Private & Confidential

Mr Ghulam Qadir & Mrs Khurshid Qadir

Tamar Way
Didcot
Oxfordshire
OX11 7QH

Our Reference: 2091562

Date: 30/04/2020

Dear Mr Ghulam Qadir & Mrs Khurshid Qadir,

Introduction
Thank you for choosing to use us for your borrowing requirements. I have
pleasure in confirming details of your application and our
recommendations.
Please read and check these details carefully.

As outlined in our disclosure document, you have been provided with a full
advice and recommendation service. This was after a complete analysis
of your personal situation and needs. I have explained the importance of
you being in a position to afford the second charge mortgage and
associated costs both now and in the future, and you confirmed your
understanding of the implications of not maintaining the payments.

Requirements, Eligibility and Recommendation

I have undertaken an analysis of your needs and requirements in relation
to your borrowing needs and we have agreed the following are your
objectives and priorities.

Loan type: 2nd Charge Mortgage Residential

You are borrowing against your current residential property and looking for
the most competitive and affordable product that suits your
circumstances.

The purpose of the loan is for

Purpose
Home Improvements £20,000.00

Requirements
I asked you a series of questions within the fact find to ascertain your
needs and preferences as follows:

You applied for a loan amount of £20,000 to fund home improvements on

your kitchen and bathroom. Your main motivation for the loan was to get
the property up to a standard you are happy with and complete the final
bits of work needed. You had an ideal budget in mind of £600 per month,
based on what you deemed to be affordable and you would like a loan
term of 5 years. In regards to fixed and variable interest rates you had no
preference as you simply wanted the lowest repayment possible. Finally,
you would like the option to make overpayments and repay the loan in full
early, should you be able to do so through the sale of a buy-to-let
property.

Eligibility
After completing our telephone fact find and assessing your
circumstances, I have identified a range of lenders and products for which
you were eligible in principle. The assessment is generally based on the
following areas:

Credit Profile
In order to see which lenders you were eligible for, we had to assess your
current credit profile.

Your current profile is assessed as: Fair

Some of your accounts were up to date. However, there was a history of

default(s), making for an overall fair credit profile. As a result of this, you
had access to only some of the lenders from our panel based on credit
profile alone.

Affordability
When considering affordability, we must ensure the loan is manageable
for you, whilst we also consider the potential lender’s affordability
calculations.

Your affordability is assessed as: Sufficient using non-standard income

After carefully assessing your affordability we recognised you had sufficient

disposable income remaining after your general cost of living, mortgage
payments and new second/third charge mortgage. However, we had to
use rental income. With this in mind, this enables us to work with only some
of the lenders from our panel.

Security
We had to assess the type and value of security being used for the
mortgage. In order to qualify for some of the best rates available from our
panel, you generally need more than 50% of the equity available in your
property. With your mortgage, you have a loan to value ratio of between
50% to 65%. Based upon equity alone this meant that we could work with
all lenders however, this loan to value meant we weren’t able to access
some of the very lowest rates available.
Other Eligibility
We also had to take into consideration need for a lender that will accept
• Lending at your current age

Recommendation
Based on your eligibility and your needs and preferences, my advice and
recommendation is as follows:
I initially recommended a loan for the full amount of £20,000 with United
Trust Bank to fund home improvements on your kitchen and bathroom.
However, after some discussion you opted to go for an increased amount
of £25,000 to ensure you had enough funds to complete the work to a
high standard. This will meet your main motivation of getting the property
up to a standard you are happy with and completing the final bits of work
needed. This was the most suitable lender available for you based on your
current circumstances. I have recommended a loan term of your desired 5
years, which produces a monthly repayment that is comfortably below
your ideal budget requirements. I have recommended a variable rate, as
this was the cheapest option available from this lender. Lastly, this lender is
fully flexible and will allow you to make overpayments and repay the loan
in full early, with minimal penalties, should you be able to do so through
the sale of a buy-to-let property.

Financial Summary Of Product Applied For

Mortgage Type: Second Charge
Lender: United Trust Bank

Second Charge Mortgage

Term: 60 months
Amount of Second Charge Mortgage: £25,000.00 (excluding any fees)
Broker Fee: £1,500.00
Initial Interest Rate: 4.25%
Interest Type: Variable
Term Of Initial Benefit Period: months
Early Repayment Charge: then you would need to give 28 days notice
and pay a discharge fee of £125
Initial Monthly Mortgage Payment: £509.47

Full details of the loan and applicable fees are contained within the ESIS. If
you require any explanation, please contact me. You should read this
document carefully and check it against the details provided by the
lender when the mortgage offer is issued.

Risk Warnings
Please be aware that the lender’s underwriter has ultimate discretion in
the decision as to whether the lender will issue an Offer of Mortgage
Advance. It is strongly recommended that you do not enter into any
binding agreement or commit yourself to any financial undertakings until
you have received, read and understood a satisfactory offer letter.

Adding any fees to your loan has the effect of increasing your borrowings
and interest will be due on these additional amounts, making the overall
cost of the fee higher.

Property values and prices fluctuate according to market conditions and

the value of your property could go up as well as down. If your mortgage
represents a high percentage of the current price or value of your
property, this may create a negative equity situation.

Think carefully before securing other debts against your home. Your home
may be repossessed if you do not keep up repayments on a mortgage or
any other debt secured on it.

It is important that I remind you of your “Duty of Disclosure” now and in the
future. If you do not disclose information that may be of relevance to the
mortgage contract it could have an adverse impact on your application.

If you have any questions regarding the content of this letter, please do
not hesitate to contact me.

Yours sincerely,

Erzan Popova
Mortgage Adviser

Client Name: Ghulam Qadir

Client Signature:

Client Name: Khurshid Qadir

Client Signature:

Date 30/04/2020