Lending and Security Guidelines

Our lending and security guidelines must be read in conjunction with the COVID-19 support page which outlines any temporary lending policy changes. If there is a conflict, the information on the COVID-19 support page will apply.


This page provides guidance for mortgage intermediaries on the areas the West Brom will consider as part of its mortgage underwriting processes.

In addition to the guidelines set out in this page, the West Brom also applies a number of proprietary credit assessment tools, the outcome of which may result in a case being declined despite appearing to fit within the guidelines set out in this page.

The West Brom retains the right to change its underwriting policy at any time and without necessarily updating these guidelines. However, the West Brom will endeavour to ensure the guidelines set out in this page represent the Society’s current approach to lending.

In the event of any clarification being required please contact the Intermediary Sales and Support Team (ISST) or your Business Relationship Manager (BRM). Prior to submission of supporting documentation please contact the BRM for clarification of any items or policy which may require further investigation to ensure cases are processed in a timely manner. 

Please use the search facility below in order to quickly find the information you are looking for from our Lending and Security Guidelines.

Alternatively, you can download a printable pdf of our Lending and Security Guidelines.

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Income Multiples

  • 4.5 x main income where allowable income ≤ £50,000 p.a.; or

  • 5 x main income where allowable income > £50,000 p.a.

  • Multiples above 4.5 x will be capped at 85% LTV

  • 4.5 x main income + 1 x secondary income (where joint allowable income ≤ £50,000 p.a.);

  • 5 x main income + 1 x secondary income (where joint allowable income > £50,000 p.a.);

  • 4 x joint income (where joint allowable income ≤ £50,000 p.a.); and

  • 4.5 x joint income (where joint allowable income > £50,000 p.a.).

  • Multiples above 4.5 x will be capped at 85% LTV

Affordability

  • Only income which is allowable under policy and evidenced should be used to assess affordability. 

  • Income from non-applicants cannot be used to assess affordability.

  • Non-Sterling income not permitted.

Income Type

  • Permitted.

  • 100% of gross basic salary.

  • Permitted.

  • 100% of monthly overtime. bonus and commission.

  • 50% of overtime, bonus and commission if not paid monthly.

  • Subject to additional income not exceeding 100% of gross basic salary.
  • Permitted.

  • 100% of permanent contractual shift allowance.

  • Permitted.

  • 100% may be considered where evidenced and contractual.

  • Permitted.

  • 100% may be considered where evidenced and contractual.

  • Not permitted.

  • Permitted.

  • 100% may be considered where evidenced.

  • Permitted, further information should be taken from expenditure type - Dependent Maintenance/Childcare costs.

  • Not permitted.

  • Not permitted.

  • Not permitted.

  • Permitted.

  • A letter from the Foster Agency confirming:

    • The total income paid for each of the last 2 years.

    • That income is likely to continue at the same level for the foreseeable future.

  • Income assessed as lower of the average of the last 2 years or the current year.

  • The children in foster care of the applicants must be keyed as dependants.

  • Not permitted.

  • Not permitted.

  • Permitted.

  • Where evidenced and considered sustainable

  • Maximum LTV 80% where only income source

  • Permitted, subject to underwriter discretion

  • Where supported and evidenced 

  • Permitted.

  • Up to 100% of earned pension where evidenced.

  • Permitted

  • Up to 100% of state pension where evidenced

  • 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.

  • Not permitted.

  • Not permitted.

  • Permitted.

  • Income is limited to the lower of the average of the last 2 years’ or the current year.

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