Information for solicitors

To get it right first time and avoid delays, follow this process when completing a Deed of Substituted Security.

1. Provide confirmation of full undertaking and certified ID

You'll need to provide us with a certified copy of signed ID (for example a passport or driving licence) for each applicant, as well as evidence in writing of full undertaking.

You can copy and print the following wording as outlined below:

'We act on behalf of The Mortgage Works in accordance with:

• the UK Finance Mortgage Lenders Handbook and
• the mortgage terms and conditions.

There is nothing in the Deed of Substituted Security which will affect our security.'

You can provide the wording and certified ID upfront or enclosed with the Deed of Substituted Security to the address below.

You'll then need to complete in full and post the Deed of Substituted Security to the below address:

TMW Land & Deeds
Nationwide Building Society
Kings Park Road
Moulton Park
Northampton
NN3 6NW

Once received, we'll process and return the deed back to you. You must then lodge the Deed of Substituted Security at HM Land Registry. You'll then need to post an amended 'Title Information Document (TID)' to the above address.

Before you complete the COT:

• Check the mortgage offer to ensure everything is correct.
• If the mortgage offer includes special conditions, please review and action these. Please ensure you have satisfied all special conditions, and checked the COT has been completed in full and signed by the appropriate signatory. Failure to do so will delay the release of funds.
• Please keep in mind we need at least five working days before the completion date to process the COT. If we require a reinspection from our valuer, please allow 10 working days.

Submitting the COT:

• You’ll find a copy of the COT in the offer documents. You can download a COT here for properties in England and Wales.
• You can email a copy of the completed COT to tmw-completions@themortgageworks.co.uk. To avoid having delays in your completion, please ensure the subject field of the email includes the case reference number and that is states clearly one of the below:
• COT
• Certificate of title
• Report on title
• Release of funds form

What happens next? 

• We’ll respond once we’ve actioned your request.
• We'll release the net amount to you by CHAPs on the last business day before the completion date. 
• Providing you have followed the COT guidelines you DON'T need to chase release of funds. You'll receive these funds on time.

Funds

You may hold onto completion monies for up to 3 working days. After this time, if the completion has been delayed, you can return the funds back to us. You can use the below information:

• Sort code - 20-12-04
• Account number – 00117935
• Reference – Please quote the mortgage account number

For any funds returned after three working days, we'll require solicitors to pay the daily rate of interest before we would look to re-release the completion monies.

See our dedicated section around Further Advance drawdown of funds.

Solicitors must comply with all the instructions detailed in the instruction letter we send with the mortgage offer.

For Limited Company buy to let lending, you must arrange to:

• register our charge at Land Registry
• register a charge at Companies House within 21 days. This begins the day after the creation of the legal charge using form MR01.

Read our top tips for registering a Limited Company Mortgage Deed with Companies House

Porting is where a customer is moving an existing The Mortgage Works mortgage from one property to another.

How we process porting applications

We can consider porting applications for both regulated and non-regulated mortgages. You can arrange for a Non-regulated porting application through an intermediary. We process these in the same way as any other new application. For porting applications, please call us on 0345 606 4060 for a porting pack.

When you are ready to complete

Once the new application has been offered and you and the customer are ready to complete, you'll need to request a redemption statement. You can do this by emailing SL.redemptions@nationwide.co.uk.

If the customer has an active product on the existing mortgage, early repayment charges (ERCs) may apply. You can find these detailed on your redemption statement.

The ERC isn't payable on the redemption of the account provided you meet the following criteria:

• The existing fixed rate/redemption clauses are transferred to the new loan.
• The new capital balance is equal to or greater than the current capital balance. If the balance on the new mortgage is less, we will calculate an ERC on the difference between the existing mortgage capital balance and the new mortgage balance.
• The completion of the new mortgage must be simultaneous with redemption of this loan. If the mortgage redeems earlier, the ERC will be payable.

If you meet the above conditions and completion takes place on the same day as redemption, we may deduct the ERC from the redemption monies due.

Completion must be simultaneous, so you'll also need to submit the Certificate of Title for the new mortgage to tmw-completions@themortgageworks.co.uk. See our Certificate of Title section for more information.

