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).
£75,000 - UK (excludes London)
£120,000 London & South East
£120,000 for HMO
£150,000 for properties above commercial premises
£100,000 for FTB's
£75,000 at 60% LTV for 3mc exclusive product
£100,000 for FTB’s on 85% LTV product.
Ex Local authority flats/maisonettes (80% LTV)
£80,000 outside Greater London, £200,000 within.
£70,000 in Scotland, bear in mind, minimum loan is £50,000
£75,000 on other ranges
£1,000,000 to 80% LTV
£1,000,000 to 75% LTV
Maximum 75% LTV for Interest Only (refer to product guide for full details)
Capital raising up to product maximum LTV accepted.
5.5 LTI ratio: for individuals or joint applicants with a total allowable income of at least £50,000
Note the following: - If a property is outside the M25 then max loan is up to £750,000 regardless of LTV.
Inside the M25 up to £1m
85% LTV on Clear Range only - NOT available for help to buy
£1,000,000 to 90% LTV for Capital and Interest.
£1,500,000 to 85% for Capital and interest
Holiday Homes or Second Homes up to 80% LTV
More than £1mill is only considered by referral only - unless on Large loan product up to 80% LTV - £2,500,000 max loan
Self-Build - We will refer the enquiry in full to the lender for potential terms.
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
75% LTV to £1mill loan amount
70% LTV to £1.5mill loan amount
65% LTV to £2 million loan amount
60% LTV to £1.5 million loan amount
50% LTV to £3 million loan amount and 50% LTV above this
(£1million inside Greater London Area) to allow for Desktop valuation.
Max £750,000 up to 80% and 85% LTV
Max 75% LTV up to £1,000,000
Max 65% LTV up to £2,000,000
£1,000,000 up to 90% LTV
£1,500,000 up to 80% LTV and
£1,000,000 for FTB's and CORE Range
Hero range up to 85% LTV -
£500,000 and EKO Range
Large Loan Range £500k - £2m up to 85% LTV
High rise apartments – above 4 stories there needs to be a lift and above 10 stories the loan is limited to 70% LTV and must be in a city location. We can also consider where there is a commercial set up on the ground floor.
£3,000,000 up to 85%
£3,000,000 up to 75% LTV
Consider day 1 remortgages
£1,000,000 up to 75% LTV
£750,000 80% LTV
£500,000 85% LTV
£1,000,000 up to 90% LTV
£3,000,000 up to 80% LTV
£1,000,000 for FTB anything above is referred.
£750,000 up to a maximum 80% LTV
£600,000 up to 85% LTV
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.
Max 80% LTV for all self-employed applicants - only 0-Status, no other range.
£250,000 if property is unencumbered.
£750,000 up to 80% LTV
£2,000,000 to 75% LTV
£2,000,000 up to 70% LTV
Large Loan range between £500,000 and £2,000,000
100% debt consolidation is considered up to a maximum of 85% LTV.
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.
(Can only accept a maximum of two sources of income per applicant.)
Income from employment and benefit: -
Benefit income Up to 50% of benefit income:
Universal Credit
Working Tax Credits (WTC)
Child Tax Credit (CTC)
Income-related Employment & Support Allowance (ESA)
Contribution-based Employment & Support Allowance if in the ‘Support Group’
Incapacity Benefit
Severe Disability Allowance
Industrial Injuries Disablement Benefit (IIDB)
Disability Living Allowance (DLA)
Personal Independence Payment (PIP)
Carer’s Allowance
Constant Attendance Allowance
Aldermore will not accept any income derived from other forms of state benefit that are not listed above.
Other income accepted: -
Income from trust funds
Occupational pension income
Guaranteed income payments under the Armed Forces Compensation Scheme
War widows or widowers pension
War disablement pension
State pension (not acceptable where state pension is the only source of income)
Investment income
Rental income (where supported by accounts or SA302s)
Maintenance Payments (if CSA/court order enforceable and supported by 6 months bank statements)
Foster Care Income
Overtime criteria: -
Key Workers last 3 months average - Strictly key workers only.
Non Key Workers last 6 months average and need to be sustainable/consistent.
No furlough on any payslips received.
