We are committed to offering a highly efficient and personal service, and developing strong working relationships with our intermediaries. To discuss a potential mortgage application, our lending criteria or current mortgage product range please contact our Business Development team.

Before you submit an application it’s always beneficial to complete a decision in principle. All applications are subject to individual circumstances, assessment and underwriting.

Lending area

Loans up to and including 100% LTV

Application accepted up to 95% LTV across England and Wales on our standard residential products.

Applications accepted up to 100% LTV across England and Wales on our Family Assist product.

Properties located in Scotland, Northern Ireland or the Isle of Man will not be accepted.

Loan Criteria

Purpose

Residential Owner Occupied (applicant’s main residence).

Type

Purchase (maximum 95% LTV) or remortgage (maximum 95% LTV).

Minimum loan

£50,000.

Minimum property valuation

£75,000 (increasing to £250,000 for properties located within the M25 corridor).

Maximum loan and LTV

  • Maximum £600,000 to 80% LTV;
  • £450,000 to 85% LTV;
  • £350,000 to 90% LTV;
  • £250,000 to 95% LTV.

Minimum term

5 years.

Maximum term

35 years.

If the mortgage term goes beyond the borrower’s state pension age, evidence of affordability into retirement will be required.

If the mortgage term goes beyond the borrower’s state pension age and beyond the oldest borrower’s 85th birthday, evidence of affordability into retirement will be required and will be subject to Credit Committee approval.

For retired applicants, the term must not extend beyond the oldest borrower’s 85th birthday unless affordability can be proven in which case the application may be considered and would be subject to Credit Committee approval.

Applicants

Maximum number of applicants

Applications will be considered with up to four borrowers, but the maximum loan amount will be determined by an affordability assessment of the two highest income earners.

Minimum age

18 years.

Maximum age

For employed and self-employed applicants, standard underwriting will apply where the term does not extend beyond the state pension date of the highest earning applicant.

Applications where the mortgage term extends beyond the state pension date of the highest earner or where all applicants are retired and in receipt of pension income may be considered subject to:

  • Satisfactory evidence of company or private pension income;
  • Retirement affordability calculation being carried out;
  • Maximum 75% LTV;
  • The term not extending beyond the oldest applicants 85th birthday unless affordability can be proven in which case the application may be considered and would be subject to Credit Committee approval;
  • In the case of joint names the clients must demonstrate that the loan is affordable upon the death of either borrower (transfer of pension rights considered or specific life policy to clear mortgage balance on death accepted); and
  • Independent legal advice must be taken by the non-borrower in all cases where the mortgage is to be in a single name and the property is occupied jointly.

Residential status

Applications from non-EEA applicants will only be considered where each applicant provides a passport together with a valid visa that gives indefinite leave to reside (previously termed indefinite right to reside and work) in the UK.

Applicants must have lived in the UK for at least two years prior to making an application.

Married applicants

Applications are considered in a single name where an applicant is in a legally sanctioned relationship (i.e. married or in a civil partnership).

Single applicants’ income must be sufficient to support affordability for all occupants.

Affordability

Affordability assessment

We apply an affordability based income calculation. Our online affordability calculator will provide you with an idea of how much we are willing to lend to your clients.

Deposit

Family gifted deposit

Acceptable from an immediate family member. An immediate family member is defined as a spouse, parent, grandparent, sibling or child.

Builder’s gifted incentive

For new-build properties, the Society will accept a builder gifted incentive of up to 5% of the lower of purchase price or valuation to be deducted from the loan amount.

The applicant must still provide a minimum 5% deposit from their own resources.

For incentives greater than 5%, the excess will be deducted from the purchase price.

Vendor gifted deposit

Not accepted.

Repayment Methods

Accepted types

Repayment or interest only.

Interest only

Maximum 75% LTV. A completed interest only declaration will be required.

The designated repayment vehicle must have been in place 12 months before the date of the mortgage application.

Where the repayment vehicle is a pension, a maximum of 50% of the cash lump sum will be taken.

Not permitted on Shared Ownership or Family Assist lending.

Acceptable interest only repayment vehicles

  • Endowment;
  • ISA;
  • Pension;
  • Sale of second home/investment property (other conditions apply).

Part repayment and part interest only

Accepted.

Direct Debit

Payments to the mortgage are to be made monthly by Direct Debit from a bank account in the applicant’s name. Direct Debit mandates in company names are not acceptable.

Remortgage

Remortgage period

Property must have been owned for a minimum of 6 months.

