STANDARD LIFE ASSURANCE LIMITED FUTUREPERFECT MORTGAGE TERMS AND CONDITIONS (ENGLAND AND WALES) 2009

Transcription

1 STANDARD LIFE ASSURANCE LIMITED FUTUREPERFECT MORTGAGE TERMS AND CONDITIONS (ENGLAND AND WALES) 2009 LOANS SECURED ON FREEHOLD AND LEASEHOLD PROPERTY IN ENGLAND AND WALES YOU SHOULD KEEP A COPY OF THIS DOCUMENT FOR FUTURE REFERENCE

2 FUTUREPERFECT MORTGAGE TERMS AND CONDITIONS (ENGLAND AND WALES) Meanings of words and expressions 1.1 Certain words and expressions in this Agreement have the following meanings: Agreement means the Offer Document (as varied from time to time), the Legal Mortgage and the Mortgage Terms and Conditions; Bank means Standard Life Bank plc, a public limited company registered in Scotland (Registered Number SC173685) and having its Registered Office at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH; Confirmation Form means the confirmation form referred to in the Offer Document; Designated Account means a personal account held in the United Kingdom with a bank or building society in your name from which your Monthly Payments will be collected; Drawdown means what happens each time you ask us to advance money to you under this Agreement and we do it. A Drawdown can be either an Initial Drawdown or a Further Drawdown; Early Repayment Charge is the charge (if any) specified in the Offer Document for early repayment; Environmental Notice means any notice issued under the provisions of sections 78A to 78YC of the Environmental Protection Act 1990 (remediation of contaminated land), section 161A of the Water Resources Act 1991 (pollution of water) or any other applicable law in the United Kingdom that relates to the pollution or protection of the environment or harm to or the protection of human health or the health of animals or plants and that relates to the Property or any property neighbouring the Property; Expiry Date means: if there is a date or term or period specified in the Offer Document for final repayment of the borrowing made available to you under it, that date or the end of that term or that specified period; or

3 if there is no such date or term or period specified in the Offer Document, the date of a demand made by us; Further Drawdown means any Drawdown that is advanced to you under this Agreement and that is not the Initial Drawdown; House Price Index" means an index comprising house price statistics that is compiled and published by the Department for Communities and Local Government from time to time; Initial Drawdown means the initial advance of money made to you under your Mortgage; Legal Mortgage means any legal mortgage or charge granted to us by you over the Property in which the Mortgage Terms and Conditions are specifically incorporated and which, for the avoidance of doubt, includes the Mortgage Terms and Conditions; Maximum Amount means the amount shown in the Offer Document as the Amount we can lend you ; Monthly Payment means at any given time the total of the amounts that we have told you must be paid to us monthly; Mortgage means the total borrowing opportunity set out in the Offer Document and at any time made available to you under this Agreement; Mortgage Terms and Conditions means the terms and conditions set out in this document; Offer Document means the latest offer document we supply to you to let you borrow money from us on the security of the Property (which includes any and all other documents stated in that document to form part of it); Outstanding Loan means at any time the aggregate amount of all Drawdowns less the total of all repayments of the capital of your Outstanding Loan made up to that time; Outstanding Loan Liabilities means your Outstanding Loan and all interest payable on it, all the costs, payments and expenses you may owe us under this Agreement and the costs of us protecting, defending and enforcing our rights as the providers of your Mortgage; Property means the property referred to in the Offer Document as the property that is to be our security for your Outstanding Loan Liabilities and includes each and every part of such property and all its fixtures and fittings; Standard Life means Standard Life Assurance Limited, a company registered in Scotland (Registered Number SC286833) and having its Registered Office at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH, which expression will include its successors in title and assignees or other transferees and those

4 deriving title through or under it, whether by way of absolute transfer or other disposal or by way of security only and whether in relation to the whole or to part and where the context is appropriate its appointed agent or the appointed agent of any persons so deriving title or any trustee for Standard Life or any other person; Standard Life group means Standard Life and any other subsidiary (as defined by section 1159 of the Companies Act 2006); we, us, our and the creditor refer to Standard Life as defined above; and you, your and Borrower refer to the individual to whom the Offer Document is addressed (or any of that individual s personal representatives, including, but not limited to, any executor or trustee). If the Offer Document is addressed to more than one individual you, your and Borrower refer to each of them separately and also to all of them together. 1.2 In this Agreement: a reference to any legislation includes any changes which are made to that legislation, any provision which replaces it and any statutory instrument or other subordinate legislation made under it; a reference to any gender is a reference to all genders; a reference to the singular is a reference to the plural and the other way around; and all headings and notes are for information. They are not to be used to interpret anything. 1.3 If there is any difference between the terms and conditions of the Offer Document and the Mortgage Terms and Conditions, the terms and conditions of the Offer Document will take priority, except however that if there is a difference between any change to the Mortgage Terms and Conditions made under Condition 21 and the terms and conditions of the Offer Document, the change will take priority. 2. Responsibilities under a joint mortgage When a Mortgage is held by more than one Borrower, each Borrower is individually responsible for adhering to the terms of this Agreement, for example for making sure each Monthly Payment is made. This means that if any term of this Agreement is not adhered to, we can take action against any one, all or any combination of the Borrowers. 3. Monthly payment (calculation and payment) 3.1 After the Drawdown, interest on your Outstanding Loan will: build up on a daily basis and become payable (as the interest component of the Monthly Payment) monthly in arrears; and

