Lending criteria.

Indicates if we are potentially able to offer self-build mortgages.

We are able to accept self build applications. Please discuss with our Business Development Team.

Indicates the maximum loan size we can consider on self build applications

• Loan sizes between £75,000-£1,000,000 have their own products and are capped at 80% LTV.
• Loan sizes between £1,000,000-£2,000,000 have a specific product capped at 70% LTV.

Indicates the maximum term a self build mortgage can be taken over.

We have a maximum term of 40 years.

Indicates if we can accept repayment of a directors loan as an acceptable source of income for affordability purposes. Often directors will first take back any money they introduced into the business as a directors loan before formally drawing a salary or taking dividends.

We do not accept payback of a directors loan as an income that can be used in our affordability assessment.

Indicates if we can accept Salary and Dividends as the components used to assess affordability as opposed to say salary and net profit.

We are able to accept Salary and Dividends as the components used to assess affordability. We can take this income to the age of 75. We can also consider directors self-employed income into retirement if the customer will continue to receive income from the business i.e. child(ren) taking over the day to day running’s where parent(s) will still receive dividends.

Indicates if we can accept Salary and Net Profit as the components used to assess affordability as opposed to say salary and dividends.

We can accept Salary and Net Profit (after tax) for affordability. We will use the latest years figures if the increase is less than 20%. If it is more than 20% we take an average of the last 2 years.

Displays if we will use ‘Salary and Share of Net Profit AFTER CORPORATION TAX’ as the components used to assess affordabiliy as opposed to either ‘Salary and Share of Net Profit BEFORE CORPORATION TAX’ or ‘Salary and Dividends’

We can accept Salary and Share of Net Profit (after tax) for affordability. We will use the latest years figures if the increase is less than 20%. If it is more than 20% we take an average of the last 2 years.

Displays if we will use ‘Salary and Share of Net Profit BEFORE CORPORATION TAX’ as the components used to assess affordabiliy as opposed to either ‘Salary and Share of Net Profit AFTER CORPORATION TAX’ or ‘Salary and Dividends’

We do not use salary and share of net profits BEFORE CORPORATION TAX as the primary income used when assessing income from directors of a limited company.

Indicates if we can potentially consider retained profits as an allowable income type when assessing affordability on residential applications.

We do not accept retained profits as an acceptable source of income when assessing affordability.

Indicates if we can accept Net Profit (for sole traders and partnerships) as an acceptable source of income for affordability purposes.

We will accept net profit for sole traders & partnerships

Indicates if we will accept accounts or an accountant’s certificate from an accountant that does NOT have ‘Chartered’ or ‘Certified’ status.

We do not accept accounts or accountants certificates from accountants that are not either ‘Chartered’ or ‘Certified’

Indicates the point at which we consider a person as self-employed as opposed to employed when they hold a shareholding in the business. The figure indicates the percentage shareholding required to be considered self-employed and anything less than this figure the applicant will be assessed as employed.

Applicants need to be at least a 25% shareholder to be classed as self employed. If they have less than 25% they are treated as employed and only salary will be used.

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)

Indicates if we can potentially consider the self-employed applicants latest year figures as a projection from their accountant.

We do not accept a projection as for the latest years self employed figures for affordability purposes.

Indicates if we can potentially accept a self-employed applicants income where the profits have declined year on year.

Applications would need to be referred and will be assessed on an individual basis – If low LTV and reasonable explanation. Chartered Accountant must confirm profits not likely to reduce further.

Indicates if we can potentially use the latest years figures exclusively (rather than an average) for affordability assessment. 

We will use the latest years self employed figures if it is lower than the previous year. If the latest year is higher, then we can only use this figure if there was less than a 20% increase. If the latest year has more than a 20% increase then we will take an average of the last 2 years.

This indicates if we are able to add back in any accounting deductions. For example for a limited company, allowing car allowance and/or pension contributions to be added to overall customers self-employed income.

We are unable to add back in any accounting deductions

Indicates if we can potentially consider Self-Employment income from an applicant how has made a loss in their latest year.

We cannot consider income from self-employed applicants who have made a loss in the last 2 years.

Specifies the max age of the latest company accounts (in months) that we will find acceptable for income proofs for a limited company.

If accounts are over 9 months a Chartered Accountants reference will be required. If the applicant doesn’t use an accountant we will use the SA302’s assessed on an individual basis

Specifies the max age of the latest company accounts (in months) that we will find acceptable for income proofs for a sole trader or partnership.

If over 9 months a Chartered Accountants reference will be required. If accounts are over 9 months a Chartered Accountants reference will be required. If the applicant doesn’t use an accountant we will use the SA302’s assessed on an individual basis

This is the MINIMUM length of time an applicant must have been self-employed for in order for their income to be considered.