The Mortgage Works is the specialist buy to let lender of Nationwide Building Society. Nationwide has a central bereavement team who look after multiple products, including mortgages with The Mortgage Works. This means you only need to notify Nationwide of the death of a customer and to obtain date of death figures.

You can find out how to do this on Nationwide's deceased customers page.

Please make sure to provide a copy of the death certificate or other evidence of the death, such as a coroner’s interim certificate.

You'll need your panel number for The Mortgage Works to request a redemption statement on behalf of your client. If you’re not on our panel, you can tell us your Solicitor Regulation Authority (SRA) number. You can also register for the panel via Lender Exchange.

Complete the statement request form, and we'll send it to you by email. It can take up to five working days.

You can request to have the redemption statement dated up to 30 days in advance of the day you want it. It will be valid for 30 days, or until your client makes a payment (such as their regular monthly payment or an overpayment). This will change the amount required to redeem the mortgage.

After the 30 days, you can use the daily rate of interest (DRI) included on the redemption statement to work out the additional amount that needs to be added to the redemption figure to redeem the mortgage in full.

We no longer charge Early Repayment Charges (ERCs) for clients redeeming their mortgage in the last month of their product term. We'll review any pipeline Redemption requests in line with this change as part of the account closure process. We'll issue a refund if due.

We use the Electronic Discharge (ED) process to redeem our registered charges in England and Wales.

An ED is a discharge of a registered charge sent electronically by a lender direct to Land Registry. Land Registry's computer system makes a number of checks. If everything is in order, it cancels the charge entries. In most cases, the charge entries will be instantly and automatically cancelled on receipt of the discharge.

The difference between an ED and an electronic notification of discharge (END)

An END is an electronic message to Land Registry authorising the cancellation of the charge entries. To cancel the charge you must combine it with a formal application to Land Registry to discharge the charge. When the Land Registry receive the application, their staff will cancel the entries relating to the discharge.

An ED cancels the charge entries automatically and, in most cases, immediately. It does not require a separate formal paper application to discharge the charge. It is a computer to computer, system driven process so does not require manual intervention.

The reason Land Registry introduced EDs

For e-conveyancing, there is a requirement to have a system of discharging registered charges automatically. Although EDs can operate effectively solely for discharges, it will form part of an integrated e-conveyancing system.

EDs will overcome some of the problems related with DS1s and ENDs, especially the inherent delays. We have introduced new processes, which automate and speed up the way we deal with redemptions.

What to do if you act for a borrower

We will tell you in the redemption statement that we intend to discharge a charge by an ED. You must tell us which charges you will be redeeming. You will need to pay off the charge in the normal way. Provided we receive the correct payment, and it is a case to be discharged by an ED, we will send an ED to the Registry. If accepted, the registry will cancel the charge entries automatically. We will then write to you to confirm that the charge has been successfully discharged.

If there is another party involved, you will need to agree on a revised form of undertaking. This is to allow for the electronic discharge.

What to do if you act for a buyer

You should proceed with the transaction in the same way as you would with any other. The only exception is that you will need to allow for the different method of discharge by agreeing on a revised form of undertaking. For example the seller's conveyancer will send the moneys required to discharge the charge and to inform you when the charge has been discharged. Or to provide you with a DS1 if the lender has been unable to transmit an ED or an END. The arrangements for completion should be no different from normal, except for the modified undertaking.

The undertaking you should use

On both the Law Society for England & Wales' website‚ and Land Registry's e-conveyancing website you can find the suggested form of undertaking:

• www.lawsociety.org.uk
• www.landregistry.gov.uk

How quickly will you deal with redemptions?

We'll send an ED to Land Registry within five working days of receiving the redemption moneys. All parties are determined to ensure that you don't get the same delays experienced with DS1s and END with ED. We have agreed to adhere to specified time standards for transmitting an ED.

Are there any situations when Land Registry's computer will not cancel the charge entries?

There may be occasions when it would be wrong to cancel the charge entries automatically. For example, there might be an application pending at Land Registry against the title concerned. Before cancelling the charge entry, you would have to complete it first. In this situation, Land Registry will accept the ED. However, they won't cancel the charge entries until the prior application has been completed. We will tell you if this situation occurs.

