Lending and Security Guidelines
This page provides guidance for mortgage intermediaries on the areas the West Brom will consider as part of its mortgage underwriting processes. For general queries, please see our Frequently Asked Questions.
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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Age Requirements Allowable Income Fees and Charges Background BTL Gifted Deposit New Build
Valuation Fees Employment Type
Mortgage Types
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Permitted:
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Remortgage only - A letter from the customer's closed book lender confirming that they are a mortgage prisoner will be required
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Capital & Interest: Maximum LTV 85%
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Interest Only: Maximum LTV 60%
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Part & Part: Maximum LTV 80% (Interest Only element capped at 60% LTV)
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Maximum term 40 years
(25 years for Interest Only/Part & Part) -
Maximum age at term end: applicant’s 75th birthday (70th for Interest Only/Part & Part) (including income and non-income earners)
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Borrower must be up to date (12 months actual payments) with their existing mortgage (including fees, charges and unpaid ground rent or insurance) and must confirm that there have been no changes to their income or expenditure
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Loan size cannot be increased, other than to finance any relevant fees
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Unsecured loans contractually linked to the mortgage will not be deemed additional borrowing and can be consolidated
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Secured loans can be consolidated where they are regulated and secured on the property to be mortgaged (either the mortgage or secured loan should be with a closed book lender)
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The new mortgage should be deemed ‘more affordable’
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Term extensions are allowable
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Where the new mortgage term will exceed the applicant’s retirement age, retirement income should be considered unless the applicant is already retired at time of application;
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Transfer of Equity is not permitted
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Standard residential policy applies to all qualifying modified affordability customers with the exception of specified rules defined for these customers
Mortgage Terms
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40 years (25 years Interest Only)
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An appropriate mortgage term is established subject to consideration of:
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Applicant’s declared retirement age, where the agreed term will fall outside of retirement age or the loan is considered affordable based on post-retirement income.
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Repayment vehicle (Interest Only)
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Remaining lease term and the Valuer’s comments on suitability of the property as security for lending
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Product specification
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Applies to all mortgage applicants
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Maximum ≤ 60% LTV
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Maximum Term: 25 years.
Repayment Vehicle
The evidenced current or projected value at maturity must be equal or greater than the proposed loan amount or account exposure
Projections should be based on the lower or middle growth rates, as deemed appropriate to comply with responsible lending
The general expectation is that the latest annual statement is required and lust be no more than 15 months old
The name on the policy must match the names(s) shown on the application
Not permitted where the maturity date of the Endowment Policy is later then the end date of the mortgage
The evidenced current or estimated pension tax free lump sum must have a value equal to or greater than the proposed loan amount or account exposure
The general expectation is that evidence must be no more than 15 months old
Projections should be based on the lower or middle growth rates, as deemed appropriate to comply with responsible lending
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Permitted.
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The value of the plan must have at least 50% of the requested ‘interest only’ amount with a plausible investment strategy being demonstrated to cover the full value,
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The latest statement from the provider is required as evidence and must not be more than 12-months old
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Must be administered by an FCA regulated Financial Services firm.
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All beneficiaries of the repayment vehicle must match the name(s) on the application.
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Permitted
Minimum equity should be the higher of £200,000 or the output of our Regional Equity Finder for the area the applicant(s) intend to downsize to.
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Permitted
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Subject to equity in other UK property is sufficient to repay the interest only part of the mortgage after any mortgage(s) on the other property has been repaid. Excludes commercial properties
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Evidence required from valuation and latest mortgage statement
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Subject to the property being owned solely by one or more of the applicant(s) (confirmation of ownership must be evidenced)
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Not permitted.
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Not permitted.
Maximum Age Requirements
Capital & Interest
Loan to be repaid by applicants 75th birthday
Interest Only
Loan to be repaid by applicants 70th Birthday
Subject to affordability including assessment of evidenced post-retirement income if beyond applicant’s declared retirement age.
Security Tenure
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For Capital and Interest, the lease must have at least 60 years left at the end of the mortgage term
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Coach house
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For Interest Only, the lease must have at least 85 years left at the end of the mortgage term
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
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