Bluestone Mortgages

Mortgage Type

Residential

Property Value (min)

£75,000 - standard cases

Advance (min)

£50,000

Advance (max)

£1,000,000 up to 75% LTV
85% LTV on Clear Range only - NOT available on help to buy.
95% LTV considered on new build properties - See "Deposit Unlock" product range up to £600,000.

Term (Max)

35 years

Minimum Age

Maximum Age

Max age of 75 at the end of the term. Lending into retirement will be deemed as the earlier of: • The customers anticipated retirement age • Age 70 If the mortgage extends into retirement or beyond the age of 70, evidence will be required to demonstrate that the mortgage will be affordable throughout the life of the loan as follows: • For customers aged <50yrs or 20yrs+ until retirement, we will require satisfactory evidence of payments into a pension plan to be supplied. • For customers aged >50yrs or less than 20yrs until retirement, satisfactory evidence of future income will be required, such as a pension statement. We may consider using pre-retirement income only beyond age 70, to a maximum age of 73 for skilled professionals, for example: • Specialist Consultants in Finance • Legal Practitioners • Doctors / Medical Practitioners including support staff • Business Owners Age 70 for manual workers and 75 for non-manual but underwriter discretion can be applied up to 80 by exception alone.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Yes Below market value transactions are considered up to 5% - please ensure reasoning is checked with Bluestone.

Income (min)

No minimum income required.

Bonus/Overtime/Commission
• 50% of income used to calculate affordability unless fully guaranteed where we can accept 100%

Working family tax credit is considered but must have 2 years left and will require the latest award letter and to be evidenced on bank statements.

****
Sapphire Club: -
Accept 75% of benefit income (DLA, Carers Allowance, Child Benefit, WFTC) if 2 years remaining and not primary source of income

Max 30% of household income

In order to obtain over 4.5x income: -

• Bluestone monthly mortgage payment must be equal to, or less than 90% of the current mortgage / rental payment
• Full 12 month payment history required
• In these cases, an LTI ratio of over 4.5x will be available
• Available across all residential credit tiers, including Help to Buy and Right to Buy, with no LTV restrictions.

See employment and self employment below for further details.

Let to Buy (Turning Residential into Buy to Let)

Yes - only when Bluestone are doing the forward purchase - they need the remortgage offer before Bluestone will offer.

Ex-Local Authority Properties

Houses - Yes
Flats - Yes

Minimum Ownership

6 months minimum ownership - unless for a probate or bridging scenario

For Probate - need to make sure that the person who will own the property is the true beneficiary via the will or letter from the solicitors which is preferred as wills are long.

Permanent rights to reside and remain

Yes

Ex-Patriates

New Builds

Available for help to buy range only AND core range - 85% LTV on houses and 75% LTV on flats
Max LTV of 75% for new build flats

Unless, "Deposit Unlock" range which is up to 95% LTV (£600,000 max) - Houses and flats (the flats must be 2 bedrooms or more)

Builders Deposit
We can now accept 5% from the builder towards the customer deposit on new builds.

Credit Score

No The maximum number of unsecured debts that are in arrears at the point of application is 5, including active defaults

Historic CCJ’s & Defaults

Clear: - Defaults - 1 (satisfied) in 36 months
Value < £300 or telecom ignored (even if in last 6 months)
Recency: 0 in last 6 months; > 36 months ignored

CCJ's: - 0 in 36 months
Value < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

• All accounts with a balance under £300 can be ignored
• Maximum of missed 2 payments in the last 6 months per account
• If the balance is over £500, the most recent payment must have been made

The customer cannot have more than 5 unsecured accounts in arrears at the point of completion.
The following can be ignored from the max of 5:
• Accounts where the balance is under £300
• Accounts that have defaulted and / or are part of a DMP / DAS

AAA
Defaults: - 1 in 36 months
Value: < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

CCJ's: - 1 settled in 36 months
Value: < £300 or telecom ignored (even if in last 6 months)
Recency: 0 in last 6 months; > 36 months ignored.

AA
Defaults: - 2 in 36 months
Values: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

CCJ's: - 1 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

A
Defaults: - 3 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

CCJ's: - 2 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

BBB
Defaults: - 4 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

CCJ's: - 3 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored

Defaults and CCJ's ignored for
product selection purposes if
registered over 3 years ago or less
than £300.

Ignore all communications defaults / CCJs

None allowed in last 6
months.
The maximum number of unsecured debts that are in arrears at the point of application is 5, including active defaults

All telecom CCJ/Defaults ignored
All CCJ's/Defaults below £300 ignored
CCJ’s / Defaults ignored if > 36 months
0 missed payments on secured credit in months 0 - 12 and up to 4 missed for months 13 - 24

If defaults and CCJ are wrapped up in a Bankruptcy or IVA they can be ignored and we will just apply the IVA/Bankruptcy criteria - evidence of the bad debt wrapped up in the IVA/Bankruptcy is key

Valuation Fees

Valuation fees paid direct to lender

Maximum number of applicants

Countries

England and Wales

Access

Access to Bluestone Mortgages is to a selective panel of mortgage packagers

Missed mortgage payments

Clear: - 0 in 13 - 24 months AAA: - 1 in 13 - 24 months AA: - 2 in 13 - 24 months A: - 3 in 13 - 24 months BBB: 4 in 13 - 24 months

Shared Ownership

Not acceptable

Right to Buy (RTB)

Yes
£50,000 minimum loan
Ability to lend 100% of discounted purchase price, up to a maximum of 75% of open market value

The maximum discount is £84,200 across England, except in London boroughs where it’s £112,300 and increases each year in April in line with the consumer price index (CPI).

