Lending criteria.

We can help with all types of cases, so check our lending criteria for the latest guidelines.

Our criteria is split into residential and buy to let, so use the options below to find the criteria you need.

 

 

Can Consider Earned Income in Rental Assessment (Topslicing)

Indicates if we can potentially consider applicants earned income in addition to the rental income for a property when calculating the maximum mortgage that can be borrowed.

We are currently not able to consider earned income in affordability assessment.

Can extend mortgage offer

Indicates if we can potentially extend a clients mortgage offer beyond the standard expiry.

We can extend a clients mortgage offer.

Can use actual existing rent when higher than valuers estimate

Indicates if we can potentially use the actual rent received from an existing tenant when it is higher than the valuer’s estimate. For example, this situation could arise on remortgage applications where, in the valuer’s opinion, the market rent is lower than what the landlord is currently receiving.

We will not use the current rent received from the current tenant for affordability assessment when it exceeds the valuers estimate.

Can use valuers rental estimate even if higher than actual existing rent

Indicates if we can potentially use the valuer’s estimate when assessing loan affordability even if the actual rent being received is less than the estimate. For example, this situation could arise on remortgage applications where the existing tenant is paying below the market estimate (based on the valuer’s rental valuation).

We will not use the valuers rental estimate for affordability assessment when it exceeds the AST.

CCJs registered between 12 to 24 Months

Indicates if we can potentially accept applicants that have had any CCJs registered more than 12 months ago and less than 24 months ago on Buy to Let applications. Other factors will also be taken into consideration such as, but by no means limited to, number of adverse, value and the overall credit profile of an applicant.

We can potentially consider applicants that have had CCJs registered more than 12 months ago and less than 24 months ago. For applications where the LTV is less than 80% we will ignore CCJ’s made more than 1 year ago which has since been satisfied. For applications where the LTV ratio is over 80% we will consider CCJ’s up to £500 made over 12 months ago but now satisfied.

CCJs registered between 24 to 36 Months

Indicates if we can potentially accept applicants that have had any CCJs registered more than 24 months ago and less than 36 months ago on Buy to Let applications. Other factors will also be taken into consideration such as, but by no means limited to, number of adverse, value and the overall credit profile of an applicant.

We can potentially consider applicants that have had CCJs registered more than 24 months ago and less than 36 months ago. For applications where the LTV is less than 80% we will ignore CCJ’s made more than 1 year ago which has since been satisfied.For applications where the LTV ratio is over 80% we will consider CCJ’s up to £500 made over 12 months ago but now satisfied. Where the applicant has multiple CCJ’s, defaults or they exceed £1000 in value refer to underwriting.

CCJs registered between 3 to 12 Months

Indicates if we can potentially accept applicants that have had any CCJs registered more than 3 months ago and less than 12 months ago on Buy to Let applications. Other factors will also be taken into consideration such as, but by no means limited to, number of adverse, value and the overall credit profile of an applicant.

We will not consider applicants that have had CCJs registered more than 3 months ago and less than 12 months ago.

CCJs registered in last 3 Months

Indicates if we can potentially accept applicants that have had any CCJs registered in the past 3 months on Buy to Let applications.. Other factors will also be taken into consideration such as, but by no means limited to, number of adverse, value and the overall credit profile of an applicant.

We will not consider applicants that have had CCJs registered in the past 3 months.

CCJs registered over 36 Months ago

Indicates if we can potentially ignore CCJs that were registered more than 36 months ago on Buy to Let applications. Other factors will also be taken into consideration such as, but by no means limited to, number of adverse, value and the overall credit profile of an applicant.

We can potentially ignore any CCJs that were registered over 36 months ago. Where the applicant has multiple CCJ’s, defaults or they exceed £1000 in value refer to underwriting.

Company BTL affordability assessment

This relates to the potential rental calculation we will apply. 

We do not accept Buy to Let applications for Limited Companies, we only allow applications in customers sole names.

Consumer Buy to Let (position and definition)

Indicates if we can lend when we consider the transaction to be a ‘Consumer Buy to Let (CBTL)’ and what our definition of a consumer buy to let is. A CBTL is often referred to as an accidental landlord.

