Family Step

Marsden ’s Family Step Savings Security Account Conditions

The following terms and conditions apply If you have agreed to be a Family Supporter and give security over your savings to support your family member’s own mortgage (Family Step Mortgage) and are in addition to the Society’s General Savings Account Terms and Conditions which are available at www.marsden.co.uk. In the event of any inconsistency between these terms and conditions and the General Savings Account Terms and Conditions, these terms and conditions will apply in relation to any Family Step Savings Accounts you open with us.

Where we refer to “you” and “your” this can include a personal representative, a successor or anyone else who takes over your legal right or duties.

1 What is a Family Step Savings Security?

1.1 The Family Step Savings Account is linked to a Family Step Mortgage that is or will be held by a third party family member (Borrower). This means that the money that you place into your Family Step Savings Account will form part of our security taken for the Borrower’s Family Step Mortgage . The purpose is so that we can lend more to the Borrower than we would normally be able to on security of the Borrower’s property (Property) alone.

1.2 If the Borrower does not make payments when due under the Family Step Mortgage and we enforce the mortgage and sell the Property we can use the rights you have given us you’re your savings security. If the sale price of the Property is less than the amount that the Borrower owes us on their Family Step Mortgage at that time (shortfall), the shortfall will become immediately payable by you.

1.3 At account opening, you are required to sign a legal charge in the form provided to you by us (Charge) allowing us to use the money in your Family Step Savings Account in this way.

1.4 If there is more than one Family Step Savings Account linked to a Family Step Mortgage then the Charge will be enforced against the shortfall described in term 1.2 above proportionately based on the amount of the initial Security and what portion of the overall security taken for the Borrower’s Family Step Mortgage loan they represent.

1.5 The maximum Security in your Family Step Savings Account is 20% of the value of the Property as determined by an independent valuation of the Property provided prior to granting the Family Step Mortgage.

1.6 The Family Step Savings Charge provides us with security for the following amounts that become payable by you, up to the limit:

(a) The amount of any shortfall on sale of the Property that the Borrower owes.

(b) Any charges and costs (and interest on them) relating to the dale of the Property added to the Borrowers Family Step Mortgage account.

(c) Interest on the amount of the Shortfall that will continue to be applied under the Borrowers Family Step Mortgage from when the Shortfall becomes payable until the full amount of the Shortfall (including any interest) has been paid.

2 Eligibility

To be eligible to provide Savings Security for a Family Step Mortgage;

2.1 You must be aged 21 years or over and a UK resident.

2.2 You must be a family member of the Borrower(s) under the linked Family Step Mortgage.

2.3 A Family Step Savings Account can only be opened where it is linked to a Family Step Mortgage.

2.4 A maximum of four Family Step Savings Accounts can be linked to each Family Step Mortgage.

3 The Security Term

3.1 It is important that you understand that the length of time that the money held in your Family Step Savings Account will be charged as security (Security Term) is the earliest of the following;

(a) the Family Step Mortgage and all other amounts owing under the Family Step Mortgage offer are repaid to us, in which case the Security Term will end on the date of which all of those amounts are repaid to us; or

(b) the Property has increased in value to the extent that the value of the Family Step Mortgage outstanding at that time represented as a percentage value of the Property at that time (the Loan to Value) is less than 80%, in which case the Security Term will end on the date on which we confirm our acceptance of the results of an independent valuation confirming such increase in value; or

(c) ten years from the date of completion of the Family Step Mortgage where the original Loan to Value was less than or equal to 95%,

3.2 Either you or the Borrower can at any time contact us to apply to have the Property valued, at your own expense, for the purpose of term 3.2(b). Fees may change and will be detailed in the Tariff of Charges. We will instruct an independent valuer to carry out the inspection to assess the value of the Property.

3.3 In the event of 3.1 (a-c), the charge over the Family Step Savings account will be released, however, savings cannot be withdrawn until expiry of the fixed rate term.

4 Opening a Family Step Savings Account

4.1 The Family Step Savings Account must be opened before we issue the written Family Step Mortgage offer to the Borrower. In the event that we are unable to provide a written Family Step Mortgage offer or the mortgage doesn’t proceed to completion, the Family Step Savings Account will be closed and any balance returned to you by cheque. This would happen, for example, where the Borrower or the Property does not meet our lending criteria or the Borrower does not proceed with the Family Step Mortgage.

