Residential Lending Criteria

• Additional borrowing to an existing residential mortgage is not available.

• Further Advances are not available for existing borrowers.

All products have the same maximum adverse permitted.

Any defaults, CCJs or secured arrears recorded in the 3 months prior to application will result in a decline.

Maximum acceptable adverse:

• Defaults are acceptable, but status will determine product availability.

• CCJs are acceptable, but status will determine product availability.

• Unsatisfied defaults and CCJs may be acceptable, but status and volume will determine product availability.

• Missed or late payments are acceptable, but status will determine product availability. Up to 1 in 12 months or 3 in 36 months (worst status).

• Unsecured arrears are not counted but may affect credit score.

• Bankruptcy / IVA / DRO / Repossession

  • 0 in 72m

Applicant(s) who have been subject to forced repossession and voluntary possession proceedings are not accepted.

Applicant(s) considered to be 'worst status' on their credit file should see the product schemes for acceptable adverse profiles. Typical maximum mortgage/secured loan arrears 1 in the last 12 months and 3 in the last 36 months.

Applicant(s) with DMPs are acceptable subject to all of the following:

• Active DMPs must have been active for a minimum of 12 months.

• Maximum 85% LTV where a DMP remains active.

All applications are subject to internal credit scoring

Minimum age: 18 at application.

Maximum age at application: 70 or the applicant's stated retirement age, whichever occurs first.

Maximum age at the end of the mortgage term: 75.

An applicant's current age plus the mortgage term must not exceed age 75.

Minimum confirmed gross annual household income is £10,000 per annum in all cases, including pension income.

All loans must pass affordability checks in consideration of the gross loan value, i.e. inclusive of any fees that are added to the loan advance. Affordability is based on the ability of the applicant(s) to afford their monthly payments relative to the repayment strategy (i.e. Capital Repayment or Interest Only).

Applications are available to individuals aged 18 and over.

Applicant age limits:

• Minimum age at application: 18

• Maximum age at application: 70 or stated retirement age, whichever occurs first

• Maximum age at the end of the mortgage term: 75

Applications are accepted from:

• First Time Buyers

• Existing homeowners

• Applicants using a Power of Attorney

• Property developers

• Mortgage prisoners, subject to status and affordability

• Applicants purchasing inherited properties, provided probate has been granted

First Time Buyer definition: A First Time Buyer is an applicant who has never owned a residential property and is purchasing a property to occupy as their main residence.

Applicants must:

• Be a maximum of two applicants per application

• Meet residency and identity requirements

• Satisfy all affordability, credit and underwriting assessments

The following are not accepted:

• Execution-only applications

• Guarantor arrangements

• Joint Borrower Sole Proprietor applications

• Trust and Trustee applications

• Applicants residing in tied accommodation

• Property or investment club purchases

• Applicants without the required UK tax or residency status

• Adoption Allowance

• Attendance Allowance

• Bereavement Support Allowance

• Carer’s Allowance

• Constant Attendance Allowance

• Disability Living Allowance

• Employment & Support Allowance

• Foster Carer’s Allowance

• Guaranteed Income Payment for Forces

• Guardian’s Allowance

• Income Support

• Industrial Injuries Disablement Benefit

• Job Seeker’s Allowance

• Pension Credits

• Personal Independence Payment

• Reduced Earnings Allowance

• State Pension

• Statutory Sick Pay

• Widowed Parent Allowance

The following benefit income may be considered:

• Child Benefit, up to 100%, supported by 3 months' bank statements

• Universal Credit (Standard, Child, Disabled Child, Carer and Disability elements only)

• War Widow(er)’s Pension, provided it is not the sole source of income

• Widow’s Pension, provided it is not the sole source of income

Where Universal Credit is used, any deductions shown on the award statement will be applied proportionately to the eligible elements used within the affordability assessment.

On New Build purchases only, lending can be considered up to 90% LTV where a builder incentive is present.

Any incentive amount must be deducted from the lower of the purchase price or valuation before calculating the LTV.

Amount Eligible - 100%

Child Benefit is an acceptable source of income for affordability assessment.

