Lending Criteria

A summary of the Society's current lending terms is given below.

Any specific requirements for particular mortgage products will be given in the relevant product details sheet. These can be displayed by selecting Standard Mortgages or Buy to Let Mortgages from the left hand menu.

SUMMARY OF LENDING TERMS

Subject to confirmation of status and no adverse credit history, borrowing secured on wholly residential property is available up to 75% of the property value or purchase price, which ever is the lower. This may be higher for some mortgage products - please refer to the specific product summary for details.

purpose of borrowing

Purchase of property or replacement of existing secured loans plus additional borrowing for any purpose considered.

status

Satisfactory proof of identity, residence and clear credit register enquiry. Lender, landlord, bank and current and/or previous employment references may be required, as applicable.

If you are employed, confirmed annual salary plus half of regular overtime/bonuses accepted. Most recent original P60 and last three months original payslips required.

If you are self employed or employed and have more than a 33% financial stake in a business, net profit for the most recent year accepted. Most recent original HM Revenue & Customs Self Assessment Return is required along with confirmation from HM Revenue & Customs that the figures declared have been accepted without correction (HM Revenue & Customs form SA310 - original needed). Accountant's reference may be required under some circumstances.

If you are retired, annual pension income accepted. Latest original pension statement, latest original P60 or original bank statements required.

Please note we do not consider lending where income is made up entirely of benefits.

impaired credit

If you have an impaired credit history we may consider this on a individual basis. However, we will not consider if any of the following circumstances have occurred:-

(i) arrears on any mortgage, secured or unsecured loan within the last two years, where the cumulative amount overdue at any point reached three or more monthly payments;

(ii) one or more county court judgements (CCJs), with a total value greater than £500, within the last three years;

(iii) an ongoing Individual Voluntary Arrangement (IVA) or bankruptcy order at any time within the last three years;

Please contact our Customer Centre on 01372 747771 or email customer centre to discuss before proceeding.

income multiples

If you are employed confirmed annual salary plus half of regular bonuses/overtime accepted. If you are self employed, net profit accepted or if you are retired, annual pension income accepted. We may also accept some types of benefits and investment income depending on circumstances. However where income is totally reliant on benefits this will not be considered. Any other financial commitments will be deducted from the gross annual income, net profit or pension income.

For income multiples please click here

your age

Minimum: 18
Maximum: There is no maximum age limit.

MORTGAGE TERM

Minimum: 5 years
Maximum: 40 years

Where the mortgage term extends beyond your retirement age you will be asked to explain how the loan will continue to be affordable in retirement.

minimum loan

£20,000. This may vary depending on the product terms selected.

maximum loan

Repayment and interest only loans up to £350,000 - 75% of the lower of purchase price or valuation (this percentage may be higher for some mortgage products, please refer to the specific product summary). Over £350,000 by agreement up to 70%. This may reduce depending on the product terms selected.

Discounted purchases e.g. Right to Buy or Key Workers Schemes - 100% of purchase price, subject to 75% maximum of valuation and the terms of the discount being acceptable to the Society.

interest-only mortgages

All or part of the loan may be on an interest-only basis. Details of any repayment vehicle or savings plan must be provided. Types of repayment vehicles accepted include proceeds of an endowment policy, savings plans such as ISAs or proceeds of the sale of a property (depending on circumstances).

PROPERTIES

Residential properties of standard construction in England and Wales, either freehold or leasehold subject to a minimum of 70 years unexpired remaining on the lease at outset (80 years for Lifetime Mortgage).

Where the property is a flat, we will require that a suitable lease is in place. We will not normally accept a flat for a mortgage when it is:

A new build
Above a commercial premises
Ex-local authority/Housing Association
Above four storeys high
Studio flat
Freehold

For other queries for standard or non-standard construction, or if you are not sure whether we will consider the type of property in question, please contact our Customer Centre on 01372 744 155 or email

Second homes

If your work requires you to live away from your main residence a loan on a second home may be considered subject to affordability. Interest-only loans will be accepted on this basis.

holiday homes

Subject to affordability holiday homes may be considered on our Standard Variable Rate. Holiday homes will not be accepted where they are let on any formal letting agreement. Interest-only loans will be accepted on this basis.

MINIMUM property VALUE

The minimum acceptable property value / purchase price (whichever is the lower) is £125,000. This may vary depending on the product terms selected.

PROCESSING CHARGE

The processing charge includes the cost of the valuation for mortgage purposes and a £125 administration fee. The processing charge is payable on application and is non-refundable.

