Avalon ER:
11 Folder Lane, Sprotbrough, Doncaster, DN5 7PD.
These terms are issued on behalf of Avalon ER, a trading name of Avalon FS Ltd, 11 Folder Lane, Sprotbrough, Doncaster, DN5 7PD. In this document “we”, “our”, or “us” refer to Avalon FS Ltd and or our trading style.
ERRORS AND OMISSIONS EXCEPTED
This agreement sets out the general conditions under which our services are provided to you, including details of the specific services required and our charges for these services.
The Financial Conduct Authority regulates most types of mortgages and protection products.
HOW ARE WE REGULATED
We are directly authorized and regulated by the Financial Conduct Authority (FCA), the independent watchdog that regulates financial services. You can check our details and regulatory permissions via the Financial Services Register at register.fca.org.uk/ or by contacting the FCA on 0800 111 6768. Our FCA reference number is 936615.
WHO’S PRODUCTS DO WE OFFER?
Our permissions are: advising and arranging regulated mortgages, advising and arranging equity release mortgages, advising and arranging consumer buy to let mortgages, advising and arranging consumer buy to let mortgages, advising and arranging non-investment insurances, for example, a range of personal protection plans such as Life Assurance, Critical Illness Cover, Income Protection, Payment Protection Insurance (PPI), General Insurance and Private Health Insurance.
Under the rules of our regulator (FCA) we are required to provide you with our Client Agreement & Terms and of Business. Upon receipt of the signed terms of business we will be bound by the terms and conditions until terminated by either party. If initiated by us termination will be without prejudice to the completion of transactions already initiated or in progress (if applicable).
These Terms and Conditions of Business exist to protect your interest in that they clearly lay out the working practices of Avalon FS Ltd and state exactly what your rights are when we conduct business on your behalf. The Terms and Conditions of Business are not a binding contract and may be terminated by you at any time. It does not oblige you to us in any way whatsoever. In the event of a material change in the terms on which Avalon FS Ltd wish to undertake business with you then you will be issued with new Terms of Business before being provided with any further services. We shall assume acceptance unless we hear to the contrary within 7 days of the issue.
YOUR COMPLAINTS
You should address any complaint, in writing, to The Compliance Officer, Avalon FS Ltd, Winston House, 21 Castle Close, Sprotbrough, Doncaster, South Yorkshire, DN5 7NP. Telephone: 01302 591525 who will acknowledge the issue and send you a copy of the internal complaint’s procedure. The matter will be investigated in line with procedures and findings reported to you. If you are still not happy with the outcome, you then have the right to forward any eligible complaint to the Financial Ombudsman Service and the details on how to do so will be provided to you. If you make a valid claim against us in respect of any mortgage we arrange for you, and we are unable to meet our liabilities in full, you may be entitled to redress by the Financial Services Compensation Scheme. Details of the cover are given in a leaflet, which we will send to you at your request. Further information is available from the Financial Conduct Authority. In addition, we are also insured for negligence by way of our Professional Indemnity Insurance.
OUR SERVICES
We are a Mortgage, Protection and Credit Broker, we are not a lender.
We offer you mortgage advice based solely on the information provided by you, and as we are not tied to any one company, we are therefore able to advise you on the products of different companies. We offer a comprehensive range of mortgages from across the market, but not deals that you can only obtain by going direct to a lender, no upfront fee is charged. All individuals employed by or contracted to Avalon FS Ltd to provide mortgage advice are qualified and approved to meet the FCA requirements. When providing an advisory service and making detailed mortgage recommendations, we will confirm your mortgages objectives and ensure that recommendations are suitable for your individual circumstances in our suitability letter or report.
OUR DEALINGS WITH YOU
We are required to verify your identity in accordance with the Money Laundering Regulation and no application will be made until such verification has been obtained. This process involves obtaining verification of your identity using documents such as your Passport or Driving License and your address (e.g., utility bill, bank statement). In addition, where applicable, we reserve the right to make further enquiries into the source of your funds or wealth to ensure we meet our regulatory obligations. We may check the details you supply against those held on several specific databases. Online verification credit reference agencies have access to, for example, information from the Electoral Register and fraud prevention agencies. Scoring methods can be used in the verification process as this gives a more thorough check of the available data. A record of this process will be kept that may be used to help other companies to verify your identity. We may also pass information to organizations involved in fraud prevention to protect ourselves and our customers from theft and fraud. If you supply false or inaccurate information and we suspect fraud, we may make the appropriate search using a reputable online credit reference agency and will keep a record of this search in line with the anti- money laundering rules and the General Data Protection Regulation By signing and returning these Terms of Business, you consent to us carrying out the appropriate verification checks. Depending on the level of verification generated we may need to contact you for additional information or documentation. Therefore, we cannot accept responsibility in instances where placing business is delayed due to these regulations.
