LENDING CRITERIA
We’re your bridging finance and complex case specialists. Find out more about our criteria and the scenarios we accept on this page.
For more help on our criteria, or to discuss your case in more detail, please get in touch with the team. We always look for ways to say yes – our daily Credit Committee views each case on its own merit. Contact your nearest BDM or call 01858 412345.
Click to jump to the most popular searches: Adverse/Arrears, Income, Property type and Lending into Retirement.
We accept:
- Cases from £200k to £5m
- Principle security located in England or Wales
- Max 80% LTV
- We mainly help borrowers with a clean credit history
The following criteria is correct as of 26 November 2024.
A
Accounts/Accountants
You might like to visit our Income section.
We look for the latest year’s accounts and one year’s projection/current performance produced by a Chartered, Certified or CIMA Accountant in Practice on headed notepaper and signed.
If the applicants have an established business with two or more years’ accounts available, income will be based on the most recent year with no projection required.
If applicants don’t have an accountant, we require evidence from HMRC of profit for tax purposes for the last three years.
Acreage
We’re used to providing mortgages for complex properties.
We’re happy to accept large acreage, with no limit. We allow properties where land is used for hobby farming and personal equestrian use. For other property types or features, visit our Property types section.
Where land is used for commercial purposes please refer to your BDM or call our team.
Additional borrowing
Further borrowing is available for existing borrowers, subject to eligibility and lending policy. Minimum loan £30k.
Additional properties in the background
Additional/second home
Accepted.
Adverse/arrears
We mainly help borrowers with a clean credit history – we carry out a soft search at DIP stage and don’t credit score.
We’ll consider applicants affected by bankruptcy, Individual Voluntary Arrangements, Debt Relief Orders or repossession where the bankruptcy was discharged or residual debt was cleared a minimum of six years ago and there has been a clean credit history during that time.
Small unsatisfied debts totalling (<£250) per applicant or a maximum of (<£500) per application may be disregarded subject to underwriting.
We’re unable to accept the following:
- Borrowers with a payment shortfall of three months or more on a previous loan in the last three years. We consider credit cards to be loans for impaired credit purposes.
- Borrowers who have been subject of one or more bad debts or County Court Judgements within the last three years, with a total value greater than £500.
- Borrowers with an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA,) or Discharged IVA or CVA (which has been settled for <72 months).
Affordability calculator
You’ll find our residential calculator here.
For the following case types, please talk to your BDM or call our team. For a guide on how much we can lend:
- Buy to let
- Holiday let
- Part repayment and part interest only
- Particularly complex scenarios
Age limits
Our minimum age for applicants is 18.
Our maximum age for residential applicants is age 85 at the end of the mortgage term, there is no maximum for buy to let.
Agency workers
We consider accepting applicants with a minimum of one year’s history of working as an agency worker. Evidence of three years’ history of employment in a similar industry will be required.
Agricultural ties
Annexes
Applicants
We’re happy to accept a maximum of four applicants with income from all four used to support affordability.
There’s no requirement for applicants to be related. You might also be interested in our Joint borrower sole proprietor section. There is no requirement for all parties to be named on the deeds.
Application form
Arrears/Adverse
We mainly help borrowers with a clean credit history – we carry out a soft search at DIP stage and don’t credit score.
We’ll consider applicants affected by bankruptcy, Individual Voluntary Arrangements, Debt Relief Orders or repossession where the bankruptcy, was discharged or residual debt was cleared a minimum of six years ago and there has been a clean credit history during that time.
We’re unable to accept the following:
- Borrowers with a payment shortfall of three months or more on a previous loan in the last three years. We consider credit cards to be loans for impaired credit purposes.
- Borrowers who have been subject of one or more bad debts or County Court Judgements within the last three years, with a total value greater than £500.
- Borrowers with an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA,) or Discharged IVA or CVA (which has been settled for <72 months).
- Small unsatisfied debts totalling (<£250) per applicant or a maximum of (<£500) per application may be disregarded subject to underwriting.
Auction purchase
B
Bankruptcy
We consider cases where the bankruptcy has been discharged for a minimum of six years. See our Adverse section for more information.
Basic pay
We accept 100% of basic salary + guaranteed allowances (e.g. area weighting allowance, car allowance, shift allowance and housing allowance).
For other income types, visit our Income section.
Benefit income
We accept 100% of state benefits.
For other income types, visit our Income section.
Blocks of flats
Bonus
These are the bonus amounts we accept:
- Contractually guaranteed bonus – 100%
- Non-contractual bonus where the basic salary is less than £30,000 and bonuses have been paid for the last three years – we’ll use the average bonus payment over the three years up to 75% of basic salary for income calculation.
