If you’re thinking about remortgaging or borrowing more on your current first mortgage, then please get in touch with us as soon as possible. You’ll need to complete a Deed of Postponement form and to return it to us. Here are some of the most frequently asked questions regarding the Deed of Postponement:

• What exactly is a Deed of Postponement? Why do I need this from Nemo when I am not making any changes to the loan, only my mortgage?

Your Nemo loan is secured against your property by way of a second charge that ranks behind your mortgage.

The Nemo charge contains a restriction which prevents changes to the charges registered against your property without its consent.

When your lender processes your application for a new mortgage or a further advance, a new charge will be registered against your property at the Land Registry, replacing the existing charge. Removal of this first charge would mean that the Nemo charge would become a first charge. This is not the intention of either Nemo or your lender. Nemo therefore have to give consent to your mortgage lender for them to remain in first place, thus postponing our charge. This consent will be given by Nemo, subject to the new borrowing meeting our current lending criteria.

• Why do I have to provide all the information Nemo have requested?

A Deed of Postponement requires an application process. The information requested is vital to Nemo in assessing your application.

We require full details of your new mortgage and a current valuation of your property to calculate whether the remaining equity in your home satisfies our current lending criteria. Proof of your income is essential for Nemo to be assured you can meet your total borrowing commitments, not only to your mortgage lender, but also to your Nemo loan.

Your information can be forwarded to us by post, or by fax to 0845 371 5292.

• Why are you charging me a fee and what does it cover? Am I likely to incur any other fees from Nemo?

A request for a Deed of Postponement is an uncommon service; that means it could not be reasonably foreseen or accounted for at the point of loan application. Nemo does not charge any up-front fees and our service fees are detailed in our Fees/Charges leaflet which we issued to you with your welcome pack upon pay-out of your loan. Details can also be found on our fees page 

Our fee covers the administration and packaging of your application, corresponding with your lender, their solicitors and third parties as appropriate, our underwriting process postage costs for correspondence and return of the executed Deed.

There may be additional fees incurred if your property is situated in Scotland. These will be advised by your solicitors/lender at point of approval of your application.

• How can I pay the fee? When will you charge me the fee? Is the fee refundable if my mortgage does not complete?

Nemo will only take the fee at the point of approval of your application. The fee can be paid by the following methods:

Personal current account or credit card cheque*: please make payable to “Nemo Personal Finance Ltd”. *Please note: Nemo cannot accept Business account cheques or cheques from any third party (unless they are authorised to act on your behalf, i.e. a solicitor or mortgage lender / broker).
Alternatively you can request that we call you at the point of approval of your application to take a card payment via debit or credit card, providing the card is in your name and registered to your home address.
If, after approval of your application, your mortgage does not proceed to completion, the fee will not be refunded, as it covers our administration procedure (see above). In the event that Nemo should decline your application for consent to a Deed of Postponement, we will not charge the fee and will return your un-cashed cheque to you, together with any original documents.

• I am self-employed, why should I prove my income now when you allowed me to self-certify upon loan application?

Nemo acknowledges that we previously allowed some of our self-employed customers to self-certify their income. However, our lending criteria has tightened and as such we now require evidence of income from self-employment, detailed in the Deed of Postponement checklist. This is required in order to assess the affordability of your current secured borrowing commitments.

Failure to provide this information may result in the automatic decline of your application.

• My mortgage lender will not provide me with a Mortgage Offer until they obtain your consent to the Deed of Postponement, what can I do?

Nemo will accept the following details in absence of a Mortgage Offer, providing they come directly from the lender and are provided on their letter-headed paper:

The new total amount of borrowing
Current property valuation, and date carried out
Term of the new borrowing
New total monthly payment
Please note, Nemo are unable to accept a “KEY-FACTS” Illustration as this may be subject to change and does not constitute a final Mortgage Offer.

• My mortgage lender will not carry out an up-to-date valuation on my property; they state that they do not have to do this as I am staying with them and borrowing further funds, what can I do?

As your mortgage lender is entitled to any proceeds of the sale of your home in preference to Nemo, its risk of non-payment is less than Nemo’s and therefore it may consider it unnecessary to obtain an up-to-date valuation of your property. However, because the value of our security depends on the equity remaining in your property after the repayment of the first mortgage, it is imperative, in order to consider your application, that we see a current valuation of your property.

Where your lender refuses to carry out a valuation the responsibility falls upon you to obtain a full independent valuation survey carried out by a FISA or RICS qualified surveyor. You will be responsible for the expense of this.

Nemo will not accept estate agents’ valuations for marketing purposes, even if the estate agent carries the above qualifications.

In view of the expense incurred by you in obtaining a valuation report and the amount of the further secured funds being borrowed on your mortgage, you may wish to consider whether the further borrowing can be obtained more economically elsewhere: i.e. via an unsecured personal loan.

Please note that failure to provide Nemo with a current valuation may result in the automatic decline of your application.

• What happens during the process? How long will the process take Nemo?

The information that you provide will be collated and passed to our Underwriting Team; they reserve the right to request any further information as deemed necessary to support your application.

Once our underwriters have made their full and careful consideration, a decision will be made in respect of your application.

From receipt of all information deemed necessary to support your application, Nemo endeavor to process the application and return the executed Deed to your mortgage lender or their solicitors within a period of seven working days.**

**Please note that this timescale is dependent on the provision to Nemo of a suitable Deed of Postponement by your lender / their acting solicitors. If Nemo have to chase for this it may result in the timescale being exceeded.

• What happens if my application does not fit within Nemo’s current lending criteria? Will my application be declined? What effect would that have on my mortgage?

Here at Nemo, we acknowledge our customers are individuals and will endeavor where ever possible to find a solution if your application falls outside of our normal lending criteria. This may result in requesting you to make a partial reduction of capital in your loan to return the amount of your Nemo borrowing to fit our criteria. The reduction would normally be made from any further funds being advanced upon completion of your mortgage.

Should we decline your application, you have the right to appeal against our decision. Our appeals process is detailed below.

Declining your application will result in halting the progress of your new mortgage unless you make provisions with your lender to borrow further funds to settle your Nemo loan, or alternatively you reduce the amount of your new mortgage. A no obligation settlement quotation will be posted to you with any notification of decline.

• I am unhappy that Nemo have declined my request for a Deed of Postponement, what can I do?

You have a right to challenge any decision Nemo make. You can make an appeal by providing information to support the financial viability of your mortgage, giving potential savings against your current commitments and any other indicative factors which may be taken into consideration by our underwriters.

Once in receipt of this information, Nemo will carefully consider your appeal and respond to you in due course.

• Who can I contact should I have any further questions?

Please contact our Customer Service team on 0845 371 0461 (choose option 2) who will be happy to assist with any queries.