For Help to buy - regional price caps are as follows: -
** North West - £224,400
** North East - £186,100
** Yorkshire and the Humber - £228,100
** East Midlands - £261,900
** West Midlands - £255,600
** East of England - £407,400
** London - £600,000
** South East - £437,600
** South West - £349,000
(Set at 1.5x the average first time buyer price in each area).
£150,000 in London and South East
Loans from £500k to £2m are considered on the large loan products
£1,000,000 maximum loan for FTB up to 85% on Option 1 Range.
£1,000,000 up to 85% LTV on Option 2 Range.
Maximum house values for Regional Help to Buy property purchases: -
** North West - £224,400
** North East - £186,100
** Yorkshire and the Humber - £228,100
** East Midlands - £261,900
** West Midlands - £255,600
** East of England - £407,400
** London - £600,000
** South East - £437,600
** South West - £349,000
(Set at 1.5x the average first time buyer price in each area).
In all areas you can get a 20% equity loan from the government apart from London where you can get up to 40%.
Maximum house values for Regional Help to Buy property purchases: -
** North West - £224,400
** North East - £186,100
** Yorkshire and the Humber - £228,100
** East Midlands - £261,900
** West Midlands - £255,600
** East of England - £407,400
** London - £600,000
** South East - £437,600
** South West - £349,000
(Set at 1.5x the average first time buyer price in each area).
In all areas you can get a 20% equity loan from the government apart from London where you can get up to 40%.
Maximum house values for Regional Help to Buy property purchases: -
** North West - £224,400
** North East - £186,100
** Yorkshire and the Humber - £228,100
** East Midlands - £261,900
** West Midlands - £255,600
** East of England - £407,400
** London - £600,000
** South East - £437,600
** South West - £349,000
(Set at 1.5x the average first time buyer price in each area).
In all areas you can get a 20% equity loan from the government apart from London where you can get up to 40%.
High rise apartments – above 4 stories there needs to be a lift and above 10 stories the loan is limited to 80% LTV and must be in a city location. We can also consider were there is a commercial set up on the ground floor.
England £600,000
London £600,000
Wales £300,000
Maximum loan -
England - £450,000
London - £450,000
Wales - £225,000
Region* Regional limits apply and may vary from time to time.
Maximum 75% LTV in England, Greater London & Wales.
Maximum age at end of term is 75 for Help to Buy products.
Purchase only. Not available for remortgage.
Please see Residential product guide for full details
Employed income 100% of Basic salary, 50% of profit-related pay, 100% of London weighting allowance, 100% of shift allowance, 100% of car allowance, 50% of
guaranteed and regular overtime/bonus/commission accepted
Contract workers Applications from individuals that are employed on a contract basis are considered
Additional income accepted
Income from trust funds, occupational pension income, second and other jobs, investment income and rental income. (Please note rental income
from buy to let properties in the applicant’s personal name will be assessed by our underwriters to determine the impact of future tax liabilities.
This may mean that the amount of rental income which can be included in our affordability calculations is reduced.)
Self employed income 2 years accounting information required
Working family tax credit is considered but must have 3 years left and will require the latest award letter and to be evidenced on bank statements.
Accept up to 80% of rental income
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If help to buy product is available on Sapphire Club: -
Accept 75% of benefit income (DLA, Carers Allowance, Child Benefit, WFTC) if 2 years remaining and not primary source of income
Max 30% of household income
50% of regular/guaranteed overtime/ bonus/ commission.
100% if last 2 P60's and last 3 months payslips show regular amounts - considered.
If applicant(s) are earning £100,000 (joint or single) - Kensington can consider up to 6 x their income. Car allowance can also be added back into affordability.
This only applies to £100,000 or more income and if using a packager. Affordability can be conducted online.
WCTC/CTC not accepted.
100% of child benefit is considered on the basis that individual applicants earn less than £50,000 and the child is up to 13 years old.
Do not accept Disability Living Allowance (DLA) as a source of income.
Maintenance considered if by court order and potentially considered if provable via solicitors letter and 3 months bank statements. Pension income considered, Investment portfolio income considered, salary/basic alone has to reach minimum income before additional income can be considered.
1 Year self-employed accepted.
Maintenance - Acceptable as a second stream of income only. Maintenance must be supported by Court Order/ CSA documentation/solicitor’s letter which must be submitted to Kensington. In addition 3 months bank statements are required to verify receipt of maintenance payments.
Can accept applicants who have been contracting for a minimum of 12 months, with either a renewal of their contract or have entered into a second contract.
May be able to consider an applicant on a first contract, even if it is for less than 12 months, if the applicant has previous PAYE employment in a similar role.
Income will be calculated based on the weekly rate confirmed in the contract x46.
