To begin the application process, you will need to complete an application form on your client's behalf, and attach an accompanying insurance policy from one of the approved scheme insurers. You can access this online via your account which is available once you have signed Global Terms with Novitas.
Once the application has been approved and credit checks completed, Novitas will then issue the loan documents to the client directly. Once Novitas receive the signed documents there is a statutory 14 days cooling off period before the first draw down can be made.
Once Novitas has received and approved the loan application, we will issue loan documents to the client. Once returned, there is a 14 day cooling-off period (to be compliant under the Consumer Credit Act) after which time the solicitor can request funds. The whole process typically takes 3-4 weeks. Once the solicitor firm has requested a drawdown, Novitas will aim to send funds to the firm's client account within 48 hours.
Does the client have to take independent legal advice?
We recommend to clients that they take independent legal advice (ILA) over the loan agreement to ensure they fully understand the terms of the loan. If they do not wish to take ILA we ask them to sign an ILA waiver stating that they are fully aware of the terms of the loan and have elected not to take advice.
We carry out standard credit checks as part of the application. If the client has a County Court Judgement (CCJ) or Individual Voluntary Agreement (IVA) to pay off an existing debt, we are unlikely to lend to them. If after two months the Novitas loan has not been used, or the client later requires a loan extension, we will carry out a further credit check.