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.

 

 

Remortgage purpose: Balance Swap (maximum LTV)

Indicates the maximum loan to value (LTV) we can accept where the remortgage purpose is a simple balance swap (no additional monies being raised).

The maximum loan to value we can accept is 90% where the remortgage purpose is a simple balance swap (no additional monies being raised).

Remortgage purpose: Buy out (maximum LTV)

Indicates the maximum loan to value (LTV) we can accept where the remortgage purpose is to raise funds to buy out a partner or other borrower.

The maximum loan to value we can accept is 90% where the remortgage purpose is to raise funds to buy out a partner or other borrower.

Remortgage purpose: Buy to Let Purchase (maximum LTV)

Indicates the maximum loan to value (LTV) we will accept when the reason for capital raising is to raise funds to fund or part-fund a buy to let purchase.

The maximum loan to value we will accept when the reason for capital raising is to raise funds to fund or part fund a buy to let purchase is 90%. This would be subject to individual underwrite.

Remortgage Purpose: Buy to Let to Residential

Indicates if we can potentially allow a residential remortgage application for owner occupation where the existing mortgage is on a Buy to Let basis.

We can potentially consider remortgage residential applications for owner occupation on properties where the existing mortgage is a Buy to Let.

Remortgage purpose: Capital raise for BTL where property not yet found

Indicates if we can potentially consider remortgage applications with capital raising for a BTL property where the property has not yet been found. Essentially they want to put themselves in the position of a cash buyer with the funds accessible ready for when they find their property.

We will not consider remortgage applications with capital raising for a BTL property where a property is not yet found

Remortgage purpose: Debt Consolidation (maximum LTV)

Indicates the maximum loan to value (LTV) we will accept where there is an element of debt consolidation on a remortgage application. For example, Trevor owns a property that is worth £200,000 and has a current outstanding balance of £140,000. He would like to consolidate an unsecured loan which has an outstanding balance of £10,000 and therefore needs a total loan of £150,000 giving him a LTV of 75%. 

We will accept debt consolidation up to 80% LTV. Consolidating a Second Charge: Accepted as long as the second charge wasn’t taken for debt consolidation

Remortgage purpose: Extending a lease

Indicates if we can potentially consider capital raising on a remortgage where the purpose of the funds is extending a lease

We can potentially consider capital raising on a remortgage where the purpose of the funds is extending a lease

Remortgage Purpose: For Business Purposes

Indicates if we can potentially consider lending when the reason for capital raising is considered for ‘Business Related Purposes’.

We do not allow capital raising on a remortgage where the purpose of the funds is for business purposes.

Remortgage purpose: Gift Money (Maximum LTV)

Indicates if we are able, and if so to what loan to value, accept remortgages where the purpose is to raise money to make a gift (for example to children to help with school fees etc or where parent(s) might want to help their children buy their first home).

We are able to accept remortgages where the purpose is to raise money to make a gift up to 90% LTV.

Please note: if there is any element of debt consolidation then LTV will be capped at 80%.

Remortgage purpose: Home Improvements (maximum LTV)

Indicates if we are able to and if so to what loan to value, accept remortgages where the purpose is to raise money for home improvements.

We are able to accept remortgages up to 95% LTV (product permitting) where the purpose is to raise money for home improvements. Please note, if the remortgage also includes any debt consolidation then we would have a cap of 80% LTV.

Remortgage Purpose: Home Improvements (other property)

Indicates if we will allow capital raising for the purpose of home improvements on a property which is NOT the security property on residential applications.

We are able to accept remortgages up to 95% LTV (product permitting) where the purpose is to raise money for home improvements. Please note, if the remortgage also includes any debt consolidation then we would have a cap of 80% LTV.

Remortgage purpose: Land Purchase (maximum LTV)

Indicates if we will allow capital raising for the purpose to purchase land and if so up to what loan to value for residential applications.

