Loan amounts and LTV limits.

Min loan size: £25,001 (unless otherwise specified)

Max loan size (unless otherwise specified):

• £10m up to 65% LTV

• £5m up to 85% LTV

• £3m up to 90% LTV

• £2m up to 95% LTV

Additional LTV restrictions:

Remortgages with Debt Consolidation: max 90% LTV.

New Build – Purchase and Remortgage: max 90% LTV.

Builder’s incentive included in deposit:
max 90% LTV. Note, the deposit will be deducted from the value/purchase price of the property.

Active DMP: max 85% LTV.

Studio Flats: max 70% LTV.

Nine Elms area: max 55% LTV.

Minimum property value: £75,000

Interest only: max 75% LTV

Automated valuations (AVMs)

Some cases may be eligible for an Automated Valuation Model (AVM), which means a physical inspection of the property may not be needed.

AVM criteria

Maximum property value: £750,000

Maximum LTV:

• Confidence Level A/B: up to 80% LTV

• Confidence Level A/B/C: up to 75% LTV

Not available for:

• Flats or leasehold properties

• New build or recently converted properties

• Commercial or semi-commercial properties

• Listed buildings

• Properties built before 1850

• Properties with non-standard features or complex valuations

If a property doesn’t meet AVM criteria, a full physical valuation will be required.

AVM eligibility also depends on property type, value, LTV and our internal confidence level.

Retrospective quality checks are carried out on a sample of AVMs alongside ongoing model monitoring by the AVM provider.

Applicant.

Min age: 18 years.

Max age: 75 at end of term subject to intended retirement age.

Max number of applicants: 2.

Min income: £10,000 (primary applicant).

Repayment methods.

Capital repayment and interest only.

Acceptable repayment vehicles and their assumed annual growth rate are as below:

• Investments / Savings (4.5% assumed growth)

• Pension (projected tax-free lump sum)

• Premium Bonds

• Sale of second home/BTL property (after Capital Gains Tax deductions)

• Sale of Security property

Adverse Criteria.

All products have the same maximum adverse permitted, as outlined below.

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

Outer limits (beyond these = decline):

• Defaults: up to 5 in last 24 months

• CCJs: up to 3 in last 24 months

• Secured arrears: up to 1 in last 12 months; up to 3 in last 36 months

• Unsecured arrears: not counted but may affect the credit score.

• Debt Management Plans (DMPs):

  • Satisfied up to 95% LTV.

  • Active up to 85% LTV.

  • Active DMPs must have been running for at least 12 months with no missed payments.

  • If a DMP is to remain post completion, the payments will be included within the affordability calculation.

  • Debt Arrangement Schemes (DAS) are treated the same way.

All applications are subject to internal credit scoring.

Offer validity.

Agreement in Principle (AIP): Valid for 30 days from the date of credit search.

Mortgage offer:

Standard property: 3 months from offer date, plus up to 1 month extension.

New Build: 6 months from offer date, plus up to 1 month extension.

A new valuation will be needed if the existing one expires before completion.

First-Time Buyer (FTB).

A first-time buyer is an applicant/applicants who have never owned a residential property, and is purchasing a property to live in as their main residence.

Home Mover.

A home mover is an applicant who currently owns, or has previously owned, a residential property and is purchasing a new property to live in as their main residence. This may include applicants selling their existing property or retaining it, subject to lending criteria.

Remortgage.

A remortgager is an applicant who already owns the property being mortgaged and is switching their existing mortgage to a new lender or product, with or without raising additional funds, without moving home.

Term.

Min: 5 years

Max: 40 years

Bank of England base rate (BBR) reversion rate.

BBR reversion rates are variable and linked to the Bank of England base rate.

BBR reversion rates have a floor. This means that if BBR were to fall to 0.00% or less the rate payable will be 0.00% plus the agreed set percentage above BBR.

This means that the rate payable will never go below 0.00% plus the additional percentage rate.