Residential Lending Criteria

Minimum age

21

Maximum age

80 at the end of term

Maximum number of applicants

2

Credit scoring

We will not use score to determine the product rate.

Payday loans

Payday loans must be satisfied 12 months prior to application

Bankruptcy and IVA

Acceptable on Real Life 5 – Real Life 7. Maximum 75% LTV. Applicant must have maintained a clean profile in the most recent 36 months.

Arrears

Refer to product details. Arrears assessed on worst status basis.

CCJs

Refer to the product details. We can consider applicants with CCJs.

Defaults

Refer to the product details. We can consider applicants who have had defaults.

Minimum loan cashback

£100,000

Payment of cashback

Cashback will be paid to the bank account details provided for the Direct Debit payments.

Valuation refund

Valuation refunds will be paid to the original payment method provided.

Payment timescales

Payments will be made within 14 days following the mortgage completion.

UK and EEA nationals

Full 3 years’ residential history required.

Non-EEA nationals

Must be resident in the UK for the last 3 years and have the permanent right to reside.
Diplomatic immunity is not allowed.

Minimum income

£15,000

Minimum employment history

12 months history required

Bank statements

3 months’ personal bank statements

Employed

Must be in current role for 6 months. Evidenced by 3 months’ payslips.

Overtime, Employment Bonus, Commission, Shift Allowance and Car Allowance can be included at 100%

Self-employed trading less than 24 months

Minimum trading time 12 months.  Maximum 85% LTV.

Latest 1 month’s business bank statements. Evidenced using:

• Latest years certified accounts OR
• SA302 OR
• Accountant’s Certificate OR
• Tax Calculation with corresponding Tax Year Overviews OR
• SA302’s

Acceptable accountant qualifications: ACA/FCA, ACCA/FCCA, ACCIMA/FCIMA, CIPFA, ACMA.

Self-employed trading 24 months or more

Maximum 90% LTV

(90% LTV available through selected distribution partners)

Latest 1 month’s business bank statements. Evidenced using:

• Latest 2 years certified accounts OR
• Most recent 2 years SA302 OR
• Accountant’s Certificate OR
• Tax Calculations with corresponding Tax Year Overviews OR
• SA302’s for the most recent two years.

Acceptable accountant qualifications: ACA/FCA, ACCA/FCCA, ACCIMA/FCIMA, CIPFA, ACMA.

Contractors

Income calculation of up to a maximum of weekly rate x 48.
Available on Real Life 1 – Real Life 6 products.
Current contract must be for a minimum of 6 months.
Payslips and/or invoices supporting the contract, and bank statements are required.
Existing contractors:
Must have been contracting for a minimum of 12 months.
New contractors:
Up to 75% LTV.  Must have been contracting for a minimum of 3 months.
Previous experience in a similar role for a minimum period of 12 months.

Lending into retirement

Latest annual statement of pension(s) due on retirement or recent letter from pension provider(s) confirming the pension due on retirement.
Evidence of any additional post-retirement income will be required for the income to be considered.

Other Income

Taken at 100%

• Child Benefit*
• Maintenance Payments**

Taken at 75%

• Working Tax Credit / Child Tax Credit (or Universal Credit Equivalent)***

Taken at 50%

• Investment Income

Evidenced through bank statements OR award letter OR acceptable alternative.

* For children 13 years and under.
** Court ordered only and must have minimum of 5 years remaining.
*** Restricted to 25% of earned income.

90% LTV*

• Employed
• Self-employed trading >24 months (most recent 2 years evidence required)
• Existing contractors
• Lending into retirement

* 90% LTV – selected distribution partners – please refer to the product and criteria guides.

85% LTV

• Self-employed trading <24
months (most recent years evidence required)
• New build
• First-time buyer

75% LTV

• New contractors (<12 months)
• Ex local authority properties
• Family Gifted Equity
• Applicants with previous bankruptcy and IVA

Minimum loan

£25,001 (£100,000 for cashback products)

Maximum loan (varies by LTV)

£600k up to 90% LTV
£750k up to 80% LTV
£1m up to 75% LTV

Minimum term

5 years

Maximum term

35 years

Remortgage

No remortgage within 6 months of purchase.

Advice

All applications must be on an advised basis.

Repayment method

Capital and interest repayment only.

Offer validity

60 days. New build offers are valid for 6 months subject to valuation/reinspection.

Source of funds

Evidence required. Can include: Savings, sale of property, sale of investments/shares, inheritance. Other sources can be considered. Please contact our Intermediary Business Consultants to discuss.

Family gifted deposit

Family gifted deposits are acceptable where the donor is not involved in the mortgage transaction.

Family gifted equity

Must be from an immediate family member and donor cannot reside in the property. Up to 75% LTV.  Only available on Real Life 1 – Real Life 6.

Minimum valuation

£70,000 (£150,000 in London and South East).

Maximum valuation

£1.5m (property valuations over £1.5m are considered on referral).

Locations

Mainland England, Scotland and Wales. Postcode restrictions may apply.

Audit valuation

Under the following circumstances, a second audit valuation will be required.

Properties valued over £500,000 and over 75% LTV – drive by valuation.

Properties valued over £1m – mortgage valuation report.

Retentions

Acceptable for essential repairs only. Max 5% of current property value.

Flats/maisonettes/apartments

Must be leasehold in England and Wales. Freehold is acceptable in Scotland.

Tenure

Freehold or leasehold in England and Wales. Scottish properties must be absolute ownership or freehold.

Offer validity – new build

6 months, subject to valuation/reinspection.

Builder deposit/incentive

Up to 5% builder deposit or incentive is allowable without deduction up to a maximum LTV of 85%. The maximum loan on a new build property with a builder’s deposit/incentive that is not being deducted from the purchase price is £600,000.

Help to Buy

Available to first time buyers and home movers.
Minimum 5% deposit from applicants own resources. Minimum 10% in Scotland.
Family gifted deposit acceptable. We cannot accept builder gifted deposit in conjunction with Help to Buy: Equity Loan.

Region – Maximum loan
England –  £450,000
London – £450,000
Scotland – £150,000
Wales – £225,000

Maximum 75% LTV.
Maximum age at end of term is 75 for Help to Buy products. Except in Scotland where the maximum age at end of term is 70.
Purchase only. Not available for remortgage. Help to Buy products cannot be ported.
Please see Help to Buy product guide for full details.