We can consider remortgage applications with capital raising for ‘Land Purchase’

Remortgage purpose: Lifestyle (holidays, car's, non essential spending etc)

Indicates if we can potentially consider capital raising on a remortgage where the purpose of the funds is lifestyle (holidays, car’s, non essential spending etc)

We will not consider capital raising on a remortgage where the purpose of the funds is lifestyle (holidays, car’s, non essential spending etc)

Remortgage purpose: Medical expenses

Indicates if we can potentially consider capital raising on a remortgage where the purpose of the funds is medical expenses

We can potentially consider capital raising on a remortgage where the purpose of the funds is medical expenses, subject to underwriter’s approval

Remortgage Purpose: Pay Tax Bill

Indicates if we can potentially consider lending when the reason for capital raising is to raise funds to pay a tax bill.

We do not allow capital raising on a remortgage where the purpose of the funds is for payment of a tax bill.

Remortgage purpose: Personal investments (not property related)

Indicates if we can potentially consider capital raising on a remortgage where the purpose of the funds is personal investments

We will not consider capital raising on a remortgage where the purpose of the funds is personal investments

Remortgage Purpose: Purchase Commercial Property

Indicates if we will allow capital raising for the purpose of purchasing commercial property on residential applications.

We will not consider remortgage applications with capital raising to purchase a commercial property.

Remortgage Purpose: Purchase Overseas Property

Indicates if we will allow capital raising for the purpose of purchasing overseas property on residential applications.

We can consider remortgage applications with capital raising to purchase a property overseas.

Remortgage Purpose: Repay Help to Buy

Indicates if we will allow capital raising for the purpose of repaying (IN FULL) their Help to Buy Equity Loan to take their ownership to 100% on residential applications.

We can consider remortgage applications with capital raising to repay a Help to Buy equity loan in full.

Remortgage purpose: School/Education fees

Indicates if we can potentially consider capital raising on a remortgage where the purpose of the funds is education or school fees

We can potentially consider capital raising on a remortgage where the purpose of the funds is education or school fees

Remortgage Purpose: Shared Ownership Staircasing to 100% ownership (maximum LTV)

Indicates if we will allow capital raising for the purpose of staircasing to 100% ownership on residential applications that are currently a shared ownership property.

To staircase to 100% ownership will be treated as a purchase.

Remortgage waiting period

Indicates the number of months we state a person must have owned a property before it can be considered for a remortgage application. For example, John purchased a property at auction 3 months ago and now wishes to remortgage the property to raise some funds. 

The property must have owned the property for 6 months before it can be considered for a remortgage application.

Restricted Sale Price

Indicates if we can potentially offer a residential mortgage on a property that has a ‘Restricted Sale Price’ clause.

We will not consider applications on properties that have a restricted sale price clause.

Retentions (Minor retentions potentially ignored)

Indicates if we will ignore valuers small suggested retentions below a certain figure. For example, a lender might ignore any suggestions that are for £2,000 or less.

We will not ignore small suggested retention’s and if one is made a retention will be made regardless of retention amount.

Retirement Interest Only (RIO) Enhanced Terms Where Lasting Power of Attorney (LPA) Exists?

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so if we can offer enhanced terms (better interest rate, etc) if a ‘Lasting Power of Attorney’ is in place before completion of the proposed mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Benefit Income

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer RIO mortgages and if so, can consider benefit income when assessing their ability to maintain the ongoing mortgage. 

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Family Assistance

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider family assistance when assessing their ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Investment Income

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider investment income when assessing their ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Life Cover

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider life cover when assessing their ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Other Non Provable Income

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider other non-provable income when assessing applicants ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Rental Income

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider rental income when assessing an applicants ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Survivors Pension

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider the survivor’s pension when assessing their ability to maintain the ongoing mortgage.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Lasting Power of Attorney (LPA) Required?

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so is it a requirement of Retirement Interest Only (RIO) mortgages that a ‘Lasting Power of Attorney’ is in place.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO) Offered?

Indicates if we offer ‘Retirement Interest Only’ mortgages. RIO mortgages are specifically mortgages that can be taken on an interest-only basis with an open-ended mortgage term where the repayment vehicle is typically sale of property on the occurrence of one or more of the specified life events such as the death of either or both borrowers.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO): Can Consider Non-Guaranteed Potential Future Affordability

Often times applicants may be in paid employment at the time of application without a guaranteed conventional pension in place for their retirement. They could, however, have other planned methods of generating themselves an income into retirement such as purchasing an annuity with savings or receiving rental income. Whilst this criteria is not specific to those two examples it indicates if we offer Retirement Interest Only (RIO) mortgages and if so if
are we willing to consider other types of non guaranteed future projected income?

