Remortgage Loan

Remortgage loan is applicable when an applicant has an existing mortgage loan with a particular lender or bank and wants to switch his mortgage loan to another lender or bank. This section contains Mortgage Loan Purpose as Remortgage, key benefits and features of Remortgage loan, know more, and apply for Remortgage loan.

Remortgage Workflow

Remortgage workflow illustrates the sequence of steps from start of an application till submission of an application in the Origination App.

To know more about the Remortgage flow in Temenos Digital Assist App (post-submission), click here.

Process Flow

When an existing customer or prospect customer selects Remortgage in the Product Group Dashboard, the road map in the Origination App for Mortgage journey is as follows:

• Login Page
• Personal Information
• Financial Information
• Co-Applicant
• Property Details
• Remortgage Details
• Funding Position
• Mortgage Composition
• Documents
• Summary
• Additional Questions
• Submit Application

UX Overview

This section provides an overview of the Remortgage dashboard. It consists of Key benefits and features of Remortgage loan, Check Eligible Amount, and Start Application to initiate the Remortgage loan application.

Applicant selects Mortgage on the Product Group Dashboard and chooses Mortgage loan purpose as Remortgage on the Product Dashboard. Remortgage card has the following tabs:

Start Application: Click Start Application button to log in either as a prospect or as an existing customer using the OLB credentials to log in to the Origination App and initiate the Remortgage loan process.

Check Eligible Amount: Click Check Eligible button to evaluate the maximum eligible remortgage loan amount at the initial stage.

Know More: This section provides further information about the Remortgage loan.

Check Maximum Eligible Remortgage Loan Calculator

The Remortgage loan eligibility calculator allows the applicant to compute the maximum remortgage loan amount the applicant can avail based on the DTI and LTV ratio. Check Eligible Amount button is available in the product tab in the mortgage dashboard.

Click Check Eligible Amount tab and enter the information in the fields to evaluate the maximum remortgage eligible loan amount.

• Current Property Value: Enter the cost of the current property value in positive integers.
• Single or Joint: The applicant can choose to opt for single mortgage or a joint mortgage from the radio button option. When the applicant selects Single mortgage, enter the following information.  
  • Enter the Applicant(s) Date of Birth.
  • Enter the Applicant(s) Net Monthly Income.
  • Enter the Applicant(s) Monthly Debts.

  Joint: When the applicant selects Joint, provide the applicant details along with the partner's details which includes the following information.

  • Enter the Applicant(s) Date of Birth and Partner(s) Date of Birth.
  • Enter the Applicant(s) Net Monthly Income and Partner(s) Net Monthly Income.
  • Enter the Applicant(s) Monthly Debt and Partner(s) Monthly Debt.

  Check Eligibility button only enables after the applicant has filled in all the required information. Click Check Eligibility button, and your Maximum Mortgage Eligibility amount displays on the screen. A help icon displays as Your loan-to-value (LTV) ratio cannot be more than 90% of your property cost.

For joint applications, a limitation of two applicants is applicable.

• Field validations: This section has the following field validations.
  • Date field: Enter the applicant's age which must not be less than 18 years and not more than 60 years.
  • Net monthly Income & Monthly Debts: Enter the applicant's monthly income and monthly debts.
  • Check Eligibility: This button enables only after applicant enters all the required information in Single/Joint application

Repayment Term & Monthly Interest Calculation

 This section allows the bank user to fix allowed mortgage repayment term limits and interest rate so that the applicant can check the maximum loan eligible under the following constraints.

1. Capture the Applicant(s) Date of Birth.
2. Define the following configurable parameters:

• Bank allows maximum repayment term, defaulted value to 30 years.

3. Maximum allowed repayment term is calculated using the below formula: The least of below Loan Term should be considered as eligible Maximum allowed Loan Term for the Loan, and same value displays in the Loan Maximum Term.

• Loan Term= The value the bank allows as the maximum repayment term is a configurable parameter.
• Loan Term = The Maximum allowed Repayment age is a configurable parameter - Current age of the applicant.

In the case of Joint applicants i;e ( Co-Borrower), consider the Lowest Loan Term of all the applicants for calculation.