5 3.1.2 subject to the provisions of this Condition 3, be charged at the rates specified in the Offer Document. 3.2 Interest on fees, costs, charges, expenses and arrears will be charged at the then current mortgage standard variable rate of the Bank, unless a higher variable rate of interest is applicable to your Outstanding Loan at that time (or would have been applicable were you not at that time gaining the benefit of an incentive (such as a fixed, capped or discounted) interest rate), in which case the interest on fees, costs, charges, expenses and arrears may be charged at that higher variable rate. The relevant rate of interest on fees, costs, charges, expenses and arrears will be charged both before and after any court judgment being awarded in our favour. 3.3 Where the interest rate applicable to your Outstanding Loan is variable, we may, at all times acting reasonably, make variations to it if we believe the variation is needed for one or more of the following reasons (which may relate to circumstances existing at the time or which we reasonably expect to apply in the near future): to reflect, in a proportionate manner, changes in legal or regulatory requirements, including decisions or recommendations of any court, ombudsman, regulator or similar person; to reflect, in a proportionate manner, the introduction, withdrawal or amendment of any code of practice or industry guidance; to reflect changes in the general practice of banks and other organisations operating in the residential mortgage market offering similar mortgage products to us; to reflect, in a proportionate manner, any increase or reduction in costs reasonably incurred by us in operating our mortgage products; to reflect, in a proportionate manner, changes in the costs to us of funding our mortgage lending business; and where it is necessary for us to maintain our financial strength in the interests of all our customers. For the avoidance of doubt, we do not have to change a variable rate to reflect a change in the Bank of England s base rate (unless the Agreement states that the variable rate tracks the Bank of England s base rate). 3.4 We will give you reasonable notice of any variation to the rate of interest applicable to your Outstanding Loan, and of when the variation will take

6 effect, as soon as we can by letter and/or by any other means of communication (such as ) that may specifically be agreed between us from time to time in the future. 3.5 Following a change in the interest rate applicable to your Outstanding Loan, your Monthly Payment will be recalculated. An increase in the interest rate will normally result in an increase in your Monthly Payment. A decrease in the interest rate will normally result in a decrease in your Monthly Payment. 3.6 An increase in your Outstanding Loan caused by a Further Drawdown will normally result in an increase in your Monthly Payment. A decrease in your Outstanding Loan caused by an early repayment will normally result in a decrease in your Monthly Payment. 3.7 In certain circumstances the interaction of Conditions 3.5 and 3.6 may give rise to an unexpected change to your Monthly Payment. For example:- 4. Repayment in the event of an increase in the interest rate applicable to your Outstanding Loan, your Monthly Payment may nonetheless decrease if you have made a recent early repayment; or in the event of a decrease in the interest rate applicable to your Outstanding Loan, your Monthly Payment may nonetheless increase if you have recently been advanced a Further Drawdown. 4.1 Your Outstanding Loan must be repaid on or by the Expiry Date in accordance with the specific requirements set out in the Offer Document. 4.2 We will apply the money received from you as Monthly Payments to interest in the first place. Subject to any prior agreement between us, any left over after that will be applied to your remaining Outstanding Loan Liabilities as we reasonably decide. 4.3 Please note that even if the value of the Property falls below the value of your Outstanding Loan Liabilities, you will still remain liable for repayment of your Outstanding Loan Liabilities in full. 4.4 If you incur an Early Repayment Charge (as detailed in the Offer Document) then we can take it out of any payment you make to us (whether or not you made the payment for that purpose). 5. The Monthly Payment date 5.1 You must pay us the Monthly Payment on the date we agree and, from then on (unless we agree otherwise in advance), on the same day of each month following.

