Family Building Society

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

Minimum property value £120,000 (we have a little flexibility between £100-£120k), Ex Pat BTL tends to be min value £165,000 as minimum loan is £100,000 but again a little bit of flexibility)

Advance (min)

£45,000 (A small amount of flexibility can be applied to the amount on referral sometimes) Including Ex pat

Advance (max)

60% LTV to £500,000 property value and 50% up to £750,000 (£1million inside Greater London Area) to allow for Desktop valuation.
50% LTV to £3 million loan amount and 50% LTV above this

Term (Max)

40 years

Minimum Age

18 years old

Maximum Age

Max Age AT Application - C & I 90 and Interest Only 89. (5 Year Term max at these ages)

Family Cash Gift Deposit

Yes, considered

Family Gift of Equity Deposit

Max Age AT Application - C & I 90 and Interest Only 89. (5 Year Term max at these ages)

Income (min)

No income assessment carried out. Applicants should be able to cover a minimum of 3-month rental voids and confirm this on the application form.

Where a client does not have an income then proof may be sought of a reasonable amount of savings in the background. Rental income is a form of income though.

Furloughed Employees – We will use the 80% or 100% if topped up by employer subject to an employment reference confirming that they will be returning to their role. Extra caution will be taken with high-risk sectors such as Aviation.

Restrictions

Clients should ideally have a current UK mortgage (exceptions can be made for good quality applicants/applications)

No limit on the size of their portfolio elsewhere.

No Ex Local Authority Flats (sometimes considered within M25)

Standard BTL's only, no HMO's, Students, DSS etc)

Multi-Unit Freehold (max 3 units in the freehold) – Client must not live in one part – Will lend on the Freehold value.

No Studio flat and/or flat with a total floor area of fewer than 30sq meters

No agricultural restrictions.

Pension Pots/SIPP’s/SAS and Investment Pots we will currently use 80% of the current fund value rather than the normal 100% due to stock market fluctuations.

Ltd Company criteria: -

The Society can also consider lending on Buy to Let properties where the borrower is a Limited Company. In such cases the following will apply:

The product fee will be 1.25% of the loan amount.
The company must be a Special Purpose Vehicle (SPV) registered within England and Wales.
Maximum 65% loan to value (LTV).
Minimum loan size £100,000.
Full personal guarantees will normally be required with joint and several liability from all Shareholders and Directors. All guarantors will require independent legal advice (in the absence of personal guarantees from all Directors and Shareholders, the maximum LTV will be reduced by 10%).
The SPV should be new to avoid the need for due diligence on previous company activities.
For the period of the mortgage the SPV will be required not to undertake any other business activity nor to take on any other debt.
All Directors are “natural persons” i.e. no shareholding by other companies.
Both the Limited Company and the individual Directors and/or Shareholders must have a clean credit history with no:
Liquidations (compulsory and creditor), other than orderly winding-up of solvent companies.
Administration orders (Corporate Voluntary Arrangements – CVA – are treated the same as IVAs).
Winding-up orders (all receiverships).
Business CCJs are treated the same as personal CCJs.
SPV must be Standard Industry Classification (SIC) Codes ‘68100 Buying and selling of own real estate’ or ‘68209 Other letting and operating of own or leased real estate’.
The Society may appoint and be separately represented by a conveyancer with suitable expertise in this market.

Let to Buy (Turning Residential into Buy to Let)

Yes but only at 145% of Payrate on a 5 Year Fixed or 5.50 if not. 130% rule does not apply.

DWP Tenants

No

Ex-Local Authority Properties

LATS - No (inside M25 maybe considered by exception)

Houses - Yes

Accepted up to product maximum LTV, subject to the following conditions:
Standard Construction Only
No Deck Access
Valuers Comments

Minimum years remaining on leasehold property

50 plus mortgage term

Minimum Ownership

6 months as a rule however if bought with bridging finance these can be considered sooner subject to a suitable explanation (e.g. Unable to mortgage at the time of purchase).

Permanent rights to reside and remain

Yes, required

Ex-Patriates

Yes, considered. Specific product range available

New Builds

New Build houses accepted

Flats - No

New build is defined as built in the last 12 months, or has not previously been occupied.

Credit Score

No

Rental Calculation

Individual or Ltd Co 145% at 6.79%. or variable rate if higher when the case is a purchase or capital raise remortgage. £4£
Remortgages are 130% at 6.79%. or variable rate if higher.

Cases on a 5 year Fixed can be assessed at Pay Rate x 145%/130% as before

Historic CCJ’s & Defaults

No defaults in the last 3 years and any over 3 years must have been satisfied 3 years ago
CCJ's - will consider 1 satisfied under £500 in the last 3 years, all other CCJ's must have been satisfied over 3 years ago
1 communication supplier issue may be considered if under £500 and satisfying subject to a suitable explanation

Missed mortgage payments, 1 in last 12 months but none in last 6 months with a suitable explanation.

Valuation Fees

Paid direct to the lender at the lender fee scales. Free Valuations on Residential Purchase and Remortgage cases up to £500,000 (Discount of £360 above that value)

Maximum number of applicants

4.

Countries

England and Wales only

Access

Access to Family BS is available via selected packagers networks.

Regulated BTLs

No

Missed mortgage payments

1 in last 12 months but 0 in last 6 months, 2 in last 36 months

Property Type / Commercial

Single units only.

Location

Will lend in England and Wales.

Type of Credit Search conducted at AIP stage

Hard on application with Equifax

Shared Ownership

No

Right to Buy (RTB)

Yes

Debt Management Plan

No

Help To Buy (Shared Equity)

No

Ex-Bankrupts

Must have been discharged for 3 full years - Easch case will be individually underwritten so should be referred before application

IVAs

Must have been discharged for 3 full years - Easch case will be individually underwritten so should be referred before application

Repossessions

No but can refer if over 10 years ago

Payday Loans

None in the last 3 years

Repayment Types

Capital and repayment. Interest Only to 80% LTV - No min Income or Equity. The remaining equity should be sufficent to be able to downsize within a 5-10 mile radius. Other repayment vehicles can be used alternatively or to top up. These can include: BTL property equity surplus, Pension Pots (not being used as income on the application), Equities, Lump Sum Investments, Endownment Policy Part & Part (If loan is 50%+ on Repayment than the C & I term option can be used for the whole of the loan)

Lenders completion fee

Can be borrowed and deducted from the advance subject to max LTV

Affordability

Affordability based

Employment

Minimum 3 months
Employed in the same line of work with 12 months continuous.

Self Employed

1 years figures/ SA302's/ Accounts is accepted - however, they must meet the below: -
2 years is normally required, although an applicant with 1 year’s accounting information can be considered if the applicant:

Where possible we work off the latest years figures but reserve the right to use a 2 year average

- Has a track record in the trade; or is
- Able to demonstrate guaranteed income within the next accounting period; or
Moved purely from ST to Ltd Co same sole Director

Contract Workers - Min Contract £75,000 - Can then work of Contract income 46 weeks x Day rate

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Maximum – No Maximum Portfolio or LTV size if we are not lending on them
– A minimum rental stress – The portfolio should just be making a profit as a whole

Portfolio Landlord Criteria
– No maximum limit with us but looked at on a case by case basis – Each property that is brought to us must meet our criteria as a rule of thumb. We have internal limits so any portfolios should be discussed with us first to assess our current appetite

– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – Required
– Cashflow Statement – Not required
– Asset & Liability Statement – Required

* Lender will accept client versions so long as covers the lenders minimum requirements.