Working family tax credit is considered but must have 2 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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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
In order to obtain over 4.5x income: -
• Bluestone monthly mortgage payment must be equal to, or less than 90% of the current mortgage / rental payment
• Full 12 month payment history required
• In these cases, an LTI ratio of over 4.5x will be available
• Available across all residential credit tiers, including Help to Buy and Right to Buy, with no LTV restrictions
-
Unacceptable Income:
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 & Maintenance allowed.
100% of Child Tax Credit and Child Benefit allowed if children aged 13 or under
100% of Disability Living Allowance and Carers allowance allowed.
Net Rental income used - not gross received.
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 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
75% of net rental income considered
You must include any proposed buy-to-let purchases in the affordability assessment.
Income types accepted: - a percentage of different types now accepted, including up to 100% bonus and commission, investment income or BTL rental income.
50% of regular/ guaranteed overtime/ bonus/ commission.
Where the applicant is paid in cash, a maximum of £15,000 will be used in our affordability calculation.
100% if last 2 P60's and last 3 months payslips show regular amounts - considered. Car allowance can also be added back into affordability.
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.
Kensington can consider up to 5x income on our heroes range for cases where one applicant qualifies as a hero (emergency services, NHS, teachers, army personnel) this applicant who qualifies must be under the age of 40 - the 2nd applicant will also get 5x income regardless of their employment type and age.
Kensington can also consider 6x income on young professionals range, the same as above however for self-employed or employed doctors, dentists, accountants, barristers, commercial pilots, etc. Minimum incomes apply.
Kensington can also consider 6x income regardless of someone’s job role if they have a sole or joint income of £100k. This can be made up of different income streams for example:
Mr A earns £40k basic, and 10k bonus
Mrs A earns £10 salary, and £40k dividends Joint income is 100k therefore we can consider 6x income.
Contractors: -
Current contract must have at least three months remaining
at application.
Applications must be able to evidence at least one renewal
with a minimum 12 months sector experience (either as
contractor or PAYE employment).
Copy of latest and previous contract
No minimum income for contractors on either prime, or the near prime range
Current contract must have at least 3 months remaining at application
Applications must be able to evidence at least one renewal with a minimum 12 months sector experience (either as contractor or PAYE employment)
3 months personal and business bank statement must be provided
Copy of latest and previous contract
Projection for the second year income from a suitably qualified accountant can be considered where a suitable business plan is provided. The level of projected income used can be up to a level of 30% greater than the year one figure.
Last 3 months consecutive payslips (at the time of the application)
Last 8 weeks consecutive payslips if paid weekly (at the time of the application)
OR employers reference (if payslips are not available)
AND most recent P60
AND latest 3 month bank statements/ Open Banking showing salary
ZERO HOURS CONTRACT: -
P60 providing confirmation that the applicant has been employed by the same employer for at least 12 months
Last 6 months consecutive payslips (at the time of the application)
Latest 6 months bank statements showing salary
Self Employed: -
2 years company accounts (as provided by a qualified accountant) where available
OR 1 years company accounts where they have been filed in the last 9 months
OR if the applicant doesn’t maintain accounts, SA302’s (or equivalent tax calculation from HMRC self-service system) and tax year overviews
Accountant’s certificate (as provided by a qualified accountant)
OR if the applicant does not retain the services of an Accountant, or the Accountant’s qualification is not acceptable
SA302’s (or equivalent tax calculation from HMRC self-service system) and tax year overviews
Latest 3 months business bank statements
OR latest 3 months bank statements/ Open Banking showing salary.
Contractor: -
Last 3 months consecutive payslips (at the time of the application)
Last 8 weeks consecutive payslips if paid weekly (at the time of the application)
Current and previous contractual agreement
Latest 3 months bank statements/ Open Banking showing salary.
Lending into Retirement: -
Will be considered subject to additional due diligence
Other income: -
Will be considered if evidenced and sustainable in nature. E.g. Court mandated child maintenance.