Applicant must have been self employed for 2 years.

Indicates if we can consider the income from a self-employed applicant on a residential application where a change in self employed status has recently taken place. For example, where an applicant has been a sole trader for 8 years and has recently converted his business status to a Limited Company but has not been trading long enough as a Limited Company to have sufficient accounts. The applicant would need us to consider their income based upon their historic performance as a sole trader.

We can potentially accept an application where a change in self employed status has taken place recently such as a Sole Trader becoming a Limited company. We will require at least one years accounts under the new status. Not acceptable if there is a change is shares and structure.

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 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.

This indicates if we are able to add back in any accounting deductions. For example for a sole trader, allowing spousal salary and/or use of home as an office to be added to the net profit figure.

We are not able to add back in any accounting deductions.

Indicates if we will allow applicants to borrow additional funds during the build

We can potentially consider additional borrowing outside of the agreed initial loan amount and stage payment release schedule during the build phase on a case by case basis. Must pass an affordability assessment and underwriters comments.

Indicates if we will allow applicants savings to cover the monthly rental or mortgage payments during the build rather than included in affordability assessment

We will allow applicants to use existing savings to cover any ongoing mortgage or rental payments so they can be excluded from the affordability assessment. We require the funds to cover 2 years worth of payments, and we would request to see 6 months bank statements to evidence this level of savings.

Indicates if we will complete an affordability assessment during and post build

We will apply a dual affordability assessment for self-build mortgages that ensures the mortgage is both affordable during and after the build.

Indicates if we will include existing monthly rental or mortgage payments into the affordability calculation

We will assess ongoing rent and/or mortgage payments in the affordability assessment for self-build mortgages during the build period.

Indicates if we can potentially consider self build applications where all applicants are First Time Buyers.

We can potentially consider self-build applications where all applicants are first time buyers.

Indicates if we require the applicant’s to contribute their own savings towards the build

We require applicants to have their own savings for all self-build applications.

Indicates the number of months we state a person must have owned the plot before it can be considered for a remortgage application.

We can potentially accept ‘DAY ONE’ self-build remortgages. However, these are assessed on a case by case basis. The applicant(s) must show as legal owners on the land registry title deed. Please contact the Business Development Team to discuss further.

Indicates if we can accept a self build application for a barn conversion

We can potentially accept self-build applications for a barn conversion.

Indicates if we will accept an application for converting a commercial property to a residential dwelling

We can potentially accept self-build applications for commercial conversion into residential on a case by case basis.

Indicates if we can accept a self build application for a knock down & rebuild

We can potentially accept self-build applications for ‘knock down and rebuild’.

Indicates if a lender can accept a self-build application for a renovation project

We can potentially accept self-build applications for renovation projects.

Indicates if we can accept a self build application for unfinished/mid-build projects

We can potentially accept self-build applications for unfinished and/or mid-build projects.

Indicates if we require building regulations approval to be in place prior to completion of a self-build application

We require applicants to have building regulations approval prior to completion.

Indicates in an applicant can use use their own conveyancer on a self build application

We require applicants to use a solicitor / conveyancer specified by us or from our restricted panel of approved solicitors.

Indicates if we can accept a concessionary land purchase for self-build applications.

We can potentially consider purchase self-build applications where the land is being gifted to the borrower(s) or purchased at undervalue.

Indicates if we will accept a self build application where the surrounding or adjoining land is owned by the applicant

We can potentially accept self-build applications for projects that will border other land owned by the applicant subject to underwriter approval. Please contact the Business Development Team to discuss further.

Indicates if we will accept a self build application where the surrounding or adjoining land is owned by the applicants family

We can potentially accept self-build applications for projects that will border other land owned by the applicants family subject to underwriter approval. Please contact the Business Development Team to discuss further.

Indicates if we will accept custom build applications. Custom build homes are self-build properties that are offered in a customised way by a builder / developer . These offer buyers the opportunity to self-build in a more hands off approach to what they would potentially experience when managing the whole process themselves.

We do not accept custom self-build schemes offered by builders / developers.

Indicates if an adviser can submit a self-build application directly to the lender or is required to go via a packager.

We can accept applications for self-build mortgages direct from the adviser

Indicates if we will allow a self build application for an eco property

We can potentially offer self-build mortgages on builds that will be considered ‘Eco builds’. Please refer to the Business Development Team prior to application.

Indicates if we can accept a self build application where the land or plot has been gifted to the applicant from a person who is NOT a family member

We do not currently offer self-build mortgages on this basis.