Maximum LTV

95% LTV.

Home improvements

Where the improvements exceed £20,000 or involve structural alterations, the advance will be restricted to 75% LTV at each stage, until final completion of the works.

Stage payments will be subject to a re-inspection at the appropriate fee.

Estimates are required to support application.

Capital raising

Restricted to 75% LTV, however we can consider up to 90% LTV to buy out a partner.

Must be used to fund the purchase of a further property for investment purposes or a further property for own/family use.

Debt consolidation

Restricted to 75% LTV.

Debt consolidation cannot exceed 10% of the current valuation figure or £25,000 (whichever is the lower).

Debt consolidation cannot exceed 50% of the applicants’ total gross salary(ies).

Latest credit card statement(s), loan agreements are required to support application.

No previous history of debt consolidation.

Consolidation of tax, VAT, gambling debts or business debts will not be accepted.

Family Assist Mortgages

Valuation

A formal valuation of the additional security will be undertaken at the applicants’ expense.

Loan amounts

Minimum loan of £75,000 and maximum loan of £250,000 increasing to a minimum of £250,000 and maximum of £400,000 for properties located within the M25 corridor.

Collateral charge

A collateral charge equal to 35% of the total mortgage balance will be taken out on any property being offered as additional security.

The collateral property must have at least 40% equity available.

Only a first or second registered charge will be acceptable on the collateral property.

The Society will insist on all collateral property owners receiving independent legal advice.

Additional restrictions

Available where at least one party to the mortgage is a First Time Buyer.

Capital and interest basis only, interest only is not permitted.

Shared Ownership Mortgages

Loan to value

Available up to 90% of the share of the purchase property.

Property share

Minimum 25% and maximum 75%.

Minimum valuation

The minimum property valuation is £100,000.

Additional restrictions

Available to first and second time buyers.

Applications where the housing association does not permit staircasing up to 100% property ownership will not be considered.

Applications on a DIYSO basis are not accepted.

Capital and interest basis only, interest only is not permitted.

Credit Status

Credit search

A credit search will be carried out using an approved Credit Reference Agency.

Bankruptcy/IVA

Must be discharged/satisfied for a minimum of six years prior to application.

Trustee in Bankruptcy must confirm that there are no further claims against the applicant.

Subject to 100% subsequent record of prudent financial management.

CCJ’s

None in the last three years.

Registered and satisfied more than three years ago, will be considered, subject to a maximum three CCJ’s to a total value of £500.

Defaults

The following policy applies:

  • A maximum of three defaults, to a total value of £250, registered over two years ago, and satisfied 12 months prior to application will be considered subject to a satisfactory explanation.

Specific criteria around mobile phone defaults:

  • One default up to £250 registered by a mobile phone provider will be considered provided that it has been satisfied prior to application.
  • Where the mobile phone provider default detailed above has not been satisfied, provided that the applicants are able to provide evidence that the matter is in dispute then the application can be considered, subject to Credit Committee approval.

Mortgage repossession

Not accepted.

Mortgage arrears

Maximum two missed payments within the last two years may be considered, subject to satisfactory explanation.

Late payments

Within last two years late payments on a credit agreement cannot exceed ‘2’ at any point. (e.g. ‘1’ or a ‘2’ on a credit agreement will be considered but a ‘3’ within the last two years will not be accepted).

Payday loans

Payday loans taken out and fully repaid more than 12 months prior to application may be considered.

Bank statements

Account must not exceed an agreed overdraft limit for more than seven consecutive days within the last three months preceding the application.

Applications where evidence that online gambling exceeds 25% of 3 month’s net salary will be declined.

Employed Applicants

History

Maximum two month break of employment within last two years.

Document requirements

Latest P60 and last three months payslips.

Acceptable income

In addition to gross basic salary we will accept:

  • 100% of shift allowance;
  • 100% of car allowance;
  • 100% of any guaranteed overtime/bonus/commission;
  • 50% of any regular overtime/bonus/commission.

Where the applicant is able to demonstrate a three year track record of regular overtime/bonus/commission with the same employer, 100% of the average gross earnings can be used to support the application.

Probation period

Whilst applications can be submitted, legal completion cannot occur until any applicable probation period has been successfully completed and confirmed to us by the employer.

Fixed term contract

Minimum one year contract with at least six months remaining will be considered. Employer must confirm that they expect the existing contract to be renewed and the contract must have previously been renewed at least once.

Contracts with three or more years to run are usually considered as permanent employment.