LTI Ratio
Increased Income Multiple on all credit based products for higher earners (>£65k for single Applicants,
>£100k for Joint Applicants) based on affordability. Moving from traditional 4.49x to 4.99x
Key Worker Applicants considered for higher Income Multiple based on affordability. Moving from traditional
4.49x to 5.49x
Qualified Professional applicants considered for higher Income Multiple based on affordability. Moving from traditional 4.49x to 6.49x
Only one applicant needs to be a Key Worker or Qualified Professional to be eligible for these products
Income Evidence: -
Bonus/commission - Payslips (evidencing the period paid) and or P60
Non-regular bonus - Latest 12 payslips
Overtime - P60 and 3 months payslips
Profit from UK Property: -
1. 2 years company accounts (as provided by qualified accountant) where available OR 1 years company accounts where they have been filed in the last 9 months
OR if the applicant doesn’t maintain accounts, SA302’s (or equivalent tax calculation from HMRC self-service system) and tax year overviews
2. Accountant’s certificate (as provided by a qualified accountant) OR if the applicant does not retain the services of an Accountant, or the Accountant’s qualification is not acceptable SA302’s (or equivalent tax calculation from HMRC self-service system) and tax year overviews.
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Dividends on limited company - Refer to the self employed section.
Dividends must not exceed net profit. Any dividend that is distributed above the net profits will be excluded from the affordability assessment.
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Pension Income : - Latest 2 years annual pension statement
OR 12 months remittance advice slips, cross referenced to the latest bank statements.
Regular trust or investment income: -
Latest 2 years annual statement
OR latest 2 years portfolio statement and evidence of funds being transferred to the bank account.
Employed Primary income can be made from basic salary.
Accept 50% of bonuses, overtime and commissions yearly, quarterly, monthly and weekly.
Contractors: - (Who can evidence 12 months history of being day rate contractor. Only acceptable on a minimum of £200 day rate.
***Umbrella companies (Where client is being paid on a daily rate) will be classed a contractor)
Where the customer is paying their own tax and/or national insurance will be treated as self employed.
Applications from contractors may be accepted subject to the applicant being able to demonstrate a minimum of 12 months as a day rate contractor and must be currently, contracted.
Gross allowable income should be calculated on the following basis: -
Lower of 12 months average day rate amount OR current contract day rate amount x 5 (days per week) x 46 (working weeks)
Zero contracts are considered , as long as they have at LEAST 2 years history.
Only take SA302 if sole trader
If Ltd co then it is accounts
Furloughed employees: - Can be considered; 80% of income to a maximum of £2,500, with the use of any evidenced employer top-up over and above this
Bonus: - Reviewed on a case by case basis. If acceptable we will take 50% of regular bonus / commission
Bounce back loans: - reviewed on a case by case basis. Not acceptable as a source of deposit
Self employed Income support schemes - reviewed on a case by case basis. Not acceptable as a source of deposit
Monthly take average of last 3 months payslips.
Quarterly or Annual - avg of last 2 years P.60 shift allowance - refer or key into the bonus section.
100% Car Allowance
100% Large town allowance,
Additional income (ie once £15k achieved) can also accept:
100% Working/Child tax credits to max age 14yrs 11months. If joint application but show both applicants on award letter
50% CSA or Court order Maintenance
(Do NOT key child benefit)
100% Pension income including state
50% Secondary jobs (max 60 hrs between all jobs)
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Contractors. Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed.
If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 months to run then letter of intent to extend is required.
Zero contracts are NOT acceptable.
Self Employed
Can consider up to ONE years figures regardless of how long trading up to 85% + lenders fee.
Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income).
Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:
HMRC Tax Calc + Overview OR SA302 + Overview
OR Accounts
For Directors add together for total income 100% of: Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP Changes in trading style ie Sole to LTD Co treated as continuous self employment
NOTE: underwriters reserve the right to ask for further information where necessary.
*****
100% of basic + guaranteed allowances
100% of guaranteed overtime / 50% of non-guaranteed overtime income considered.
100% of monthly or quarterly bonus/
commission accepted for affordability (if
consistent)
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.
Can consider Finance contractors – same criteria apply as the current contractors
£50,000 for interest only repayment type.
80% LTV - Max LTV for Employed applicants
Max DTI – 40%
Max LTI – 4.50 up to max LTV, (Including interest only) however, 6.00 to 60% LTV product range
5.5x income for Key Worker Range
Available to those employed in essential public sector roles: Armed Forces Personnel (Army, Navy, RAF), Firefighters and Police Officers, NHS Clinicians (including Nurses and Paramedics), Teachers and Lecturers in the public sector.
100%
• Income from 2nd jobs (12 months’ record of employment required)
• Rental profit (supported by SA302)
• Mortgage subsidy
• Car, a large town, shift, housing allowances.