 

4. Remortgage Product Interest rates are fetched from MCMS (Marketing Catalogue Micro Service). Bank user converts annual interest rates to Monthly interest rates by using the formula: Monthly Interest Rates.(Monthly Interest rate (r) = Annual Rate(R)/12).

Maximum Remortgage Loan Eligibility based on DTI

This section allows bank user to calculate the eligibility amount based on your income and expenses to minimize the risk of defaults in the future.

1. Bank user captures your Net Monthly Income & Monthly Debts of the applicants.
2. Bank user has to maintain DTI, a percentage parameter, which is configurable and does not display on the screen. The default value of DTI value is 60%.
3. Bank user calculates the loan principal amount using the below formula:

• To calculate the Maximum eligible mortgage based on DTI, the Maximum EMI allowed is calculated using the below formula: Max eligible EMI = [DTI * Net Monthly Income] – (total monthly debt expenses).
• Maximum Eligible Loan Amount= (EMI/r)*(((1+r)^n -1)/(1+r)^n) /** r- monthly interest rate and n- maximum allowed repayment term.

Maximum Remortgage Loan Eligibility based on LTV 

This section allows the Bank user to calculate the eligibility amount based on the Property value so that the loan does not extend beyond necessity.

1. Bank user captures the Current Property Value.
2. Bank user maintains a configurable percentage parameter - Down payment. The default value must be 10%.
3. Bank user calculates loan principal amount using the below calculation: To calculate the Maximum eligible mortgage based on DTI, Max EMI allowed needs to be calculated using the formula: Maximum Eligible Loan Amount = (1- Down Payment%)* Property Value.

Maximum Eligible Mortgage Loan selection and display

This section allows the Bank user has to show the applicant the maximum eligible loan amount along with EMI, Term and Interest rate so that the applicant can view and take a decision on the loan application.

Applicant can view Your Maximum Mortgage Eligibility value which is not editable. Your Maximum Mortgage Eligibility value is the least value of Maximum eligible Loan amount calculated based on LTV & DTI of the applicant(s). Applicant can view the following fields:

• Requested Loan Amount: Requested Loan Amount is an editable field and default value is the maximum mortgage value that displays on the slider. Applicant can slide between minimum value as 25,000 and maximum value, which is the same as the Maximum eligible mortgage amount calculated.
• Loan Term: Applicant can edit this field with default value as the maximum mortgage term(Loan Term)value. Applicant can choose the repayment term between 1 year to 30 years as indicated on the field label. The applicant can choose the repayment term in the slider with minimum value of five years and a maximum value as Maximum repayment term allowed (Loan Term) calculated.
• Monthly Repayment Amount(Mortgage EMI Estimated): Monthly repayment amount value changes when the applicant changes the Loan requested and Repayment term.
• Interest Rate: Interest rates for the default product are fetched from Marketing Catalog Microservice (MCMS). It is a non-editable field.

Mortgage Loan Equated Monthly Installment(EMI) Predictor

This section allows the applicant to estimate monthly repayments so that the applicant can select the desired installments as required.

1. Applicant can edit the Requested Loan amount field.
2. Applicant can edit the Loan repayment term field.
3. Applicant can view non-editable Estimated Monthly installment for a particular requested loan amount and Loan term.
4. Applicant can change either Requested Loan amount and/or Loan term. Based on the values of the Requested Loan Amount and Loan term the Estimated EMI is calculated accordingly.
5. The applicant's Monthly Repayment Amount(EMI) is calculated using the below formula:

• EMI = PL*r*(1+r)^n/ (1+r)^n -1.
• PL= Loan amount requested.
• n= Repayment period in months.
• r= Monthly interest rate.

The following information pre-populates in the respective screen, so that the applicant need not enter the details again.

• Date of Birth: Date of Birth information of Applicant/Co-applicant.
• Net Monthly Income: Net Monthly Income in Financial Information Screen of Applicant/Co-applicant.
• Monthly Debts: Total monthly debts/ Expenses Field in Financial Information Screen of Applicant/Co-applicant.
• Current Property Value: Current Property value pre-populates in the Property Details screen.
• Requested Loan Amount: Requested Loan amount pre-populates in Funding Position Screen. It is a non-editable field.
• Loan Term: The selected Loan Term displays in Loan Term filed of the Mortgage Composition screen.