Agency employment

Not accepted.

Zero hours contracts

Minimum two years employment history with current employer.

Seasonal employment

Not accepted.

Working for family business

Company accountant will be required to verify income and employment in addition to the standard requirements.

Self-Employed Applicants

Professional partnerships

Individuals employed in partnerships in the professions listed below are usually considered as having normal employed status. Income will be verified by a reference from the accountant, and copies of their accounts are not required to support the application.

  • Medical doctors and surgeons
  • Dentists
  • Solicitors
  • Barristers in chambers
  • Veterinary surgeons
  • Architects
  • Accountants
  • Chartered surveyor

Sole traders/Partners

Minimum trading period three years.

Three years certified accounts, or three years HMRC self-assessment tax returns (SA302’s) and last three months business bank statements;

An accountants certificate will also be requested on application;

Income will be derived from the net profit figures.

Sub-contractors

Long term sub-contractors will be underwritten on an ‘employed’ basis subject to satisfying the following criteria:

  • Minimum six months with current contractor and two years continuous employment history;
  • Applicants must be able to demonstrate a consistent level of earnings each month;
  • Reference required from contractor which confirms start date, weekly earnings and that the services of the sub-contractor will continue for the foreseeable future.

Gross earnings will determine level of borrowing.

Accounts or HMRC self-assessment tax returns (SA302’s) are not required to support the application.

Limited company directors

Minimum trading period three years.

If the applicant’s shareholding does not exceed 25% they will be classified as being an employee of the company.

If the applicant’s shareholding exceeds 25% they will be classified as being self-employed and must provide:

  • Three years certified accounts, or three years HMRC self-assessment tax returns (SA302’s) and three months business bank statements;
  • An accountants certificate will also be requested on application;
  • Income will be derived from a combination of salary and dividends;
  • Up to 50% of the applicants share of any retained profit may also be considered, subject to full assessment of the accounts.

Professional partnerships

Individuals employed in partnerships in the professions listed below are usually considered as having normal employed status. Income will be verified by a reference from the accountant, and copies of their accounts are not required to support the application.

  • Medical doctors and surgeons
  • Dentists
  • Solicitors
  • Barristers in chambers
  • Veterinary surgeons
  • Architects
  • Accountants

Accountants qualifications

We will only accept accounts (and accountants references) from practitioners with one of the following qualifications:

  • CA, ACA, FCA – Institute of Chartered Accountants;
  • ACMA, FCMA – Chartered Institute of Management Accountants;
  • ACCA, FCCA – Association of Chartered Certified Accountants;
  • CIPFA – Chartered Institute of Public Finance and Accountancy;
  • AAPA – Association of Authorised Public Accountants;
  • ACAS, FCAS – Chartered Accountants of Scotland.

Retired Applicants

Criteria

Maximum 75% LTV.

Must be in receipt of private or company pension. State pension will be considered but only as a secondary income source.

Where the case is in joint names the clients must demonstrate the loan is affordable upon the death of either borrower (transfer of pension rights considered or specific life policy to clear mortgage balance on death accepted).

Independent legal advice must be taken by the non-borrower in all cases where the mortgage is to be in a single name and the property is occupied jointly.

Verification

Retirement affordability calculation must be carried out. Income will be verified via the latest pension statement or P60.

Maximum age

The term must not extend beyond the oldest borrower’s 85th birthday unless affordability can be proven in which case the application may be considered and would be subject to Credit Committee approval.

Other Income

Secondary income

Income from a maximum of two sources will be considered.

Secondary employment must be a permanent position with a minimum 12 months history.

Self-employed secondary income will not be accepted.

Pension income

Widows and retirement/private pension income is treated as normal guaranteed income.

State benefits

Maximum 50% of any benefit income can be used to support an application but the total benefit income used cannot exceed 25% of the applicant’s total income.

Benefits relating to children will only be included where the child(ren) are aged 12 and under.

Maintenance

Must be a formal agreement (CSA or Court Order) and will only be considered where the child(ren) are aged 12 and under.

Maximum 50% can be used to support an application but the total maintenance used cannot exceed 25% of the applicant’s total income.

Foster carer’s allowance

Not accepted.

Property Type

Occupancy

Must be the borrower’s main residence.

Tenure

Freehold (excluding flats and maisonettes).

Leasehold (minimum 85 year unexpired term on completion and 60 years at the end of the mortgage term).

Flying Freehold (specific to access between two properties).