• Trust Fund income
• Court ordered maintenance
• Foster Care income
• Investment income (supported by SA302) 75%
• Annual or regular bonus, supported by the latest P60 and payslip for the month bonus was paid
50%
• Overtime or commission
• Disability/Carers allowance
• Non regular bonus, profit related pay
• Incapacity Benefit
• Child Tax Credit, Working Tax Credit, Universal Credit (not as main source of income)
For property related purposes can be considered up to a maximum LTV of 90% (excluding fees)
For non-property related purposes can be considered, up to a maximum LTV of 80% (excluding fees)
Capital raising for payment of taxes and consolidation of debts that have not been maintained satisfactorily is not permitted.
• 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.
No payment of taxes or Gambling Debts
Secured Debts are not classed as part of the max 5 above.
100% of benefit income is taken into account, provided there is an earned income on the application and children are 14 or below.
Will allow clearing of tax bills: -
- The bill must be repaid in full on completion including penalties
- Satisfactory explanation as to why not paid
- Copy of the latest tax bill.
(Max £60k Debt Consolidation)
Can consider adding broker fees for a remortgage under use of funds.
Wide breadth of acceptable impaired credit. For mortgage arrears, no missed payments in the last 6 months
25 years for above 85% LTV and First Time buyers.
Aunt/uncle, foster parent or legal guardian now also accepted.
Builder incentives of up to 5% of the
purchase price accepted (not inc builders
deposit).
Parent/Step‐Parent/Parent‐in‐Law.
Sibling.
Child/Step‐Child/Son‐in‐Law/Daughter‐in‐Law.
Aunt/Uncle.
Grandparent/ Grandchild.
Saffron also offer a family support mortgage option - this can be up to 5% - please see product guide.
Grandparents, parents, siblings, children and grandchildren.
Can accept from aunts/ uncles, adopted/ step applicant.
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Please see repayment types for further information RE: Equity
Below market value transactions are considered up to 5% - please ensure reasoning is checked with Bluestone.
Example: - will allow a sale below market value but will base LTV on the lower of the 2 prices. E.g: If immediate family had a BTL worth £150,000 he could sell it to applicant for £100,000. then Precise will allow that but they would lend at 85% of the £100,000 and the 20% deposit would need to come from the clients own sources
Saffron also offer a family support mortgage option - this can be up to 5% - please see product guide.
Grandparents, parents, siblings, children and grandchildren.
Max 75% LTV not avail on RL7 assessed on property valuations.
Overseas Deposit - Deposits from an overseas account can be considered on a case by case basis.
Builder deposit/incentive - Acceptable up to 5% of the purchase price on new build properties
Purchase at Undervalue - Acceptable where purchasing from a close relative, or a long term tenant buying from their landlord
Lending into retirement must be at least 10 years away at the point of application.
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.
The retirement age must be keyed as 75 and a note uploaded at DIP stage into the case confirming that the employers will confirm the clients ability to work to age 75. Second applicant max age 85 however to qualify the second applicant must be keyed as 'not working'
From the point of retirement, or 75th birthday, whichever is due first, only 'retirement' income will be permitted from that day for the purpose of evidencing affordability - no 'working' income will be allowed
All actual or projected retirement income must be evidenced
No projected income will be allowed where retirement (or age 75) is still more than 15 years away
A maximum LTV of 50% will apply to any borrowing on an Interest Only repayment basis
Sale of the residential property (i.e. downsizing) will not be permitted as a repayment strategy for any Interest Only lending, irrespective of the LTV
A single asset may not be suitable as a means of both servicing and repaying the mortgage e.g. a SIPP drawdown may be used for servicing, but this would reduce the fund so unsuitable as a repayment vehicle
The maximum term allowable will be assessed on an individual basis using all appropriate information and data available to us i.e. Interim Life Tables published by the ONS
The following additional criteria will apply where any applicant is beyond their 75th birthday at point of application:
A maximum LTV of 80% will apply to borrowing on a Capital & Interest repayment basis
All applicants will be required to receive Independent Legal Advice
Once the applicant reaches 70 - they consider this as lending into retirement, proof of pension income will be required to evidence affordability.