3 months' bank statements are required to evidence receipt of the income.

• Contract workers are acceptable.

• CIS contractors, subcontractors and applicants responsible for their own tax and National Insurance will be assessed as self-employed.

• Fixed-term and renewable contracts are acceptable, subject to satisfactory evidence where required.

• IT contractors are acceptable.

• Zero-hours contracts are only acceptable where the applicant is not the main income earner.

• Umbrella company income is not acceptable unless the applicant is responsible for their own tax and National Insurance.

• Freehold houses and leasehold properties are acceptable, subject to lending criteria.

• Minimum lease term: 90 years remaining at application and 50 years remaining at the end of the mortgage term.

• Flying freeholds are acceptable up to 20% of the total property area, subject to valuer confirmation.

• Non-borrowing occupiers aged over 17 are acceptable.

• Title splits on completion may be considered.

• Green Deal properties and leasehold flats with a share of freehold may be considered, subject to review.

Not acceptable:

• Freehold flats and maisonettes.

• Commonhold properties.

• Assignable contracts, sub-sales and finder fee transactions.

• Non-simultaneous sale and completion transactions.

• Properties owned by the vendor for less than 6 months (subject to standard exceptions).

• Applications are subject to credit scoring, credit assessment and affordability review. A soft credit search is completed at DIP stage.

• Rental payment history may be considered as part of the credit assessment.

• Credit commitments being repaid on completion may be disregarded.

• Credit commitments with less than 12 months remaining may be considered subject to underwriter review.

• Existing second charges, authorised overdrafts, unauthorised overdrafts and payday loan usage may be considered subject to review.

• Debt consolidation is available, subject to lending policy and affordability requirements.

• Personal finance used for business purposes may be disregarded for Limited Company Directors and LLP Partners where suitable evidence is provided.

• Salary sacrifice deductions are ignored for affordability purposes. Student loan repayments are included.

• A maximum of 5% of outstanding credit card balances will be used within affordability calculations.

Not acceptable:

• Residential mortgages being retained in the background on completion.

• Second homes, holiday homes and pied-à-terre applications.

An application cannot be considered before a criminal conviction is spent.

Applicants with criminal convictions may be considered once the conviction is spent. Please contact your account manager to discuss the applicable time limits for spent convictions.

Applicant(s) with DMPs are acceptable subject to all of the following:

• Active DMPs must have been active for a minimum of 12 months.

• Active DMPs are restricted to a maximum of 85% LTV.

Where the applicant has sufficient equity in existing property, it is acceptable for deposit funds to be raised by way of a remortgage or 2nd Charge.

For purchases, the deposit represents the difference between the loan requested and the purchase price.

• The deposit should come from the applicant’s own resources and have originated within the EEA without recourse to additional borrowing.

• Acceptable deposit sources include:

  • Vendor equity/deposit

  • Family gifts

  • Purchase from family at a discounted price

  • Remortgage or secured loan on an existing property owned by the applicant

  • Builder’s Deposit (New Build only)

• Family gifted deposits are acceptable from immediate family members where the gift is non-repayable and the donor is aged 18 or over.

• Deposit funds may be verified and evidence of source may be required.

Not acceptable:

• Purchase from a company in which the applicant has an interest.

• Ministry of Defence Loan.

• Cryptocurrencies as a source of deposit.

Application is not acceptable if any party is subject to any form of immunity.

Amount Eligible - 100%
(Any mortgage should not be solely reliant on this Income Source unless Rental Income or Pension Income is included in the application).

Applicants must be registered to pay tax on their income in the UK, and the source of income must be within the UK, paid in GBP.

• Employed applicants must normally have been in their current role for at least 3 months and have a minimum of 12 months continuous employment. Applicants with less than 3 months in their current role may be considered where they have at least 12 months' experience in a similar occupation.

• Employment must be permanent and not subject to a probationary period.

• Applicants employed by a family business may be considered, subject to appropriate evidence.

• Acceptable employment types include:

  • Armed Forces personnel

  • Cabin crew

  • Professional sports people

  • Mariners and seafarers paid in sterling and paying UK tax

  • Bank nurses (where not the main income earner)

• Zero-hours contracts are only acceptable where the applicant is not the main income earner.

