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Dudley Building Society

Mortgage Type

Residential

Property Value (min)

£75,000

Advance (min)

£25,001

Mortgage lending exposure in any one property development is capped, where practicable, to 25%. Where this is residential Buy to Let or Shared Ownership, a maximum of 25% exposure is allowable in blocks of 4 flats or more. For blocks of 3 flats or less, we will only lend on one property.

Advance (max)

£350,000 up to 95% LTV - no longer has postcode restrictions
£1,000,000 to 90% LTV for Capital and Interest
£1,500,000 to 85% for Capital and interest
£2,500,000 to 80% LTV for Large loan product only.

More than £1mill is only considered by referral only.
Holiday Homes or Second Homes up to 80% LTV

Self-Build
LTVs up to 85% for both the end value and land value
Larger maximum loan size for our Eco-Self build products from £500,000 to £1,000,000

Term (Max)

40

Minimum Age

18 years

Maximum Age

Up to maximum stated retirement age and no further. Lending into retirement must be at least 10 years away at the point of application.

Family Cash Gift Deposit

Yes - unless for 90% LTV - must be own savings

Family Gift of Equity Deposit

Yes - unless for 90% LTV - must be own savings

Income (min)

No minimum income but will be affordability based on "ONS" statistics
-
Unacceptable Income:
We will not take into account any income arising from Incapacity benefits, housing benefit, income support and job seeker’s allowance.
***
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 4.49x, 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.


Consolidation of debt criteria (whether or not the property is mortgaged to Dudley BS, another lender or not mortgaged at all):
• Dudley can consider applicants who wish to raise additional funds as part of a re-mortgage or further advance
• Maximum loan-to-value of 75% for both repayment and interest-only applications
• Dudley can now consolidate other debts not related to home improvements
• For additional borrowing applications, we will review any history of previous debt consolidation exercises
• Dudley's approach to the settlement of debts from funds being raised is dictated by whether the mortgage would be affordable if the outstanding debt was not cleared
• Lending in retirement will be capped at 70% across all products. This will come into play if a retired (non-working) applicant is a party to the application
• Lending into retirement will be capped at 75% across all products. This will affect cases where an applicant will retire mid-term. For example, a 50-year-old applicant, planning on retiring at 75 but wanting a 40-year term. When determining an applicant’s retirement age, Dudley will use the stated retirement age on the application, Dudley underwriters will then assess whether it is feasible for them to continue working until what has been stated.

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

Mortgage lending exposure in any one property development is capped, where practicable, to 25%. Where this is residential Buy to Let or Shared Ownership, a maximum of 25% exposure is allowable in blocks of 4 flats or more. For blocks of 3 flats or less, we will only lend on one property.

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 75% for residential (Ex Pat BTL 70% LTV) - minimum loan is £25,000 - Foreign income will be assessed using the lowest exchange rate in the last 2 years.

New Builds

75% for houses, 75% 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 75% 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.

- Will not accept applications which include more than 2 agreements being raised within the last 3 years.
- Will require all loans to have been settled at least 6 months prior to application.
- Will also require no new loans to be taken out within the last 6 months.
- A suitable explanation will also need to be provided behind the purpose of the loans.

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.

Missed mortgage payments

See defaults and CCJ's - explanations for Different LTV's

Shared Ownership

Yes - 95% of share Min share 10% of property as of April 2021 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.
****
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 85%.

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 - but Post HTB and Shared Equity yes

Forces help to buy - Armed Forces Advance of Pay (where the on-going commitment is included within affordability) - accepted.

Ex-Bankrupts

Up to 75% LTV - Applicants should not have been subject to a Bankruptcy order within the last 3 years.

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 in the last 3 years - 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. A suitable explanation will also need to be provided behind the purpose of the loans.

Repayment Types

No minimum for equity requirements - Underwriters will require 2 comparables within a 3-mile radius of the postcode of the security address. Interest only accepted up to 75% LTV - a valid repayment vehicle is required. 75% of the loan to be taken on Interest-Only, with a further 10% on Capital and Interest, up to a maximum overall 85% LTV.

Lenders completion fee

Can be added up to max LTV - cannot be added at 90% LTV

Affordability

Affordability based Consolidation of debt criteria (whether or not the property is mortgaged to Dudley BS, another lender or not mortgaged at all): • Dudley can consider applicants who wish to raise additional funds as part of a re-mortgage or further advance • Maximum loan-to-value of 75% for both repayment and interest-only applications • Dudley can now consolidate other debts not related to home improvements • For additional borrowing applications, we will review any history of previous debt consolidation exercises • Dudley's approach to the settlement of debts from funds being raised is dictated by whether the mortgage would be affordable if the outstanding debt was not cleared • Lending in retirement will be capped at 70% across all products. This will come into play if a retired (non-working) applicant is a party to the application • Lending into retirement will be capped at 75% across all products. This will affect cases where an applicant will retire mid-term. For example, a 50-year-old applicant, planning on retiring at 75 but wanting a 40-year term. When determining an applicant’s retirement age, Dudley will use the stated retirement age on the application, Dudley underwriters will then assess whether it is feasible for them to continue working until what has been stated.

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
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