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 including defaulted payday loans, unless otherwise stated at a product level.

Debt Management Plan

If a credit commitment is subject to a Debt Management Plan (DMP) or equivalent, we will accept the payment amount agreed within the DMP or equivalent within our affordability calculation.

On any case with a formal DMP we will require a reference that confirms the DMP has been conducted satisfactorily for the past 12 months.

TML will not consider an applicant who has an active Debt Arrangement Scheme in Scotland.

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.

Non UK Nationals

For all non UK nationals a certified copy of a passport is required. Additional information may be required.

Minimum income

£15,000.

Minimum employment history

12 months.

Bank statements

2 months’ personal bank statements. Additional statements may be required.

Employed

Must be in current role for 6 months at the date of application. Evidenced by 2 months’ payslips.

Overtime, Employment Bonus, Commission, Car Allowance and Regional Allowance at 100% with Shift Allowance at 50% can be included if paid weekly, monthly or quarterly.

Additional payslips or alternative income evidence may be required to justify the level of income component claimed.

For any overtime component the monthly level of income to be evidenced in the payslips provided. The year to date summary should support the annualised figure declared.

Additional payslips or alternative income evidence may be required to justify the level of income component claimed.

100% of annual bonuses if the applicant can demonstrate this has been paid during or after 2021 as evidenced by a payslip, or equivalent.

For any joint application only one party can be on furlough, where this should not be the main earner unless TML is satisfied that affordability is sustainable from the second applicant’s income. For any single applicants, if they are on furlough they will be excluded.

For any applicant returning from furlough, for the maximum income considered must be evidenced in the latest months’ payslip. Additional written confirmation may be requested from their employer with salary details being confirmed.

Self employed

Minimum trading time 12 months.  Maximum 85% LTV.

Latest 3 months’ business bank statements and 1 month personal bank statement. Additional statements may be required.

Evidenced using:

• Most recent year’s certified accounts OR
• Tax Calculation (SA302) with the corresponding Tax Year Overview

TML will not accept an accountant’s certificate / reference.

If certified accounts are provided these must be completed and returned from a qualified accountant with acceptable accountant qualifications: ACA/FCA, ACCA/FCCA, ACCIMA/FCIMA, CIPFA, ACMA. Accountant must hold a current practising certificate.

Trading 12-24 months:

• Maximum 85% LTV
• Most recent year’s evidence required

Trading > 24 months:

• Maximum 85% LTV
• Most recent 2 years’ evidence required

TML may consider the use of past trading accounts relating to pre-COVID levels by using accounts for 2019/2020 if the latest 3 months bank statements are in line with past trading performance.

This will be subject to the following:
• Available on RL1 to RL5 products only;
• Minimum 2 years full acounts;
• Maximum income allowed equal to 2019/20;
• Completion of additional disclosure form for any applicants impacted by COVID.

Please speak to your BDM for further information prior to submitting an application.

Contractors

Income calculation of up to a maximum of weekly rate x 48.

Existing contractors: Must have been contracting for a minimum of 12 months at the point of application.

TML will only accept applications at present from existing contractors, not new contractors.

Current contract must be for a minimum of 6 months. Payslips and/or invoices supporting the contract and bank statements are required.

For any contract with a term less than 3 months remaining, confirmation to be provided from the applicants’ employer that their contract will be renewed and TML is satisfied with the applicant’s contracting history, if requested.

Renewal of contracts: Where the current contract length is less than 6 months and there is a history of renewal covering a 6 month period, with the same company, then this can be considered on a case by case basis.

New contractors: Must have been contracting for a minimum of 3 months. Previous experience in a similar role for a minimum period of 12 months.

For any contract with a term less than 3 months remaining, confirmation to be provided from the applicants’ employer that their contract will be renewed and TML is satisfied with the applicant’s contracting history, if requested.

Retired

The most recent 2 monthly pension statements/payslips or an annual advice notification will be required to evidence all retired income and the most recent 2 full monthly bank statements showing the income credit as validation; or

Latest letter from pension provider confirming current pension income and the most recent 2 full monthly bank statements.

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 (% accepted)

Full amount should be keyed into the application.

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 the total income on the application. The applicant with this benefit must have an acceptable earned income source.

85% LTV

• Employed
• Self-employed trading >12 months
• New build*
• First-time buyer*
• Existing contractors
• Lending into retirement

* (except where the maximum LTV% for any specific product is lower)

75% LTV

• Ex local authority properties
• Family Gifted Equity
• Applicants with previous bankruptcy and IVA

Maximum loan (varies by LTV)

£600k up to 85% LTV
£750k up to 80% LTV
£1m up to 75% LTV
(above £1m considered on referral)

Minimum term

5 years

Maximum term

35 years

Remortgage

No remortgage within 6 months of purchase. No back to back transactions. Any remortgages under 6 months on a referral basis.

Advice

All applications must be on an advised basis.

Repayment method

Capital and interest repayment only.

Offer validity

90 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 or, inheritance. Other sources can be considered. Please contact The Hub to discuss.

Gifted Deposit

Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members will be considered on a case by case basis. Gifts from non–family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to a TML Gifted Deposit/Equity Form being provided from the deposit provider together with all required identification and evidence of funds being submitted. Note: This form requires to be completed prior to any offer being submitted or this may delay an application.

Family gifted equity

Must be from a family member and donor cannot reside in the property. Available on Real Life 1 to Real Life 6, Lumi 1 and Lumi 2 products only.

Subject to a TML Gifted Deposit/Equity Form being provided from the deposit provider together with all required identification and evidence of funds being submitted. Note: This form requires to be completed prior to any offer being submitted or this may delay an application.

Minimum valuation

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

Maximum valuation

£2m (property valuations over £2m are considered on referral).

Locations

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

Retentions

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

Flats/maisonettes/apartments

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

Tenure

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

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 75%. The maximum loan on a new build property with a builder’s deposit/incentive that is not being deducted from the purchase price is £1,000,000.

Help to Buy

Available to first time buyers only in England. Available to first time buyers and home movers in Wales.

Minimum 5% deposit from applicants own resources.

Family gifted deposit acceptable.

Region*         Maximum purchase price     Maximum Loan

England                    £600,000                          £450,000

London                     £600,000                          £450,000

Wales                        £300,000                          £225,000

* Regional limits apply and may vary from time to time.
Maximum 75% LTV in England, Greater London & Wales.
Maximum age at end of term is 75 for Help to Buy products.
Purchase only. Not available for remortgage.
Please see Residential product guide for full details.