Not acceptable:

• Agency workers.

• Applicants in a probationary period.

• Temporary, seasonal, piece-work or price-work employment.

• Applicants whose employment is pending or yet to commence.

Company directors owning >=25% of company, are categorised as self-employed for assessment purposes. Otherwise, they are categorised as employed.

For applicants employed under the Construction Industry Scheme, (“CIS”) where applicants pay their own tax or are sub-contracted to >1 company, they are categorised as self-employed. Otherwise, they are categorised as employed.

PAYE applicants must normally have been in their current job for a minimum of 3 months.

Where applicants have been in their current role for less than 3 months, cases may be considered where the applicant has worked in a similar occupation for a minimum of 12 months.

The reason for any recent employment change must be established.

Zero-hour contracts are only permitted where the applicant is not the primary income earner.

Where income from zero-hour contracts or bank nursing is required, eligible income is based on the average pay from the last 3 months.

Bank nurse income is only acceptable where the applicant is not the main income earner.

Umbrella company income is not considered acceptable unless the applicant is responsible for their own tax and National Insurance and is therefore assessed as self-employed.

One month's payslip from the latest two months is required for employed applicants.

In some instances, additional payslips may be requested at underwriter discretion.

A P60 may be requested where required to evidence bonus, overtime or other variable income.

The latest three calendar months' personal bank statements showing income and expenditure are required.

Where the applicant is on maternity or paternity leave and returning to the same employment terms, income may be assessed using pre-leave salary. If employment terms are changing, confirmation from the employer will be required.

A gifted deposit from an immediate family member is an acceptable source of deposit where the gift is non-repayable.

Immediate family is defined as:

• Spouse / Civil Partner

• Parents (including step-parents)

• Grandparents

• Siblings (brother / sister)

• Son / Daughter

• Aunt / Uncle.

The individual making the gift must be aged 18 or over.

Where the property is being purchased from a family member at a discounted price, this is acceptable provided the family member will not continue to reside in the property and relinquishes all rights to the property. Lending and maximum LTV will be based on the reduced purchase price.

Where the property is being purchased from a family member at a discounted price, this is acceptable provided the family member will not continue to reside in the property.

Lending and assessment of the maximum LTV will be based on the reduced purchase price.

The vendor must relinquish all rights to the property.

• Product fees and telegraphic transfer fees may be added to the loan, subject to a maximum gross LTV of 97%. Added fees are included within the affordability assessment but not the LTV calculation.

• An assessment fee applies to all applications.

• Early Repayment Charges apply where specified by the product terms.

• Precise does not charge a Higher Lending Charge.

Not acceptable:

• Adviser fees cannot be added to the loan.

Flying freeholds can be considered provided the percentage thereof does not exceed 20% of the total area. The valuer must comment and confirm total percentage.

Must be self-contained with private facilities and direct access to the highway via common parts.

Where the security is situated above commercial premises, or is an Ex-Local Authority owned the case may proceed subject to the valuer being satisfied with the overall saleability of the property and not registering any adverse comments.

Flats above the fourth floor must be served by a lift.

The maximum LTV for a re-sale flat/apartment is 95%.

New Build flats/apartments are acceptable up to 90% LTV.

Studio flats are acceptable subject to a minimum floor area of 30m² and a maximum 70% LTV.

• All applications are subject to affordability assessment using the residential affordability calculator. Affordability is assessed based on the selected repayment method.

• Minimum household income is £10,000 per annum, including pension income.

• Up to 50% of declared and validated overtime, bonus and commission income may be used for affordability.

• Rental income may be considered, including as a sole source of income where appropriate evidence is provided.

• Company and private pension income may be accepted, including as a sole source of income.

• Child maintenance income may be considered at 100%, subject to verification by 3 months' bank statements.

• Investment dividend income may be considered at 100% as an additional income source.

• Second job income may be considered at up to 100%.

• Applicants paid in cash may be considered subject to satisfactory income and bank statement evidence.

• Maternity and paternity leave cases may be considered subject to confirmation of return-to-work arrangements.