Will an ED be accepted on all occasions?

There may be a few situations when they may reject an ED. If Land Registry don't accept an ED, they will inform us instantly. Land Registry will then investigate the reason why the ED has been rejected and use an alternative method for discharging the charge. The Mortgage Works will send an END. It is not necessary for you to send us and END form for these charges.

Can other lenders use this system?

Other lenders will be allowed to discharge their charges by EDs. Before they can do so, they will have to go through a process called Data Synchronization. This is to make sure that their charge data matches with the Land Registry's. They'll need to guarantee to deal with redemptions within five working days.

Is the system secure?

All EDs are sent via secure "virtual private networks". There has been a number of security features included to ensure that only authorised lenders can send EDs. We can only discharge our own charges or charges authorised for other lenders.

Need further information

Land Registry has published a Practice Bulletin (No.6 – Electronic Discharges). This is available on their website or from any Land Registry office.

How to register

To register to be on our panel you'll need to apply through Lender Exchange.

Once you've provided your firms details, if you can see Nationwide or The Mortgage Works, then you meet our minimum requirements to apply.

If you're on our panel, but not registered on Lender Exchange, you can email any queries to solicitorspanel@nationwide.co.uk.

How to update

If you're on our panel and have registered on Lender Exchange you can update any details on the Lender Exchange website.

What is Lender Exchange?

This is a third party service used by lenders and solicitors across the industry. With Lender Exchange you can register, update details and receive important communications.

We require conveyancers to carry out all the usual and necessary searches and enquiries. A Local Authority Search protects both the applicant and ourselves as it can:

• reveal matters such as future development plans for an area
• reveal existing planning consent for another property close by
• flag whether the property is safe to live in
• flag if it requires remediation works.

Our instructions to Conveyancers in the UK Finance Mortgage Lenders' Handbook are:

• Non New Build property purchase transactions - we don't accept search insurance, and we require a completed local search in all circumstances.
• Remortgage transactions- we don't require a completed local search or require search insurance.
• New Build cases - if the local search carried out on the original plot of land has expired, we'll accept search insurance to cover any new risks that may have emerged. This is since the last time a local search completed.

This section aims to:

• support you in getting the application right first time.
• making the Limited Company registration a smooth process with Companies House.
• and avoid delays for your client.

Please note: your client must have registered their company in England, Wales or Scotland.

1. Completing a MR01 form

• You can download the guidance on completing paper form MR01 Particulars of a charge - (PDF, 287KB). This will guide you through the form completion process in nine steps. It’s important you make sure you’re completing this form. And not the 'LL MR01 for a Limited Liability Partnership' form.

2. Submitting MRO1, the Mortgage Deed and a fee

• Companies House online filing service is the quickest way to submit the MR01 to register the charge.
• You may need to register for this service the first time you use it.
• Please ensure you include a copy of the Mortgage Deed, along with the required fee.

Companies House can't keep hold of an incomplete application or contact you to request missing documents. Make sure to package and submit the required documents together to ensure your application isn't rejected.

3. Certified written instrument

• You must accompany the MR01 form with a certified copy of the Mortgage Deed signed by the company entering into the charge.
• Companies House will retain it and make it available for the public register. It’s important you don't submit the original Mortgage Deed.

4. Timings

• You must complete point two within 21 days. This will begin with the day after the day you created the charge. For example, you'll need to deliver a Companies House charge dated 8 January by 29 January.

5. Errors in application

• If the form contains errors, Companies House are likely to reject it and return it to you.

6. Land Registry

• Once the registration has been completed at Companies House, you should then proceed to register the charge at Land Registry. This must be within the priority period afforded by the original 'Official Search priority' application.

Visit our Companies House website to find out more information.

Please note: this information is guidance and not legal advice.

Please do not use the documents below for any new mortgage offers.

Standard BTL Mortgage Conditions: 2018 (June 2018)

Standard BTL Mortgage Conditions: 2012 (June 2014)

Deed of Guarantee (2018)

Standard Security (2018)

Mortgage Deed - Standard BTL (2018)