Houses and flats attract a different level of discount but are both subject to the absolute caps above. Once the property is purchased the borrower may sell the property but if it’s within 5 years of the purchase then a
reducing proportion of the discount has to be repaid to the council.

Houses
You get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years.
After 5 years, the discount goes up 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £84,600
across England and £112,800 in London boroughs (whichever is lower).

Flats
You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up by 2% for each extra year you’ve
been a public sector tenant, up to a maximum of 70% or £84,600 across England and £112,800 in London boroughs (whichever is lower).

Council tenants - only those named on the Section 125 RTB Notice can be party to the application.

Up to 100% of the discounted purchase price and a maximum of 75% LTV of the open market value as advised by a Bluestones valuer

Additional Documents: -
Section 125 RTB Notice will be required to be able to complete the initial underwrite.

Debt Management Plan

Conduct: Must be due to a life event and conducted satisfactorily
Recency: OK if still in operation and can remain

Debt Arrangement Schemes: if active will not be permitted

Help To Buy (Shared Equity)

Free standard valuations on all HTB products - instructed on receipt of the application

• Mortgage offer valid for 6 months with extensions possible
• Builder incentives of up to 5% of the purchase price accepted (not inc builders deposit)
• Incentives include white goods, carpets, small cashback, legal fees and contribution towards stamp duty
• Up to 3 CCJs in the last 36 months
• Up to 4 Defaults in the last 36 months
• 4 missed mortgages payments in the last 13 - 24 months
• IVA / Bankruptcy must be discharged for 3 years
• DMP accepted and can remain on completion 'No Minimum Term'

Ex-Bankrupts

IVAs

Sapphire Range Available: - See Exclusive product guide: - 12 months discharged bankruptcy Current IVA’s cleared on completion If defaults and CCJ are wrapped up in a Bankruptcy or IVA they can be ignored and we will just apply the IVA/Bankruptcy criteria - evidence of the bad debt wrapped up in the IVA/Bankruptcy is key Clear range: over 6 years discharge. All other ranges, over 3 years since discharge. All defaults included within the IVA will not be independently assessed when determining which product will be available from our range. This will allow customers with any number of defaults within the IVA to secure a mortgage. Any defaults incurred post registration of the IVA will be incorporated into the underwriting of the loan application.

Repossessions

Not acceptable

Payday Loans

None active in last 12 months since the date of DIP - can consider exceptions but are case dependent. (*Bluestone will consider any loan as high-cost short term finance that is flagged in the client’s credit report by Experian or found on the customer's bank statements that relate to lenders that offer loans for 12 months or under with an APR of at least 39%) Only one applicant can have had a Pay Day loan in the last 12 months

Repayment Types

Repayment only Interest Only on BTLs is only available on Clear Products - NOT residential.

Lenders completion fee

£1495 (referred to as arrangement fee)

Affordability

Income multiples not used, Bluestone have their have own affordability calculator and must be used prior to DIP submission

Employment

Minimum 3 months in current position, continuous employment for last 12 months
---
Contractors with 3 months remaining on contract accepted

CIS Contractors
- Can use 12 months remittance slips instead of SA302
- Can still use SA302 if more favourable

Fixed Term Day Rate & PAYE Contractors
- Day 1 contract accepted
- Must have 6 months industry experience which must be evidenced.
- 3 months payslips required (from previous role if necessary) along with a copy of current contract.
- We can allow a maximum 6 week gap between jobs

Bonus/Overtime/Commission:
50% of income used to calculate affordability unless fully guaranteed where we can accept 100%

Benefit income
• Child benefit no longer accepted
• To accept Child Tax Credits, the term of the mortgage may not exceed the 16th birthday of the eldest child
• We can now accept 100% of Child Tax Credits, Working Tax Credits, Incapacity Benefit, Disability Living Allowance & Carers Allowance subject to a maximum of 30% of household income
• Incapacity Benefit should be keyed into our broker portal as Universal Credit

Maintenance income
• Accepted to 100% if backed up with official documentation e.g. a court order

Rental income
• Portfolio Landlords (4 or more properties): 100% of Net Rental Income after the portfolio is stressed at 125% of 5.50%
• Non-Portfolio Landlords: 75% of Net Rental Income

Self Employed

Minimum 12 months trading required.

For self-employed applicants, an Accountant's Certificate is NOT accepted as the sole proof of income

Foster Care Income
12 month history and evidence of income required.
Remittance slips or local authority reference used to evidence income
Latest 12 months income figures will be used to calculate affordability.

Self Employed Day rate contractors must have the contract in their personal name

If trading longer than 1 year, average is taken over the last 2 - 3 years.

Share of Dividends Yes
Share of Directors remuneration Yes
Share of directors car allowances Yes
Share of directors pension contributions Yes
Share of use of home as office Yes
Share of private health insurance No
Share of spouse's income (sole app) No
Operating profit No
Retained net profit 100%
• If income/profits are increasing year on year, the average of the last 2 years net profits will be used.
• If income/profits are fluctuating, average of the last 3 years should be used or the latest year’s net profit, whichever is the lower.
• If income/profits are decreasing, the lowest net profit figure should be used for the past 3 years, together with an explanation as to why profits are reducing.

Rental income
• Portfolio Landlords (4 or more properties): 100% of Net Rental Income after the portfolio is stressed at 125% of 5.50%
• Non-Portfolio Landlords: 75% of Net Rental Income