• Pension contributions and salary sacrifice deductions are disregarded for affordability purposes.

Not acceptable:

• Income paid in a foreign currency.

• Commission-only income.

• Director's loans.

• Trust income, bursaries, stipends and expenses.

• Lodger income.

• Permanent Health Insurance (PHI), SIPP income, vested share income and employee benefit trusts.

• Third-party income from a person not named on the mortgage.

Interest Only lending is available up to a maximum of 75% LTV.

• Part & Part repayment is currently not available.

• A credible repayment strategy must be demonstrated for all Interest Only borrowing.

Acceptable repayment strategies include:

• Sale of the subject/security property.

• Sale of a second home or Buy to Let property.

• Savings and investments.

• ISAs (Cash and Stocks & Shares).

• Premium Bonds.

• Pension.

• Downsizing.

The repayment vehicle must be projected to have a value at the end of the mortgage term at least equal to the net loan amount.

Not acceptable:

• Unit Trusts and OEICs.

• Sale of other assets.

• The mortgaged property must be occupied by the borrower.

• Professional landlords are acceptable.

• Consumer Buy to Let applications are acceptable.

• Consent to Let may be considered subject to individual review.

• Lodgers and boarders may be considered subject to underwriter review.

• Let to Buy applications are accepted.

Not acceptable:

• Airbnb and short-term holiday letting.

• Regulated Buy to Let applications.

• Voluntary Right to Buy applications.

• Applications are available where the mortgage term extends into retirement, subject to affordability and retirement planning.

• Maximum age at application is 70 or the applicant's stated retirement age, whichever occurs first.

• Maximum age at the end of the mortgage term is 75 or stated retirement age if earlier.

• Company pension, private pension and retirement dividend income may be considered where acceptable under affordability policy.

Not acceptable:

• Retirement Interest Only (RIO) mortgages.

• Applications relying on Retirement Interest Only criteria, repayment strategies or affordability assessments.

• Standard purchase and remortgage applications are accepted, subject to lending policy and product availability.

• Affordable Housing and certain Section 106 properties may be considered, subject to valuation and underwriting review.

Not acceptable:

• Right to Buy applications.

• Right to Acquire applications.

• Help to Buy purchase applications.

• Help to Buy remortgages and staircasing applications.

• Shared Equity applications.

• Shared Ownership purchases.

• First Homes, Starter Homes, Rent to Buy and Local Authority Grant schemes.

• Deposit Unlock and Mortgage Guarantee Scheme applications.

• Key Worker, Offshore Mortgage and Equity Purchase schemes.

• Forces Help to Buy deposits.

Purchase or Remortgage of a residential property as an applicant’s sole, main residence.

Minimum: 5 years

Maximum: 40 years

• Loan amounts from £25,001 up to £10,000,000 are available, subject to product and lending criteria. For larger loan sizes, refer to your Business Development Manager.

• Minimum property value is £75,000.

• There is no maximum property value.

• Maximum mortgage term is 40 years for both Capital & Interest and Interest Only loans.

• Minimum mortgage term is 5 years.

• Mortgage terms must be in whole years.

• Maximum LTV is 95% for standard residential purchases and remortgages.

• Maximum LTV is 90% for new build properties.

• Maximum LTV is 90% for debt consolidation cases.

• Maximum LTV is 70% for studio flats.

• Maximum LTV of 75% applies for applicants with one years' accounts.

• Interest Only lending is available up to 75% LTV.

• Part & Part repayment is currently not available.

• Product and telegraphic transfer fees may be added up to a maximum gross LTV of 97%.

• Loan size limits apply:

  • Up to £2,000,000: 95% LTV

  • £2,000,001 to £3,000,000: 90% LTV

  • £3,000,001 to £5,000,000: 85% LTV

  • £5,000,001 to £10,000,000: 65% LTV

Not acceptable:

• Right to Buy applications and remortgages.

• Shared Equity applications.

• Holiday homes, second homes and pied-à-terre properties.

Properties may be located in:

• England.

• Wales.

Can consider 100% child maintenance as an acceptable additional income source.

