Recording mortgage advice for a sufficient period is about regulatory compliance and having a clear audit trail. In the UK, firms typically must keep client files for a minimum period after advice is given, commonly six years or longer. This duration supports handling any future questions or disputes, and it aligns with general limitation periods for bringing claims (often around six years). It also ensures there’s enough evidence if regulators or the client later review the advice journey. So, keeping records for six years or more reflects standard practice, rather than a shorter period like one year, a much longer indefinite retention, or ten years unless specific circumstances require it.

When a mortgage account moves into arrears, there’s a requirement to communicate with the borrower in writing within a specific timeframe. The standard period is 15 working days. This ensures the borrower receives clear details about the arrears, the outstanding amount, and the options available to resolve the situation, such as forbearance or a repayment plan, in a timely and structured way. Providing information immediately isn’t always practical because it takes time to compile accurate arrears figures and outline appropriate options. A shorter window like 7 working days would be too tight to ensure all required information is correct and complete, while 30 working days would delay crucial guidance and support. The 15-working-day rule strikes a balance between promptness and clarity, supporting early contact and fair handling of the borrower’s circumstances.

When a limited company earns profit, it’s treated as a separate taxpayer, so the tax sits at the company level rather than on the individuals who own it. The tax charged on the company’s profits is corporation tax, which applies to both trading profits and gains on assets (charged as part of profits). Capital Gains Tax, by contrast, applies to individuals (and some trusts), not to companies, so a company’s gains are not taxed under CGT. VAT is a tax on turnover—value added to goods and services—collected by the business, not a levy on its profits. An “internal tax” isn’t a standard term used for company taxation. So the profits of a limited company are taxed through corporation tax.

An Agreement in Principle is a preliminary indication from a lender about the amount they would be willing to lend, based on a quick check of your finances and the information you’ve provided. It doesn’t commit you to the loan or guarantee that it will be approved; it’s subject to fuller underwriting, income verification, a formal credit check, and a valuation of the property. This is useful because it gives you and anyone involved in the purchase a sense of affordability and a credible upper limit to use when searching for a property or making offers. It helps you, and the seller, see that financing is feasible up to a certain amount, without waiting for a full application to be processed. It’s not a formal mortgage offer, and it’s not an agreement between you and a broker. It also isn’t a payment or fee required by the lender.

Dispute resolution outside the courtroom is the essence of ADR. Mediation, arbitration, and adjudication are all ways to settle a dispute without going through formal court proceedings: mediation uses a neutral mediator to help the parties reach a voluntary agreement; arbitration involves a neutral arbiter who hears evidence and issues a binding decision, similar to a private judgment; adjudication provides a quick, interim decision often used within specific schemes or contracts. Litigation, however, is the formal process of bringing a case to court where a judge (and sometimes a jury) decides the outcome according to court procedures. It tends to be more time-consuming and costly and results in a court judgment. Since ADR aims to resolve disputes outside court, litigation is not an ADR option.