Lending and security guidelines

• Permitted, subject to product availability

• Up to 95% LTV based on the borrowers share for houses (including New Build)

• Up to 85% LTV based on the borrowers share for flats (including New Build)

• Maximum share of the property to be purchased - 80% (available for houses and flats)  

• Additional borrowing may only be considered for the purchase of additional share of the property (staircasing allowable in increments > 5%)

• Further advance or remortgage applications to acquire the final share of the property are permitted. Standard loan and LTV limits will apply as it will no longer be considered as Shared Ownership.

• Capital repayment only

• Rental payments are calculated at 125% 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.

British and Northern Irish Citizens in the UK

• Three years residency in the UK required

Indefinite Leave to Remain (ILR) & Indefinite Leave to Enter (ILE)

• Gives the right to live, work and study in the UK for as long as required and the ability to apply for benefits 

EU settlement scheme

• Established to enable EU, EEA, and Swiss Citizens resident in the UK by 31 December 2020 (and their family members) to get the immigration status they need to live, work, study, and access benefits in the UK after 30 June 2021

• Settled Status (SS)
• Rights to live and work in the UK permanently
• Three years residency in the UK required
• Share Code required

Foreign Nationals

Applicants with the following status are deemed to be a Foreign National and must be processed using a Foreign National product, including Shared Ownership and New Build applications.

• Pre-Settled Status (PSS) (subject to Foreign National product availability)
• Rights to live and work in the UK for a limited period of five years (settled status can then be applied for)
• Three years residency in the UK required
• Maximum 90% LTV
• Sole applications permitted
• Share Code required

Skilled Worker (SWV) (subject to Foreign National product availability)

• Three years residency in the UK required
• Maximum 90% LTV
• Sole applications permitted
• Share Code or Visa required

Health & Care Worker Visa (HCWV) (subject to Foreign National product availability)

• Three years residency in the UK required
• Maximum 90% LTV
• Sole applications permitted
• Share Code or Visa required

Spousal Visa (SV) (subject to Foreign National product availability)

• Joint applications only and only where the other applicant is eligible to be a sole applicant (i.e. UK national, ILR, ILE, SS, PSS)
• Three years residency in the UK required
• Maximum 90% LTV
• Share Code or Visa required

Dependant Visa (DV) (subject to Foreign National product availability)

• Joint applications only and only where the other applicant holds a Skilled Worker, Health and Care worker visa, or originally entered the UK on one of these visas.
• Three years residency in the UK required
• Maximum 90% LTV
• Share Code or Visa required

BNO Visa (subject to Foreign National product availability)

• Hong Kong (British Nationals Overseas). BN(O) status is a form of British nationality created for people from Hong Kong so they could retain a form of British nationality and a connection to the UK after the handover to China in 1997 in line with the Sino-British Joint Declaration.
• Three years residency in the UK required
• Maximum 75% LTV
• Share Code or Visa required

Visa - consideration should be given to:

• Length of time in the UK and future;
• Length and type of employment;
• Restrictions on employment and length of stay in the UK.

Applicants must not hold any level of diplomatic immunity.

• 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

• ICW Insurance Services Ltd

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)