The Mortgage Lender

Mortgage Type

Residential

Property Value (min)

£62,500 (for products assumes max 80% LTV).
£120,000 London & South East
£120,000 for HMO
£150,000 for properties above commercial premises

Advance (min)

£25,000 - on smaller loan range
£75,000 on other ranges

Advance (max)

£1,250,000 up to 75% on Large Loan range
£1,000,000 up to a maximum 75% LTV (Above on referral)
£750,000 up to a maximum 80% LTV
£600,000 up to 85% LTV
£600,000 up to 90% LTV

95% LTV on Shared ownership range.

The maximum loan on a new build property with a builder’s deposit/incentive that is not being deducted from the purchase price is £600,000.

Term (Max)

40 years

Minimum Age

21 years

Maximum Age

80 years (at the end of the term) as long as the applicant’s retirement income supports the lending requested

Family Cash Gift Deposit

Yes with letter confirming the amount and it is a gift not a loan

Family Gift of Equity Deposit

• Gifted equity from parents, grandparents, siblings, aunts and uncles accepted (including step and adopted relationships)* • Max 75% LTV not avail on RL7 assessed on property valuations.

Income (min)

£15,000 for applicant 1. No min income for applicant 2

Earned income and only 25% of income can be benefits.

100% basic / pension / Car allowance / 100% - O/T / bonus / commission / allowance - if the last 3 months payslips do not support the value given in full then further payslips or P60 will be requested.

Consider child benefit for children up the age of 13 - 100%

Maintenance (maintenance needs to be via a court order and needs to be evidenced that they will be receiving it for the next 5 years).

75% of Working Tax Credit / Child Tax credit / Universal credit equivalent) for children under the age of 13. MUST BE MAX OF 25% OF EARNED INCOME

Where the benefit amount is higher than 25% of the total income, the benefit income will be capped at 25% of total income and affordability will then be calculated using 75% of this capped income total.

Accept 50% of investment income

Ltd Company Director / Shareholder - can either use net profit before corporation tax plus salary OR Salary & dividend

TML consider using 2019/20 accounts where the most recent accounts have been impacted by Covid if their last 3 months business bank statements show a return to a similar level of turnover.

TML also Consider applicants with just three months of contracting (with 12 months previous employment in a similar role)

Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.

Can consider Finance contractors - same criteria applies to current contractors.

Large Loans: -

• Loans available between £500,000 and £1,250,000
• Interest Only (up to 75% LTV)
• Sale of residential property acceptable repayment method
• Up to 5x LTI on Large Loans, if loan is greater than £1m on a Capital & Interest Repayment basis only

Restrictions

Debt Consolidation - Up to 90% LTV

Ex-Local Authority Properties

Ex local authority houses are acceptable within normal criteria up to 75% LTV except where the majority of houses remain in local authority ownership (as confirmed by the valuer) - 85% by exception only

Ex-Local Authority - Flats (England and Wales)

Will consider lending on Ex-Local Authority properties in England and Wales, subject to the following criteria:

• Minimum valuation of £70,000 - outside of London and the South East.
• Minimum valuation of £150,000 - in London and the South East.
• Maximum 75% LTV
• Traditional construction only (as opposed to core criteria where non-traditional properties are allowed).
• Maximum 5 floors in block, except in London and the South East, where the maximum allowed is 10.

Ex-Local Authority Flats (Scotland)

Will consider lending on Ex-Local Authority properties in Scotland, subject to the following criteria:

• Minimum valuation of £70,000
• Maximum 75% LTV
• Traditional Construction only (as opposed to Core Criteria where non-traditional properties are allowed).
• Maximum 5 floors in block.

Minimum Ownership

6 months

Permanent rights to reside and remain

Yes -

UK and EEA nationals: -

Full 3 years residential history required.

Non-EEA nationals (considered on a case by case basis)

Must be resident in the UK for the last 3 years and have the permanent right to reside.

Diplomatic immunity is not allowed.

Non UK Nationals For all non UK nationals a certified copy of a passport is required.

New Builds

Yes - up to 85% LTV - Up to 5% builder deposit acceptable.
Contract of sale required 5% builder incentive acceptable.
Contract of sale required.
This includes any deposit element
The maximum loan on a new build property with a builder’s deposit/incentive that is not being deducted from the purchase price is £600,000.
Offers valid for 6 months, subject to valuation/reinspection

Credit Score

No, including RL0 But do have a minimum credit score which is very low. Credit score will not be used to determine product rate, with the exception of 90% LTV where a minimum credit score of 450 is required for RL0 and 375 for RL1.

Historic CCJ’s & Defaults

RL0 0 in 36 months – on ALL CCJ’s/Defaults/Unsecured/Secured

RL1 0 in 36 months

RL2 - 1 in 36 months (0 in 6) CCJ's & Defaults
Ignore CCJ <£300

RL3 - 3 in 36 months (0 in 6 months) Ignore CCJ < £300
Defaults: - 4 in 36 months (0 in 6 months)

RL1-5 Maximum 2 missed payments in last 6 months allowed on each unsecured credit agreement. Arrears ignored if the current balance is under £500.

No CCJ’s or defaults in last 6 months.
Utility and Communications defaults are not considered adverse credit.

Unsecured arrears ignored if the current balance is under £500.

Unsecured arrears - Maximum 2 missed payments in the last 6 months allowed on each unsecured credit agreement.

Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.