- Non-contractual bonus where the basic salary is over £30,000 and bonuses have been paid for the last three years – we’ll use the average bonus payment over the three years up to 200% of basic salary for income calculation.
- Non-contractual bonus where the bonus paid is irregular or not guaranteed – 50% of the bonus paid as an average over the last three years used for calculation but capped at 50% of basic salary.
For other income types, visit our Income section.
Bridging finance
We’re experienced in providing both regulated and unregulated bridging finance. Visit our Product Guide or view our bridging product page for more.
Buy to let
Expat let applications require a UK-based agent. This should be either a letting agent or a solicitor, to whom any necessary court documentation can be served in the event of default. The relevant documentation will be supplied to you with your offer.
Builder’s deposits/Incentives
Applicants must have a minimum deposit of 20% from their own resources. Gifted deposits are acceptable.
C
Capital raising
- Home improvements on main residential, second home or investment properties
- Debt consolidation including repayment of consumer credit, loans from relatives and business debts. Maximum LTV on debt consolidation 75%.
- To purchase another property
- Payment of a tax bill
- Business or investment purposes
We’re able to consider other scenarios, please contact your BDM or call our team.
CCJs
Borrowers who have been subject of one or more bad debts or County Court Judgements, with a total value greater than £500 registered within the last three years are unacceptable. See our Adverse section for more information.
Cladding
Considered subject to the valuer’s comments.
Commercial property
Complex property
- Listed buildings
- Large acreage with no limit
- Properties with annexes
- Multi-units
Please contact your BDM or call our team to discuss your needs.
Commission
These are the commission amounts we accept:
- Contractually guaranteed commission – 100%
- Non-contractual commission where the basic salary is less than £30,000 and commission have been paid for the last three years – we will use the average commission payment over the three years up to 75% of basic salary for income calculation.
- Non-contractual commission where the basic salary is over £30,000 and commission have been paid for the last three years – we will use the average commission payment over the three years up to 200% of basic salary for income calculation.
- Non-contractual commission where the bonus paid is irregular or not guaranteed – 50% of the commission paid as an average over the last three years used for calculation but capped at 50% of basic salary.
Concessionary purchase
Construction types
Various construction types are considered as standard, as well as non-standard and modern methods of construction (MMC). For unusual construction types, please contact your BDM or call our team.
Unacceptable construction types include:
- 100% timber construction
- Steel clad properties
- Walls containing Mundic classified as class B or class C
- Single skin brickwork
- Use of insulating spray foam
You might also find our Property types section useful.
Consumer buy to let
Not accepted. For our personal buy to let details, see our Buy to let section.
Contractors
Contract workers must provide a copy of their current contract, evidence of the last three years’ earnings, (either tax returns or audited accounts) and latest three months’ bank statements to support the income. We consider accepting one year’s accounts for contractors if evidence of three years’ history of employment in the same industry is available.
Credit score/search
We use Transunion as our credit referencing agency. We conduct a soft search at DIP stage with no footprint left. We don’t credit score.
Currencies
D
Day one remortgage
Accepted. Borrowers are required to use the same solicitor that they used to purchase the property being remortgaged. If this solicitor doesn’t meet the Society’s panel requirements we require separate representation.
Debt consolidation
Decision in Principle
Defaults
See our Adverse section for more information.
Small unsatisfied debts totalling (<£250) per applicant or a maximum of (<£500) per application may be disregarded subject to underwriting.
We’re unable to accept borrowers who have been subject of one or more bad debts or County Court Judgements, with a total value greater than £500 within the last three years.
Dependants
Deposit
Acceptable sources of deposit are:
- Savings – must be accompanied by a copy of savings book or bank statement showing the full amount of the deposit.
- Equity – confirmation of the sale price and balance outstanding.
- Capital to be raised from another property – copy of the mortgage offer letter.
- Endowment/investment policy maturity – letter showing maturity value.
- Gifts or loans – must be accompanied by a letter signed by the person making the gift or loan confirming the amount and on what terms. Evidence of funds may be required and any loan repayments will be included within affordability. The gift/loan can be provided by someone intending to live in the property, but will not be named on the mortgage.
- Gifted equity deposit – the property must be purchased at full market value.
- Funds from liquidation of legitimate assets – where necessary evidence can be provided to satisfy source of funds requirements.
Development finance
Diplomatic immunity
Acceptable for overseas residents. Not accepted for UK residents.
Direct Debit
Direct Debit payments must be made from a UK-mainland bank account held in the name of at least one of the mortgage applicants.
Debt management plans
See our Adverse section for more information.
We’ll consider applicants affected by bankruptcy, Individual Voluntary Arrangements, Debt Relief Orders or repossession where the bankruptcy, was discharged or residual debt was cleared a minimum of six years ago and there has been a clean credit history during that time.
