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Dudley Building Society

Mortgage Type

Residential

Property Value (min)

£75,000

Advance (min)

£25,001

Advance (max)

£1,000,000 to 90%
£1,000,000 to 75% for interest only
£350,000 to 75% for Self Employed with 1 years accounts, Listed Buildings can be submitted on any product but the following restrictions apply (Grade 1 - max 20 year term. Grade 2 & 2* - max 25 year term).
Second Homes: LTV to 80%.

More than £1mill is only considered by referral only.

Term (Max)

40

Minimum Age

18 years

Maximum Age

No Maximum

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Yes

Income (min)

No minimum income but will be affordability based on "ONS" statistics
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Unacceptable Income:
We will not take into account any income arising from Incapacity benefits, housing benefit, income support and job seeker’s allowance.
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75% of Working Tax Credit
100% of Child Tax Credit & Child Benefit allowed if children aged 13 or under
100% of Disability Living Allowance allowed

• A purchase or remortgage with additional borrowing, with a Loan to income ratio equal to or greater than 4.5x, must pass the mortgage payment as a percentage of the disposable income affordability check held within the Society’s affordability calculator, in order to be accepted.
• A purchase or remortgage with additional borrowing applications, that has a Loan to income ratio of above 6.0x will no longer be accepted.
• On pound for pound remortgages any applications up to 6.0x will not be subject to these new restrictions, however any over 6.0x can only be accepted subject to them passing the mortgage payment as a percentage of the disposable income affordability check, held within the Society’s affordability calculator.

Ex-Local Authority Properties

We cannot accept a local authority or av ex-local authority flat and maisonette unless located within the M25, a maximum LTV of 65%, minimum £200k valuation and satisfactory valuer comments regarding demand and re-saleability.

Houses - Yes

Minimum Ownership

6 months, exceptions by referral. Exit from Bridge loan considered.

Permanent rights to reside and remain

Yes (unless Ex-Pat)

Ex-Patriates

Yes up to 80% for residential (70% for BTL) - minimum loan is £25,000

New Builds

90% for houses, 80% for flats

Credit Score

Credit check, do not credit score.

Historic CCJ’s & Defaults

Applicant(s) must satisfy the following criteria:

Mortgage applications up to 80% LTV:
• No missed payments in last 12 months on any (previous or current) mortgage, other secured loan or rent, and no arrears in months 13-24 (counting backwards from the present date), where the cumulative amount overdue at any point reached three or more monthly payments. No current arrears.
• No more than 1 missed payment in last 12 months on any (previous or current) unsecured loan or credit card, and no arrears in months 13-24 (counting backwards from the current date), where the cumulative amount overdue at any point reached three or more monthly payments. No current arrears.
• A maximum value of CCJs registered more than three years prior to application (satisfied) of £5,000 and a maximum number of two instances.
• A maximum value of defaults registered within three years of application (satisfied) of £1,000 and a maximum number of three instances.
• A maximum value of defaults registered more than three years prior to application (satisfied) of £5,000 and a maximum number of three instances.

Other than that:
a) Three or fewer Communication supplier defaults of up to £150 each may be ignored for the purpose of calculation value under points 3 and 4 above (where an applicant has four or more, all of them will be taken into account).
A satisfactory explanation for any adverse credit (including any disregarded under point (a) must always be obtained.

For Mortgage applications above 80% LTV, applicant(s) must satisfy the following criteria:
• No missed payments in last 12 months on any mortgage, other secured loan or rent and no more than 1 missed payments in the last 2 years. No current arrears.
• No more than 1 missed payment in last 12 months on any unsecured loan or credit card and no more than 2 missed payments in last 2 years. No current arrears.
• CCJ(s) with a total not exceeding £2,500 registered more than 3 years ago are acceptable if satisfied more than 12 months ago.
• Defaults – one or more with a total value not exceeding £500 issued more than 12 months ago are acceptable, as long as satisfied by time of application.

Valuation Fees

Valuation fees paid direct to lender at the lender fee scale.

Maximum number of applicants

4

Countries

Will lend in England and Wales

Access

Access to Dudley BS is available via selected packagers only.

Shared Ownership

Yes - 90% of share Min share 25% Repayment basis only Term 5 – 35 Yrs Additional share or Home Imps only. Agreement from Housing Association required

Right to Buy (RTB)

100% Discounted purchase price.
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Loans may be accepted up to 100% of the discounted purchase price, provided that they do not exceed the Society’s lending limits based on valuation and subject to the Loan to Value against full open market value not exceeding 80%.

Additional borrowing allowed for home improvements only subject to being no more than 20% of the discounted sum. For funds to be released require sight of invoices. The loan must be conducted on a capital and interest basis.
All applicants that wish to be included in the mortgage; must show on the right to buy documents.

Debt Management Plan

Must have been satisfied more than 3 Years ago and all credit conducted satisfactorily since the Debt Management completed

Help To Buy (Shared Equity)

No

Ex-Bankrupts

Up to 80% LTV - Applicants should not have been subject to a Bankruptcy order within the last 3 years. Above 80% LTV - Must have been satisfied for at least 6 years and all credit conducted satisfactorily since then.

IVAs

Must have been satisfied more than 3 Years ago and all credit conducted satisfactorily since the IVA completed

Repossessions

Must have been satisfied for at least 6 years

Payday Loans

Lending to applicants where Payday lending has been a source of credit historically, the following terms apply: • No more than 2 agreements with a total of no more than 5% net income being raised; • No new loans taken in the last 6 months; • Loan should have been satisfied through repayment rather than rolled over into a new Payday loan.

Repayment Types

No minimum for equity requirements - Underwriters will require 2 comparables within a 3 mile radius of the postcode of the security address. Capital and repayment, Interest only and Part and Part - where any part of the loan is interest only, the maximum LTV will be 75%.

Lenders completion fee

Can be added up to max LTV

Affordability

Affordability based

Employment

• Permanently employed for the preceding 6 months and have been with their present employer for at least three months unless starting a new job with no probationary requirement; or
• Employed on a contract of a minimum 6 months’ duration, or 3 months’ duration if the applicant can prove that they have had regular contracts over the last 2 years in the same line of work; or
• Casual Employment – We do not accept applications from people employed on a casual basis. We do however accept zero-hours contracts.

Self Employed

1 years accounts accepted at 75% LTV.
2 & 3 years accounts required for all other products, exceptions by referral

Share of Dividends Yes
Share of Directors remuneration Yes
Share of directors car allowances - As long as evidenced
Share of directors pension contributions - As long as evidenced
Share of use of home as office - As long as evidenced
Share of private health insurance - As long as evidenced
Share of spouse's income (sole app) -As long as evidenced
Operating profit No
Retained net profit Not usually - at underwriters discretion
**As retained profit is looked at in exceptional circumstances then discuss the case and submit accounts before the application