Arrangement Fee

The arrangement fee may be added to the loan or can be paid directly by client, subject to LTV and LTI restrictions. Please contact us for more information.

Bank of England Base Rate

Our mortgage rates are not linked to Bank of England Base Rate.

Builder's Cash Incentives

Any incentive will be disclosed in the UK Finance Inventive Disclosure form which is required for all new builds.

Builder's cash incentives include but are not limited to deposit contribution, cash-back, contribution to legal fees/ stamp duty etc: These will typically be acceptable on the following basis:

• The maximum amount of any builder's cash incentive is capped at 5% of the lower of the full purchase price or valuation.
• A maximum of 5% of the full purchase price (or valuation if lower) can therefore be funded by a builder's cash incentive with the remaining deposit being sourced from the applicant's own funds.
• The deposit/cashback does not have to be repaid and the builder does not intend to register a charge against the property.

Breakdown of Loan

For the purposes of completing the mortgage application we require specific information, this could be:

• House purchase, amount and source of deposit
• Remortgage, name of lender, balance outstanding, remaining term, type of repayment
• Moving Home, including details of existing mortgage and agreed sale price if applicable
• Debt consolidation, detail amount and breakdown of any additional funds required
• Any element of additional borrowing, including purpose

Bridging Finance

We do not accept applications for bridging finance.

Change in Title

For existing Danske Bank mortgage customers wishing to make a Change in Title, please contact us.

Changes to Mortgage Application

Once the mortgage application has been made, if there are any changes to this application please contact us for further information. We may need you to create a new mortgage application.

If the applicant's original mortgage product has been withdrawn or changed, a new product must be selected.

Danske Follow-on Rate

All Fixed Rate mortgages effected on or after 26th June 2018 will automatically move to the Danske Follow-on Rate applicable to the loan at the end of the Fixed Rate period. Danske Follow-on Rate is a variable rate comprised of Danske Bank Reference Rate (UK) and a margin.

If the Fixed Rate mortgage was effected on or before the 25th June 2018, it will automatically move to our Standard Variable Rate, as outlined in the mortgage offer.

Rates are available here.

Decision In Principle (DIP)

We conduct a soft search for all Decision in Principle applications (DIP).

Deposit

We will require documentary evidence of any deposit, where it is not coming from the simultaneous sale of a borrower's existing property.

We can accept deposits provided by gift, please refer to the section 'Third Party Interest' for further information. We only require name and address of person gifting deposit.

We do not normally accept deposits provided by loans, however please contact us for further information.

Direct Debit Details

Direct Debit mandates will be required for all new mortgage applications.

Early Repayment Charges

Early Repayment Charges only apply to our Fixed Rate mortgage products. An Early Repayment Charge (ERC) may apply if the customer repays the mortgage in part or in full, or transfers to one of our products during the fixed rate period.

The ERC is calculated as a percentage of the capital balance outstanding at the date of redemption. Customers may be able to overpay without ERC. Please refer to the customer's mortgage illustration and offer documentation for full information regarding Overpayments and Early Repayment Charges. Their mortgage illustration or offer will detail any criteria around this.

For more information on Early Repayment Charges and Mortgage exit fees, please see our Tariff of Mortgage Charges section within the General Offer Conditions document.

Foreign Currency Mortgages

The bank only provides mortgages in sterling and where income source is in sterling. Please contact the team if the income source is not sterling.

Gift Deposits

We can accept deposits provided by gift, please refer to the section Third Party Interest for further information. We will only require name and address of person gifting deposit.

Higher Lending Charge (HLC)

We do not impose a Higher Lending Charge, regardless of Loan to Value.

Interest

Interest is calculated daily and charged quarterly in arrears.

Internal Switchers (Property Valuation)

Please contact ourselves to get an estimated valuation of the customer's property.

Lending Limits / Loan to Value

Loan to value is based on the purchase price or valuation (whichever is the lower)

• Max LTV 95% (Does Not include New Builds)
• New Builds Max LTV = 90%
• Apartments (including New Builds) Max LTV = 85%
• Any element of Debt Restructure Max LTV = 80%
• NI Co-Ownership Max LTV = 80%

DSR (debt servicing ratio) is a maximum of 45% where the loan to value is less than or equal to 90%. Mortgage applications where the loan to value is greater than 90%, a maximum DSR of 40% applies.

DSR is in respect of all liabilities eg. Hire Purchase Agreements, Personal Loans, Credit Card Repayment, Mortgage Payments etc.