We do not accept borrowers with an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA,) or Discharged IVA or CVA (which has been settled for <72 months).
E
Employment
Acceptable employment includes:
- Permanently employed, full/part time.
- Fixed term contracts.
- Short-term renewable contracts (including contractors).
- Employed director with less than a 25% share.
- Agency workers.
- Bank staff
- Self-employed:
- Sole trader.
- Partnership.
- Company directors with more than a 25% share.
There is no requirement for a minimum time with their current employer. Applicants who are in their probationary period are considered.
EPC rating
There are no requirements for residential properties.
For buy to let and expat buy to let applications, properties must have an Energy Performance Certificate (EPC) rating between A and E (or be an exempt property type).
Any let properties with an EPC of D or below will have a maximum LTV of 65%. This restriction can be waived if there are funds available post completion to make the improvements to bring the EPC to a C or above.
Equestrian facilities
Equity share loan scheme
Not accepted.
Estate rent charges
We need to understand whether the security to be mortgaged may be affected by an estate rent charge and service charge. If the mortgaged security is affected, the Legal Adviser must confirm the following.
- That they have advised the borrower that the acceptance of this offer implies an undertaking that the borrower(s) will advise the Society if their Estate rent charge falls into arrears.
- Any estate rent charge and/or service charge at the start of the mortgage term must always be reasonable. Unreasonable Estate rent charges and Service charges will not be permitted. These must be referred to the Society and we will advise you if our mortgage offer remains valid. If you are unsure as to whether the Estate rent charge and Service charge are unreasonable, please refer the details to the Society immediately.
- The Legal adviser must review the Estate rent charge and Service charge arrangements and confirm that there are no onerous conditions that may affect our decision to lend.
Any ground rent at the start of the mortgage term should not exceed £250 annually outside London or £1,000 inside London. Ground rent and other event fees must always be reasonable during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised.
Unreasonable multipliers of ground rent will not be permitted, for example, doubling every five, 10 or 15 years.
EU/EEA citizens
Expat
Acceptable. Visit our expat pages:
F
Fees and charges
Please refer to our Product Guide for details on product, application and valuation fees and charges.
View our Tariff of Charges for other fees associated with a mortgage:
First time buyer
Accepted.
First time landlord
Accepted for expat buy to lets as standard. For UK residents please contact your BDM or call our team.
Fixed term contracts
Fixed term and short-term contractors are acceptable. See our Employment. section. Contract workers must provide a copy of their current contract, evidence of the last three years’ earnings, (either tax returns or audited accounts) and the latest three months’ bank statements to support the income. We’ll consider one year’s accounts for contractors if evidence of three years’ history of employment in the same industry is available.
Flats
- Location:
- The maximum LTV on flats is 65% unless the flat is in London where 75% LTV is acceptable.
- The LTV is 70% for counties bordering London (Kent, Essex, Surrey, Berkshire, Hertfordshire and Buckinghamshire.)
- Flat/building type:
- New build flats, wherever they are located have a maximum LTV of 65%.
- One-bedroom flats, wherever they are located have a maximum LTV of 65%. New build one-bedroom flats are permitted.
- Studio flats are accepted in Prime London location only with a minimum value of £500,000 and minimum floor area of 30 square metres. Maximum LTV 65%.
- Leasehold accepted, including:
- Purpose built leasehold flats or maisonettes with the whole block being residential in nature. Blocks containing commercial or retail use considered on an individual basis.
- Properties converted to leasehold flats.
- Lease term – minimum lease term is 50 years plus the term of the loan. Exception to this is Prime London location whereby minimum lease remaining at the end of the mortgage term is to be no less than 15 years.
- Maximum number of units – no more than two units in any block shall be in mortgage to the Society.
Freehold flats aren’t accepted.
Flats above commercial
Flying freehold
Flying freeholds are unacceptable if a relatively large proportion of the accommodation (more than 20%) extends over, or under, a neighbouring dwelling.
Flood zones
We don’t accept properties with a high rating for coastal and river flooding.
For properties with a high rating for surface water flooding, the LTV is limited to 70% with a maximum term of no more than 10 years (interest only) or 25 years (capital and interest basis).
Insurance must be available to be purchased on standard insurance terms.
Foreign income
We accept USD, CAD, EUR, CHF, HKD, SGD or other EU currency as standard. Any other currencies can be considered, please contact your BDM or call our team.
Foreign nationals
Various VISAs are considered for foreign nationals living in the UK with no minimum time or residency requirements. Each case is considered on an individual basis. Please contact your BDM or call our team. to discuss further.
Foreign nationals residing overseas are considered. They must have a UK link (for example previously lived in the UK) and have a UK-mainland bank account to service the Direct Debit.
