this can be done as long as the loan to be ported has not already been redeemed.
Manual Mortgage Illustration Porting Requests
Most Porting Mortgage Illustrations can be produced via NFI Online with the following exceptions:
- Porting a 25 year fixed rate
- Porting if the mortgage term takes the applicant past 75 years old (like for like applications only)
- Porting of 4 or more accounts
- Porting an account where the current mortgaged property is being let out
- Porting of 3 or more applicants (like to like applications only)
Porting in these circumstances will require a Manual Mortgage Illustration to be produced.
To obtain a Mortgage Illustration please complete the Manual Mortgage Illustration Porting Request Form and submit as instructed. Mortgage Illustrations will be faxed or posted to you within 48 hours of receipt if the form if received by 3pm.
Forms received after 3pm will be treated as having been received by 8am the next working day.
For further information on porting or information on Mortgage Illustrations for porting a tracker product, please call 0345 730 20 11.
Manual Mortgage Illustration Additional Borrowing Requests
Most additional borrowing (further advance) Mortgage Illustrations can be produced via NFI Online with the following exceptions:
- Applications that have ‘with works’ valuations
- Applications where there are multiple accounts, but the main account has a nominal balance
- Applications where the property is let (See additional borrowing eligibility).
Additional borrowing in these circumstances will require a Manual Mortgage Illustration to be produced.
To obtain a Mortgage Illustration please complete the Manual Mortgage Illustration Additional Borrowing Request Form and submit as instructed.
Manual Rate Switch Offer Requests
Most rate switch offers can be produced via NFI Online with the following exceptions:
- Where there are more than two applicants on the existing mortgage.
- Where your client is switching more than four accounts.
To request a manual offer for an exception, please complete the Rate Switch Application Form and follow the instructions on the form. Once this has been completed by our team and you've received a copy of the offer, you'll need to complete our Rate Switch Offer Acceptance Form to confirm that your client has accepted it.
Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) for Porting
Nationwide's BMR and SMR are not available for new business and additional borrowing customers.
It will therefore only be available to existing Nationwide customers moving home who are already on the BMR/SMR and wish to port to their BMR/SMR product. They can only port across their existing balance and any additional borrowing required must be taken on a product other than the BMR/SMR Porting Only product.
Applications received on the BMR/SMR Porting Only Product that are not for existing customers who are porting their BMR/SMR on its existing balance will not be accepted and the application will be returned.
Need to know more?
System Information - Features and Exclusions This will reveal additional content
Information requirements of the system
- Nationwide Mortgage Illustrations are produced in PDF format, to receive these you need to be running Acrobat Reader version 6 or higher.
- Valuation fees: Nationwide standard valuation fee structure is automatically used in all Mortgage Illustrations.
- Fees payable to Nationwide: These will automatically be shown in the Mortgage Illustration.
This service is unable to provide Mortgage Illustrations for:
- Withdrawn Products
Mortgage Illustration FAQs This will reveal additional content
Why do I get a 'Run time error' when trying to produce a Mortgage Illustration?
You’ll need to ensure you’ve correctly completed all fields when trying to produce a Mortgage Illustration.
Additionally, make sure your computer hasn’t enabled a popup blocker.
How can I create a porting Mortgage Illustration?
Mortgage Illustrations for ported cases can be produced via NFI Online. You’ll need your NFI Online login details and your client’s mortgage account number. Please refer to our Porting Guide for full details on how to do this.
How can I get an illustration for an additional borrowing (further advance) application?
Mortgage illustrations for additional borrowing applications can be produced in NFI Online. In the reserve a product section on the additional borrowing application, you will have the ability to produce a mortgage illustration. You will be unable to produce a mortgage illustration prior to completing the Decision in Principle.
We hope we’ve covered most of the common questions, but if you’re still unsure about something, you can contact one of our experienced advisers on Broker Chat.