Lending and security guidelines

• Offers are valid for 6 months from the date of the offer

• New build offers are valid for 9 months from the data of the offer

   

• Minimum Value £70,000.

• Maximum 95% LTV for new build; and

• Maximum 95% LTV for non-new build

   

Permitted subject to:

• Maximum 0.2% of the property value.

• Maximum 0.1% of new build property value (0.15% may be considered with justification).

• An AST indemnity is required if during the term of the mortgage, the ground rent charge is (or will) exceed £250 (£1,000 in London).

The amount and terms of any periodic increase are clearly stated and comply with the following requirement:

• RPI linked;

• Ground rent increases no more frequently than every 10 years;

• Doubling or fixed amount increase;

• Ground rent increases no more frequently than every 20 years.

Where a conveyancer establishes that an escalation of the ground rent could affect the valuation figure this should be referred to the original Valuer for their consideration.

• 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

• Minimum Value £70,000

• Maximum 95% LTV for new build; and

• Maximum 95% LTV for non-new build

• Permitted

• New build: Maximum 75% LTV

• Non-new build: Maximum 85% LTV

• Restricted to 25% of a development

• Flats that are 5 storeys or less are permitted subject to acceptable property type, valuation and LTV (number of storeys assessed from ground level). Flats over 5 storeys are not permitted.

• All flats in blocks of more than 4 storeys require lift access (number of storeys assessed from ground level)

• Flats with deck access are not permitted

• The block complies with the Society’s policy on mixed use

• Flats with cladding/balconies permitted subject to:

• Valuer follows the latest RICS guidance notes to inform if an EWS1 is required;

• Where an EWS1 is required only categories A1, A2 and B1 are permitted; and 

• Flats converted from commercial/office blocks acceptable subject to valuation

• Full valuation (no desktop or AVM)

• Permitted, subject to 85% LTV

• New build 75% LTV.

• Permitted.

• Maximum 85% LTV.

• The property must be for the exclusive use of applicants and freely marketable.

• Please note, an applicant purchasing another property where it will be their main residence, is not treated as a second home

• Not permitted

• Where the property is to be occupied by the applicant(s) and/or applicants family and friends as a main residence

• Where property is to be let for commercial gain

• Permitted

• Flat/maisonette maximum 75% LTV and minimum value of £150,000

• Subject to restriction of maximum 25% of a development

• Excluding commercial premises that have an adverse impact on security valuation

• The property to act as the Society’s security must have an independent access. Those that are accessed via the commercial premises are not permitted

• The following commercial uses are not permitted:

• A3 – restaurant and café

• A4 - drinking establishment

• A5 – hot food takeaway

• Sui Generis – commercial of its own kind e.g. scrap yard, petrol station, night club, launderette

• Permitted

• With a predominantly masonry outer leaf

• Subject to:

• BOPAS or similar accreditation

• Local authority approvals

• NHBC or similar 10 year new build warranty

• BBA/BRE certificates (frame and cladding)

The following MMC construction types are considered generally acceptable subject to satisfactory valuation:

• ICF – Insulated Concrete Forms:

  Permitted:

  With an accredited external cladding.

  Subject to:

  Suitable accreditation;

  Local authority approvals;

• NHBC or similar ten-year new build warranty; BBA/BRE certificates (frame and claddings); and Relevant recognised warranty.

• SIPS – Structured Insulated Panel

  Permitted:

  With a predominantly masonry outer leaf.

  Subject to:

  Suitable accreditation;

  Local authority approvals;

• NHBC or similar ten-year new build warranty; BBA/BRE certificates (frame and claddings); and Relevant recognised warranty.

• Volumetric/Modular e.g. factory manufactured units assembled on-site

  Permitted:

  Subject to:

  Relevant recognised Warranty.