Freehold flats
Not accepted.
Freehold houses
Accepted.
G
Gifted deposit
Accepted. Deposits provided by gift or loan must be accompanied by a letter signed by the person making the gift confirming the amount and on what terms. Evidence of funds may be required.
Gifted equity
Accepted.
Ground rent
Any ground rent at the start of the mortgage term should not exceed £250 annually outside London or £1,000 inside London. Ground rent and other event fees must always be reasonable during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised.
Unreasonable multipliers of ground rent will not be permitted, for example, doubling every five, 10 or 15 years.
Guarantor mortgages
We don’t offer guarantor mortgages. Joint borrower sole proprietor is available across all our mortgage ranges.
H
Help to Buy
We can assist when the applicant is remortgaging to pay off the Help to Buy loan.
Holiday homes
Accepted.
You might be interested in our Product Guide or please view our holiday let product page.
Holiday lets
Accepted. Visit our Product Guide or view our holiday let product page.
Interest cover ratio (ICR) – the minimum ICR for Unregulated Holiday Lets is 155%. This is calculated using 12 weeks of high/peak, 12 weeks of mid and 10 weeks of low weekly rental figures as confirmed by a recognised holiday letting agent with the pay rate stress tested at 2% above the chosen payrate.
Should a Holiday Let not meet the minimum ICR under this calculation (or a regulated loan be required), Holiday Lets are accepted with top-slicing and assessed on full affordability.
House of multiple occupancy (HMO)
Maximum of four let rooms considered on a case-by-case basis.
I
Identification (ID)
After completing an online check we’ll confirm if any of the following additional proof of ID is needed.
Certified identification and proof of residency is required on all expat and foreign national applications.
Confirmation of applicant(s) identity via one of the following:
- Valid passport, with six months remaining.
- Valid photocard driving licence (full or provisional).
- Valid old style driving licence.
- Current European economic area member state card.
Confirmation of applicant(s) address via one of the following:
- Gas, electricity or landline telephone bill less than three months old.
- Mortgage statement or water bill less than 12 months old.
- Council tax bill or TV licence notification less than 12 months old.
- UK-based bank, building society or credit card statement less than three months old.
Additional information for expat applicant(s):
- A copy of the current rental tenancy agreement (if applicable).
Certified document requirements
All identification and proof of address documents must be certified accordingly. Certified copies must state ‘This document is a true copy of the original’, be dated and have the name, address and the contact details of the certifier. In addition, photographic ID should state ‘I certify this is a true likeness of (title and full name)’.
The following can certify these documents:
- Brokers on the Society’s panel
- Lawyers or barristers
- Authorised financial intermediary
- Justices of the peace
- Medical practitioners
- Government or embassy officials
- Notary public
- Certified or chartered accountants
- Chartered surveyors
- Minister of religion
- Teacher
Alternatively, applicants have the option to use an online service called HooYu to upload their proof of identification and proof of residency directly to the portal. Tell us if they’d like to use this service and we’ll email the applicants secure passcode links. Contact your BDM or call our team.
Income
You might also be interested in our Proof of income section.
Type | % considered |
Basic salary | 100% |
Contractually guaranteed overtime/commission/bonus | 100% |
Overtime – where the overtime paid is irregular or not guaranteed | 50% of the overtime paid as an average over the last three years can be used for affordability calculations but capped at 50% of basic salary. |
Non-contractual bonus or commission where the basic salary is less than £30,000 and bonuses have been paid for the last three years | We’ll use the average bonus payment over the three years up to 75% of basic salary for income calculation. |
Non-contractual bonus or commission where the basic salary is over £30,000 and bonuses have been paid for the last three years | We’ll use the average bonus payment over the three years up to 200% of basic salary for income calculation. |
Non-contractual bonus where the bonus or commission paid is irregular or not guaranteed | 50% of the bonus paid as an average over the last three years used for calculation but capped at 50% of basic salary. |
Deferred bonus payments | 0% |
Second job | 100% where it is feasible/reasonable for the borrower to sustain income from more than one employment. |
State benefits | 100% |
Investment income | 50% |
Gross Rental income | 100% with deductions made for void periods. Relevant tax must be accounted for. |
Pension income | 100% |
Piece rate employees (average of last 12 months’ pay) | 100% |
Court ordered maintenance | 100% |
Non-court ordered maintenance with evidence of receipt for past 12 months | 50% |
Income received from Trust Funds | 50-100% depending on the following factors: • The capital value of the Trust and the nature of its assets; • The overall liabilities of the Trust to beneficiaries compared to its income/capital; • The potential volatility of the investment income receivable, whilst considering the trust may be able to meet obligations from capital; • The consideration of the historic payments received from the Trust. |
You might also be interested in our Rental income section.
