General Information

Residential loans general information

Prestige Finance has been providing loans for over 30 years to UK residents and is a specialist in providing second charge loans. Prestige Finance is a wholly owned subsidiary of OneSavings Bank Plc.



You can write to us at:

Prestige House, 16 Melbourne Road, Bushey, Hertfordshire, WD23 3LN.

Prestige Finance accepts applications from finance intermediaries only.

Loans are secured against acceptable residential properties in England, Wales and Scotland on a second charge basis. Our residential loans can be used for virtually any purpose. We will not lend on a residential property where the loan is being used for business use, transfer of equity,investment or financial speculation, bridging or to install solarpanels.

Representative example of the total amount of credit based on a variable rate currently 4.64% which is fixed for 36 months to give a rate payable of 5.18% lending £40,000. The total cost of the credit £13006.48, the total amount repayable £53006.48 and the APR 6.4% and APRC 7%. This example has been produced on the assumption that the broker fee and lender administration fee is paid on application.

There may be further costs which you may have to pay depending on particular events. These are detailed in our Tariff of Fees and Charges. A copy is also available on request and will be sent to you with your Loan Offer.

With a variable rate loan, the interest rate may change whenever our lending rates are altered. During the lifetime of a loan there may be several interest rate movements – both upwards and downwards. As the rate may vary significantly over time, you would need to ensure you could cope with changes in the repayments.

Fixed Rates

With a fixed rate loan, the interest rate is fixed at a certain level for a specific period. During this time the rate will not change – even if variable rates go up or down. This gives you budget certainty. Once this period is over, the rate will be a variable rate based on the Bank of England base rate plus a margin which will be set out in the loan offer.

We offer a range of second charge products to suit most people.

Capital and interest (also known as a repayment loan)

Our residential loans will be written on a capital and repayment basis. An interest only option is available on our range of buy to let products.

You make one monthly payment, part of which covers the interest due for the month and the remainder goes towards paying off the original amount you borrowed (the capital). As long as you make all your payments as due, by the end of the loan term the loan will have been totally repaid.

Interest-only loan

Your monthly payment to us only covers your interest – not any of the original loan. The loan is repaid at the end of its term from the proceeds of an investment which has been taken out by you as a “repayment strategy” or you will need to have some other means of repaying the loan. Examples of investments that can be used as a way to repay a loan are endowment policies,pension policies, cash ISAs or stocks and shares ISAs. Please note: It is important to remember that the value of any investment is subject to market performance, so can go down as well as up. This means there is no guarantee that the investment fund will be sufficient to repay the loan in full. It is your responsibility to ensure that adequate funds are available at the end of the loan term to repay the original loan. Failure to make suitable arrangements to repay your loan at the end of the term may result in you being unable to repay your loan and so being in default and/or the loan continuing for longer than originally anticipated. In either case this may adversely affect your future financial plans.

You can choose to repay your loan over a period of 3 to 25 years. For capital and interest loans the longer the term, the smaller your monthly payments – but the greater the total amount payable overall. For interest only loans the term needs to be linked to your end of term repayment strategy. If your term extends beyond your retirement, you will need to ensure that you have arrangements in place to continue to make your monthly payments.

You can repay your loan at any time. You will need to contact us to obtain a settlement figure and this will be provided to you, within 7 working days. You may be required to pay an early repayment charge, as specified in your loan offer.

The maximum amount you can borrow depends on a combination of how much you earn, your income(s), outgoings and the value of the property. We assess the maximum we are prepared to lend based on your net disposable income (your net income less certain types of expenditure e.g. other loans, credit cards, etc.)

This means the amount of loan and existing mortgage in proportion to the value of the property. The loan to value is always expressed as a percentage. For example a £25,000 loan with an existing mortgage of £50,000 on a property valued at £100,000 would be 75% LTV.

The amount we lend cannot exceed a certain percentage of the value of the property. This is referred to as the maximum loan to value ratio or LTV. The maximum LTV depends on the particular product chosen.

Lenders Administration Fee

You will need to pay a lender administration fee. The amount of the fee is specified in your loan offer.

Product Fee

Our buy to let products incur a product fee. The amount of any product fee is specified in your loan offer.

References from other lenders

We may ask your existing loan lender to provide a reference. Your lender may charge you for this.

CHAPS (TT) Fee

When your loan is due to complete, you may request that our solicitors release the funds to you through the Clearing House Automated Payment System (CHAPS). We make a charge for this service and this fee is specified in your loan offer and will be deducted from the amount transferred to you.

For your home

For your own protection as well as ours, it will be a condition of our loan that your property is adequately insured for the full re-instatement value (i.e. rebuilding costs) specified in your Loan Offer. You should make your own insurance arrangements

Other insurance you should consider

Whilst buildings insurance is compulsory under the terms of the loan, you may also want to consider the other types of insurance available to offer you protection according to your needs such as contents insurance, loan payment protection insurance or life assurance.

Please note: Prestige Finance does not provide or arrange home insurance, contents insurance, life assurance or loan payment protection insurance. Please contact your independent financial adviser to discuss these types of insurance.

Interest is charged at the interest rate specified in your loan offer. Interest is calculated, accrues and is debited to the account daily. This means that you will be charged interest on interest from the next day after it is debited to the account. Interest will start accruing from and including the date of completion up to and including the date the outstanding balance is repaid in full.

Monthly payments

Payments to your account will be collected monthly by direct debit from your bank account. A direct debit instruction will be included with our application form*. Soon after the start of your loan and before any payments are actually due, we will write to you and confirm the due date and the amount of your payments.

Your loan must be paid by direct debit from a UK based sterling bank or building society current account.

*The monthly payment will be confirmed in your mortgage offer.

Rate changes

If there is a change in loan interest rates we will write to you before the first revised payment is due to let you know the new amount and when it will be collected

Overpayments, lump sum payments and early repayment charges

It may be possible to make lump sum payments or overpayments on your loan. If you are thinking of making an additional payment on your loan, please contact us first to find out how an overpayment or lump sum payment would affect your account.

Payment difficulties

If your circumstances change and you have, or think you will have difficulties with your monthly payment, let us know immediately. We will try to help and will work with you to find a solution and prevent unnecessary arrears.

Borrow more money

We may consider lending money as a further advance as long as your account has been well-conducted and there is a minimum 6 month history on the existing loan.

We’ll always treat your account in strictest confidence under the Data Protection Legislation; you are entitled to know what information we hold about you and to ask us to correct any inaccurate details. If you have any questions about the Legislation or your rights under it, please write to:

Compliance Manager
Prestige House
16 Melbourne Road
Bushey
Hertfordshire
WD23 3LN

We do our best to get everything right all the time, but if you believe we have not, please let us know at once.

 

We aim to resolve all complaints by the close of three business days after the date the complaint is received. If this is not possible, we will let you know that we have received your complaint and are investigating it.

 

Within four weeks of receiving your complaint, we will explain what caused the problem and what steps we have taken to put it right. If we have been unable to settle the complaint by this time then we will tell you why and what we are doing to resolve the issue. We will also tell you when we will be in touch again.

 

We will send you a final response within eight weeks explaining the outcome of your complaint.

 

*For customer service and training purposes, calls with Prestige Finance may be monitored and/or recorded.

Whilst we hope to be able to resolve any problem through our internal complaints procedure, if you are not satisfied with the outcome of your complaint or if eight weeks has passed since you first raised your complaint with us, you have the right to refer your complaint to the Financial Ombudsman Service (FOS)

Details of our complaint procedures are available on request or on our website prestigefinance.co.uk.

Prestige Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA).

We are members of the Finance and Leasing Association (FLA) and follow their Lending Code, copies of which are available on request.

All of our products are subject to availability of funds and can be withdrawn at any time.

We collect and use your personal data in accordance with our privacy policy which can be found at www.prestigefinance.co.uk or can be obtained by contacting our Head Office. In Summary :

  • We may collect various types of information about you. This includes information you give us, information we collect automatically when you use our banking services online and information that we receive from third parties such as credit reference agencies and fraud prevention agencies.

  • We use information held about you in order to provide our services to you, to improve and market our services and to comply with legal and regulatory requirements (for example, anti-money laundering obligations).

  • Under applicable data protection law we may not process information about you unless we have a legal basis to do so. The legal bases on which we rely to process your personal data are:

    1. Processing of your data is necessary for the performance of a contract to which you are party to or to take steps at your request prior to entering into a contract.

    2. Processing of your data is necessary for compliance with a legal obligation which we are subject to.

    3. We have obtained your consent.

    4. Processing your data is necessary to protect your vital interests or the vital interests of another person.

    5. Processing of your data is necessary for the purposes of the legitimate interests pursued by us or by a third party, except where such interests are outweighed by your interests, fundamental rights and freedoms.

  • We may share information about you with other members of the OneSavings Bank group of companies. We may also disclose your information to certain third parties such as suppliers, subcontractors, actual or potential business partners, credit reference agencies and fraud prevention agencies and other third parties we are legally required to share it with (e.g. our regulators).

  • We typically store your information in the UK. In certain instances however your information may be transferred to jurisdictions outside of UK. Where it is we will take all steps reasonably necessary to ensure that your information is treated securely and in accordance with our privacy policy.

  • We will retain your information for the period necessary to fulfil the purposes for which the information was collected. After that, we will delete it. The period will vary depending on the purposes for which the information was collected and if the information is subject to any specific legal or regulatory requirements.

  • You may have some or all of the following rights in respect of information that we hold about you: (i) request us to give you access to it; (ii) request us to rectify it, update it, or erase it; (iii) request us to restrict our using it, in certain circumstances; (iv) object to our using it, in certain circumstances; (v) withdraw your consent to our using it; (vi) data portability, in certain circumstances; (vii) opt out from our using it for direct marketing; and (viii) lodge a complaint with the Information Commissioner’s Office. You may contact us using the details on our website or by contacting our Data Protection Officer directly to exercise any of these rights.

  • We use appropriate technical and organisational measures to protect your information and our online banking services are provided using secure servers.

We may update our privacy policy from time to time. Any changes we may make in the future will be posted on our website and we recommend that you revisit www.prestigefinance.co.uk from time to time to stay informed about how we use your information.

When you open an account you can let us know your marketing preferences and whether you would like to be updated about products and services that you think may interest you. To select what information you receive, please tick the relevant boxes on the application form. If you wish to change your marketing preferences you may do so at any time by writing to us at:


Prestige House
16 Melbourne Road
Bushey
Hertfordshire
WD23 3LN

Your home may be repossessed if you fail to keep up repayments on this loan or any other debt secured on your property. If you miss payments on your loan your credit rating may be affected and this could mean that credit is either more difficult or more expensive to obtain in the future.
All loans are subject to availability, security and status and are available to those aged 21 or over. Written quotations available on request.