7 5.2 You must give us a variable direct debit instruction to collect the Monthly Payments from a Designated Account in your name or, where your Mortgage is in joint names, a Designated Account in the name(s) of one or all of you. 6. Further Drawdowns 6.1 The Offer Document sets out the Maximum Amount that we agree to lend to you, subject to the terms and conditions of this Agreement being met at the time of the Drawdown. 6.2 You may ask us to review this Agreement at any time to increase the Maximum Amount. If we agree to do so, and unless we tell you otherwise, this will take effect as a variation of your Mortgage and may involve the variation of other terms and conditions of this Agreement. 6.3 You should be aware that if you ask us to increase the Maximum Amount and we agree, your Outstanding Loan will increase if you are subsequently advanced a Further Drawdown, which in most cases will lead to a corresponding increase in your Monthly Payment. 6.4 In addition to the other Mortgage Terms and Conditions, in order to be able to be advanced a Further Drawdown you must confirm to us in writing that you will be able to repay us. 6.5 It is a further pre-condition of each and every Further Drawdown that the Further Drawdown must not cause your Outstanding Loan to exceed 95% of the value of the Property at the time you ask for that Further Drawdown. In order to ensure that this pre-condition is met, the following may apply: if the Further Drawdown would cause your Outstanding Loan to exceed 95% of the value (as shown in the Offer Document) of the Property as adjusted in accordance with the House Price Index, then we can ask for a new valuation to be obtained at your reasonable expense from a valuer acceptable to us; and the Further Drawdown must not cause your Outstanding Loan to exceed 95% of the value of the Property according to that new valuation. 6.6 Every time you ask for a Further Drawdown you automatically confirm to us that nothing has happened that would entitle us to demand immediate repayment of any Outstanding Loan Liabilities. 6.7 Without affecting Conditions 6.9 or 10.3 you cannot be advanced a Further Drawdown if anything in the information given with the Confirmation Form, or your personal circumstances generally, in our reasonable opinion changes or change materially in a way that increases the risk to us of lending you money. 6.8 Please note that repayments of the capital of your Outstanding Loan may not be released to you as a Further Drawdown. 6.9 We will not be required to agree to any request from you for a Further Drawdown while you are in arrears with any of your Monthly Payments or any other amounts owed to us under this Agreement.

8 6.10 We reserve the right to charge a fee for arranging a Further Drawdown. 7. Our rights and security 7.1 We can make and carry out decisions to do or not to do things that we are entitled to do relating to the Legal Mortgage or to any other security or commitment for any of your liabilities. Without affecting Condition 27, this will never entitle you to claim that we have given up any of our rights, except any that we have specifically agreed in writing to give up. 7.2 The Legal Mortgage is security for all of your liabilities, debts and commitments of any kind to us. 7.3 The Legal Mortgage is a continuing security and will remain in full force and effect as a continuing security until released by us. 8. Your obligations You agree with us to do the following:- 8.1 complete to our reasonable satisfaction any building that is at any time in the course of erection on the Property; 8.2 put and keep the Property in good and substantial repair and condition to our reasonable satisfaction; 8.3 observe and perform all obligations and requirements (if any) affecting the Property or its use and enjoyment and the tenant s obligations and requirements (if any) in the lease under which it is held; 8.4 punctually pay all rates, taxes, rents, ground rents, outgoings, charges, service charges and impositions payable in respect of the Property, repay us for any and all of our reasonable losses reasonably incurred in respect of these and produce receipts for every such payment if asked for. For the avoidance of doubt, we may treat any such rates, taxes, rents, ground rents, outgoings, charges, service charges and impositions that we pay on your behalf as part of your Outstanding Loan Liabilities; 8.5 unless we otherwise agree in advance in writing (which agreement you must request in writing and which we will not unreasonably refuse) not make or allow to be made any structural or material alteration or addition to the Property or make or allow any change in the use of the Property that would require planning permission or approval under any building regulations; 8.6 comply in all respects with all laws (including those relating to planning and environmental matters) that apply to the Property; 8.7 observe and perform all the requirements and regulations of the local and other authorities in respect of the Property; 8.8 as soon as possible give us any information about the Property that we may reasonably ask for;