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4.2 You are required to Security (in cleared funds), no later than [five] Business Days before the date of completion of the Family Step Mortgage loan, an amount equal to the amount by which the amount to be borrowed by the Borrower [as determined by an independent valuation of the Property provided prior to the granting of the Family Step Mortgage] exceeds 80% of the value of the Property. Otherwise completion may be delayed. Specific information on the required Security will be detailed in the Borrower’s Family Step Mortgage offer (provided to you).

5 Operating your Family Step Savings Account

5.1 This Family Step Savings Account is a Savings Direct account which cannot be opened or operated in Branch.

5.2 You can make payment to your Family Step Savings Account by cheque, electronic transfer via the banking system or by CHAPS (Clearing House Automated Payment System). For electronic transfers and CHAPS payments you should quote sort code 60-94-95 and the last eight digits of your Family Step Savings Account number.

5.3 You may not transfer the ownership of your Family Step Savings Account to anyone else or use your Family Step Savings Account as security for any other borrowing.

5.4 You are not allowed to make any additional Securitys at any time during the Security Term.

5.5 No withdrawals are permitted.

6 Interest

6.1 You must supply us with details of the or building society account you would like us to pay interest into (Nominated Bank Account) for the purpose of paying any interest earned on your savings in the Family Step Savings Account.

6.2 The rate of interest on our Family Step Accounts (or rates of interest if more than one rate applies) is a fixed rate and will be as notified to you at the time of your application.

6.3 Interest is earned daily and will be paid annually each year. Interest will be paid direct to your nominated Bank Account on the first Business Day after the end of the month.

7 What happens if you die or become bankrupt

7.1 If you die and the Family Step Savings Account is held in joint names, it will continue to be held in the name(s) of the surviving owner. If it is held in a sole name the Savings Security will remain in place and your estate will only be able to release the security in the circumstances described in term 3.1. Interest will continue to be paid into your Nominated Bank Account. We will not do this unless we have received the necessary legal documents to confirm the death and to confirm the authority of your representatives.

7.2 If you become bankrupt then, unless we have enforced the Charge, we will only repay the amount of the balance at the end of the Security Term to the person administering your estate. We will not do this unless we receive the necessary legal documents to confirm the bankruptcy and to confirm the authority of the person administering your estate.

8 Account Closure

8.1 You may not close your Family Step Savings Account before the end of the Security Term. This means that Condition B13.1 of the General Savings Account Terms & Conditions ‘Closing Your Account’ does not apply to your Family Step Savings Account.

8.2 We can close your Family Step Savings Account by giving you at least two months’ notice in writing. We may do this immediately if we reasonably believe you have seriously or persistently broken any of these terms and conditions or we have reasonable grounds for thinking that you have done any of the following things:

(a) put us in a position where we might break a law, regulation, code or other duty that applies to us if we maintain your account;

(b) give us any false information at any time;

(c) commit (or attempt) fraud against us or someone else;

(d) use (or allow someone else to use) your account illegally or for criminal activity (including receiving proceeds of crime into your account;

(e) inappropriately let someone else use your account;

(f) behave in a threatening or abusive manner to our staff.

8.3 If we close your Family Step Savings Account, we will return the balance (including accrued interest to the date of closure) to your Nominated Bank Account unless prevented from doing so by law.

9 Cancellation Rights

9.1 If you wish to change your mind in relation to opening a Family Step Savings Account, you have a 14 day period in which to contact us to cancel. This period begins on the date you sign the application form. If you contact us within this period, this agreement will be cancelled and any balance in your Family Step Savings Account, together with any interest earned, will be paid to you. However, we will not reimburse you for any fees you may have incurred for obtaining Independent Legal Advice.

9.2 If you wish to cancel your account, you should tell us by writing to Marsden Building Society, 6-20 Russell Street, Nelson, Lancs, BB9 7NJ.

10 Notices and Contacting you

10.1 If the Borrowers’ Family Step Mortgage application is accepted, you will be provided will be provided with a copy of the Borrower’s mortgage offer, and following completion of the Borrower’s Family Step Mortgage, we will also provide you with information relating to the mortgage account and its conduct, including the provision of annual mortgage statements and arrears notices.

10.2 If we have to serve you a letter or personal notice or other document in relation to the Property Security it will be in writing and sent to your registered address or other last known address.

