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.

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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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

  • 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

  • Permitted.

  • 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,

  • The latest statement from the provider is required as evidence and must not be more than 12-months old

  • Must be administered by an FCA regulated Financial Services firm.

  • All beneficiaries of the repayment vehicle must match the name(s) on the application.

  • 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.
  • Permitted

  • 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

  • Evidence required from valuation and latest mortgage statement

  • If the property is unencumbered, confirmation of ownership must be evidenced

  • Not permitted.

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