Product Transfers

We have introduced more options to the online mortgage retention process on our eMortgage system.

These changes will allow you to carry out the following variations to your client's mortgage alongside a product transfer:

  • change the length of the term (shorter or longer) on repayment mortgages
  • change the repayment type of the loan - from Interest Only to fully Capital & Interest.

How does it work?

Your client will be eligible for our new lending remortgage product range (excluding those with cashback), as well as our retention range (which has previously only been available to customers who have approached us directly). Both ranges will be available on your sourcing systems.

All the information that you need to complete the product transfer can be found on this page, or you can download our:

Eligibility

We want to make this available to as many Skipton borrowers as possible. However, there are some cases that will not be eligible. Please check your client’s eligibility below before starting a transfer:

They'll be eligible:

  • if their mortgage account is due to mature within 14 weeks, or their account is currently on a variable rate with no early repayment charge (ERC)
  • even if your client is changing the length of their term (shorter or longer) on repayment mortgages or changing the repayment type of their loan - from Interest Only to a fully Capital and Interest mortgage
  • if it is an Interest Only case that will remain Interest Only with no other contract variations
  • you didn't originally introduce the business to Skipton.

They won't be eligible if:

  • they require additional borrowing with the existing product transfer
  • the account is in arrears
  • the LTV exceeds 95%
  • a 'Consent to Let' exists on the account.

The criteria above won't automatically prevent your client from switching their mortgage product - it just means they would need to go through the existing application process direct with us.

Use of automated affordability checks

When using eMortgages, you should have you client's information to hand if you are:

  • changing the repayment type
  • decreasing the term
  • increasing in term into or further into retirement (based on your client's expected retirement age)
  • there are any material changes in the customers circumstances i.e. any potential changes to their income and/or expenditure.

Please note, when applicable you must inform your client that this will be an automated decision, as this will trigger an affordability check.

Frequently Asked Questions:

Are clients who I didn’t originally introduce to Skipton eligible to use this service?

Yes. Providing they meet the eligibility criteria.

What consent will I need from my clients?

You’ll need the current mortgage balance from your client. Maturing customers will have received this in a letter, otherwise your client will have to request this. You'll also need to confirm during the transfer process on eMortgages that you have their consent. This is so we can release their information to you. We'll also contact your client to let them know you’ve started the transfer.

I’m not able to proceed. What should I do?

If you tried to complete a transfer for your client and you were unable to proceed, it may be due to the eligibility criteria. For data protection reasons, your client will need to speak to us directly to find out why. The number for them to call is 0345 850 1755.

Will the request secure the mortgage product?

Yes, either yourself or your client will need to return the signed Mortgage Illustration and Contract Variation Offer and signed Declaration Form within seven working days to complete the transfer. We’ll send you an email reminder after five days. If we don’t receive the documentation in time, you’ll have to start again and the product might not be available.

Where do I send the documents?

You can use the scan and upload function on eMortgages. Alternatively, you or your client can email it to us at contractvariation@skipton.co.uk, or send them to us in the post.

How will I know you’ve received the signed Mortgage Illustration?

We’ll email you and contact your client to confirm receipt. eMortgages will also be updated to reflect the current status.

When will the transfer take place?

This will take effect from the first day of the following month after maturity. We’ll send a letter to your client two weeks before implementation to confirm their new mortgage payment. We’ll also email you when the transfer has been implemented.

If there is no product maturity and your client is transferring from a product such as our Standard Variable Rate (SVR) or our Mortgage Variable Rate (MVR), then the transfer will take place from the first day of the next month.

How will I see the products that are available?

You’ll see them on your mortgage sourcing systems and our eMortgage system.

What does your client need to do?

They need to give you their personal details - including their current mortgage balance and their consent and sign the Mortgage Illustration. Contract Variation Offer and Declaration Form (both you an your client must now sign the Declaration Form) if they're happy to proceed. Please refer to the five-step guide for further information.

Can I complete a transfer when there are more than two people named on the mortgage?

Yes, you can complete a product transfer when there are one to four people named on the mortgage on the eMortgage system.

What action can I take if the application fails because of a contract variation but not the product transfer?

You can still proceed with the product transfer by submitting a new request. If your client wants to discuss any fail/decline decisions resulting from affordability checks, they can contact the Broker Support team on 0345 266 0973.

Your client can be given the option of making regular over-payments, ensuring they adhere to any ERC limits. They will need to call Skipton Direct on 0345 850 1755 to arrange these.

What valuation index is used? If my client doesn’t agree will you allow a revaluation?

Skipton Building Society uses the Halifax Price Index. If your client wants to have their property revalued, additional costs may apply and they'll need to call us on 0345 850 1755. The product transfer will not be able to proceed until the valuation has been agreed..

If the LTV is over our product maximum, is there anything you can do?

Your client must meet the product criteria to be eligible to apply. If they want to discuss this they can call us on 0345 850 1755.

When will the procuration fee be paid?

You’ll be notified by email once the transfer has been implemented. The fee will be paid within two weeks following the product transfer using our normal payment method.

Which mortgage products are available on a product transfer?

The borrower can choose from any mortgage product on our retention or remortgage range (excluding those that offer cashback).

Who should I contact if I have any additional questions?

Contact your Skipton Intermediary Relationship Manager or our dedicated broker support team on 0345 266 0973.

Is there any other fee?

Yes, there is a fee for a change of term alongside a product transfer - please check our Tariff of Mortgage Charges for up to date prices.

You say affordability checks may happen if it's not a straightforward product transfer, what situations do I need to evidence income?

When using eMortgages, you should have you client's information to hand if you are:

  • changing the repayment type
  • decreasing the term
  • increasing in term into or further into retirement (based on your client's expected retirement age)
  • there are any material changes in the customers circumstances i.e. any potential changes to their income and/or expenditure.

Please note, when applicable you must inform your client that this will be an automated decision, as this will trigger an affordability check.

Do I have to prove the repayment strategy on changes on an interest only loan?

You will declare on eMortgages that you have ensured your client has a suitable repayment strategy.

Do I need to supply supporting documentation?

For most cases this will no longer be necessary on product transfers.

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