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retirement Interest Only (RIO): Minimum Equity Requirement

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so do we have a minimum equity requirement. If the repayment strategy is the sale of the mortgaged property, lenders no longer have to assume, as was the case under the previous MCOB rule, that borrowers will need to downsize. Consequently, they do not need to factor into their criteria any specific minimum equity requirement, as is the case with other interest-only mortgages.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Retrospective New Build Warranty

Indicates if we can potentially lend on residential applications for properties that have been issued with a retrospective new build warranty. These warranties were specifically not in place during the build phase but taken out at a later date following completion.

We are not able to accept this warranty

Returning to UK – Employed

Indicates if we can potentially accept residential applications from an applicant who is returning to the UK and going straight into paid employment. Critically, indicates if a lender will accept an employed applicant (with no current minimum length of time in UK employment) for affordability who is returning from a non UK address to the UK.

We can potentially consider applications from applicants who are returning to the UK and going straight into employment with the same company. Please contact the Business Development Team to discuss further as these are taken on a case-by-case basis.

Returning to UK – Self-Employed

Indicates if we can potentially accept residential applications from an applicant who is returning to the UK and going straight into Self-Employment. Critically, indicates if a lender will accept a Self-Employed applicant for affordability who is returning from a non UK address to the UK and would essentially have zero UK trading history.

We will not accept applications from applicants who are returning to the UK and going straight into self-employment. We also cannot accept customers who were already self employed and now returning. They would need to be back in the UK for a minimum of 2 years

Right to Acquire

Indicates if we accept Right to Acquire applications.

We can accept this type of application

Right to Buy

Indicates if we accept Right to Buy applications.

We can accept this type of application. All applicants must be on the Right to Buy paper work.

Right to Buy additional lending above discounted price

Indicates if we accept Right to Buy cases if we allow a borrower to borrow more than the discounted Right to Buy purchase price to cover other costs and home improvements. For example, John would like to purchase his council home he has been offered for £65,000 which is 100% of the discounted price (£100,000 less a £35,000 discount). He would also like to borrow an additional £5,000 to cover some legal costs and to put in a new kitchen. 

We will not allow a borrower to borrow more than the discounted Right to Buy purchase price to cover other costs and home improvements.

Right to Buy Home Improvements Allowed

Indicates if we accept Right to Buy cases can we can potentially accept additional monies being raised for home improvements at the point of the Right to Buy initial purchase.

We can not accept capital raising on Right to Buy applications.

Right to Buy joint application sole occupier

Indicates if we accept Right to Buy cases can we accept a joint application for a Right to Buy application where only one borrower will reside at the property. For example, John wishes to purchase his council home that he has the right to buy on but cannot afford it on his current income. His son has offered to help but has his own separate living arrangements independent from his father. They therefore need to find a lender that would accept a joint application with only one occupier.

We will accept a joint application for a Right to Buy case where only one borrower will reside at the property. The maximum LTV would be 80% and would be subject to affordability including the second property. All applicants must be on the Right to Buy paper work.

Right to Buy Maximum LTV (of discounted purchase price)

Indicates if we accept Right to Buy cases, the maximum loan to value (LTV) of the discounted purchase price we will consider for Right to Buy applications. For example, John has the right to buy his council home which has been given an open market value of £100,000 with a discount of £35,000. The discounted purchase price is therefor £65,000. 

We can lend up to 100% of the discounted purchase price as long as the LTV based on the valuation does not exceed 80%

Right to buy remortgage within pre-emption period – Balance swap

Indicates if we can potentially consider a right to buy remortgage balance swap application within the pre-emption period

We cannot consider a right to buy remortgage balance swap application within the pre-emption period

Right to buy remortgage within pre-emption period – Capital raising

Indicates if we can potentially consider a right to buy remortgage capital raising application within the pre-emption period

We cannot consider a right to buy remortgage capital raising application within the pre-emption period.

Back to top

Your browser is out-of-date.

This site is not fully supported in Internet Explorer.
Please download one of the browsers below to continue using this website.

  • Google Chrome
  • Microsoft Edge