If your clients’ income source isn’t mentioned here, please contact your BDM or call our team.
Interest only
Maximum LTV for interest only with a satisfactory repayment vehicle is 75%.
Where the proposed repayment vehicle is sale of the subject property at the start of the loan it must have a minimum of two bedrooms and (after deducting all secured loans) at least £300,000 equity in the property. Additional information can be found here:
Interest cover ratio (ICR)
- Buy to let: Top-slicing available on all cases and assessed on full affordability. No minimum ICR requirement.
- Unregulated holiday lets: Minimum ICR 155% without affordability assessment. ICR is calculated using 12 weeks of high/peak, 12 weeks of mid and 10 weeks of low weekly rental figures as confirmed by a recognised holiday letting agent with the pay rate stress tested at 2% above the chosen payrate. Can proceed with top-slicing and affordability assessment if minimum ICR requirements are not met.
- Regulated holiday lets: Top-slicing on all cases and assessed on full affordability.
Ireland (Republic of)
We don’t lend in Ireland. We lend across England and Wales with no post code restrictions. This includes the Isle of Wight.
IVAs
See our Adverse section for more information.
Borrowers with an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA,) or Discharged IVA or CVA (which has been settled for <72 months) are unacceptable.
J
Joint borrower sole proprietor (JBSP)
- A parent named jointly on the mortgage, but their child is the sole legal owner.
- A friend named jointly on the mortgage, but their friend is the sole legal owner.
- A partner/spouse named jointly on the mortgage, but their partner/spouse is the sole legal owner.
The borrower(s) will require independent legal advice as they are jointly and severally liable for the debt but are not owners of the property.
L
Large loans
The exposure to one borrower or linked individuals (where the servicing of two or more loans is economically dependent upon one individual) is limited to £5m. The following LTV limits apply to larger loans:
- Loans less than £2m won’t exceed 80% LTV including arrangement fee
- Loans between £2m and £2.75m won’t exceed 75% LTV
- Loans between £2,750,001 and £3.5m won’t exceed 70% LTV
- Loans between £3,500,001 and £4.25m won’t exceed 65% LTV
- Loans between £4,250,001 and £5m won’t exceed 60% LTV
Leasehold
Leasehold properties are accepted. Share of freehold can be considered.
- On leaseholds, leases must have at least 50 years remaining at the end of the mortgage term. An exception to this is Prime London location where the minimum lease remaining at the end of the mortgage term should be no less than 15 years.
- Studio flats require at least 60 years remaining at the end of the mortgage term.
- Leasehold houses are accepted providing the terms of the lease are not excessive.
- We’ll consider applications where the lease is increasing simultaneously with the mortgage completion.
Lending into retirement
We define this as cases where applicants can reasonably be expected to retire before the end of the mortgage term.
Our definition of retired is a borrower of 70 years of age or older. Anyone below that age, who will be 70 or older at the maturity of the loan, will be a lending into retirement case. Applicants who are 70 or older at the start of the loan are lending in retirement cases.
The maximum LTV for residential borrowers (interest only and capital repayment) over 68 years of age is 75%. Loans agreed prior to age 68, which are over 75% LTV at loan inception, need to have reduced to at least 75% before the borrower becomes more than 68 years of age.
Lending in retirement
We define this as cases where borrowers are already retired at the start of the mortgage term.
The maximum age of the borrower (oldest if joint borrowers) on an owner-occupied property at the end of the mortgage term is 85. There is no maximum age for borrowers on buy to let, holiday let or short-term loans, however it must be within general life expectancy.
The maximum LTV for residential borrowers (interest only and capital repayment) over 68 years of age is 75%.
Let to buy
We’ll consider this as part of our buy to let range providing the applicant owns other investment property(ies). The applicant must have evidence of an onward residential purchase.
We can consider capital raising to assist the onward residential purchase subject to it not being classified as consumer buy to let.
Limited company buy to let
Not accepted.
Loan to income (LTI)
No maximum.
Loan to value (LTV)
- Maximum 80% for residential and buy to let ranges, up to £2m.
- Maximum 75% for holiday lets and residential loans above £2m.
Locations
We lend on properties across England and Wales, with no post code restrictions. This includes the Isle of Wight.
We don’t lend in Scotland, Ireland or Northern Ireland.
M
Maintenance income
- Court ordered maintenance – 100%
- Non-court ordered maintenance with evidence of receipt for past 12 months –50%, providing that the child is under the age of 13 years old.
For other income types, visit our Income section.
Maisonettes
Leasehold maisonettes are accepted. Freehold single unit flats or maisonettes aren’t accepted.
For complex properties or other property features, you might find our Property types section useful.