Indicates if we can accept a self build application where the land or plot has been gifted to the applicant from a family member

We can potentially accept self-build applications where the land or plot has been gifted to the applicant by a family member. They must have the property/land in their own name on the Land Registry before we can assist.

Indicates if we will consider an application to lend against the purchase of Land

We can potentially accept applications that require borrowing against the land.

Indicates the length of time we will accept before works must commence on the build

We do not have a specific time frame before which the project should commence but would expect this to be promptly after completion.

Indicates if we have a maximum amount of stage payments for a self build application

We do not specify a maximum number of stage payments.

Indicates if we have a maximum LTV limit at each stage release during the build

We specify that the LTV cannot exceed 80% at the point of each stage release.

Indicates the maximum LTV we will consider of the estimated final value

We specify that the LTV cannot exceed 80% of the projected final end value once the build is complete.

Indicates the maximum LTV we will consider of the land/plot value or purchase price

We specify that the LTV cannot exceed 80% of the land/plot value or purchase price. Please bear in mind that the Society would not lend the full loan amount as the initial release as some funds are always retained to ensure the build is completed.

Indicates the maximum amount of properties/plots we allow in a multi-plot or group development

We do not offer self-build applications on multi plot sites.

Indicates the maximum plot size we can consider

We have a maximum plot size of 10 acres.

Indicates if we have a minimum amount of stage payments for a self build application

We have a minimum number of stage payments as 2.

Indicates the minimum number of months we require remaining on planning permission for a self build application

We require at least 12 months remaining on the planning permission.

Indicates the minimum plot size (in Square Metres) we can consider

We have no minimum plot size for self-build applications.

Indicates if we will accept applicants with more than one self build application pending

We will not accept applications from applicants that have more than one pending self-build application in progress with a lender.

Indicates if we will allow a self build application that is part of a multi-plot or group development

We will not consider self-build applications where the applicant is purchasing a plot as part of a multi plot development.

Indicates if we require Full or Outline planning permission when submitting a self build application

We can assess self-build applications with only ‘Outline planning permission’ but can only accept self-build applications with ‘Full planning permission’.

Indicates if we will allow preferential terms for applicants building an eco property

We can potentially offer preferential terms on ‘Eco Builds’ (subject to product availability and valuers comments). Please contact the Business Development Team to discuss further.

Indicates if we allow borrowers to add the arrangement fee (where one is payable) to the mortgage advance on a self build application

We allow any product fees to be added to the advance.

Indicates if we will allow a self build application for a semi-detached property

We will not offer self-build mortgages for Semi-Detached properties.

Indicates if we will allow a self build application for second property or holiday home purposes

We will not consider self-build applications where the property use will be as a second/holiday home.

Indicates on a self build application if we will allow interest only during the build

We can potentially (subject to product availability) accept pure interest only during the build phase of a self-build project.

Indicates if we requires the build to be completed in a specific time frame

We require self-build projects to be completed within a 24 month time frame.

Indicates if we offer a retention product upon completion of the build

We can potentially (subject to product availability) offer a retention product to the applicant upon successful project completion.

Indicates if we will retain a retention until completion of the build

We will usually hold a retention until completion and final sign off of the works as all of our self build products are ‘arrears’ based.

Indicates if we will accept a self build application where there is shared access to the security

Indicates if we allow flexible stage payments or we have set stage payments for self build mortgages

We can potentially allow a flexible stage payment schedule. The property must have increased in value from the previous stage release and we are unable to exceed 80% LTV at each release point.

Indicates if we make advanced payments or payments in arrears for self build mortgages

We will release the stage payments in arrears and has no set stage releases.

Indicates if a fee payable for each stage release on a self build application

We will charge a stage release fee of £100 per release.

Indicates the retention percentage we will retain until completion of the build

We will usually hold a retention back until the completion of the build but there is no set percentage.

Indicates if we will base the valuation fee on the value of the land or estimated final value of the build

We will assess the valuation fee based upon the projected end value of the property. Once the initial valuation is paid, for every stage release the client will be charged £100 each time.

Specifies if we can accept shared ownership applications.

Indicates if we offer shared ownership mortgages and if so what is the maximum initial share we permit for a shared ownership case.

We have a maximum initial share of of 80%.

Indicates if we offer shared ownership mortgages and if so what is the maximum loan to value we can lend on the share the applicant is purchasing on a shared ownership basis. 

We can lend up to 95% LTV of the share (total share limit is 80%)

Indicates if we offer shared ownership mortgages and if so what is the minimum share we permit for shared ownership cases.

We accept a minimum share of 25%.

Indicates if we can potentially consider a shared ownership application with capital raising for home improvements

We are not able to raise funds for home improvements on a Shared Ownership application.