Lending into retirement: -
Latest annual statement of pension(s) due on retirement or 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.
Worst case scenario - 0 in last 3 months and a Max of 3 in last 24 months.
All telecoms ignored.
Recency: If balance above £500, the most recent payment must have been made.
Unacceptable if most recent 2 payments missed. Ignored if the current balance is
below £300
Last 6 months Maximum of 2 missed payments allowed on each unsecured credit agreement
1 missed mortgage payment acceptable but not in last 6 months - Suitable explanation required.
Unsecured Arrears: Max status 2 in 12 last months.
Residential (Core Range):
Unsecured Arrears: Max status 2 in 12 last months.
All Communication arrears are ignored except for when they have reached CCJ.
All payday loans must have been settled for 12 months prior to application.
Disregard communication and utility arrears up to £100
Resi 0
(0) 0 - 3 months
(2) 3 - 24 months
Resi 1
(0) 0 - 3 months
(2) 3 - 24 months
Resi 2
(0) 0 - 3 months
(2) 3 - 24 months
Resi 3
(0) 0 - 3 months
(2) 3 - 12 months
Resi 4
Underwriter Discretion
Small utilities /comms /mail order defaults ignored (up to 2 individual defaults total of £150 each per application) (applicable to BTL and Resi 24, 18, 12 and 6 only, including Limited Edition)
Revolving credit (credit cards, store cards, utilities, overdrafts and communications) can consider missed/late payments as recently as a month ago.
If it is a fixed term agreement (loan, HP, sofa on finance etc) then none in the last 6 months.
Unsecured Arrears – Must be up to date at the point of application
1 item of unsecured with a balance of less than £200 can have a missed payment in the last 6 months
All other unsecured must be up to date in the last 6 months
Unsecured credit can be no more than 2 months in arrears in months 7 to 12.
Unsecured arrears are ignored after 12 months i.e., month 13 onwards
No more than two occurrences within the last 24 months.
Please see below for further details.
Help to buy - CCJ limit is £300 in 36 months, please see defaults / CCJ's for further info
Unsecured Arrears
(assessed on worst case status): -
Real Life 1 - 1 in 24 months
Real Life 2 - 2 in 24 months
Real Life 3 - 2 in 24 months
Real Life 4 - 2 in 24 months
Real Life 5 - 3 in 24 months
Real Life 6 - 4 in 24 months
Real Life 7 - 6 in 24 months
Real Life 8 - 6 in 24 months
UTB-0: Ignore mail order and communications.
All accounts have to be up to date
UTB-1: Max 5 accounts up to 2 payments in arrears, must be consolidated. No recent pay day loans.
UTB-2: Max 5 accounts up to 3 payments in arrears, must be consolidated. No recent pay day loans.
Ignore Mail Order and Comms Defaults regardless of size or when registered.
No minimum number of active credit items for First Time Buyers
Above 70% LTV, debt consolidation is limited to 50% of the capital raising amount.
*****
Wide breadth of acceptable impaired credit. For mortgage arrears, no missed payments in the last 6 months.
Owner occupied properties, purchase or remortgage up to 85% maximum LTV
For Probate - need to make sure that the person who will own the property is the true beneficiary via the will or letter from the solicitors which is preferred as wills are long.
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Day 1 remortgage accepted on the following basis: -
• Lending can be based on current property value – if verified works have been carried out and evidence provided. If not, the loan will be assessed at the initial purchase price
• Maximum 75% LTV
• Standard pricing to apply
• Customer(s) to be on the voters roll for residential applications
Not available for New-build purchases – defined as properties that are less than two years old (from the date of practical construction) which have not been lived in.
******
• Undertake a Land Registry Search to confirm the applicant(s) owns the property
OR
• Where this is not available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor.
If the property has been purchased within the last 6 months and if works have been carried out to increase the value when remortgaged at a value above the purchase price please provide a TR1 and Schedule of works on submission of the application.
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No Min ownership applies to properties that have been inherited and probate has been granted (Probate letter will be required on application) and also when exiting a Precise Bridge. In these instance key the DIP as per precise's min ownership and upload a word document with full notes into the case.
Where the property has recently been inherited - probate must have been granted prior to mortgage application and verification of this must be supplied with the application. In these circumstances, no minimum period of property ownership applies.
