Lecture Notes on Field Population and Repayment Calculations

Overview

• Discussion on ensuring all fields are properly populated in the system before proceeding.
• Importance of using correct client references and data.

Key Steps and Information

Reference Information

• Importance of having the reference pack not password-protected.
• Individual reference example: HE591573HSB.

HCA Charge Date

• Check the equity mortgage date against your register.
• Example date: 23rd August 2013.

Equity Loan Redemption Letter

• Date example: 5th December 2020.

Homes England's Equity Mortgage

• Entitles Homes England to 20% of the market value.

Market Value

• RICS valuation report shows market value of £280,000.
• Repayment amount due, based on market value: £56,000.
• Note: Repayment increases if disposal price exceeds the RICS valuation.

Sale Price

• Signed contract sale price: £285,000.

RICS Valuation Date

• Date example: 5th November 2020.

Completion Date

• Planned for 4th February.
• Less than three weeks from the current date.

Important Calculations and Considerations

Repayment Sum Calculation

• Based on higher market value (sale price): £285,000.
• Calculate 20% for repayment: £57,000.

Current Arrears and Interest Payments

• Monthly interest payment arrears: £0.
• Daily interest payment rate: £2.38.
• Total interest over 894 days (from 23rd August 2018 to 4th February): £2,127.72.

Fund Sufficiency Check

• Verify sufficient funds to complete transaction.
• Ensure availability of an initial redemption statement before proceeding.

Additional Notes

• Client should chase up help to buy if there are any delays.
• Possible charge for duplicating the request if delays occur.