9 8.9 within seven days of you receiving any notice, order or proposal given, made or issued by any competent authority concerning the Property send it to us, make any reasonable representations about it that we ask you to make, and, unless we instruct you to the contrary, without delay take all reasonable and necessary steps to comply with it; 8.10 unless we agree that you do not need to do so in advance in writing (which agreement you must request in writing and which we will not unreasonably refuse), apply for any improvement or similar grant in respect of the Property; 8.11 where the Property is leasehold, inform us of any notice served under the Leasehold Reform Act 1967 in relation to the Property, which you may not apply for without our prior written agreement (which agreement you must request in writing and which we will not unreasonably refuse). You will sign in our favour, in a form we may reasonably ask for, a Legal Mortgage of the freehold or any new lease that you obtain following service of the notice; 8.12 use the Property solely as a single private dwelling and as your only or main residence; and 8.13 do anything and/or sign all documents that we may reasonably request in order to: perfect the security created or intended to be created under the Legal Mortgage; or enable us to exercise our rights, powers and remedies under the Legal Mortgage or law. 9. Restriction on letting etc. 9.1 The power by law of a mortgagor to lease, agree to lease and accept surrenders of leases will not apply to the Legal Mortgage. 9.2 You will not, unless we otherwise agree in advance in writing, (which agreement you must request in writing and which we will not unreasonably refuse), grant or agree to grant or renew any lease or tenancy of the Property or licence to occupy the Property, or part with or share possession of the Property. 10. Our powers 10.1 For the purposes of the Law of Property Act 1925 amounts due by you under your Mortgage will be treated as due, and the power of sale available to us by law (as extended by the Mortgage Terms and Conditions) and the other powers set out in section 101 of that Act will arise, one month after the date of the relevant Legal Mortgage The power of sale available to us by law applies to the Legal Mortgage free from the restrictions set out in section 103 of the Law of Property Act 1925.

10 10.3 If: any of the information you gave us was not true or was incomplete or misleading at the time when you signed the acceptance of the Offer Document; any two consecutive Monthly Payments are not paid in full; you apply for an interim order or enter into any composition or arrangement with or for the benefit of your creditors generally or are adjudicated bankrupt; you fail to pay rents (including, but not limited to, ground rents) or service charges that are due to your landlord in respect of the Property; the Property is compulsorily purchased or requisitioned; you surrender possession of the Property to us; you abandon the Property; or you breach any of the major terms or conditions of this Agreement; then, if, having made reasonable efforts to reach agreement with you or your representative, if appropriate) to rectify or remedy that (where capable of rectification or remedy), we demand this, you will have to repay us immediately at the time of our demand: your Outstanding Loan Liabilities in full; and any other debts, liabilities or commitments that we are entitled to treat the Legal Mortgage as covering. We will also be entitled, at the time when any of the events set out in Conditions to has occurred, to cancel our commitment to advance any amounts to you as Further Drawdowns At any time after the Outstanding Loan Liabilities have become due and repayable we may, having provided you with all information necessary to enable you to make repayment of your Outstanding Loan Liabilities and notified you of our intention to take steps to repossess the Property: take possession of the Property; appoint a receiver of the Property; and exercise all the other powers given to us as mortgagees by the Law of Property Act 1925.

11 10.5 At any time after the Outstanding Loan Liabilities have become due and repayable, we or any receiver appointed by us may if we or he consider(s) it necessary or desirable for the protection of our security or the better realisation of our security, and without being treated at law as a mortgagee in possession or becoming liable to account as such: carry out repairs, renewals or improvements to the Property (for example to mend a blocked drain or leaking roof); carry out any building or development works on the Property and apply for and obtain any appropriate planning or other consents and approvals; and exercise the statutory powers of leasing or accepting surrenders of leases given to us by law without the restrictions set out in sections 99 and 100 of the Law of Property Act 1925; all as we or he may in the reasonable exercise of our or his discretion think fit After taking possession of the Property, and following written notification from us to you that we are going to do this, we or any receiver appointed by us may, as your agent and at your expense, remove, store, sell or otherwise deal with any goods or animals that you have not removed from the Property. Except where we or any receiver may have acted negligently, we will not be responsible for any loss caused by our doing this. We will return to you all proceeds received less all reasonable expenses of dealing with those goods or animals We or any receiver appointed by us may in the reasonable exercise of our or his powers under the Legal Mortgage employ and pay agents who will be your agents, and you will be responsible for their remuneration at such reasonable rates as we or any receiver may reasonably agree We will exercise our powers under the Legal Mortgage as quickly as we can, to minimise any additional expense you may suffer as a result of us exercising those powers Where the Property has been let furnished, we or any receiver may apply all the rent as if it were rent of the Property and need not make any apportionment of the rent in respect of any furniture or goods If we realise the Legal Mortgage and the net proceeds are insufficient to pay off your Outstanding Loan Liabilities, then, when we tell you, you will immediately pay us the shortfall as arrears with interest chargeable in accordance with Condition 3.2 until repayment. 11 Further provisions relating to a receiver appointed by us 11.1 Any receiver appointed by us may or may not be one of our employees A receiver may charge such amount for his services as we reasonably agree with him.

