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.

 

 

Sale and Rent Back

Indicates if we can potentially accept a sale and rent back transaction where the vendor sells the property (usually at a discount), remains in the property and pays a rent to the new owner.

We do not accept ‘Sale and Rent Back’ transactions.

Self employed: Self employment income support scheme (SEISS)

Indicates if we can potentially accept self employed applicants who have a used the government self employment income support scheme (SEISS)

We are able to consider self employed applicants who have used the government self employment income support scheme (SEISS) as long as none were taken in 2021.

Self-Employed: Bounce Back Loan Scheme (BBLS)

Indicates if we are able to potentially accept self-employed applicants who have a government Bounce Back Loan Scheme outstanding.

These include:

  • Coronavirus small business grant fund
  • Local Authority discretionary grant fund
  • Business Interruption Loan Scheme
  • Bounce Back Loan
  • Retail, Hospitality, Leisure Grant Fund (RHLGF)
If the applicant has taken any of the business interruption grants due to being impacted by COVID-19, we are potentially able to assist if they were taken BEFORE January 2021. If they were taken after January 2021 but prior to the last 6 months then you will need underwriter approval. We cannot accept any that have been taken in the last 6 months.

Sharia Compliant Mortgages

Indicates if we can offer Sharia compliant Buy to Let mortgages.

We do not offer Sharia compliant mortgages.

Simultaneous First and Second Charge

Indicates if we can potentially accept a Buy to Let application where there will be a simultaneous completion of a second charge.

We will not consider applications where there will be a simultaneous completion of a second charge.

Soft Footprint on Credit Search?

Indicates if we will leave a ‘soft footprint’ when performing a credit search (as opposed to leaving a full/hard footprint on the credit file).

Our credit search leaves a hard footprint

Solar Panels

Indicates if we can potentially accept properties that have had solar panels installed.

Solar Panels must be owned and not leased

Sole application joint proprietor

Indicates if we can potentially consider applications on a sole application joint proprietor basis. This is where a property will be jointly owned but only one person will be named on the mortgage and is distinctly different to the more common Joint Application Sole Proprietor where only one party would own the property but there are two named on the mortgage.

We are not able to accept this type of application

Source of deposit: Builders Deposit

Indicates if we accept builder gifted deposits as an acceptable source of deposit for new build properties

In some circumstances vendors may pay the deposit for the applicant, maximum 5%. These cases are acceptable where it is a developer paying the deposit as part of its marketing activity and where the valuer confirms the full valuation of the property. For a small independent builder we will require written confirmation from the builder that paying the deposit is part of its marketing activity. The applicant must also provide a 15% deposit. Vendor deposit paid schemes are acceptable where the payment represents a maximum of 5% of the purchase price subject to the valuer confirming the full valuation of the property. The applicant must also provide a 15% deposit.

Source of deposit: Concessionary

Indicates if we can accept applications that are considered a concessionary purchase

We are able to accept applications that are considered a concessionary purchase.

Source of deposit: Gift From Immediate Family

Indicates if we can accept a gift from an immediate family member as an acceptable source of deposit.

We will accept 100% gifted deposit where the monies are clearly evidenced in a UK bank/Building Society account or other investments and from a close family member – parent, grandparent, son, daughter, brother or sister. The donor should confirm via our gifted deposit form that the monies are a gift and as such are non-repayable, and that they will retain no interest in the property. Proof of the deposit will be required.

Source of deposit: Gifted NOT from Immediate Family

Indicates if we can accept a gift as a deposit source outside of immediate family members such as a friend, employer or cousin for example.

We will not accept a gift as a deposit source from outside of immediate family members such as a friend, employer or cousin for example

Source of deposit: Loan from immediate family

Indicates if we can accept a loan from an immediate family member as an acceptable source of deposit on a buy to let application.

We are unable to accept deposits where the source is a loan from immediate family

Source of deposit: Mortgage on additional property

Indicates if we can accept monies raised from the mortgage of an additional property as an acceptable source of deposit.

We are able to consider applications with this source of deposit but the funds cannot have originated from us. Please contact the Business Development Team to discuss further.

Source of deposit: Originated outside of EEA

Indicates if can potentially accept deposits that have originated outside of the European Economic Area (EEA) as an acceptable source of deposit.

We are not able to accept this source of deposit

Source of deposit: Redundancy payment

Indicates whether or not we will accept a redundancy payment as an acceptable source of deposit on a BTL application. 

We can potentially accept a redundancy payment as an acceptable source of deposit, subject to an underwriters approval. Please refer these cases to our Business Development Team.

Source of deposit: Unsecured Loan

Indicates whether or not we will accept borrowers source of deposit as a loan. For example a person is looking to put down a total 25% deposit and borrow a 75% mortgage. 5% of the total deposit is a bank loan.

We will not allow an unsecured loan as a deposit

Split Mortgage Terms

Indicates if we can potentially consider an application with a split term. For example, an applicant wishes to take one part of their mortgage over 25 years and another part over 10 years.

We do not offer mortgages with split term duration’s

Standard BTL affordability assessment

This relates to the potential rental calculation we will apply. 

Typically we assess affordability at either:
  • 145% at payrate plus 2% or
  • 145% at payrate if rate is specifically a 5 year fixed

Student Let Valuation

Indicates if we can potentially use the student Let rental valuation as opposed to the open market valuation to a typical tenant (family, couples, etc)

We will not use the student Let rental valuation for affordability as opposed to the open market rental valuation.

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