3 months' bank statements are required to confirm receipt of the income.

Minimum confirmed gross annual household income is £10,000 p/a in all instances, including pensions income. The income that contributes to this minimum must be from allowable sources in accordance with this Policy.

Where volumetric construction or POD type construction is used, they must be supported by a Build Offsite Property Assurance Scheme. E.g. three-dimensional units which are fully fitted off-site and then transported and craned onto site.

• Mortgage offers are valid for 3 months from the date of valuation for non-new build properties.

• An extension to the original mortgage offer may be considered, subject to valuation validity.

• New build mortgage offers are valid for 6 months from offer date, plus up to 1 month extension.

• Product changes may be permitted before completion where rates or products change.

Not acceptable:

• Full or partial retentions.

• Capital & Interest repayment is available across the product range.

• Product transfers are not currently available.

• Porting is not available on any products.

• Non-simultaneous porting is not available.

• Overpayments are not permitted.

• Bridging finance products are available.

Not available:

• Offset mortgages.

• Borrow back facilities.

• Cash reserve facilities.

• Product splits on the same mortgage.

• Foreign currency mortgage lending.

• Sharia-compliant mortgage products.

A full 3-year UK residential history is required, and applicants must reside in the UK at completion.

UK Nationals

For the purposes of this Policy, British Forces Post Office (BFPO) addresses are considered to be UK.

Non-UK Nationals

In addition to residency requirements, applicant(s) must provide evidence of permanent rights to remain in the UK.

• UK nationals are eligible subject to a 3-year UK residential history.

• EEA nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

• Non-EEA nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

• Applicants must have a permanent right to reside in the UK and satisfy all residency requirements.

Not acceptable:

• Applicants without a permanent right to reside in the UK.

• Applicants with Diplomatic Immunity.

• Applicants whose employment is based overseas.

• Applicants relying solely on temporary immigration status without permanent right to reside in the UK.

Maximum: 2

New build properties are those that are less than two years old (from the date of practical completion) and/or have not been lived in.

Properties aged less than ten years, recently converted or occupied for the first time must benefit from one of the following:

• ABC+

• Advantage HCI

• Ark Residential New Build Warranty

• BOPAS (Build Offsite Property Assurance Scheme) (Modern Methods of Construction (MMC) only see section 4.11)

• Build Assure

• Building Life Plans

• Build zone

• CADIS

• Checkmate (Castle 10)

• Global Home Warranties

• Home Proof

• International Construction Warranties (ICW)

• LABC

• N.H.B.C. guarantee

• One Guarantee

• Premier Guarantee Scheme

• Professional Consultants Certificate (previously an Architect’s Certificate). Detailed requirements are provided in section 6.7.4 of the UK Finance Lender’s Handbook. The issuing architect should have minimum professional indemnity insurance equivalent to the greater of £500,000 or the property value. Normally only acceptable on developments with up to 10 units; refer to Real Estate if higher.

• Protek

• The Q Policy

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

• New build houses and flats are acceptable up to 90% LTV, subject to valuation and product criteria.

• Properties purchased off-plan are acceptable.

• Where a builder incentive is present, lending can be considered up to 90% LTV, however any incentive amount must be deducted from the lower of the purchase price or valuation before calculating the LTV.

• Builder part-exchange transactions may be considered subject to underwriter review.

• A new build property is defined as a property that has never previously been occupied, including qualifying conversions.

• Properties less than 10 years old must benefit from an acceptable warranty or professional certificate.

Not acceptable:

• Reassignment of off-plan purchase contracts.

New Build – 6 months from date of offer plus up to 1 month extension. Subject to valuation validity.

Non-New Build – 3 months from date of offer, can be extended up to valuation validity period plus 1 month.

AIP – 28 days from date of credit search.

When occupants, aged 18 years old or over, other than those that are party to the mortgage application are declared, the appropriate condition for a Deed of Consent must be added to the offer.

All proposed owners of the security must be included in the mortgage application.

Acceptable - State or otherwise.

Amount Eligible - 100%.