Commonhold.

New build houses

Accepted up to maximum of 90% LTV.

New build apartments

Accepted up to maximum of 85% LTV.

Within a block of no more than five storeys.

Right to Buy

Ex-local authority houses accepted.

Ex-local authority flats or maisonettes will not be accepted.

Accepted up to 100% of the discounted purchase price provided it does not exceed 75% of the valuation.

Additional borrowing (up to 75% LTV) available for home improvements – estimates required on application.

Purchase under value/Concessionary purchase

Accepted up to maximum of 85% LTV.

Only considered when the property is being purchased from an immediate family member.

The discount must be a minimum of 15% off the current market value and be a genuine discount.

The applicants do not need to provide any additional deposit.

Construction type

Standard construction only.

Properties must be of brick or stone wall with a tiled or slated roof with the exception of the following which will also be considered subject to valuation:

  • Timber framed walls with brick cladding;
  • Thatched roof properties;
  • Grade 2 listed (subject to valuer’s comments);
  • PRC repaired properties that have the benefit of a 30 year insurance-backed guarantee and structural warranty.

Unacceptable property types

Ex-local authority flats or maisonettes.

Flats or apartments in a block of more than five storeys.

Flats above any commercial properties.

Freehold flats or maisonettes.

Any properties with a restrictive covenant (e.g. retirement homes).

Any property with an invasive plant species infestation.

Self-build properties.

Second home.

Shared Equity.

Any non-standard construction types, to include the following (full list of unacceptable property types available on request):

  • Prefabricated buildings;
  • Unrepaired PRC constructions;
  • In situ poured concrete (often known as ‘Wimpey No Fines’);
  • Steel framed constructions including Laing Easiform.

Valuation

All properties subject to valuation instructed by the Society.

Pre-prepared valuations are not accepted.

A table detailing our valuation fee scale can be viewed on our mortgage valuation charges page.

Minimum property valuation

£75,000 (increasing to £250,000 for properties located within the M25 corridor).

Let To Buy

Maximum LTV

90% LTV.

Consent to Let

Required.

Requirements

Anticipated rental income must exceed 140% of the proposed mortgage payment.

New property must be the applicant’s main residence.

Evidence

Consent to let from existing lender.

Letter from an ARLA registered letting agent to confirm anticipated rental income.

Additional Properties

Buy to Let

Existing BTL mortgages can be offset but rental income must exceed 140% of the BTL mortgage payment.

Evidence

BTL mortgage offer OR consent to let from existing lender.

Copy of the current Shorthold Tenancy Agreement (STA).

Properties With An Adverse Coal Authority Report

Coal Authority Reports

Applications on properties with an adverse Coal Authority Report will be considered for mortgage subject to normal underwriting terms and a satisfactory valuation report.

Please forward a copy of the Coal Authority Report prior to application for further consideration.

NOTE: Procuration fees are not paid on properties with an adverse Coal Authority Report.

Solicitors

Panel

To be considered they must have a minimum of two partners in the firm, be registered on the Law Society of England & Wales website, and hold the Conveyancing Quality Scheme (CQS).

Free legal fees

We currently offer free standard legal fees on certain products, through our nominated solicitor.

This is restricted to the costs of the legal work necessary to move the mortgage to us. Costs incurred for any additional work must be paid by the applicants.

Supporting Documents

Acceptable proof of identification

Certified copies of the following are acceptable:

  • Valid passport (recording country of issue and date of issue);
  • Photocard driving licence;
  • Valid full UK driving licence (old version);
  • National identity card;
  • Recent evidence of entitlement to state or local authority funded benefit (including housing benefit and council tax benefit), tax credit, pension, educational or other grant;
  • Shotgun licence or firearms certificate;
  • Confirmation of verification of identity introduced by a regulated firm.

Acceptable proof of residence

Minimum three years proof of residency.

The following items are acceptable if the applicant is not listed on the electoral register at any point during the last three years:

  • Utility bill;
  • Current bank/building society statement;
  • Current council tax demand letter;
  • House or motor insurance certificate;
  • Vehicle licence reminder;
  • TV licence;
  • HMRC PAYE coding notice;
  • HMRC Statement of account.

Mandatory requirements

Last three months consecutive bank statements.

Last three months consecutive payslips and most recent P60.

OR

Last three years certified accounts or three years SA302’s (an accountants certificate will also be requested on application).

Additional documents (where applicable)

Proof of deposit.

Right to Buy notice.

Home improvement estimates.