3 months’ bank statements evidencing salary credits. Applicants holding multiple contracts will be considered on a self-employed basis. A CV can help to establish a track record for the applicant.
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
Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
Aunt/uncle, foster parent or legal guardian now also accepted.
5% Builders incentives accepted for help to buy.
10% Scotland
Yes, with letter confirming the amount and it is a gift not a loan
Incentives include white goods, carpets, small cashback,
legal fees and contribution towards stamp duty
10% Scotland
Gifted equity from parents, grandparents, siblings, aunts and uncles accepted (including step and adopted relationships)*
• Max 75% LTV not avail on RL7.
If the client is over the age of 55 at application, max age is 70 at the end of the term.
Where appropriate, Kensington will generally be able to lend for terms up to a customer's State Retirement Age.
Where the applicant requests the loan term to expire beyond age 70 to (max) age 75 years, this can be agreed on repayment mortgages only.
Affordability will be calculated on the applicant’s current provable income, on the basis that the applicant is expected to continue working for the full term of the mortgage.
Maximum age at the application stage for applicants who wish to borrow beyond age 70 must not exceed 60 years of age, unless they are already receiving a monthly private pension income which can fully support the mortgage without reliance on other types of income to meet affordability
Evidence of existing pension provision may be requested where the term of the mortgage takes the applicant close to, or beyond, their State Retirement Age/selected retirement age.
Where there is an element of interest only, the maximum age is 70 years.
Once the applicant reaches 70 - they consider this as lending into retirement, proof of pension income will be required to evidence affordability.
Worst case scenario - 0 in last 3 months and a Max of 3 in last 24 months.
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All communications issues ignored.
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Options 1 (CCJ) Range: - Max status 2 in 12 last
months (must be up to date)
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Option 2 Range: - No max status (if current/ existing arrears are present all payments must have been made 6 months prior to application.)
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Builder gifted deposits accepted up to a max 5% of purchase price.
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Consider If applicants wish to use Equity from the sale of an existing property to a builder in a part exchange transactions as a source of deposit. *******
houses.
Max LTV of 75% for new build flats
Contract of sale required
5% builder incentive acceptable.
Contract of sale required. This includes any deposit element.
Offers valid for 6 months, subject to valuation/ re-inspection.
No outstanding pre-emption requirement to repay a proportion of the discount
Valuer indicating that there is evidence of a meaningful level of private ownership within the estate
The property being of standard construction
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Flats: -
Minimum property value of £150,000 (£200,000 in Greater London)
Maximum of 3 floors above the ground floor. Secure communal access with no balcony access arrangements
Flats - No
Flats - Yes, to a maximum of 80% LTV (up to 4 floor including deck access - must value at or above £200k and be in a City location).
conduct for last 12 months. If
remaining after completion, will be
treated as a monthly commitment up to 85% LTV.
Needs to be included as a commitment on the affordability calculator based on DMP current payment. They can go up to 90% LTV also, no exceptions to length of time in the DMP.
(Shared Equity)
Capital Repayment Only
Maximum loan amount of £450,000 and maximum property value of £600,000
Minimum customer deposit of 5%
Maximum equity loan of 20% for Help to Buy: equity loan is available in England (including the Isle of Wight)
Maximum equity loan of 40% London Help to Buy: scheme and
the property must be located within the 32 London Boroughs or the city of London
• Free standard valuations on all HTB products - instructed on receipt of the application
• Help to Buy England & London schemes available
• Mortgage offer valid for 6 months with extensions possible
• 5% Builders incentives accepted
• Up to 3 CCJs in the last 36 months
• Up to 4 Defaults in the last 36 months
• 4 missed mortgages payments in the last 13 - 24 months
• IVA / Bankruptcy must be discharged for 3 years
• DMP accepted and can remain on completion 'No Minimum Term'.
Incentives include white goods, carpets, small cashback,
legal fees and contribution towards stamp duty
Applications as part of the Forces Help to Buy scheme where the application
is for a residential purchase to be occupied by the applicant or their immediate family. Forces Help
to Buy is available on all residential mortgage products.
https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loan
https://www.helptobuylondon.co.uk/
https://www.mygov.scot/help-to-buy/
Level 2 - 0 in last 3 months 1 in last 12 months (max 2 in last 24)
Level 3 - 0 in last 3 months (Max 3 in last 24 months) Based on status.
credit search. Status for last 12
months must be 0. Can consider up to a status 4 in months 13-24
Options 1 (CCJ) Range: 0 in 24 months.
Options 2 Range: - 0 in 3, up to 1 in last 24 months.
None in last 6 months. Worst status subject to product allowed.
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Worse status for example:
000010101011 = 1 missed payment.