Minimum Loan

• Minimum - £30k - our new mortgage customers
• Minimum - £10k - our existing mortgage customers repackaging

Mortgage Arrears

Applications where previous mortgages have been in arrears will not normally be considered, however please contact us for further information.

Offer Validity

Standard offers are valid for 180 days. These can be extended for up to 90 days for new build properties.

Overpayments & Lump Sum Payments

Fixed Rate Mortgages

If the customer's Fixed Rate mortgage illustration is dated before 4th February 2019, they are entitled to make Overpayments but these will incur Early Repayment Charges.

If the customer's mortgage illustration is dated 4th February 2019 or later, they can make a lump sum overpayment during the Fixed Rate Period without incurring an Early Repayment Charge provided the overpayment:

• Is a maximum of 10% of the outstanding balance of your loan;
• Is made by way of a one off lump sum overpayment; and
• Is made once during any calendar year being the period from 1 January to 31 December.

In all other cases, the Early Repayment Charge referred to in the "Early Repayment" section of your mortgage illustration and offer will apply to any additional lump sum overpayment.

Please refer to the customer's mortgage illustration and offer documentation for full information regarding Overpayments and Early Repayment Charges.

Payment Holidays

Payment holidays are generally not permitted.

Portability

Porting Conditions

If a mortgage is portable it will be outlined in the customers current Mortgage Illustration and Mortgage Offer Document.

To port a mortgage:

The existing loan can be closed and the new loan opened on the same day, at which point we will waive the Early Repayment Charge on closure of the existing loan.

In cases where it is not possible to complete both loans on the same day:

• A new offer must be in place.
• The existing loan may be closed prior to the new loan being opened.
• The customer will be charged the Early Repayment Charge in full on closure of the existing loan. The ERC will be refunded if the new loan is drawndown within the offer period.
• The new loan can then be drawn down at any point during the Offer Period.

Important

The customer will no longer be eligible for a refund of any Early Repayment Charge taken if:

• The loan is not completed within the Mortgage Offer Period.
• During the Offer Period, either we or the customer decide not to proceed with the offer a new mortgage.

Only the outstanding amount, rate and fixed rate end date (if applicable) can be ported. Any additional borrowing required will be treated as a new mortgage.

Customers may take the new loan over their existing term or choose to increase or reduce the term in line with their needs.

Porting Process

You will be unable to correctly illustrate or submit an application for a Ported Mortgage using Danske Home. If you require any details for completing your own Mortgage Illustration you should contact us.

In order to progress an application you must:

• Send us an application form. Your application form should include details of both the ported element of the loan along with any additional borrowing requirements.
• Submit your application using our Upload Facility along with all supporting documentation.

Product Transfer

Our Product Transfer facility is available for customers with a maturing Fixed Rate mortgage and those with a Tracker Home Loan Standard Variable Rate or Danske Follow-on Rate mortgage. A product transfer is available when there is no change to the existing mortgage loan amount or term. For more information on our Product Transfer facility, please refer to the following page:

Product Transfer Facility

Proof of Deposit

We will require documentary evidence of any deposit, where it is not coming from the simultaneous sale of a borrower's existing property.

We can accept deposits provided by gift, please refer to the section Third Party Interest for further information. We will only require name and address of person gifting the deposit.

We do not normally accept deposits provided by loans, however please contact us for further information.

Security

The standard security will be the property subject to purchase / remortgage. Additional Security may be required.

Solicitor

To help us process your application, please use the link below to check that your client’s solicitor/licensed conveyancer is on our panel. If the appointed solicitor is not on our panel, we will be unable to progress with the mortgage application, as we do not accept separate representation cases.

Our solicitor panel is subject to change, and is managed through LMS. Any solicitor wishing to apply to be on our panel can do so through LMS.

Danske Bank Solicitor Panel

Standard Variable Rate

If the Fixed Rate mortgage was effected on or before the 25th June 2018, it will automatically move to our Standard Variable Rate.

Danske Bank Standard Variable Rate is not linked to the Bank of England Base Rate.

Third Party Interest

Where a third party interest is identified the Bank will need to be satisfied this is captured. Please contact us for further information if required.

Tracker Home Loan

Our Tracker Home Loan mortgage tracks Danske Bank Reference Rate (UK) by an agreed margin for the full term of the loan.

The interest rate will change immediately following a change in Danske Bank Reference Rate (UK).