Maternity leave
We accept 100% of basic salary upon return to work. Anticipated childcare should be included in the affordability calculator.
For other income types, visit our Income section.
Maximum age
Residential cases – 85th birthday at the end of the mortgage term.
Let cases – no limit, as long as within reasonable life expectancy.
Maximum loan
£5m.
Maximum property value
No maximum.
Maximum term
40 years.
Minimum age
18 years. The maximum is the applicant’s 85th birthday at the end of the mortgage term for residential cases. No maximum for let cases.
Minimum loan
£200k.
Minimum property value
£250k.
Minimum term
Five years for term loans. 12 months for bridging finance.
Mixed use properties
We’re used to providing mortgages for complex properties and accept the following:
- Listed buildings
- Large acreage, with no limit
- Properties with annexes
- Multi-units
Residential properties with a commercial element can be considered on an exception basis.
For complex properties or other property features, you might find our Property types section useful.
Mobile homes
Not accepted.
Modern Methods of Construction (MMC)
We consider properties designed and built in accordance with Modern Methods of Construction (MMC) providing the materials used comply with BRE product standards and there is a warranty from an acceptable provider.
Please contact your BDM or call our team to discuss your needs.
Mortgage arrears
See our Adverse section for more information.
Borrowers with a payment shortfall of three months or more, on a previous loan, in the last three years are not accepted.
Multiple titles
We accept properties with multiple titles.
For complex properties or other property features, you might find our Property types section useful.
Multiple units
We accept properties with multiple units for personal use or sub-let. Freehold multi-unit blocks are accepted with a maximum of four units within the block.
For complex properties or other property features, you might find our Property types section useful.
N
New builds
Accepted. Maximum 75% LTV for houses and 65% for flats.
New-build warranty
We accept the following as standard:
- NHBC Certificate
- Premier Guarantee
- Building Life Plan
- Build-Zone
- LABC New Home Warranty
- Architect’s or Chartered Surveyor’s Certificate
Warranties from providers not on the approved list can be considered on a case-by-case basis. Please contact your BDM or call our team.
Non-borrowing occupier
Non-borrowing occupiers residing in the property will be requested to sign an additional occupier form prior to completion. If part or all of the deposit is coming from a non-borrowing occupier, see Gifted deposit/Gifted equity for requirements.
Non-standard construction
For complex properties or other property features, you might find our Property types section useful.
Non-UK tax-payers
Accepted.
Northern Ireland
We don’t lend in Northern Ireland. We lend across England and Wales with no post code restrictions. This includes the Isle of Wight.
O
Offers
Our offers are valid for three months. Extensions can be provided subject to the underwriter’s discretion and further supporting documentation being provided, if considered necessary.
Overtime
We accept:
- Contractually guaranteed Overtime – 100%.
- Where the overtime paid is irregular or not guaranteed then 50% of the overtime paid as an average over the last three years can be used for affordability calculations. This is capped at 50% of basic salary.
P
Paternity leave
We accept 100% of basic salary upon return to work. It is anticipated that childcare should be included in the affordability calculator.
For other income types, visit our Income section.
Porting
All products are portable except bridging finance.
Porting is defined as where an existing borrower transfers their current mortgage product to purchase a new property.
If the sale of the existing property and purchase of the new property cannot complete simultaneously the borrower will have three months to complete the port and be refunded any early repayment charges (ERC).
The new loan must meet the Society’s lending criteria and is subject to an affordability and underwriting assessment. We will consider porting the product to a property already owned by the borrower. Please contact your BDM or call our team.
Portfolio landlords
We define a portfolio landlord as one with four or more mortgaged buy to let properties. We consider portfolio landlords on an exception basis. This is largely dependent on the borrower having additional sources of income to support our affordability model (as opposed to ICR).
Maximum LTV 80% (subject to property type limits). Please contact your BDM or call our team.
Probationary period
Applicants can be considered if they are in a probationary period, subject to having a minimum of 12 months’ employment history.
Procuration fees
Procuration fees are paid on all completed new mortgage business and product switch cases in line with terms and conditions. We don’t have a maximum or cap applied to procuration fees.
Brokers should refer to their firm’s Terms of Business Agreement (TOBA) for more details.
Product fees
For more information about the product fees that apply to our mortgage range, please visit our Product Guide.
Product switches
Brokers can complete product switches for existing Market Harborough mortgage holders and earn a proc fee. See our product switch page team for more information. Alternatively, please contact your BDM or call our team.
Proof of address
For more information, visit our Identification (ID) section.
Proof of ID
For more information, visit our Identification (ID) section.