Level 2 - Discharged for 3 years, no missed payments or other adverse information on any credit account in last 3 years.
Level 3 - Must have been discharged for at least 2 years. No adverse since
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Sapphire Club range: -
Can consider bankruptcy outside of 12 months.
0 in 6 yrs for RL5 & 6 - and a clean credit profile since.
Not acceptable on RL1-4
Level 2 - Discharged for 3 years. No missed payments or any other adverse information on any credit account in last 3 years.
Level 3 - Must have been satisfied for at least 2 years. No adverse since.
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Sapphire Club range: -
Can consider current IVA but must be cleared upon completion.
All defaults included within the IVA will not be independently assessed when determining which product will be available from our range. This will allow customers with any number of defaults within the IVA to secure a mortgage.
Any defaults incurred post registration of the IVA will be incorporated into the underwriting of the loan application.
0 in 6 yrs for RL5 & 6 - and a clean credit profile since.
Not acceptable on RL1-4
Level 1 - Not accepted.
Level 2 - None in last 6 years.
Level 3 - None in last 3 years.
High LTV - Not accepted.
Otherwise: -
Must have been over 3 years ago for them to consider and with no debt remaining, cannot have been with Kensington.
0 in 6 yrs on RL5-6
Mortgage or secured loan arrears
0 in last 3 months
1 in last 12 months
2 in last 24 months
Unsecured loan arrears
0 in last 3 months
2 in last 24 months
County court judgements (CCJ)
/ Sheriff court decrees
0 recorded in last 36 months
Satisfied for over 36 months
(unsatisfied up to a combined £500)
Defaults
All communication defaults ignored
0 recorded in last 12 months
Max 1 settled default recorded in the
last 13 to 36 months (up to £500)
Bankruptcy / Sequestration / Individual Voluntary arrangement / Trust deed / Debt relief order Discharged for 6 years
Forced or voluntary possessions Not accepted
Debt management plan Considered when satisfactorily maintained for the last
12 months
product selection purposes if
registered over 3 years ago or less
than £300.
Ignore all communications defaults / CCJs
None allowed in last 6
months.
• All telecom CCJ/Defaults ignored
• All CCJ's/Defaults below £300 ignored
• CCJ’s / Defaults ignored if > 36 months
• Accept up to 4 Defaults and 3 CCJs within the last 3 years
• Up to 2 missed payments on unsecured credit in the last 6 months
• 0 missed payments on secured credit in months 0 - 12 and up to 4 missed for months 13 - 24
- CCJ's have to be satisfied (no minimum time) – unsatisfied CCJ’s outside scheme criteria can be generally ignored but is at underwriters discretion.
- Defaults do not have to be satisfied, all issues relating to Communications are ignored.
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Unsecured Credit arrears acceptable if accounts now up to date (max status of 2 in last 12 months)
Residential Options 1 (CCJ Range) : CCJ 1 in 24 months (maximum £250)
0 Defaults in 24 months
Unsecured Credit arrears - acceptable if accounts now up to date: Max status 2 in 12 last
months (must be up to date)
Residential Options 2: CCJ's 0 in 6 (registered), 1 in
last 24 months (max £1000)
Defaults: 0 in 6, 1 in last 24 months, satisfied or unsatisfied. Max £1,500
Unsecured Credit arrears - acceptable if accounts now up to date: No max status (if current/ existing arrears are present all payments must have been made 6 months prior
to application.)
RL2 0 in 36 months
RL3-4 0 in 24 months
RL5 1 in 24 months
RL6 3 in 24 months (0 in 6) with a max of 2 of any type
(0 in 6) with a max of 3 of any type.
Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
For London Help to Buy Boroughs: -
Barking and Dagenham, Barnet, Bexley, Brent, Bromley, Camden,
City, Croydon, Ealing, Enfield, Greenwich, Hackney, Hammersmith &
Fulham, Haringey, Harrow, Havering, Hillingdon, Hounslow, Islington,
Kensington & Chelsea, Kingston, Lambeth, Lewisham, Merton,
Newham, Redbridge, Richmond, Southwark, Sutton, Tower Hamlets,
Waltham Forest, Wandsworth and Westminster
Additional applicants without permanent rights to reside now accepted if income not needed
Help to Buy scheme is only Capital and repayment.
Interest only - Maximum 75% LTV.
Note: Proof of repayment plan required.
Downsizing / sale of main residence – a minimum £175,000 equity (£300,000 in London and the South East) is required at the start of the mortgage.
- For Interest only and Part and Part a repayment vehicle is required and Minimum 10 year term
- Where at least one applicant earns in excess of £75K, Kensington can consider full interest only (when the product permits), to a maximum LTV of 75%
-
Where all or part of the loan is on an Interest Only basis, the maximum LTV for the Interest only element is limited to 50%.
