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).

Download PDF version

 

Popular Searches

Age Requirements Allowable Income Fees and Charges Background BTL Gifted Deposit New Build Valuation Fees Employment Type Nationality Interest Only

 Search Lending Policy

Lending Schemes

  • Permitted, subject to product availability

  • Up to 95% LTV based on the borrowers share for houses

  • Up to 85% LTV based on the borrowers share for flats

  • Maximum share of the property to be purchased - 75% (available for houses and flats)

  • The minimum share of the property to be purchased must be at least 10% of the full property value.

  • Capital repayment only

  • Additional borrowing may only be considered for the purchase of additional share of the property (in increments equal to or above 5%)

  • Rental payments are calculated at 120% of the current rental figure. Please only enter 100% of the current monthly rental figure within the affordability assessment

  • Applications are permitted where either a 6 April 2010 or newer model lease is in place

  • Section 106 permitted: 

    • Restriction on the resale of the property only where the Scheme Provider has an option to buy back the customer’s share at full market value for a period of no more than 3 months. The Society must then be able to staircase to 100% and sell the property on the open market at its full market value and no further restrictions may apply

    • The mortgagee protection provisions in the lease must be unaffected by the restrictions

    • The Residential Surveying Panel Manager must confirm that the restriction has no impact on the value of the security.

Please visit the Shared Ownership section of our website for additional information prior to submission.

Security Basic Criteria

  • Permitted

  • New build is defined as a property that has been completed or converted in the last 24 months, or on first occupation

  • Maximum 75% LTV for flats/maisonettes

  • Maximum 95% for other builds

  • Completion within 12 months of application

  • New build/Shared Ownership lending within a specific development is restricted to:

    • Maximum 25% exposure within a development

    • Maximum 25% may be flats/maisonettes of the securities accepted

    • Maximum 25% of flats per block

    • Maximum of 25% of Shared Ownership proportion of a development

    • Qualified Architect supervised new builds permitted where an acceptable building warranty is available

    • Off plan purchases permitted where completion complies with standard Offer of Loan and Valuation validity period

  • Acceptable new build warranties:

    • NHBC

    • Premier Guarantee

    • Building Life Plans underwritten by Allianz Global

    • LABC new build warranty

    • Checkmate Castle 10

    • Buildzone

    • Q Assure Build

    • Global Home Warranties

    • Protek (subject to the Society interest being noted on the individual policy)

    • HomeProof

    • One Guarantee

    • Advantage

Security Unacceptable Properties

  • Permitted for Shared Ownership only

  • Restriction on the resale of the property only where the scheme provider has an option to buy back the customer’s share at full market value for a period of no more than 3 months. The Society must then be able to staircase to 100% and sell the property on the open market at its full market value and no further restrictions may apply

  • The mortgagee protection provisions in the lease must be unaffected by any restrictions

  • The Residential Surveying Manager must confirm that the restriction has no impact on the value of the security

  • Not permitted:

    • Agricultural tie or restricted properties

    • Sheltered housing and properties with restricted age for the occupants

    • Low cost housing/restricted resale covenant scheme (other than detailed above)

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

Latest News

 

Keep up to date with our latest product changes, lending criteria and business updates.

More Details

Support

Contact us

Business Development Manager Finder

FAQs and General Information

Vulnerable Customers

User Guide

Service Standards

Feedback

Tools and sales aids

Affordability Calculator

Case tracker

Literature

Forms Library

Lending and Security key features

Conveyancing Panel and Fees Assisted Legals

Valuation Fees

Information on identification

Regional equity finder