A property that is subject to any planning or occupancy restrictions are not acceptable unless the underwriter considers that the overall case is strong, saleability is not detrimentally affected, and any restriction is commensurate with the property/location.

Full rationale should be included in the case notes where appropriate. New build properties that are subject to Section 106 Planning Obligations are acceptable subject to no adverse comments from the conveyancer.

• Residential lending is limited to a maximum of one residential property with us.

• Applicants may own additional properties with other lenders, subject to overall assessment and lending criteria.

• Portfolio size with other lenders is not subject to a specific maximum limit, provided the applicant only owns one residential home.

• Properties must be readily saleable, mortgageable, insurable and suitable for immediate occupation.

• Houses, flats, maisonettes, converted properties, ex-local authority properties, barn conversions, annexes, outbuildings and properties with land may be considered, subject to valuation and underwriting requirements.

• Studio flats are acceptable with a minimum floor area of 30m² and maximum 70% LTV.

• Flats above the fourth floor must be served by a lift.

• Flying freeholds are acceptable where they do not exceed 20% of the total property area.

• Leasehold properties must have a minimum of 90 years remaining at application and 50 years remaining at the end of the mortgage term.

• Grade II listed buildings, some non-standard construction properties and properties with solar panels may be considered subject to valuation and review.

• Lending is available in England and Wales.

Not acceptable:

• Freehold flats and maisonettes.

• Holiday homes, serviced apartments, sheltered accommodation and retirement housing.

• Properties with occupancy restrictions, agricultural ties or other planning restrictions that adversely affect marketability.

• Multi-unit freehold blocks, land purchases and farms/smallholdings.

• BISF, PRC, Mundic Class B/C, crofted, landlocked and certain non-standard construction properties.

• Properties above food outlets, properties with spray foam insulation, recent underpinning or overhead power lines.

• Grade I listed buildings (England & Wales) and Grade A/B listed buildings (Scotland).

Minimum: £75,000

• Purchase applications are accepted, subject to standard lending criteria and underwriting assessment.

• Properties purchased at auction may be considered.

• Private sale transactions may be considered subject to individual review.

• Below market value purchases may be considered subject to individual review.

• Dependent relative and family purchase arrangements may be considered on referral.

Not acceptable:

• Purchases where the vendor has owned the property for less than 6 months, except for approved policy exceptions.

• Back-to-back transactions, sub-sale agreements and transactions involving finder’s fees.

• Purchases from a Limited Company where the applicant has an interest in that company.

• Purchases of land.

• Purchase of adjoining properties where there is no intention to combine the properties.

• Remortgage applications are accepted, including pound-for-pound remortgages and remortgages with capital raising.

• Capital raising may be considered for purposes including home improvements, business purposes, debt consolidation, purchase of land and Buy to Let deposits, subject to underwriting assessment.

• Transfer of Equity applications may be considered as part of a remortgage.

• Remortgages from bridging finance are acceptable.

• Debt consolidation involving second charge loans may be considered. Remortgages with debt consolidation are acceptable up to a maximum of 90% LTV.

Not acceptable:

• Remortgages where the property has been owned, or the existing mortgage has been in place, for less than 12 months, except for approved policy exceptions.

• Help to Buy and Right to Buy debt consolidation cases.

Amount Eligible – 100% (with all BTL mortgages to be keyed as commitments).

In all cases it must be evidenced in line with self-employed guidelines.

Personal name – Income from UK Land and Property.

Ltd Co – Dividends/Salary.

Capital Repayment.

Interest Only - Maximum LTV for Interest Only lending is 75%.

Part & Part repayment is currently not available.

For any form of self-employment, annual income will be assessed from SA302s, the corresponding tax year overviews supported by 3 months’ bank statements. Underwriting can accept accounting information in lieu of the SA302 and tax year overview only where accounts prepared by accountants who are members of a recognised UK professional body and subject to appropriate professional regulation.

Acceptable income:

• Director – Salary and Dividends

• Sole trader – Net profit

• Partnership – share of Net profit

Where required, specialist reports must be prepared by a reputable and suitably qualified firm.

