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.

Download PDF version

 

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Employment Type

  • Permitted.

  • Subject to at least 12 months continuous declared employment history and at least three months with current employer

  • Separate gaps in employment of up to three months, at any one time, are considered acceptable within the 12 month period

  • Professional occupations are permitted if less than 12 months continuous employment or less than three months with current employer. Please refer to the Intermediary Sales and Support team for further information.

  • Permitted

  • Must evidence that applicant has been employed on a similar basis for a minimum of 12 months

  • Income to be based on an average of the last 12 months

  • Not permitted.

  • Permitted.

  • Subject to evidence of 12 months employment on this basis.

  • Income to be based on an average of the last 12 months earnings

  • Applications from ‘professional’ occupations (e.g. doctor, teacher etc. and qualified tradespeople where there is clear future earning potential).

  • Permitted.

  • Subject to 12 months' continuous fixed term contract employment within the same skill set

  • New fixed term contract replacing an employed position held in the same skill set

  • Applications from ‘professional’ occupations (e.g. doctor, teacher etc. and qualified tradespeople where there is clear future earning potential) permitted where they are entering their first fixed term contract, with no requirement for the 12 month fixed term contract history.

  • A minimum of 6 months remaining on the current contract

  • Permitted.

  • Subject to income being verified by latest 3 months payslips and bank statements showing individual salary credits.

  • Permitted.

  • Subject to the applicant declaring their intention to return to work.

  • Affordability should take into consideration future childcare costs and the addition of a child dependant

  • Income may not be considered where the applicant does not declare they will be returning to work

  • Permitted.

  • Subject to the income and hours worked being sustainable over the term of the mortgage

  • Secondary employments outside of the applicants’ primary occupation limited to 50% of the income

  • Where an applicant(s) has multiple employers whilst working within the same skill set we may consider 100% of income and this will be counted as one job

  • A maximum of 2 jobs is allowable.

  • Permitted.

  • Self-employed is defined as a Sole Trader, Partner in a Partnership, LLP or where a ≥ 25% shareholding is held in a Limited Company.

Sole trader or Partner in a Partnership:

  • Subject to the business trading for a minimum of 2 years and where 2 years finalised accounting information is available

  • Income used will be the lower of the latest finalised years or an average of the last 2 years share of net profit

  • SEISS grants are permitted as a source of income where the grant is deemed as a replacement of income that would have been received if the business had been trading as normal.

Limited Liability Partnership (LLP):

  • Permitted subject to the business trading for a minimum of 2 years and where 2 years finalised account information is available

  • Income used will be the lower of the last 2 years share of net profit

  • May permit less than 2 years, where an applicant has recently joined an LLP providing the business has been trading for at least 2 years

  • SEISS grants are permitted as a source of income where the grant is deemed as a replacement of income that would have been received if the business had been trading as normal.

Limited Company:

  • Permitted subject to the business trading for a minimum of 2 years and where 2 years finalised account information is available

  • Income will be the lower of the latest finalised years or an average of the last 2 years salary or dividend

  • May permit less than 2 years trading where a sole trader or partnership has changed to Limited Company status providing the business as a sole trader/partnership has been trading for at least 2 years

Construction Industry Scheme (CIS)

  • Permitted subject to:

  • 2 year track record of sub-contracting under CIS

  • Income used will be the lower of the latest finalised years or an average of the last 2 years share of net profit

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