We can potentially accept applicants classed as a ‘Consumer Buy to Let (CBTL)’

Contract Reassignment

Indicates if we can potentially accept a situation whereby the purchaser is looking to buy a new build property from a third party (not the builder/developer). An example of this is whereby a third party has secured the property off plan and exchanged contracts but has not completed. They then sell the contract to a new purchaser. This is known as ‘contract reassignment’. Sometimes this is for a premium of the original purchase price and sometimes it is without a premium.

We do not accept applications where contract reassignment exists

County Court Judgements (CCJs) (Satisfied) potentially accepted

Indicates if we can potentially accept Buy to Let applications from applicants that have had/or have satisfied CCJs registered against their name.

We can potentially ignore County Court Judgements that have been satisfied. Either the original Satisfaction Certificate must be seen prior to completion or the credit search must confirm that the CCJ is satisfied. For applications where the LTV is less than 75%, we will ignore CCJs that were made more than a year ago that have since been satisfied. CCJs up to £500 made within the last 12 months but now satisfied are also considered. Where the LTV ratio is over 75%, we will ignore CCJs that were made more than three years ago that have since been satisfied. CCJs up to £500 made over 12 months ago but now satisfied are acceptable.

County Court Judgements (CCJs) (Unsatisfied) potentially accepted

Indicates if we can potentially accept Buy to Let applications from applicants that have had/or have unsatisfied CCJs registered against their name. 

We will not consider applicants that have a CCJ outstanding, this would need to be satisfied

Covid-19: Are you offering a payment holiday?

Displays if we will allow BTL borrowers to take a payment holiday due to payment difficulties related to the Covid-19 outbreak.

We can potentially consider allowing borrowers to take a payment holiday due to problems relating to the Covid-19 outbreak.Following the government’s statement on 17 March 2020 regarding mortgage payment holidays, we have updated our approach to how we can offer this to our members affected by COVID-19. Affected borrowers who are up to date with their mortgage payments and seeking a mortgage payment holiday are asked to complete and return our self-certification form by post or by email to [email protected] (we suggest using secure email where possible). Agreed arrangements will not be reported to credit reference agencies. Borrowers who are already in a payment shortfall or arrears will need to contact us in the first instance to discuss the options available.

Covid-19: Fees waived for missed mortgage payments (not agreed payment holidays) due to Covid-19 difficulties

Displays if we will consider waiving fees for late BTL mortgage payments that were due to payment difficulties related to the Covid-19 outbreak.

We will not waive fees for late payments that were due to payment difficulties related to the Covid-19 outbreak at this time unless a payment holiday has already been agreed within a reasonable time before the next payment.

Covid-19: Policy

Displays if we have a Covid-19 policy for BTL lending and if so the details of it.

Most Covid-19 policy points no longer stand and normal policy has resumed. If you would like to find something specific, please contact the Business Development Team to discuss further.

Covid-19: Will allow conversion to interest only?

Displays if we will allow BTL borrowers to convert their mortgage from repayment to interest-only due to payment difficulties related to the Covid-19 outbreak.

Please contact the Business Development Team to discuss further.

Credit Checks with Equifax

Indicates if we use Equifax as a credit reference agency when assessing applications.

We use TransUnion as a credit reference agency when assessing applications

Credit Checks with Experian

Indicates if we use Experian as a credit reference agency when assessing Buy to Let applications.

We use TransUnion as a credit reference agency when assessing applications

Credit Checks with Transunion (formerly Callcredit)

Indicates if we use Transunion (formerly Callcredit) as a credit reference agency when assessing applications.

We use TransUnion as a credit reference agency when assessing applications

Credit Scores?

Indicates if we use ‘credit scoring’ to assess a client(s) mortgage application usually at agreement in principle (AIP) stage.

We do not credit score. We will carry out a credit search for all applicants at all known addresses covering a three-year history. All parties eligible to vote should appear on the Voters Roll at those addresses. Where an applicant does not appear on the Voters Roll, we will need alternative satisfactory proof of residency, for a full two-year history from the date of application. If the applicants are existing customers then no proof of residency will be required (although we will still carry out a credit check). Any proof of residency must be original. Alternatively, copies can be accepted annotated with wording similar to “I confirm this is a true copy of the original document”. The documentation should be signed and dated by the mortgage intermediary.

Criminal Convictions

Indicates if we can potentially accept applicants that have a criminal record.

We can potentially accept applicants that have criminal convictions. These convictions must be spent and cannot be monetary related, such as fraud, money laundering etc.

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