Applicants will be classed as first-time buyers if there has been no mortgage found on a credit search for 6 years, this includes unencumbered properties.
Can consider less than 6 months if clients have had 12 months mortgage history - case by case basis
First time buyers considered
0-Status 2yr, 3yr and 5yr fixed rates from 3.80%
FTB must have three items of active credit at application (excluding comms/mail order)
Minimum £25k Income, Maximum 4.50 LTI
Minimum £100k property value
Available for Gifted Deposit, Gifted Equity and Purchase at Undervalue
Not currently eligible for FTB: Interest Only, RTB, HTB and Shared Ownership
Applicants will be classed as first time buyers if there has been no mortgage found on a credit search for 6 years, this includes unencumbered properties.
Max LTV is 75%
Foreign income will be assessed using the lowest exchange rate in the last two years.
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.
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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. *******
Aldermore will do up to 95% LTV on new Build flats, they have no restriction so will go up to product max LTV.
No LTV restrictions for new build
houses.
Max LTV of 75% for new build flats
Builders Deposit
We can now accept 5% from the builder towards the customer deposit on new builds (Not HTB of course).
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Any incentives to be disclosed and will be discounted from price.
LendInvest will accept subject to being suitable security. LTV for new build properties is restricted to 75%.
Flats - No
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Pepper will consider Wimpey No Fine and Lang Easy Form even though no they are non-standard construction. This is on a case by case basis and is referred to an internal property team within Pepper.
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Flats in blocks up to 20 storeys, with a commercial ground floor accepted
Max LTV available plus up to a 5% builders incentive on residential lending
S106 obligations considered
Mortgage offers valid for six months from the date of issue, if required we may extend for a further three months.
*****
Payments on the Equity loan, must be keyed into the unsecured loan section of the DIP. The loan amount should be x by 1.75%, divided by 12 and that is the monthly payment that should be entered and is the figure Precise use for their affordability calculation. The Equity loan from the government is interest free for the first 5 year after which payments become due.
Forces HTB can also apply in conjunction with a HTB, in these instances no deposit is required by the client however both loans MUST be keyed into the unsecured loan section of the DIP.
o NHBC
o LABC
o Premier Guarantee
o ICW Limited
o Buildzone
o Castle 10/Checkmate
o Buildassure
o One Guarantee
o Global Home Warranties
o Q Assure
o Protek
o Advantage HCI
o Ark Residential Insurance
o *Zurich (*historical)
o *BLP (*historical)
Saffron recognise two forms of new build properties for security purposes: max LTV:
• New Build Houses, max LTV is product specific.
• New Build Flats - LTV is 75% on C&I repayment and 60% LTV on Interest only.
No Shared Ownership new build properties are acceptable.
Self Build: -
Up to 80% LTV for land purchase, 80% of build costs and up to 80% of gross development value
Outlying outline planning permission allowed – will not go to valuation until full planning permission granted
Available to first time buyers
Properties with up to 20 acres of land can be considered providing this is not used for commercial use. We can however accept properties where the applicants are looking to purchase a hobby farm.
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Up to 5% builder deposit acceptable. 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
Properties in the course of construction and Off Plan will be considered on a ‘finished basis’ valuation with full retention of monies until the property is ready for completion.
Mortgage offer valid for 6 months, with potential to extend a further 6 months.
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 £100,000 (£200,000 in Greater London)
Maximum of 3 floors above the ground floor. Secure communal access with no balcony access arrangements
Flats - Yes, considered
We cannot accept a local authority or an 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.
Standard Construction Only
No Deck Access
Valuers Comments
minimum 75% in private ownership in block
Pre-fabricated Reinforced Concrete, Poured Concrete, Steel Framed / Steel Clad (pre 2000), 100% Timber Framed (post 1980), Cob Construction, Colt Construction, Concrete Block, Stone and Part Rendered Breeze block with Pebble Dashed
Outer Walls
If house: maximum LTV is 85%, and needs to be outside of pre-emption period.
Houses: Private and ex Local Authority or social housing
Flats & Maisonettes: Private only
No Flats/Maisonettes. Exceptions can be considered where the following apply; Block must have majority in private ownership, no balcony access in the block, good curb appeal and of standard construction.
Minimum 51% private ownership in blocks & subject to valuers comments.
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)
TML 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.
