Mortgages

Requirements to ensure a quick process

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Obtaining a mortgage
is a significant step.

 

We are delighted that you have considered us to be your mortgage partner and we want to make the process as simple and as stress-free as possible for you.

The following is a check list of items/actions that you will need to have in place/complete so that the legal process can be finalised as quickly as possible.

 

Before you apply you should obtain:

 

  • Tax clearance certificate.
  • Job letter confirming employment and your most recent salary slip.
  • Banker’s Report for self-employed persons along with copies of the firm’s financial statements for the last three (3) years.  Accounts for the current year, as well as projected data should be included.  These statements must be authenticated by a qualified accountant or similarly qualified professional.

 

Have your documents ready

  • Two forms of valid photo identification.
  • Recent utility bill in your name (no older than three months).
  • Supporting documents if there is a name change
  • (marriage certificate etc.).

 

Purchase of property

 

  • Letter from vendor stating agreed purchase price for the property, a brief description of the property including the location of the property, the name and address of the vendor together with the contact details including the telephone number of the vendor’s attorney-at-law.
  • Copy of Certified Surveyor’s Plot.
  • Valuation Report from an approved valuer accredited by the Barbados Estate Agents and Valuers’ Association (BEAVA) or approved by the Credit Union.
  • Note: Valuations in excess of one year shall be deemed invalid for the assessment of the loan and an updated valuation shall be required.

 

Construction/Renovation

 

  • Signed Builder’s estimate with name, address and contact information of the builder/contractor, together with a signed Builders Fixed Price Contract outlining the anticipated stages of progress and related costs.
  • Quantity Surveyor’s report prepared and signed by a quantity surveyor who is a member of the Barbados Quantity Surveyors’ Association.
  • Copy of Certified Surveyor’s Plot.
  • Application and Permission to Develop Land and an original and copy of the Approved Plans from
  • the Town & Country Planning Department.
  • Town & Country Planning Builder’s Start
  • Certificate/ Receipt.
  • Approval from the Ministry of Health.
  • A copy of most recent Land Tax Bill as well as a
  • Land Tax Clearance Certificate (where applicable).
  • Confirmation of the payment of water rates
  • (where applicable).
  • Where a chattel house is being placed on rented land, a landlord’s certificate or certification of a long-term tenancy arrangement for a term not less than the loan repayment period.  The landlord must also provide a copy of their land tax bill as evidence of ownership.
  • Original title deeds as proof of ownership of property

 

Consolidation of outstanding debt

 

  • Confirmation of balances outstanding from the finance company.
  • Valuation Report from an approved valuer accredited by the Barbados Estate Agents and Valuers’ Association (BEAVA) or approved by the Credit Union.

 

Do you really own your property?

 

  • Do you or the person offering security to the Credit Union in the form of a house and land or land only have full legal right to the property? If a person has died and left you property either under a Will or you are entitled by law to that person’s property, Letters Testamentary or Letters of Administration will need to be taken out first and then a Deed of Assent prepared and registered in your favour. Where there are no original title deeds, you may need to have the title deeds restored or commence a foreclosure suit.  All of these are things which you should confirm and work through with your own Attorney-at-Law before seeking a loan.  Issues relating to legal ownership can significantly delay the legal process.
  • If you are seeking a loan from the Credit Union to refinance a loan you hold with another financial institution, try to obtain copies of your title deeds ahead of time to share with our legal department.  We will need to see these copy documents in order to get moving quickly on your legal matter.
  • If you formerly held a mortgage with another financial institution which you have repaid in full and you are in possession of your original title deeds, you will need to have a Release prepared and registered at the Land Registry. If this is not done, the Credit Union’s legal department will have to complete the process for you before the legal work begins and this can sometimes cause delays.
  • If you legally own the property that is being offered as security along with another person, that person will also have to be joined in the mortgage to the Credit Union
  • with you.
  • If you are married (even if temporarily or permanently separated but not divorced) or if you have a common law spouse living with you in the property to be mortgaged, that person will be asked to join in the mortgage with you as a surety. This process is to legally protect both the Credit Union’s interest in the mortgage and that of your husband/wife or spouse. These persons need to know ahead of time of your proposed borrowing using the property in which you currently reside or formerly resided together even if they do not make the loan application with you and you must obtain their consent to act as a surety in the mortgage. If your husband/wife or spouse does not consent then we will be unable to complete the legal work on your approved mortgage loan unless your husband/wife/common law spouse agrees to sign a Deed of Postponement of Claim.

 

Insurance is essential

 

  • In most cases, you will be required to produce evidence of property insurance (comprehensive/fire) and/or term/whole life insurance.
  • Insurance policies can take around 3 months to process so it is important that you make an application to your insurance company as soon as your loan has been approved.  The Credit Union has property and term (mortgage) insurance policies in place for its members with a specified insurance provider. You can ask your Loans Officer about this service.
  • Alternatively, you have the option of utilizing our in-house brokerage service Capita Insurance Brokers. Call them today at 431-4796 or 431-4762.

 

Do you have to pay anything up front?

 

Quantity surveyor’s & valuer’s reports

 

  • A valuation fee related/specific to the type of dwelling, i.e. single story, split level or two story building, must accompany the mortgage application form. All fees in respect of the valuations are to be borne by the borrower(s) and paid directly to the Quantity Surveyor or Valuer.

 

Entrance deposit

 

  • All applications will be subject to a minimum deposit of $3,500.00 for residential loans and $5,000.00 for commercial loans, which is placed in a mortgage investment share record on your account and must be paid prior to the processing of the loan.
  • Where members’ unpledged (available) shares/deposits exceed $3,500.00 (residential loans), or $5,000.00 (commercial loans), they may opt to transfer this entry deposit amount to the investment share record, by completing the organisation’s official transfer form.  Where shares/deposits are pledged to an existing loan and the selected loan is to be consolidated with the mortgage, this option may also be exercised.
  • The Credit Union will pay interest twice a year on these deposits at a rate to be determined from time to time by the Board of Directors.
  • All members applying for mortgage finance must save a minimum of $50.00 per month and maintain a minimum of $500.00 in their Primary Share Account.  These funds will be pledged and shall not be available for qualifying for other loan facilities.

    The legal work relating to a mortgage or a loan can be a simple and seamless process. Carefully review this check list, tick what you already have in hand and start looking after what may be outstanding.

    Let us work together to have your financial goals realised!

 

Points to remember after your loan and security requirements are finalised

 

Keep your land taxes current - We offer a loan facility to help with this, if required.

Maintain your insurance - Insurance is for the benefit of you and your family should anything happen while the loan is still in place. Protect them!

Keep your loan payments current - If you feel you will experience any difficulty at all in meeting a payment, immediately contact your loan officer.

Keep your water rate payments current.

Do not negotiate loans with other financial institutions without first speaking with your Credit Union. This will help you to avoid financially over burdening yourself.

You are the reason we exist and we are here to help. Whatever the financial need, contact us and we will be more than happy to assist you in any way that we can.

Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL) logo

Call us: (246) 622-9000

Toll-free 1-866-800-6146

UK Freephone 0808-234-1327

Fax: (246) 437-8745

E-mail: contact@bpwccul.bb

This is where you belong

© Barbados Public Workers’ Co-operative Credit Union Limited