All mortgage applications are individually assessed to ensure they meet our lending criteria. The basic lending criteria is detailed below.
Geographical area
- We will lend on suitable property in England and Wales.
Advance limits
- Minimum advance: £1,000
- Maximum advance: £1,000,000 (Self builds £500,000) Loans in excess of £500,000 require individual product approval
Age restrictions
- Minimum age at application: 18 years
- Maximum age at end of mortgage term: 80 years (Or your intended retirement age if your repayment method is full or part interest only)
Mortgage term
- Minimum term is 5 years
- Maximum term is 40 years
How much can you borrow?
We do not want to lend you more than you can afford to repay. So, when deciding how much you could borrow we undertake an affordability assessment which will take into account how much you earn, how much your partner earns (if applicable), your financial commitments, your financial history, mortgage product selected, the term of the mortgage and the individual make up of your household
If you select an interest only mortgage the highest income earner must earn a minimum of £25,000
Value of the property
We calculate the loan to value (LTV) percentage on the purchase price or valuation, whichever is lower. The table below details the maximum advance we will consider. (Please note that the product chosen can reduce the maximum advance allowed - see product features for LTV)
MAXIMUM ADVANCED CONSIDERED
|
|
Repayment
|
Full or Part Interest Only*
|
|
Purchase Price/Valuation up to £250,000
|
95%
|
70%
|
|
Purchase Price/Valuation between £250,001 and £500,000
|
90%
|
70%
|
|
Purchase Price/Valuation between £500,001 and £1,000,000
|
75%
|
70%
|
|
Purchase Price/Valuation between £1,000,001 and £2,000,000
|
75%
|
70%
|
These values are different in the following circumstances:
DIFFERENT CIRCUMSTANCES
|
|
Repayment
|
Full or Part Interest Only*
|
|
Flats (excluding new builds)
|
80%
|
70%
|
|
New build (property constructed/converted in the last 12 months or where this will be the first occupation)
|
75%
|
70%
|
|
If the valuer advises the marketability of the property is "poor"
|
75%
|
70%
|
|
Self build/conversion
|
75%
|
70%
|
|
Unusual properties e.g. chapel, windmill
|
60%
|
60%
|
|
Early timber frame properties
|
90%
|
70%
|
|
PRC homes covered by a repair guarantee
|
80%
|
70%
|
|
Seco/Prefabricated homes
|
80%
|
70%
|
*subject to a suitable repayment vehicle e.g. ISA, endowment. If the sale of the security is the repayment vehicle the property must have a minimum value of £250,000 and the LTV is limited to 50%.
THIS IS NOT AN EXHAUSTIVE LIST OF ALL OUR CRITERIA