Indicates if we can potentially consider residential applications for Shared Ownership cases that have a restricted staircasing clause.

We are not able to accept Shared Ownership properties where there is restricted staircasing.

Indicates if we offer Sharia compliant residential mortgages.

We not offer Sharia compliant mortgages.

Indicates if we can potentially accept a residential 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.

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

Indicates if we are able to potentially accept properties that have had solar panels installed.

Solar Panels must be owned and not leased

Indicates if we are able to potentially accept applications in sole names where the applicant is married and the husband or wife will also be residing in the property. For example, a couple may wish to keep their financial affairs separate to avoid any unwanted disputes if they were ever to split which is sometimes common when people remarry.

We are able to potentially accept applications in sole names where the applicant is married and the partner will also be residing in the property. Not available if marital partner is left off due to adverse credit

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 will not consider applications on a sole application joint proprietor basis

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, a maximum of 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 5% 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 5% deposit.

Indicates if we accept applications that are considered a concessionary purchase. Examples of a concessionary purchase are a grandparent selling a property to a grandchild at a genuine discount or a landlord doing the same for a tenant. For example, the property might be worth £150,000 on the open market but the owner is selling it to the buyer for £135,000 with the discount effectively becoming the deposit.

We are able to accept applications that are considered a concessionary purchase however, your client would also need their own deposit. Funds cannot solely come from gifted equity.

Indicates if we can potentially accept cryptocurrencies as an acceptable source of deposit.

We will not consider this type of deposit.

Indicates if we can potentially accept an equity loan as an acceptable source of deposit.

Suffolk Building Society will not consider this type of deposit.

Indicates if we accept the forces help to buy scheme as an acceptable source of deposit.

We are able to accept this source of deposit.

Indicates if we accept a gift from an immediate family member as an acceptable source of deposit. Immediate family usually means spouse, parent, grandparent, sibling, child or grandchild but you should check to clarify our specific definition.

Indicates if we accept a gift from an occupier who will not be named on the mortgage. An example of this situation could be whereby two friends or a couple plan to live together and one of them purchases the property and obtains the mortgage where the other party is providing the deposit (as a gift) but will not be named on the mortgage or jointly own the property.

We will not consider this type of deposit.

Indicates if we 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

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

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

Indicates if we accept a loan that is secured against the property as a second charge, no monthly repayments are made and is repayable upon the sale of the property. For example, this situation could arise where parents want to help out a child to purchase a property but do not want to outright gift the money. The parent would place a second charge against the property so that when the property was sold at a later date the loan would be repaid providing there was sufficient equity remaining after any higher ranking charges (a mortgage for example) were repaid.

We are only able to accept this source of deposit in divorce cases. As part of some divorce settlements, ex-spouses may be asked to provide a loan in order for the other partner to purchase a further home, these generally are repayable on the sale of the property and are secured against the property as a second charge, we will consider such deposits from ex-spouses as long as they are only repayable on the sale of the property and secured by means of a second charge, however, consideration will need to be given to the impact on the borrower of repaying these loans on their overall repayment strategy. We would also need to see a copy of the court order.

Indicates if we accept monies raised from the mortgage of an additional property as an acceptable source of deposit. For example, Mr & Mrs Smith want to purchase a new home to live in. The purchase price is £200,000 and they are looking to put down a £50,000 deposit. Their deposit is being raised against another property they own which is Let. 

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.

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

We are not able to accept this source of deposit unless it is an Expat application. Please contact the Business Development team to discuss further

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

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.

Indicates if we accept the repayment of a limited company directors loan as an acceptable source of deposit. For example, Tom has a limited company that he personally put some money into when setting the company up. He now wishes to take that money back out of the company and use it to fund his deposit.

We will not consider this type of deposit.

Indicates whether or not we will accept borrowers source of deposit as a loan. For example, a person is looking to put down a 5% deposit and borrow a 95% mortgage. The 5% deposit is a bank loan.

We will not consider this type of deposit.

Indicates if we accept vendor gifted deposits as an acceptable source of deposit. (NOT builder gifted deposit for new build properties). For example, John is looking to purchase a property an estate agent is selling and the current owner (not related to the buyer) has offered to help with a deposit by way of a gift.

In some circumstances, vendors may pay the deposit for the applicant, a maximum of 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 5% 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 5% deposit.

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. An example of when this might be useful is where the applicant has agreed to repay money back to a parent who lent them some money to get started

We do not offer mortgages with split term durations

Indicates if we can potentially accept applications from sports professionals and if so how they are treated and assessed.

We can potentially lend to applicants who are considered ‘Sports Professionals’. Each case will be assessed on an individual basis.We tend to use a retirement age of around 30 to 35 and would need to see a track record of previous contracts.