YOUR MONEY
We do not handle client monies. Cheques for valuations or lender arrangement fees can only be made payable to the product provider, we never accept a cheque or card payment made out to us (unless in settlement of fees for which we have sent you a bill). No premiums or monies of any kind should be paid or be made payable to anyone else.
THE DATA PROTECTION ACT
Avalon FS Ltd is committed to protecting the privacy and confidentiality of all individuals and takes its responsibilities regarding the security of data very seriously. We abide by the rules of the General Data Protection Regulation Act 2018 (GDPR) upheld by the Information Commissioner Officer (ICO) and are authorized and regulated by the Financial Conduct Authority (FCA) to advise and/or arrange mortgage and protection products. This includes processing any personal data lawfully, fairly and in a transparent manner.
You have been provided with our Customer Privacy Notice.
We may use and analyze your data, including the nature of your transactions, to provide you with information by post, telephone, fax, or e-mail to service and update you, as well as informing you, by way of an unsolicited real time financial promotion, of new opportunities. If you would prefer to be excluded from these services, please write to us at Winston House,21 Castle Close, Sprotbrough, Doncaster, South Yorkshire, DN5 7NP.
You have a right of access under the General Data Protection Regulation (GDPR) to your personal records held on our files.
REMUNERATION
Not all firms charge for advice in the same way. We will discuss your payment options with you and answer any questions you may have. We will not charge you anything until you have agreed how we are to be paid. The following are the payment options we offer:
Paying by Commission. If you buy a Mortgage through us, we will normally receive commission on the sale from the product provider, not all commission rates are the same, different lenders pay different commission rates.
Although you pay nothing up front, that does not mean our service is free. If you buy direct, the charges could be the same as when buying through an adviser, or they could be higher or lower. Our charges are based on two considerations: the loan amount and the complexity of your individual circumstances.
We will provide you with a free initial consultation and we will always explain exactly what you will be charged before you choose to proceed with an application. As we offer a bespoke service our charges can vary. Our minimum fee for residential mortgages is £299 per application and our average fee charged is £450. Product Transfer fees are £99. Our fee is payable on receipt of a mortgage offer/completion. If your circumstances are more complex, we may charge a higher fee, our maximum is £2,995.00.
Equity Release Lifetime mortgages fee is 1.0% of the loan amount with a minimum fee of £495 and a maximum of £995 all our fees are payable as stipulated above. Arranging second charge mortgages, a fee up to 3% of the loan is payable with a minimum fee of £495 and a maximum charge of £2995. The above fees apply to all regulated mortgages.
In relation to protection products in the event of a “regular premium” contract (I.E., paid on a regular monthly or annual basis) being recommended then all providers place a minimum period of payment on the product in order for the commission to be paid and retained by the adviser. This could be anything from 12 to 48 months depending on the contract. In the event that the regular premiums are stopped by the client within the stated period then the commissions paid to Avalon FS Ltd will have to be paid back to the provider, normally on a pro rata basis.
This obviously is very much to the financial disadvantage of Avalon FS Ltd. We, therefore, reserve the legal right to seek a charge to the client up to or equal to the amount of commission to be paid back to the provider or an amount seen as fair and just by Avalon FS Ltd, you agree to indemnify Avalon FS Ltd for any claw back amount. This amount will never exceed the sum to be paid back to the provider. A percentage of the commission that has been paid to us will need to be refunded to the provider if you stop making premium payments and the policy is subsequently cancelled. We will charge you a fee equal to the amount of commission that we must return to the provider as this commission covers the cost of our service to you.
We will let you know the amount of commission we will receive in writing before a policy goes into effect. This will be the maximum amount we will charge you, together with the maximum period of clawback. This will usually be for a period of between 2 to 4 years, you agree to indemnify Avalon FS Ltd for any loss due to having to pay back commission on your policies. If payments have been stopped due to reasons completely beyond the control of the client, for example prolonged illness or death of home provider then Avalon FS Ltd will reserve the right to waive this charge. Avalon FS Ltd will always seek to act in a manner which is deemed fair to the customer. If we introduce you to a firm of solicitors, it may be that we receive an introduction fee and we will inform you of the amount in writing.