Residential value:

£125,000 - £200,000 - £330.
£200,001 - £300,000 - £380.
£300,001 - £400,000 - £430.
£400,001 - £500,000 - £485.
£500,001 - £600,000 - £560.
£600,001 - £700,000 - £635.
£700,001 - £800,000 - £740.
£800,001 - £900,000 - £845.
£900,001 - £1,000,000 - £950.
£1,000,001 - £1,250,000 - £1,100.
£1,250,001 - £1,500,000 - £1,250.
£1,500,001 - £1,750,000 - £1,400.
£1,750,001 - £2,000,000 - £1,560.
£2,000,001 - £2,500,000 - £1,720.
£2,500,001 - £3,000,000 - £1,880.
Over £3,000,000 quoted on request.

Homebuyers or Full Structural reports are available on request for which the cost will be individually advised.

guarantor mortgages

Broadly, our approach is to firstly assess the maximum loan amount available under our standard lending criteria by adding the guarantor's income to yours and multiplying the result by our applicable income multiple (see Income Multiples above). Any outstanding mortgages secured against the guarantor's main residence are then deducted from this amount to give the loan amount that we will consider lending to you. This amount may be reduced, where individual circumstances warrant it, to ensure that the loan to you remains affordable.

Prior to completion of the mortgage the guarantor will be required to obtain comprehensive independent legal advice regarding the impact of being a guarantor in this mortgage contract. This may be from a Solicitor or Licensed Conveyancer from the same firm as the firm acting in the loan completion, but not the same person acting on your behalf. The guarantor is responsible for the fees incurred.

It should be remembered that, in the event that you default, the guarantor is liable for the full monthly mortgage payments due and this liability may be secured on the guarantor's main residence.

For full details of our criteria for our Family First Guarantor Mortgage please click here.

expatriate mortgages

Loans are available on an owner-occupier or buy to let basis subject to certain conditions. You must be able to provide satisfactory evidence of identity, proof of income and hold a UK bank account. Applications may be subject to an increased completion fee.

armed forces mortgages

Loans are available on an owner-occupier basis subject to certain conditions. Applications will be assessed on an individual basis depending on circumstances.

Flexibility to change occupancy status and subsequent product terms will be considered on request. This may be subject to standard fees and early repayment charges.

life cover & income protection

There is no requirement to purchase life assurance or other protection products. However it would be in your interest to review your financial planning when taking out a new mortgage to ensure that you have adequate protection against the impact of involuntary unemployment, accident or ill-health.

CAPITAL REPAYMENTS AND REDEMPTION

Early redemption of our standard variable rate mortgage, in full or in part by capital repayment, is allowed at any time, without notice or early repayment charge. Redemptions can be arranged within five working days of receipt of your request.

Other mortgage products will each have specific early redemption conditions. The conditions will be stated in the product summary sheet and in the mortgage offer or product switch illustration.

All products are subject to change or withdrawal without prior notice.

Buy to Let mortgages

Minimum vacant possession values: £125,000. This may vary depending on the product terms selected.

Minimum loan: £30,000. This may vary depending on the product terms selected.

Maximum loan: Repayment and interest only loans up to £350,000 - 65% of the lower of vacant possession value. This may vary depending on the product terms selected.

For loans up to 65% of the property value or purchase price, whichever is lower, the loan amount is assessed on the basis that the monthly rent must exceed 130% of the interest payable per month*. For loans between 65% and 70% of the property value or purchase price, whichever is the lower, the loan amount is assessed on the basis that the monthly rent must exceed 135% of the interest payable per month* and you must be experienced landlords who own at least one other Buy to Let property.
(* Calculated on the products' initial interest rate or 5% whichever is higher.)

We must be satisfied that you are able to demonstrate a current track record (minimum 12 months) for either mortgage or rent payments. If not fully conversant with the lettings market and a landlord's responsibilities, a professional managing agent must be appointed for the letting. You must be either gainfully employed or have investment, pension or other income. Proof of income may be required.

For remortgage applications to be considered the property must have been owned for a minimum of 6 months.

All new build properties (apart from flats which we will not consider) and multiple applications must be referred for consideration. Before proceeding please contact our Customer Centre on 01372 747771 or email customer centre

Cases outside normal lending criteria may be subject to different product terms.

FULLY AND PART COMMERCIAL mortgages

Further information is available by selecting commercial lending at the top of this page.

Security will be required for the loan.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE