Mortgage Frequently Asked Questions

RAW mortgages are for non-UK resident individuals, companies and trusts who require a mortgage secured against a buy-to-let property in the UK. We can also lend to UK residents on UK buy-to-let property for a maximum term of 11 months.

Yes. Unlike mainstream lenders, we have no ‘tick-box’ approach when it comes to making lending decisions, and instead look at each applicant’s personal and financial situation as a whole. We have lent to hundreds of borrowers, each with their own unique circumstances.

No, we also provide loans for re-mortgage and equity release.

Our maximum term is 5 years, however we are more than happy to review cases for renewal upon maturity of the loan. If borrowers maintain their interest payments for the duration of the loan and the quality of the security has not changed dramatically, we are generally quite flexible when it comes to renewals. Our bridging loan product is made for a maximum term of 11 months but is not available for renewal.

The base rate determines the interest rate The Bank of England pays to commercial banks that hold money with it (which they typically do overnight every day). It influences the rates that those banks then charge people to borrow money or pay on their savings. RAW Mortgage loans are ordinarily linked to Bank of England Base Rate

The Bank of England reviews base rate 8 times per year, and it is used as a means to influence the UK economy.

Once the Base Rate has changed an email of notification will be sent confirming the new rate, your new monthly/quarterly payment amount and the additional interest that is applied.

In line with the Terms & Conditions of your Loan Agreement(s), the interest rate on the mortgage loan(s) secured on your property will reflect the new rate if you have a Tracker mortgage with us. You will be notified each time a base rate changes and your interest reminder, sent around the 13^th of every month, will reflect the new rate. Please ensure you review your interest reminders each month/quarter and pay the amount requested to ensure no penalty fees are applied.

As we apply interest in advance each month, the additional interest is based on the date the base rate changes and the remaining days left in the month to be charged at the newer rate.

A Loan ID is the unique reference we use to identify an individual loan.

A Loan ID is comprised of the first 5 letters of the borrower’s last name, a unique 4-digit number, and the year when your loan began.

e.g. David Robinson's Loan ID 'Robin 3456-2024'

The first 5 letters of your Loan ID will comprise of the first entity on your loan agreement. Therefore, it is common that the first 5 letters of your Loan ID will be in the name of the relevant company.

e.g. Clubhouse Limited with UBO David Robinson will have Loan ID ‘Clubh 3456-2024’

Your Loan ID can be found:

1. At the bottom of the front page of loan agreement
2. Within the subject line of all email correspondence from RAW

Don’t worry – there are other ways we can identify you and your loan!

A mortgage statement is a detailed record of all transactions on your mortgage account that relate to interest, fees or, where applicable, interest on account.

Yes! You can request a mortgage statement at any time by contacting [email protected].

You will also receive a mortgage statement attached to every periodic interest reminder.

Your encryption password is the postcode of the subject property. This password is all caps, with no spaces.

This postcode can be found within the definitions section loan agreement. Please note, this postcode may vary slightly to the postcode with which you are familiar, so it is important to use the postcode as stated in the Loan Agreement.

The mortgage statement that we provide in out periodic correspondence requires you to enter a passcode. This passcode is the postcode of the property against which your loan is secured.

During loan term: [email protected]

Monthly payers- your payment is to be received in our account by 24^th of each month.

Quarterly payers - your payment is to be received in our account by 24^th March, June, September, and December.

We recommend awaiting your periodic interest reminder before remitting payments, in order to ensure that you are remitting the exact amount owed. As such, we recommend that the 13^th of each month, or pay period is the earliest date for making payments.

Yes, we allow overpayments of interest. These funds will be posted to your account and be used to cover future interest charges. 

Monthly Interest payments – you will receive an ‘Interest Reminder’ email on 13^th of each month, or closest working day advising the amount to pay.

Quarterly Interest payments – you will receive an ‘Interest Reminder’ email on 13^th March, June, September and December, or closest working day advising the amount to pay.

Interest is calculated based on the average number of days in a month during a 360 day calendar year. Please see below example.

Monthly Interest = Loan Amount x Interest Rate x (30.4375/360)

Example:

Loan amount: £100,000, Interest rate: 9.5%.

Monthly Interest = £100,000 x 0.095 x (30.4375/360) = £803.21 

This is defined as any payment where the funds originated outside of the United Kingdom (England, Scotland, Wales and Northern Ireland).

We can only accept payments from a UK Bank Account in certain circumstances – contact us to discuss whether you are eligible.

Yes. Partial repayments must be over £10,000 or 10% of your total loan value. A fee may be charged; please see clause 7 of your loan agreement for more information.  

• Penalty Fee for Notice of Default
• Penalty Interest

In an ‘Event of Default’, RAW Capital Partners charges a communication fee to cover email, phone and postal correspondence relating to the Notice of Default. This is posted onto your mortgage account as ‘Penalty Fee for Notice of Default’. The fee is £150.

This ‘Event of Default’ triggers the Penalty Interest clause within your Loan Agreement under clause 5. Penalty Interest is charged at 2% above your mortgage rate for all days where your loan is in default. Penalty Interest will continue to be charged until the Event of Default is rectified.

Penalty interest is always charged at the start of the month, for all events of default within the previous month. For example, if you have rectified an event of default by February 13^th, you will receive a penalty interest charge on (or around) March 1^st for all days in default until February 13^th.

We are sympathetic to any difficulties that you may be having when making interest payments. If you feel that a Notice of Default has been issued erroneously, or that you have reasonable justification that your circumstances are exceptional, then you should contact [email protected] within 48 hours of receipt.

If you do not pay your council or legal obligations (e.g. Service charges or Ground rent), RAW Capital Partners may pay these to protect our interests. In this event, we will charge a 20% uplift on these fees, for the service that we are providing. This will be payable to the account to which you usually make interest payments.

We require valid Building’s Insurance Schedule and Policy Wording.

Flat/apartment - you will need to request a copy of the Building’s Insurance Schedule and policy wording from your Property Management Company.

Freehold property - you will need to arrange your own Buildings Insurance cover.

The Annual Review Fee is defined in Schedule 2 of your Loan Agreement.

You will be charged an Annual Review Fee in the anniversary month of your loan start date every year until your loan end date.

An Annual Review fee is charged each year on the anniversary of your loan. The amount charged is defined in Schedule 2 of your Loan Agreement.

The fee is to cover administrative tasks completed by RAW Capital Partners to monitor and manage risk on behalf of the RAW Mortgage Fund and its investors throughout the year. 

Sometimes, we may ask you to provide certain documentation relating to a payment or bank account. We must fulfil our regulatory requirements as a matter of priority. Usually, we need a bank statement to prove that you own a certain bank account, or that the bank account is NON-UK.