COMMERCIAL MORTGAGES
We have separate Terms of Business for Commercial, Bridging, Asset and Development Finance. We are not the appointed agent of any mortgage lender. We therefore act on your behalf. We are free to deal with any mortgage lender and will review the marketplace to identify the most suitable mortgage or finance product for you.
ADDITIONAL BUY TO LET DISCLOSURES
We must bring your attention to the fact that any advice and recommendation that may be provided in respect of your Business Buy to Let Mortgage requirements is not regulated by the Financial Conduct Authority (FCA).
The property is being purchased wholly, or predominantly for business purposes. You are applying for the mortgage with the sole intention to let the property/properties out.
In addition to the majority of Business Buy to Let Mortgages, there are other types of arrangements that are not regulated by the FCA. If you are unsure about your own requirements, please ask your adviser for further information as it is important that you understand the level of protection you will receive from the FCA, FSCS and FOS.
Business Buy to Let Mortgage means that you will not receive the protection of the Financial Services Compensation Scheme (FSCS) and may not be entitled to refer and complaints to the Financial Ombudsman Service (FOS) should the need arise.
It is important the information you disclose is accurate. Should you proceed with an application for a Business Buy to Let Mortgage, the property against which the mortgage will be secured cannot be used as your own residence. You understand that a family member cannot reside in the property under any circumstances. If you or any family intend to live in the property at any time, you must disclose this immediately to the lender.
Should you or your family decide to live in a property funded with a Buy to Let Mortgage, you will be in breach of the conditions of this mortgage. This may result in the lender insisting the mortgage is repaid in full. You may also find it more difficult to secure a mortgage in the future. The Avalon FS Ltd adviser has verbally explained the contents of this document, which I have also read and understood.
HOW WILL WE OPERATE
During our initial consultation we will complete a client questionnaire (fact find) to enable us to better understand your circumstances and your needs; this enables us to give appropriate advice on your mortgage and insurance needs. A copy of this questionnaire is available for you to review upon request.
We will subsequently conduct research to establish what products are most appropriate for your needs and make these recommendations to you. These recommendations will be confirmed in writing as the advice we provided.
You will also be provided with an illustration regarding the product(s) recommended.
PROVISION OF INFORMATION
During our initial meeting, we will be completing a detailed mortgage and protection questionnaire to enable appropriate advice to be given on the mortgage and insurance requirement.
We will provide you with information relevant to your insurance and mortgage needs, covering such items as an explanation of the repayment methods and implications of taking out a mortgage and insurance products.
All terms quoted and agreed Decision in Principle’s are subject to full application, credit report, affordability and valuation and all other standard underwriting checks and approval.
Once we have made our recommendation to you, we will confirm our advice in writing. You should keep this as it will be a record of the transaction and will be confirmed by your lender’s formal offer of a loan.
WHAT WE WILL DO
Communicate clearly, promptly and in plain English. Explain all costs involved before they are incurred. Evaluate your needs before making a recommendation, our recommendation will also be given to you in writing before we proceed with any application on your behalf. Review the market from our list of providers to recommend the most suitable product and provider for your needs and circumstance.
WHAT WE WILL NOT DO
Provide a decision in principle before conducting a thorough review of your circumstances and needs (fact find) and obtaining sufficient supporting information to assist the application. Cause you to incur a credit search without first notifying you. Act without first obtaining your permission to do so. Cause you to incur costs without your prior agreement to proceed.
FEE AND BENEFIT DISCLOSURE
We may receive fees from lenders. Before you take out a mortgage, we will tell you the amount of the fee in writing. Different lenders pay different fees, the lenders rate charged to yourself may affect the commission rate we receive. Avalon FS Ltd have no influence over the rates ofinterest charged by lenders.
ARE WE COVERED BY THE FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)?
We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.*
- INSURANCE: Insurance advising, and arranging is covered for 90% of the claim, with no upper limit.
- MORTGAGES: Mortgage advising and arranging is covered for 100% of £85,000. Further information about compensation scheme arrangements is available from the FSCS at www.fscs.org.uk
HMRC /TAX
Avalon FS Ltd and /or its Advisors do not provide any Tax advice we will only advise you on the mortgage arrangements; we will not provide advice on the tax or investment elements of the transaction. Should you require tax or investment advice, you should seek this from a suitably authorized and qualified individual.