12 11.3 Section 109(8) of the Law of Property Act 1925 will be amended so as to allow a receiver to pay any money owing by you in whichever order of priority he thinks appropriate. 12 Our further power to enter and repair, etc While the Legal Mortgage continues you will permit us and our agents, after reasonable notice, to enter and view the Property You will remedy any material defect in the repair or condition of the Property within such reasonable time as we may stipulate If you fail to remedy any such material defect within the required time, or if you fail to meet any other obligation in the Mortgage Terms and Conditions as to the carrying out of any works on the Property then we or any receiver appointed by us may enter the Property with workmen and others and may remedy such defect or breach and, without affecting Condition 20.2, recover the reasonable cost of doing so from you No exercise of any power contained in this Condition 12 will make us liable as mortgagee in possession. 13 Property insurance 13.1 Subject to the other provisions of this Condition 13, you must keep the Property insured under a comprehensive buildings insurance policy (index linked) to an amount at least equal to its full reinstatement cost (including, without limitation, associated architects, surveyors, consulting engineers, legal and other fees, demolition, clearance and shoring-up costs), such policy to include fire, flood and such other risks in such amounts and be arranged with such insurers and subject to such conditions as we may from time to time reasonably stipulate or agree You must comply with any other insurance conditions set out in the Offer Document It is your responsibility (not ours) to make sure that the necessary insurance cover is in place, the amount of insurance and risks covered are adequate and you pay all insurance premiums as they fall due. As soon as possible after we ask for them, you will produce the receipts for the most recent insurance premiums payable or provide other evidence, satisfactory to us, as to the insurance terms and payment of the premium If you hold the Property under a lease that requires the Property to be insured with insurers nominated in the lease or by the landlord then we may accept such insurance as meeting your obligations under Condition If we become aware that you have failed to insure the Property in accordance with this Condition 13 we may (but do not have to) do so on your behalf. You will, as soon as possible after we ask for them, repay to us all reasonable insurance premiums we pay. For so long as these amounts remain outstanding they will form part of your Outstanding Loan Liabilities, and we may charge interest on them in accordance with Condition 3.2 until repayment.

13 13.6 You will not permit, suffer, do anything, or fail to do anything that may make the insurance of the Property invalid We may retain, and are not required to account to you for, any commission paid to us in respect of insurance arranged through any agency we hold We will have full power, and you assign to us all rights, to deal with the insurers on all matters arising under the policy including power to settle any claim and receive any insurance proceeds. Until we have informed you or the insurers otherwise you may do anything with them except: cancel the policy or reduce the amount of the cover; or receive any proceeds of the policy We may require any insurance proceeds to be applied (at your option) in making good the insured loss or damage or in or towards repaying your indebtedness to us. If you receive any such proceeds you will hold them separate from your own money in trust for us, to be applied as you have chosen. Once those proceeds have been so applied, either: you will make good any continuing shortfall from your own resources; or we will pay any amount left over to you or any other person entitled to it. 14 Environmental matters Notwithstanding any other provision in the Legal Mortgage: we are entitled to demand any works to be carried out or to carry out any works ourselves in any case where they are required either to remedy any circumstances that would lead to the issue of an Environmental Notice or to comply with an Environmental Notice; 14.2 you will immediately notify us if you become aware of any circumstances that may lead to the issue of an Environmental Notice or if an Environmental Notice is issued and in either case will provide written details of the steps you intend to take to remedy the circumstances or comply with the Environmental Notice; 14.3 you will permit us to inspect the Property at any time, where inspection may include (but is not limited to) the taking of samples or the making of trial pits or boreholes; and 14.4 you will not create any circumstances that could lead to the issue of an Environmental Notice. 15 Related Rights 15.1 In this Condition 15 Related Rights means: any option to purchase the freehold or superior leasehold or a new lease of the Property;