-
Where at least one applicant earns in excess of £75K, Kensington can consider full interest only (when the product permits), to a maximum LTV of 75%.
-
The method and full details of repaying the capital must be declared on a Supplementary Form for Interest Only and be acceptable to Kensington.
-
Evidence of the repayment strategy will be required. Any payments made towards a repayment strategy must be taken into account for affordability purposes and strategies must mature prior to end of mortgage term.
-
Repayment strategies must have been established for a minimum of 12 months prior to application. We will accept up to 80% of current value of share portfolio, 100% of providers most recent midpoint maturity valuation for endowments, 25% of providers most recent midpoint maturity valuation for pensions and 75% of current equity of other owned properties.
-
With cash ISAs no growth rate is assumed and current balances must be sufficient to cover the Interest Only element of the loan.
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Where there is an element of Interest Only, the maximum age at end of the mortgage term is 70.
when assessing the customer’s eligibility for the equity loan. This LTI
cap does not apply to our own affordability assessment.
Bluestone will assess affordability as per a standard residential
mortgage application but with the equity loan added as a monthly
commitment. The calculation will be based on the initial 1.75% of
the equity loan. E.g Equity loan is £75,000, x1.75% divided by
12 = £109.38pm entered as a monthly commitment.
Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
employed in the same line of work with 12 months continuous.
position, continuous employment for
last 12 months.
Contractors with 3 months remaining on contract accepted
Up to 100% second job income considered where the applicant has held both jobs for minimum 6 months.
Pension and investment income allowable.
Must have had 3 months in current job and not inside of a probationary period - 12 months employment history is required.
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
Maximum 90% LTV
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
Maximum 75% LTV
A copy of the current contract will be required.
2 years is normally required, although an applicant with 1 year’s accounting information can be considered if the applicant:
- Has no history of payment arrears, defaults, CCJs or other adverse information in the last 3 years on personal and business
credit search; and
- Has a track record in the trade; or is
- Able to demonstrate guaranteed income within the next accounting period; or
- The business is an ongoing concern and sustainable; or is
- Able to provide management accounts for at least the first 6 months of the current financial year
- If appropriate, VAT returns for the two previous quarters are to be supplied
- Personal and business bank statements for at least the previous 3 months
- Income will be based on the profit or salary/dividends for the first year of trading
-Up to 85% LTV
Over 85% LTV:
- For applications over 85% LTV at least 2 years’ accounting information is required
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Always work off latest figure for self employed
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Contract workers: Contract who are based on a daily rate,
are acceptable subject to the following:
•
The current contract must be for a period of at least 6 months
•
If the contract has more than 6 months to run the applicant must have been employed for a minimum of 12 months in the same line of work
•
If the contract has less than 6 months to run the applicant must have a 2 year track record of employment within the same line of work
•
It is acceptable for applicants to be paid via an umbrella company, which pays tax and NI for the applicant
•
Original or certified copies of the current and previous contracts will be required to confirm that contract period
meets criteria.
Will work from latest years figures
Can consider using latest years figures
If trading longer than 1 year, average is taken over the last 2 - 3 years.
Exceptions can only be if figures are similar in the latest years and can apply for using latest years figures if higher on a case by case basis.
Bluestone allow an accounts certificate for self-employed as long as from a registered accountant
Most recent years figures generally used
Inland Revenue SA302 acceptable
Also can now make affordability assessments taking into consideration a company director's share of profits in addition to their salary
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For individuals and couples that own 100% of shares in a company we can lend against net profit after tax and add back in salaries – this can also be based on 1 year accounts
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Kensington can used retained profit, they must be 100% shareholders altogether.
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For self employed applicants Kensington generally use the most recent year’s income for affordability purposes and require a minimum trading period of one year.
Income is based on:
Sole Traders and Partnerships
Share of Net Profit.
Ltd Company Directors (With 25% shareholding or more)
For Directors of a limited company, the salaried income plus dividends received will be used, although profit after tax may be considered where the applicant(s) have a 100% share in the business.
Contractors
46 weeks at current contracts daily rate
Will work on last years accounts (not average).
Require last years Accounts OR Latest SA302 OR Accountants Reference
Sole Trader - Profit
Partnership - Share of Profit (distributed and retained)
Limited Company - Share of Profit (distributed and retained) [If more than one director/shareholder]
Will take either the share of profit before tax plus salary or salary plus dividends
3 months personal bank statements and last months business bank statement will be required on all self-employed cased
We will consider any salary paid in addition to any profit
Contract workers considered if 6 months of continuous service completed and 6 months of contract to run (not necessarily with same employer).