Mortgage Eligibility Calculator Help Information

Applicant can click the Help Icon to understand what the field represents and from where the values pre-populate. When applicant clicks on any of the Help Info icon, it displays the following help information messages:

• Loan Term: Indicates the maximum allowed repayment period allowed for the Mortgage selected. This is calculated based on your age and Maximum Loan Term allowed by Bank.

• Interest Rate: This is a default product interest rate considered for estimating the monthly installments. It is subject to change depending on the prevailing rates and Interest type selected.

• Monthly Repayment Amount: Indicates the Monthly repayment for the Loan Term.
• Your Maximum Mortgage Eligibility - This value displays as a static text as Your Loan to Value Ratio cannot be more than 90% of current property value.

Rounding Off: System Administrator has the capability to configure Mortgage and Remortgage Loan Calculator Eligible amount value to round off to the lowest 1000.

Moving Slider: System Administrator has the capability to configure Mortgage and Remortgage Loan Calculator amount value to slide in the multiples of 1000.

Display Total Interest Payable and Total Repayment (Principal and Interest): System administrator has the capability to configure Mortgage and Remortgage Loan Calculator, When Monthly Repayment Amount is calculated, it also displays the below calculated fields.

Total Interest Payable: This field calculates and displays the Total Interest Amount payable for the Requested Loan Amount and Total Loan Term.

Total Repayment (Principal + Interest): This field calculates and displays the Total repayment Amount (Monthly Loan Repayment * Loan Term (in Months)) for the Requested Loan Amount and Total Loan Term.

Know More

Know more section provides more information about the specific product the applicant has chosen. When you click here, Know More section in the respective Product details dashboard appears with the features of the purpose Remortgage Loan.

Important Disclosures section is located at the end of the screen, which contains vital information that you must consider while applying for a loan.

Reference Table

Journey	Product	Road Map in the Origination App for Prospect Customer & Existing Customer
Retail Loan Origination	Remortgage	Login Page > Personal Information > Financial Information > Co-applicant > Property Details > Remortgage Details > Funding Position > Mortgage Composition > Documents > Summary > Additional Questions > Submit Application

Start Application

When applicant clicks Start Application, Product group dashboard leads the applicant to the login page, where you can login either as a prospect or as an existing customer using the OLB credentials and click Sign in.

Select all the consents that display on the login screen. Applicant cannot proceed to the next screen without providing your consent. All the consent received on the login page are stored in ODMS/OPMS against the respective application. The following consents display on the login screen.

• I hereby accept the terms of the eSign Agreement, I accept to receive all communication electronically.

• I hereby give my consent to GDPR Terms.

• I hereby give my consent to T&Cs on Data Usage Policy.

  To know more about the Consent disclaimer Terms & Conditions, click here.

Click Continue button, the control navigates to the Personal Information screen.

Configurations

The system administrator will have the capability to configure this module from the Spotlight app. For more information about configuring the Funding Position section, click here.

Components

Remortgage Loan dashboard contains the following list of components:

 

Component Name	Instance Name
com.olb.common.BrowserCheckPopup	BrowserCheckPopup
com.nuo.loadingV3	loadingV3
com.dbx.Explore	Explore
com.dbx.bannerError	bannerError
com.dbx.breadcrumbs	breadcrumbs
com.dbx.customfooter	customfooterNUO
olb.dbx.customheaderNUOV2V2	customheaderNUOV2V2
com.dbx.dataNotLoaded	dataNotLoadedAd
com.dbx.dataNotLoaded	dataNotLoadedContentImage
com.dbx.dataNotLoaded	dataNotLoadedExplore
com.dbx.dataNotLoaded	dataNotLoadedProdLists
com.dbx.SliderAndTextbox	SliderAndTextbox
com.dbx.nativeSlider	nativeSlider

Experience APIs

API	Description
getEligibleAmount	This API allows to retrieve the calculated eligible Amount