14 any right to receive money that becomes payable in respect of the Property or following any damage to or depreciation of the Property including (but not limited to) money payable for mining subsidence or compulsory purchase; any share or membership rights in a residents association or management company relating to the Property; any guarantees or insurances relating to the Property including guarantees for work done to the Property; and any other benefit or right of any kind relating to the Property or its construction or title As further security for your Outstanding Loan Liabilities you assign the Related Rights to us and agree that we have full power to get in, exercise and deal with all the Related Rights as if we were absolutely and beneficially entitled to them If you receive any money in respect of any Related Rights you will hold it in trust for us Any money received in respect of any Related Rights, after deducting all reasonable costs reasonably incurred by us in relation to the Related Rights, will, unless we agree or stipulate otherwise in writing, be applied in reducing your Outstanding Loan Liabilities. Any amount left over will be paid to you or any other person entitled to it. 16 Transfers 16.1 By entering into this Agreement you give us permission to, without contacting you again about this, assign, novate, charge or otherwise transfer all or any of our rights, benefits and/or obligations under and/or ancillary to this Agreement. To the extent that we agree with any person to assign, novate or otherwise transfer our obligations to that person we will be released from further obligations to you under this Agreement and such person will take on obligations towards you that are identical to those released obligations. We will only novate or otherwise transfer our obligations to a person that we consider capable of fulfilling those obligations and to the extent that our regulator, and the law generally, allows us to do so If we do any of the things mentioned in Condition 16.1, the person to whom we assign, novate or otherwise transfer our rights, benefits and/or, as applicable, obligations will take over instead of us the rights, benefits and/or, as applicable, obligations that we had before that assignment, novation or other transfer If we do or propose to do any of the things mentioned in Condition 16.1, we have your permission to give the transferee or proposed transferee and any other relevant parties in connection with the assignment, novation and/or transfer any information contained in your application for your Mortgage or any other supporting documentation which has been subsequently provided, or any other information or documents relating to you, the Property or the history of the conduct of your Mortgage.

15 16.4 The terms of this Agreement are personal to you. Therefore, you may not assign, charge, transfer or otherwise dispose of all or any of your rights and/or obligations under this Agreement unless we otherwise agree in advance in writing (which agreement you must request in writing and which we will not unreasonably refuse). 17 Power of attorney As security for your obligations under the Legal Mortgage, but without affecting Condition 8.13, you irrevocably appoint us, and any receiver appointed by us, together and individually, to be your attorney with the following powers as your attorney, in your name and on your behalf (at all times acting reasonably): to execute and deliver any deed or document relating to the Property and/or your Mortgage; 17.2 to exercise any rights or powers that you have in respect of the Property or the other rights assigned to us and do anything else that we or he may think necessary or desirable to perfect or protect our security under the Legal Mortgage; and 17.3 to exercise any powers contained in the Legal Mortgage or powers to preserve the Property or the other rights assigned to us (or the value of them). 18 Redeeming your mortgage 18.1 Unless we agree otherwise in writing, you may not redeem the Legal Mortgage without at the same time redeeming every other mortgage or charge that we then hold from you. Accordingly, section 93 of the Law of Property Act 1925 will not apply to the Legal Mortgage. Subject to Condition 18.1 and to the provisions of the Offer Document: you may at any time on giving one month s notice redeem the Legal Mortgage by repaying all of your Outstanding Loan Liabilities, whereupon we will at your expense discharge the Legal Mortgage; and you may make payments of money secured by the Legal Mortgage in advance. 19 Charges and expenses 19.1 You must pay us all the fees and charges affecting your Mortgage. Details of these fees and charges (including those relating to dishonoured cheques and failed direct debit mandates) are contained in our tariff of charges leaflet for residential mortgages. Our tariff of charges leaflet will be sent to you by post from time to time but is also available on request. We will tell you the charge for any additional service we may provide before we provide that service and at any time you ask.

16 19.2 We may, at all times acting reasonably, change the amounts of our fees and charges and introduce new or different fees and charges for any one or more of the following reasons (which may relate to circumstances existing at the time or which we reasonably expect to apply in the near future): to reflect, in a proportionate manner, changes in legal or regulatory requirements, including decisions or recommendations of any court, ombudsman, regulator or similar person; to reflect, in a proportionate manner, the introduction, withdrawal or amendment of any code of practice or industry guidance; to reflect changes in the general practice of banks and other organisations operating in the residential mortgage market offering similar mortgage products to us; to reflect, in a proportionate manner, any increase or reduction in costs reasonably incurred by us in operating our mortgage business; because a service relating to our mortgage business is provided to us by a third party and for good commercial reasons we decide to use another third party or the third party who provides the service no longer does so; to reflect changes in technology or security design; and to reflect the costs of making improvements which are of benefit to you. Where we make a change or introduction in accordance with this Condition, we will give you 30 days written notice of such a change or introduction, unless changes in the law, taxation, and/or regulations require that it takes effect earlier than this date. In that case, notice of any such change will be given as soon as reasonably practicable If after we demand payment from you, you fail to pay any of the fees, costs, charges and expenses that are set out in Conditions 19.1 and 20, you will have to pay us interest on them. Interest will be charged from the date of our demand in accordance with Condition 3.2 until payment In exceptional cases we may grant a request for a transfer of funds using the Clearing House Automated Payment System (CHAPS). We will charge you for this service, but we will inform you beforehand.