Valuation Fees

Valuation fees paid direct to lender and a processing fee of £95 at application to 3mc

Maximum number of applicants

2

Countries

Will lend in Mainland England, Scotland and Wales - Isle of Wight also considered

Access

Access to The Mortgage Lender is through a selective panel of packagers, one of which is 3mc

Missed mortgage payments

RL0 - 0 in 36 months RL1 - 0 in 24 months RL2 - 1 in 24 months and 0 in last 12 RL3 - 2 in 24 months (0 in last 12) RL4 – 3 in 24 months (0 in last 12) RL5 - 4 in 24 months, 0 in last 12 months. Secured arrears will be assessed on missed payments No missed payments in last 12 months on secured loans.

Shared Ownership

Yes, considered. • Loans up to 95% of share purchased subject to a maximum 75% LTV against open market value • Self-employed assessed on most recent year’s figures, and one year’s trading considered • Complex incomes and credit blips considered (see criteria/product guide)

Right to Buy (RTB)

No

Debt Management Plan

Acceptable subject to product criteria on products RL2-RL5 - AND HAS OWN PRODUCT RANGE

Ex-Bankrupts

RL0 – None RL1-2: Discharged 72 months (6 years) RL3 - Discharged 36 months + (clean 36 months) RL4 - Discharged 24 - 35 months + (clean 12 months) RL5 - Discharged 12 - 23 months + (clean 12 months)

IVAs

RL0 – None RL1-2: Discharged 72 months (6 years) RL3 - Discharged 36 months + (clean 36 months) RL4 - Discharged 24 - 35 months + (clean 12 months) RL5 - Discharged 12 - 23 months + (clean 12 months)

Repossessions

RL0 – None RL1 - None RL2 - None RL3-5 - 6 years

Payday Loans

RL0 - None RL0 & RL1 - Must be satisfied 12 months prior to application RL2-5 - Current/recent loans considered - can accept one payday loan, as long as only one taken out in the last 12 months, and this must be paid off and settled on or before completion No defaulted payday loans in 12 months.

Repayment Types

Capital and Interest

Lenders completion fee

Can be added to loan above maximum LTV

Affordability

Yes. Electronically obtained data. Data is regionalised

Employment

Must be in current role for 3 months at the date of application where an applicant should have satisfied any probationary period.

Additional evidence may be required including confirmation that any probationary period has been satisfied.

Evidenced by 2 months’ payslips.

Overtime, Employment Bonus, Commission, Car Allowance and Regional Allowance at 100% with Shift Allowance at 50% can be included if paid weekly, monthly or quarterly.

Additional payslips or alternative income evidence may be required to justify the level of income component claimed. For any overtime component the monthly level of income to be evidenced in the payslips provided. The year to date summary should support the annualised figure declared. Additional payslips or alternative income evidence may be required to justify the level of income component claimed.

100% of annual bonuses if the applicant can demonstrate this has been paid during or after 2021 as evidenced by a payslip, or equivalent.

Additional written confirmation may be requested from their employer with salary details being confirmed.

Contractor highlights:



Current contract must be for at least 6 months
Available on RL1-6
Income calculated as £weekly rate x 48 weeks (maximum)
Existing contractors considered
Must have been contracting for a minimum of 12 months

New contractors considered:
Must have been contracting for a minimum of 3 months
Previous experience in a similar role for a minimum period of 12 months
See product guide for more information.

A copy of the current contract will be required.

RETIRED: -
The most recent three monthly pension statements/payslips or an annual advice notification will be required to evidence all retired income and the most recent 3 full monthly bank statements
showing the income credit as validation; or
Latest letter from pension provider confirming current pension income and the most recent 3 full
monthly bank statements.

Lending into retirement: -

Latest annual statement of pension(s) due on retirement or a recent letter from pension provider(s)
confirming the pension due on retirement.

Evidence of any additional post-retirement income will be required for the income to be considered.

SEE MAIN COMPARE CRITERIA FOR ADDITIONAL INCOME DETAILS REGARDING BENEFITS.

Self Employed

TML consider using 2019/20 accounts where the most recent accounts have been impacted by Covid if their last 3 months business bank statements show a return to a similar level of turnover.

TML also consider applicants with just three months of contracting (with 12 months previous employment in a similar role)

Trading 12-24 months: -
Maximum 85% LTV
Most recent year's evidence required

Trading >24 months
Maximum 85% LTV
Most recent 2 years' evidence required

Minimum trading time 12 months.
Latest 3 month's business bank statements and 1-month personal bank statement. Additional statements may be required.

Evidenced using:
Most recent year's certified accounts OR
Tax Calculation with corresponding Tax Year Overviews OR
SA302's

TML WILL NOT accept an accountant's certificate/reference.

If certified accounts are provided with these must be completed and returned from a qualified accountant with Acceptable accountant qualifications: ACA/FCA, ACCA/FCCA, ACCIMA/
FCIMA, CIPFA, ACMA. Accountant must hold a current practising certificate.


Contractors: -
Income calculation of up to a maximum of weekly rate x 48.
Existing contractors: Must have been contracting for a minimum of 12 months.

TML will only accept applications at present from existing contractors, not new contractors.

Current contract must be for a minimum of 6 months. Payslips and/or invoices supporting the contract and bank statements are required.

For any contract with a term less than 3 months remaining, confirmation to be provided from the applicants’ employer that their contract will be renewed and TML is satisfied with the applicants contracting history, if requested.

Renewal of contracts: Where the current contract length is less than 6 months and there is a history of renewal covering a 6 month period, with the same company, then this can be considered on a case by case basis. Contractors do not qualify for RL7 and RL8 products.