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).

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Applicant Type

  • Permitted.

  • A first time buyer application is defined where none of the applicant(s) have had a UK mortgage (Owner Occupied, Buy to Let or Let to Buy) within the last 3 years.

Income Type

  • Permitted.

  • 50% of the rental income from an unencumbered Buy to Let or Let to Buy property maybe considered within the affordability assessment. Professional landlords (defined by 4 or more properties) may declare a secondary income, derived from business accounts or SA302, (ensuring the costs used to calculate the Relief for Finance Costs is deducted from the Profit from land and property figure) received from rental income which will be subject to standard self-employed criteria.

Expenditure Type based on monthly expenditure used in affordability assessment

  • Declare any Buy to Let or Let to Buy address, mortgage balance and the monthly payment which will not be repaid prior to the release of funds. However, a property with a mortgage is considered self-financing if the gross rent covers the current mortgage payment. If there is a shortfall it must be added as a cost in the affordability calculation.

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