Proof of income
These are our proof of income requirements:
- Employed applicants:
- Latest three payslips and the last P60
- All employed expats must have an employment reference independently obtained
- Self-employed applicants (This includes those in partnerships or those with a 25% plus shareholding in the employing company):
- Latest year’s accounts and one year’s projections/current performance produced by a Chartered, Certified or CIMA Accountant in Practice and the latest SA302 or equivalent tax assessment.
- If the applicants have an established business with two years or more accounts available, income will be based on the most recent year with no projection required.
- If applicants do not have an accountant, we require evidence from HMRC of profit for tax purposes for the last three years.
- Contractors
- Contract workers must provide a copy of their current contract, evidence of the last three years’ earnings, (either tax returns or audited accounts) and bank statements to support the income.
- Pension income
- Latest pension statement and latest investment statement supported by bank statements showing receipt of funds.
Property types
We’re used to providing mortgages for complex properties.
In this section you’ll find out more about acceptable property types, unacceptable features and our approach to non-standard construction. You can also visit our Leasehold section.
- Acceptable property features include:
- Large acreage, with no limit
- Annexes for personal use or let on AST or short-term basis
- Outbuildings
- Multiple units
- Multiple titles
- More than one kitchen
- Listed buildings
- Unacceptable properties include:
- Properties deemed uninhabitable – there may be occasions where our bridging financing could be a useful alternative form of finance. Visit our bridging finance product page for more information.
- Freehold maisonettes
- Retirement properties
- Sheltered housing
- Mobile homes
- Houseboats
- Properties with guaranteed rental schemes
- Construction types: Various construction types are considered as standard, as well as non-standard and modern methods of construction (MMC). For unusual construction types, please contact your BDM or call our team to discuss your needs. Unacceptable construction types include:
- 100% timber construction
- Steel clad properties
- Walls containing Mundic classified as class B or class C
- Single skin brickwork
- Use of insulating spray foam
R
Remortgages within six months
Day one remortgages are acceptable. Borrowers are required to use the same solicitor that they used to purchase the property being remortgaged. If this solicitor doesn’t meet the Society’s panel requirements we require separate representation.
Regulated buy to let
Accepted. Visit our Product Guide or view our buy to let product page
Rental income
Gross rental income – 100% with deductions made for void periods. Relevant tax must be accounted for.
Rent a room income – 75%
Repayment strategies/vehicles
Outlined below are acceptable repayment strategies.
This list isn’t exhaustive and alternative strategies can be approved by our Credit Committee:
- Sale and downsize – See our Interest only section for equity requirements on residential loans.
- Endowment policies – A projection of performance at least equal to the loan
amount at maturity is required. - ISAs – Applicant(s) must be at least 40 and demonstrate a savings record of at least 10 years. A pro rata calculation must be made to ensure current contributions will be sufficient to repay the loan.
- Pension plans – The projected fund at retirement should be established; a maximum projection of 25% can be used as a source of payment. This 25% limit can be exceeded with Credit Committee approval. The retirement date must not be later than the end of the mortgage term.
- Mortgage overpayments – A credibility check will be carried out.
- Sale of second property – If the applicant’s second property has sufficient equity or value to repay the mortgage.
- Speculative strategies e.g. inheritance are unacceptable.
Restrictive convenants
Properties with restrictive covenant or occupancy restrictions are considered on a case-by-case basis, please contact your BDM or call our team
Retirement properties
Not accepted.
Right to Buy
Not accepted.
S
Scotland
We don’t lend in Scotland.
We lend across England and Wales with no post code restrictions. This includes the Isle of Wight.
Second charges
As additional security, we consider second charges which rank behind the existing first charge holder. We don’t rely on second charges as principal security, only as additional security.
Second jobs
100% accepted – where it is feasible for the borrower to sustain income from more than one employment.
Second property
Accepted.
Self-build
Not currently accepted. You might be interested in our bridging finance which is available with rolled up interest and in stage releases. To find out more, visit our bridging finance product page or contact your BDM or call our team
Self-employed
Accepted. For more information, see our Proof of income section.
Self-employed limited company directors
Self-employed sole trader
For more information, see our Income section.
Last two years’ accounts if available and evidence from HMRC of profit for tax purposes for the last three years.
Service charges
Abnormally high levels of ground rent or service charge will be considered when assessing the valuation. Any estate rent charge and/or service charge at the start of the mortgage term must always be reasonable. Unreasonable Estate rent charges and Service charges will not be permitted. Please contact your BDM or call our team
Shared equity
Not accepted.
Shared ownership
Not accepted.
Shift allowance
100% accepted. You might find our Income section useful.
Short term contractors
Contract workers must provide a copy of their current contract, evidence of the last three years’ earnings, (either tax returns or audited accounts) and bank statements to support the income. We’ll consider accepting one year’s accounts for contractors if evidence of three years’ history of employment in the same industry is available.
