Lending and Security Guidelines
Lending and security guidelines
Here you’ll find information on what we’ll consider as part of our mortgage underwriting process. For general questions, please see our frequently asked questions.
It’s important to remember that we also apply our own credit assessment tools, which might mean we have to decline a case, even if it looks like it fits the guidelines on this page.
We have the right to change our underwriting policy at any time, without updating these guidelines beforehand.
You can use the search function to quickly find the information you’re looking for.
If you need any more information, please contact your dedicated Business Development Manager (BDM) or the Intermediary Sales and Support team (ISST).
Popular Searches
Age Requirements Allowable Income Fees and Charges Background BTL Gifted Deposit New Build Valuation Fees Employment Type Nationality Interest Only
Mortgage Terms
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40 years (Capital Repayment) and 25 years (Interest Only)
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An appropriate mortgage term is established subject to consideration of:
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Applicant’s declared retirement age, where the agreed term will fall outside of retirement age or the loan is considered affordable based on post-retirement income.
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Repayment vehicle
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Remaining lease term and the Valuer’s comments on suitability of the property as security for lending
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Product specification
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Applies to all mortgage applicants
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Maximum 60% LTV
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Maximum term: 25 years
Repayment Vehicle
- Permitted
- The value of the plan must have at least 50% of the requested 'interest only' amount with a plausible investment strategy being demonstrated to cover the full value
- The latest statement from the provider is required as evidence and must not be more than 12 months old
- Must be administered by an FCA regulated Financial Services firm
- All beneficiaries of the repayment vehicle must match the name(s) on the application
Lending Schemes
- Permitted
- Subject to equity in other UK property is sufficient to repay the interest only part of the mortgage after any mortgage(s) on the other property has been repaid. Excludes commercial properties
- Evidence required from valuation and latest mortgage statement
- Subject to property being owned solely by one or more of the applicant(s) (confirmation of ownership must be evidenced)
Maximum Age Requirements
Capital & Interest
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Loan to be repaid by applicants 75th Birthday
Interest Only
- Loan to be repaid by applicant's 70th Birthday
Subject to affordability including assessment of evidenced post-retirement income if beyond applicant’s declared retirement age.
Definitions
ADV : Advance
BTL : Buy to Let
CAIS : Credit Account Information Sharing
CCJ : County Court Judgment
CII : Consumer Indebtedness Index
COMM : Commission
KFI : Key Facts Illustration
LTV : Loan to Value
RMC : Regulated Mortgage Contract
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