17 20 Reimbursement and compensation 20.1 You will, with regard to the Property, reimburse us and fully compensate us in respect of all actions, proceedings, claims, reasonable losses, reasonable expenses and damages that we may face or suffer arising out of any breach of any undertaking, obligation or stipulation by you You will, as soon as we make a demand for this, reimburse us and fully compensate us in respect of all our reasonable losses and reasonable costs, charges and expenses (including legal costs) that are not specified in our tariff of charges leaflet for residential mortgages but that are reasonably incurred by us in any way to do with the protection, realisation and rightful enforcement of this Agreement, the collection of any money due under this Agreement, the completion of buildings at the Property, the repair and insurance of the Property, the grant of any discharge of the Legal Mortgage or the exhibition or provision of a copy of any document we hold. 21 Changes to the Mortgage Terms and Conditions 21.1 We may change the Mortgage Terms and Conditions, at all times acting reasonably, for one or more of the following reasons (which may relate to circumstances existing at the time or which we reasonably expect to apply in the near future): to reflect, in a proportionate manner, changes in legal or regulatory requirements including decisions or recommendations of any court, ombudsman, regulator or similar person; to reflect, in a proportionate manner, the introduction, withdrawal or amendment of any codes of practice or industry guidance; to reflect changes in the general practice of banks and other organisations operating in the residential mortgage market offering similar mortgage products to us; to reflect changes in the way we operate your Mortgage (including changes in the technology we use) because of the reasonable steps we have taken to change our systems for managing your Mortgage; or reasons outside our control; to make them clearer; or where you consent We will always give you 30 days' written notice before any changes take effect, unless changes in the law, taxation and/or regulations require that these take effect earlier than this date. In that case, notice of any such change will be given as soon as reasonably possible.

18 21.3 If there have been significant changes to the Mortgage Terms and Conditions in any one year, we will send you a copy of the new Mortgage Terms and Conditions or a summary of the changes A variation to the interest rate applicable to your Outstanding Loan made in accordance with Condition 3 will not be treated as a change to the Mortgage Terms and Conditions for the purposes of this Condition Confidentiality We will treat all your personal information as private and confidential (even when you are no longer a customer). We will not reveal your name and address or details about your Mortgage to anyone, including other members of the Standard Life group, other than in the following cases: if we have to give the information by law; 22.2 if there is a duty to the public to reveal the information; 22.3 if it is in our interests to give the information. This will not be used as a reason for giving information about you or your accounts (including your name and address) to anyone else including other companies of the Standard Life group for marketing purposes; 22.4 to the Bank for the purposes of the administration of your Mortgage; 22.5 in accordance with Condition 16.3; 22.6 if you ask us to reveal information or give your consent for us to reveal information; 22.7 to your last known financial adviser ( Adviser ) to whom we send a regular list of the names of his clients who have mortgages with us for commission payment purposes only; or 22.8 to other companies in the Standard Life group to enable us to carry out routine administrative tasks such as address changes. This helps to maintain consistent records for customers who have products with more than one company within the Standard Life group. For the avoidance of doubt, no sensitive personal data (as that term is defined at Section 2 of the Data Protection Act 1998 ( the 1998 Act )) will be transferred under this Condition Marketing and information protection 23.1 We will store personal information about you on computer systems and in manual records, which will be used only for purposes registered in accordance with the 1998 Act. You may ask for a copy of your personal information by sending a written request to us. We reserve the right to charge you any fee recommended by the Information Commissioner in accordance with the 1998 Act for any such request Information about your Outstanding Loan Liabilities may be disclosed to credit reference agencies where:-

19 you have fallen behind with your repayments; the amount owed is not in dispute; you have not made proposals satisfactory to us for repayment following formal demand; and we have given you at least 28 days notice of our intention to disclose We will not pass your personal details to other companies within the Standard Life group for marketing purposes without your written consent. We may, however, inform you of other products provided by us or by other companies within the Standard Life group that may be of interest to you. If you do not wish to receive this information, you must tell us. We will remind you at least once every three years that you can ask not to receive this information We will not send marketing material indiscriminately. We will ensure that all advertising and promotional material is clear, fair, reasonable and not misleading. 24. When do we need to be contacted? 24.1 You must let us know as soon as possible: of any change of name, address or marital status; if any statement we send you includes an item that appears to be incorrect; If you change your Designated Account; or if you believe there has been an unauthorised transaction on your Mortgage We should also be notified as soon as possible if a Borrower dies We may record phone calls. We may also monitor phone calls to help us improve customer service You should contact us if you have any queries or complaints concerning your Mortgage. We can provide you with more information about our internal complaints handling procedures on request We are a member of the Financial Ombudsman Service. Therefore, if you are not happy with the way a complaint or query has been dealt with by us, you can contact this independent external service. We can provide you with the contact address and phone number for the Ombudsman on request. 25. Circumstances beyond our control If we are unable to provide services to you due to circumstances beyond our reasonable control (including, but not limited to, fire, flood, industrial action or the failure of power supplies) we will not be liable for any loss suffered by you.