Where structural movement is not “historic or longstanding” or there is risk of further movement, a structural engineer’s report must be obtained from members of either The Institute of Structural Engineers or the Institute of Civil Engineers and referred to the valuer for comment.

• Self-employed applicants must have been trading for a minimum of 12 months. One year's accounts may be accepted, although this may restrict product availability.

• Sole traders, partnerships, LLP members and limited company directors are acceptable.

• Applicants with a shareholding of 25% or more in a limited company are assessed as self-employed.

• Income is typically assessed using the latest year's accounts where income is stable or increasing. Average income may be used where profits are not stable, subject to rationale and underwriting review.

• Declining profits may be considered subject to a full assessment of the application.

• Applicants who have changed trading structure, for example from sole trader to limited company or vice versa, may be considered where overall trading history requirements are met.

• CIS contractors responsible for their own tax and National Insurance are assessed as self-employed.

For income assessment:

• Sole traders: Net profit.

• Partnerships: Share of net profit.

• Limited company directors: Salary and dividends.

Not acceptable:

• Retained company profits.

• Accountant's references or certificates as a substitute for the required income verification documents.

Freehold

Acceptable for Houses only. Freehold flats/maisonettes are not acceptable. Commonhold properties are not accepted.

Leasehold

There must be a minimum of 90 years remaining on the lease at the start of the mortgage term and a minimum of 50 years remaining at the end of the mortgage term.

• Properties designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and adjoining properties have not been repaired under an approved repair scheme.

• Properties constructed with high-alumina cement.

• Timber framed property with no brick skin/masonry cladding unless it is an acceptable MMC construction supported by BOPAS.

• BISF properties.

• Pre-1980 steel framed houses.

• Properties where material environmental hazards are present.

• Properties where commercial usage exceeds 20%.

• Live / work units.

• Any property deemed unsuitable security by the valuer.

• Any property where there is ongoing movement or monitoring requirements.

• Mobile homes and houseboats.

• Grade I listed buildings (England & Wales) and Grade A/B listed buildings (Scotland).

• Any property whose saleability may be adversely affected by local planning or by an unsatisfactory mining search.

• Crofted properties.

• Landlocked properties.

• Ex-Local Authority properties within Right to Buy pre-emption period.

• Residential buildings incorporating combustible cladding or external wall systems where unacceptable following EWS1 review.

• Properties subject to spray foam insulation within the roof space.

• Properties with mundic concrete designated as Class B or Class C.

• Properties with Japanese Knotweed designated as Category A or Category B, or Category C where there is no satisfactory management plan in place.

• Ex-Local Authority Flats where there isn’t an active and transactional market within the block/development.

• Flats/apartments above food outlets.

• Properties on a commonhold tenure type.

• Studio flats with a floor area of less than 30m².

Acceptable: Standard, Child, Disabled Child, Carer and Disability elements ONLY.

Amount Eligible - 100% After deductions (applied evenly)

Any mortgage should not be solely reliant on this Income Source unless Rental Income or Pension Income is included in the application.

Where a vendor deposit, vendor equity or discounted purchase price is provided, the incentive amount must be deducted from the lower of the purchase price or valuation and lending must be based on the net figure.

Where the property is being purchased from a family member at a discounted price, this is acceptable provided:

• The family member will not continue to reside in the property.

• The vendor relinquishes all rights to the property.

• Lending and maximum LTV are assessed using the discounted purchase price. The required level of deposit to meet product requirements must be provided from an acceptable source.

Non-New build – 6 months (from date of inspection).

New build under construction – 7 months (from date of inspection).

A new valuation will be required if it expires prior to completion.

• A valuation will be instructed at full application stage and must be arranged by the lender.

• Standard physical valuations are required for all applications.

• Mortgage Valuations and Homebuyer Reports are available.

• Re-typed valuations may be considered in limited circumstances, subject to lender requirements.

• For new build properties, re-inspection fees may apply where further inspections are required.

• Where cladding concerns are identified, an EWS1 assessment may be required for review.

• The lender will select the valuer and valuation provider.

Not acceptable:

• AVM, desktop or drive-by valuations in place of the lender's standard valuation process.

• Valuation appeals.