10.3 If we send a notice in the post you are deemed to have received it 72 hours after we have posted it regardless of the class of post used.

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10.4 If there is more than one of you, then if you share the same address, we will send a single copy of the notice addressed to each of you. If you have different addresses, we will send a copy of the notice to each address.

11 Your feedback

11.1 We understand that things don’t always go to plan and that each situation that we come across is completely individual. However, if you feel that the service provided wasn’t up to scratch or you would like to make a suggestion for improvement; we want to know so we can make sure that it doesn’t happen again. You can tell us about your complaint in any of the following ways:

(a) By visiting one of our branches;

(b) By calling the Complaint Administrator on 01282 440542;

(c) By writing to the Complaint Administrator at the Society’s Principal Office, 6-20 Russell Street, Nelson, Lancashire, BB9 7NJ;

(d) By email [email protected].

11.2 If we do not resolve your complaint internally to your satisfaction, you may be able to refer it to the Financial Ombudsman Service at Exchange Tower, Harbour Exchange Square, London E14 9GE (Tel: 0300 123 9 123).

11.3 The Financial Ombudsman Service is an organisation set up by law to give consumers a free and independent service for resolving disputes with financial firms. Details of those who are eligible complainants can be obtained from the Financial Ombudsman Service.

12 Financial Services Compensation Scheme

12.1 The Society is a member of the Financial Services Compensation Scheme. You may be entitled to compensation from this Scheme if we cannot meet our obligations. The FSCS protects most Security, including individuals and small companies up to £85,000. Eligible Security of large companies and small local authorities are covered up to £85,000.

12.2 A small number of categories of shares and Securities are not covered, for example deferred shares/permanent interest bearing shares. Although most shares and Securities are denominated in sterling, all other currencies are covered. Further details are available from the Financial Services Compensation Scheme website at www.fscs.org.uk.

13 Changes to Terms and Conditions

We may change the terms and conditions applying to your Savings Security if we give you not less than one month’s written notice, as long as the change does not work to your disadvantage. We will only make such a change to respond to any regulatory requirement, to clarify any existing term or condition or to make it fairer, or to enable us to enhance the terms.

Independent Legal Advice

As you will not be financially benefiting from the proposed Family Step Mortgage it is important that you understand the nature of the commitment you are making and the risks connected with providing the Family Step Property Security.

What this means for you

Before the Family Step Mortgage can complete, we require written confirmation from a solicitor acting for you that they have fully explained to you, the nature and effect of the legal charge you will be required to sign and the implications this may have for you.

The purpose of this requirement is to stop a dispute at a later date over whether the legal charge that you will be required to sign is legally binding.

What happens next?

You need to instruct a solicitor to provide you with the advice. You have provided us with the name and address of your nominated solicitor on your application form. It is important to note that the solicitor acting on behalf of the borrower may not be able to also act for you, however, it can be a solicitor from within the same firm.

You will be responsible for the cost of obtaining the advice.

Please note that we will not be able to set up the Family Step Mortgage or the Family Step Savings Security until we receive written confirmation that independent legal advice has been given in accordance with our requirements.

Borrower Information

To ensure that you are fully and accurately informed of the conduct of the Family Step Mortgage linked to your Family Step Savings Security, we will provide you with the following information about the Borrower(s):

• a copy of the Family Step Mortgage offer and application form;

• copy correspondence regarding missed payments or arrears on the Family Step Mortgage, until such time as the account is brought up to date; and

• a copy of the annual Family Step Mortgage statement which includes details of the payments due, payments made and the balance outstanding.

We will also provide a copy of the mortgage offer, mortgage application form and mortgage deed to the solicitor providing you with independent legal advice. This is in order to ensure that your solicitor has the information necessary to provide you with independent legal advice on the nature of the commitment that you are making and the risks associated with providing the Family Step Savings Security.

The information provided will include the personal information of the Borrower(s). You should not disclose this information to any other third parties, unless you have the permission of the Borrower(s) or if you are required to do so by law or a court order.

Get in touch 01282 440500* [email protected] www.themarsden.co.uk

Marsden Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 206050. Principal Office, 6-20 Russell Street Nelson Lancashire BB9 7NJ. *Calls will be recorded and may be monitored. Lines are open Mon - Fri 9:00am - 4:45pm and Sat 9:00am - 12noon. 638-18 3/4