Family Building Society

Mortgage Type

Residential

Property Value (min)

£120,000 (A small amount of flexibility on this between £100-£120,000)

Advance (min)

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

Advance (max)

75% up to £500,000
60% up to £500,000 property value and 50% up to £750,000 (£1million inside Greater London Area) to allow for Desktop valuation.

Max Loan at 60% £1,500,000
Max Loan at 50% £3,000,000
Max Loan at 40% £3,000,000 plus (no maximum but subject to underwriting)
Capital Raise available to max LTV

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)

Affordability Based no minimum
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.

100% of basic salary, shift allowance, car allowance and London weighting. 50% of guaranteed/ regular overtime/
bonus/ commission and profit related pay. FTB accepted.

1 Years self-employed provided the same line of work as before otherwise 2 years. If Limited Company can consider using Salary and Profit after tax if have more than 33% shareholding. Chartered Account Required on the accounts.

Multiple Income sources accepted but max 2 from employment (e.g could use State Pension, Private Pension, Investment and Rental all together)

Income from employment and benefit: -

No benefit income useable other than child benefit which is already within the affordability model when children are selected
Usual ages for taking earned income 70 but up to age 75 can be considered for suitable applicants
Pensions -
100% of State and Gtd Private Pension
Drawdown/SIPP and SAS Pensions - Work off Pot value minus any tax free cash element and then divide that figure by number of years client wants the mortgage over. NO requirement for that figure to be drawn on completion. These pots can be used from age 55.

100% of Investment Income on 2 years Tax Return. Lump Sum Investments - Up to 5% Capital Return can also be used as income as does not need to be declared on a tax return

100% of Rental Income on 2 years Tax Return
100% of Commercial Rental Income
Foreign Income can be considered - Subject to a exchange rate calculation of worst exchange rate last 10 years
Trust income can be considered

For Ex Pat's or for UK nationals: -

Yes - Case must be on Interest Only and must be lived in by Husband or Wife/ Partner/ Children only.

Israel based Ex pats are considered.

Family BS consider - UK nationals working abroad with families remaining in the UK and UK nationals working in the UK but paid in a foreign currency.

Note: -
Evidence of income Family BS consider

The most recent SA302 or online HMRC Self-Assessment Return showing the tax calculation of the income.
HMRC calculation of the tax due and the tax year overview showing the total tax due and how much has been paid.
The last 2 years of audited accounts prepared by a Certified or Chartered Accountant.
An accountant's reference or other corroborative information.
For Limited Companies, where applicants have a 33%+ financial stake in the business, we may consider their proportion of net profit and salary over the recent years.

Let to Buy (Turning Residential into Buy to Let)

When lending on new Residential whilst retaining existing property: -

Maximum 80% LTV, where the existing property is to be let and considered to be self-supporting.

Applications can be considered for the purchase of owner-occupied property, up to a maximum 80% LTV, where an existing owner-occupied residential property will not be sold and instead be let.

The deposit must be from the applicant's own resources, including any additional borrowing raised from the existing mortgage, and the letting must be on a formal recognised tenancy
basis.

It is expected that the client has requested Consent to Let from their current Lender

Ex-Local Authority Properties

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

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 - Case must be on Interest Only and must be lived in by Husband or Wife/Partner/Children only

New Builds

Houses only max 75% LTV. May consdier Apartments inside M25 up to max 50%
****
Any incentives to be disclosed and will be discounted from price

Credit Score

No

Historic CCJ’s & Defaults

We are not an adverse lender but can consider 1 CCJ satisfied under £500 in the last 3 years. CCJ's are generally ignored if over 3 years old AND satisfied over 3 years ago

Defaults must have been satisfied 3 years+ ago.

1 x Communication issue can be referred provided it is under £500

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 and can use all 4 incomes (Sometimes we will only use 3 incomes and treat 4th applicant as non-dependant as this can improve affordability especially if applicant 4 has a modest income amount)

Countries

England and Wales only

Access

Access to Family BS is available via selected packagers networks.

Missed mortgage payments

1 in last 12 months but 0 in last 6 months, 2 in last 36 months Mortgage Payment holidays – for BTL need to make the next payment before completion

Shared Ownership

No

Right to Buy (RTB)

Yes

Debt Management Plan

No

Help To Buy (Shared Equity)

No - but Family do consider Forces Help to buy.

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

All self employed cases are assessed on individual merit, however, below are examples which would be considered normally: -

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