You might find our Income section useful.
Shorthold tenancy agreement
Buy to let borrowers normally grant an Assured Shorthold Tenancy (AST). When it isn’t possible to use an AST or the initial letting term is more than 12 months reference to a Senior Underwriter is required. Please contact your BDM or call our team.
Smallholdings
Personal smallholdings are acceptable. If any commercial element exists, please refer to your BDM or call our team.
Solar panels
We accept owned photovoltaic solar panels which have been installed by a provider with Micro-generation Certification Scheme accreditation.
Solicitor panel
Our panel is managed by Lender Exchange and the following criteria must be met to allow admittance to the panel:
- Only Conveyancing Quality Scheme (CQS) accredited firms will be admitted.
- No personal or family relationships must exist between partners or directors, without the Society’s written approval.
- The firm must comprise a minimum of three solicitors/partners or directors/investors who are individually SRA /CLC approved. These firms must in themselves be SRA or CLC approved. A suitable business format for such firms are limited liability partnerships, limited liability companies or traditional partnerships.
- The firm must provide practicing certificates for three SRA-approved managers (for solicitors) or practicing certificates for three authorised persons (for licensed conveyancers) who have been working in private practice for at least three years.
- For firms where the office holders/owners don’t hold practicing certificates, there must be at least three lawyers within the firm who have been in private practice and have held a current practicing certificate for at least three years.
- The firm must hold professional indemnity cover of at least £2m for any one claim and must notify the Society in the future of any fundamental changes to the cover.
- The firm must not be going through a merger/takeover.
Sub-contractors
Sub-contractors must have been employed for a minimum of three years and be able to provide a minimum of three years’ evidence of income from HMRC. Standard references will be obtained from the main contractors.
For more information, see our Income section.
T
Tenants
- For unregulated buy to lets the property must be let on an assured shorthold tenancy (AST) (6-12 months). ASTs >12 months can be considered, please refer to your BDM or call our team.
- Regulated buy to lets, where the property is let to family members can be considered as we assess all buy to lets on full affordability.
- Holiday lets are defined as an agreement to let a property or part of a property on a licence arrangement for less than 28 days for the purposes of holidays not a home. A letter from a holiday letting agent is required confirming the potential rent for low/mid/high seasons.
- Corporate tenancies will be considered on a case-by-case basis.
- Student lets aren’t accepted.
Tenants in common
Accepted subject to suitable advice from the conveyancers involved in the mortgage transaction.
Tenure
- Freehold and leasehold properties are accepted, except freehold flats.
- Commonhold/Share of freehold are accepted providing confirmation of a management company is in place prior to completion.
- On leaseholds, leases must have at least 50 years at the end of the mortgage term. Exception to this is Prime London location where a minimum lease remaining at the end of the mortgage term must be no less than 15 years.
- We’ll consider applications where the lease is increasing to an acceptable term, simultaneously with the mortgage completion.
Timber frame properties
There are many different types of timber and timber framed dwellings throughout the UK, many that we will accept, subject to the valuer’s comments.
Pre-1965 softwood timber framed constructions and 100% timber construction are not accepted.
Top-slicing
We top-slice (use of personal income) as standard on all buy to let cases with no interest cover ratio (ICR), with no minimum income requirement.
We can top-slice on holiday lets if an application doesn’t meet minimum ICR requirements.
Please see our product Product Guide for further details.
Transfer of equity
Accepted, and can be processed simultaneously with a new mortgage application. Terms for the transfer of equity must be declared with the DIP.
U
Undervalue transactions
Not accepted.
Unsecured arrears
See our Adverse section for more information.
V
Valuations
Basic mortgage valuation fees are listed within our Product Guide.
Depending on the complexity of the property, a bespoke valuation quotation will be obtained prior to application.
Valuations are instructed once a full mortgage application and payment of fee has been received in full.
Vendor gifted deposit
We consider cases where the applicant is being gifted a deposit from their existing landlord. Please contact your BDM or call our team.
Visas
Various Visas are considered for foreign nationals living in the UK with no minimum time or residency requirements. Each case is considered on an individual basis.
Foreign nationals residing overseas are considered. They must have a UK link (for example previously lived in the UK) and have a UK-mainland bank account to service the Direct Debit.
W
Wales
Accepted. We lend across England and Wales with no post code restrictions. That includes the Isle of Wight.
Warranties
- NHBC Certificate
- Premier Guarantee
- Building Life Plan
- Build-Zone
- LABC New Home Warranty
- Architect’s or Chartered Surveyor’s Certificate
Warranties from providers not on the approved list can be considered on a case-by-case basis. Please contact your BDM or call our team.
Z
Zero-hour contracts
Not accepted.