20 26. Notices 26.1 Unless stated to the contrary elsewhere in this Agreement, any notice or consent we give will be in writing and, unless the law requires something different, will be sufficiently given by us if sent by ordinary prepaid post to you at the Property. The notice or consent will be treated as having been served at the expiry of two days after the date of posting Where there are joint Borrowers notice given to one of you will be treated as having been given to all of you. 27. Waiver If we delay in giving you notice of any matter or in exercising any of our rights under this Agreement, that will not mean we have waived those rights. We reserve the right to enforce them subsequently. 28. Miscellaneous 29. Law 28.1 The powers available to us under the Legal Mortgage are in addition to all other powers and remedies that we have by law Each of the provisions of the Legal Mortgage is severable and distinct from the others and if at any time any one or more of them is ruled by a court of law to be illegal, invalid or unenforceable, this will not impair or affect the legality, validity or enforceability of the remaining provisions This Agreement is supplied to you in the English language. Any communication you receive from us about your Mortgage will also be in the English language. This Agreement will be governed by the law of England and Wales. 30. Direct debit guarantee scheme 30.1 The direct debit scheme enables us to credit variable amounts into your Mortgage from your Designated Account. We will only transfer funds using this scheme after having received a valid direct debit instruction from you. We guarantee to reimburse you as soon as possible if we make a mistake and do not transfer the correct amount from your Designated Account If you cancel a direct debit instruction from your Designated Account, you should let us know.

21 STANDARD LIFE ASSURANCE LIMITED Legal Mortgage SPECIMEN Date: The expressions set out below shall have meanings and effect respectively set opposite to them: The Borrower The Lender The Mortgage Terms and Conditions which expression includes the Borrower s executors and personal representatives and anyone claiming any right or interest from or through the Borrower. Where the Borrower is more than one person the singular includes the plural and all obligations of the Borrower are undertaken jointly and severally. STANDARD LIFE ASSURANCE LIMITED A company incorporated under the Companies Acts (Registered Number SC286833) and having its Registered Office at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH, which expression includes its successors and assigns. STANDARD LIFE ASSURANCE LIMITED FUTUREPERFECT MORTGAGE TERMS AND CONDITIONS (ENGLAND AND WALES) 2009 The Property Registered Land TITLE NUMBER ADMINISTRATIVE AREA Form of Charge filed at H M Land Registry under reference MD1020E

22 SPECIMEN 1. The Borrower (i) hereby undertakes to pay to the Lender all sums due and that may become due by the Borrower to the Lender whether on an account or on any other basis with interest and also all expenses of the Lender relating to this Legal Mortgage or the Property; (ii) with full title guarantee, charges the Property by way of Legal Mortgage and all the rights and interests of the Borrower in the Property and its proceeds of sale with the payment of all monies which the Borrower undertakes to pay to the Lender under (i) above. 2. A certificate signed by any manager of the Lender shall, in the absence of manifest error, be sufficient to fix and ascertain the total of the amount due to the Lender and secured by this Legal Mortgage. 3. This Legal Mortgage is a continuing security notwithstanding any settlement of account or other matter. 4. The Borrower assigns to the Lender all claims and rights to compensation payable now or in the future to the owner of the Property. 5. This Legal Mortgage is made for securing further advances. The Lender is obliged to make further advances and application is made to the Chief Land Registrar for a note to be entered on the Register to that effect. 6. This Legal Mortgage incorporates the Mortgage Terms and Conditions and the Borrower acknowledges having received a copy of them. The Borrower covenants to observe and perform the Mortgage Terms and Conditions. 7. The Borrower applies to the Chief Land Registrar to enter on the Register a restriction that no disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the charge dated [ ] in favour of Standard Life Assurance Limited referred to in the charges register. 8. This Legal Mortgage will take effect as a deed. Signed as a deed by the Borrower(s) in the presence of this witness/these witnesses: Borrower Signature of witness Full name Address Borrower Signature of witness Full name Address......

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