The Mortgage Code Lending Practice Terms of Business.

PREFACE

This is a voluntary code followed by lenders and mortgage intermediaries in their relations with personal customers in the United Kingdom. It sets standards of good mortgage lending practice, which are followed as a minimum by those subscribing to it. As a voluntary code, it allows competition and market forces to operate to encourage higher standards for the benefit of customers.

From May 1998, lenders are only allowed to accept business from registered mortgage intermediaries. I am pleased to confirm that I have followed the code of practice from the outset, as has 1st net Finance Limited (1NF) , the Company which will be introducing business to the lenders.

KEY COMMITMENTS

I, the subscriber to the code, promise that I will: -

1. Act fairly and reasonable in all my dealings with you.
2. Ensure that all my services and products available via 1NF comply with this code, even if they have their own terms and conditions.
3. Give you information on my services and the products in plain language, and offer help if there is any aspect that you do not understand.
4. Unless you have already decided on your mortgage, help you to choose a mortgage to fit you needs.
5. Help you understand the financial implications of a mortgage.
6. Help you understand how your mortgage account works.
7. Ensure that the procedures I adopt follow the commitments set out in this code.
8. Correct errors and handle complaints speedily subject to the errors being made by myself and ensure that all services and products comply with relevant laws and regulations.

HELPING YOU CHOOSE A MORTGAGE

Choosing a mortgage may be your most important financial commitment, there are three levels of service which may be provided and I will tell you which I offer at outset. These are:-

1. ADVICE AND RECOMMENDATIONS, as to which mortgage is most suitable for you. When giving advice, I will take care to help you select a mortgage to fit you needs by asking for relevant information about your circumstances and objectives.
My advice will also depend on your particular requirements and on market conditions at the time. The reasons why a particular product was selected will be given to you in writing before you complete the mortgage.

2. INFORMATION ON THE DIFFERENT TYPES OF MORTAGE PRODUCTS so that you can make an informed choice of which to take.

3. INFORMATION ON A SINGLE MORTAGE PROUDUCT ONLY, if I am only handling an application where you have already decided on the product you wish to effect.

When providing information to help you choose a mortgage I will give you the following: -

1. An explanation of the effect of failing to make suitable arrangements to repay the mortgage.
2. Information on whose responsibility it is to ensure that an adequate repayment method is in place.
3. A description of the types of mortgage available, (i.e., Fixed, Discounted, Variable etc.)
4. An explanation and illustration of future potential repayments at the end of any Fixed, Discounted or Capped Interest rate period.
5. A description of the different types of insurance that I can arrange (i.e., redundancy insurance, buildings and/or contents insurance).
6. Whether it is a condition of the mortgage that such insurance is effected by the lender.
7. A general description of the costs that you will be required to pay in conjunction with the mortgage.
8. An explanation of whether your selected mortgage terms can be continued if you move house.
9. Information on mortgage tax relief.
10. If your mortgage exceeds a preset level (normally 75%) you may be required to pay a higher percentage lending fee (sometimes known as a mortgage indemnity premium). The lender will give you written information about this with your offer, however you will be given an explanation about this.

DISCLOSURE OF STATUS

I act as an agent on your behalf and not as an agent for the lender. 1NF arrange mortgages from the market as a whole based on their research of the market and not from a selection of preferred lenders.

FEES AND CHARGES

At the outset I will tell you if 1NF or I receive a fee for arranging your mortgage. Before you take out the mortgage I will tell you the amount of the fee in writing. If the fee is less than £250.00 I will confirm that 1NF or I receive up to this amount. If the fee is more than this amount, I will tell you the exact amount. I will also advise you of any charges that 1NF or I make in conjunction with the administration of your application. I will tell you the charges for any other service or product before or when it is provided or at any time you ask.

TERMS AND CONDITIONS

All written terms and conditions will be fair in substance and will set out your rights and responsibilities clearly and in plain language with legal and technical language used only where necessary.

CONFIDENTIALITY

Both 1NF and myself will treat your personal information as private and confidential (even when you are no longer a customer), except where disclosure is made at your request or with your consent in relation to arranging your mortgage. I confirm that you have a right of access under the Date protection Act 1984 to your personal records held on 1NF and my computer files.