Flats and maisonettes considered up to 80% LTV with minimum property value of £80,000 (£200,00 in Greater London).
of share
Min share 10%
Repayment basis only
Term 5 – 35 Yrs
Additional share or Home Imps only.
Agreement from Housing Association required
Up to 100% considered.
Minimum share they can purchase is 25%
The Housing Association must allow the applicant to staircase to the full 100% ownership of the property, and must be registered as such
Yes - Up to 100% of the value of the share you are buying. Needs to be purchased through a registered Housing Association that permits up to 100% stair casing
Up to 75% LTV (full market value)
Furlough income considered
£125.000 minimum property value
One year self-employed considered
Vendor: Acceptable subject to the vendor being a registered Housing Association or Registered
Social Landlord.
Rent/Service Charge(s): - The Rent, maintenance and service charge must be included as a commitment on the application.
Memorandum Of Sale or an Offer Letter from the Housing Association will be required.
The rent payable and must be no more than 3% of the value of the property in the
ownership of the provider.
The property being purchased must be able to be staircased to 100% private ownership.
Leasing:-
The completing Solicitor must confirm that the lease meets our requirements, including
that it contains all fundamental clauses, the lease must contain a mortgage protection
clause in the same form as clause 6 of the Model Lease (Houses)/ clause 8 of the Model
Lease (Flats).
£50,000 minimum loan
Ability to lend 100% of discounted purchase price, up to a maximum of 75% of open market value
The maximum discount is £84,200 across England, except in London boroughs where it’s £112,300 and increases each year in April in line with the consumer price index (CPI).
Houses and flats attract a different level of discount but are both subject to the absolute caps above. Once the property is purchased the borrower may sell the property but if it’s within 5 years of the purchase then a
reducing proportion of the discount has to be repaid to the council.
Houses
You get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years.
After 5 years, the discount goes up 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £84,600
across England and £112,800 in London boroughs (whichever is lower).
Flats
You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up by 2% for each extra year you’ve been a public sector tenant, up to a maximum of 70% or £84,600 across England and £112,800 in London boroughs (whichever is lower).
Council tenants - only those named on the Section 125 RTB Notice can be party to the application.
Up to 100% of the discounted purchase price and a maximum of 75% LTV of the open market value as advised by a Bluestones valuer
Additional Documents: -
Section 125 RTB Notice will be required to be able to complete the initial underwrite.
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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 not exceeding 85%.
For funds to be released require sight of invoices. The loan must be conducted on a capital and interest basis.
All applicants that wish to be included in the mortgage; must show on the right to buy documents.
Acceptable for schemes operated by recognised local authorities / housing associations.
Vida can consider high rise - refer to lender.
Purchase up to 100% Discounted Purchase Price and subject to the loan not exceeding 75% of the OMV. A copy of the Section 125 Right to Buy is required, giving details of the property valuation and the discount offered.
All persons named on the Section 125 will also need to be on the application.
Applications submitted under any Voluntary RTB scheme are not permitted.
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 applicants own resources, including any additional borrowing raised from the existing mortgage, and the letting must be on a formal recognised tenancy
basis.
If the existing mortgage is not with Aldermore a copy of the Consent to Let offer from the existing lender must be obtained.
Applications can be considered for the purchase of owner-occupied property, up to a maximum % 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.
Can consider second homes: -
• Free Valuation Fees
• Minimum age 21
• For second homes
• Affordability is solely based on personal income and no income from short term letting is used
• Maximum 90 days per year of short term letting
• No AST or contract for tenant
• Not available to properties on holiday parks or subject to occupancy restrictions
• Interest only or repayment
• Interest only to 70% max LTV and subject to an acceptable repayment strategy
• Minimum loan size £30,000
• Maximum loan size £1,000,000
• Loans over this are priced on a bespoke basis and have restricted LTV’s
Recency: OK if still in operation and can remain
Debt Arrangement Schemes: if active will not be permitted
Needs to be included as a commitment on the affordability calculator based on DMP current payment. They can go up to 95% LTV also, no exceptions to length of time in the DMP.
Resi 0 + 1 - N/A
Resi 2
24 months +
Resi 3
12 months +
Resi 4 - Underwriter Discretion
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If satisfied over 12 months then can apply on standard range
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If satisfied within the last 12 months, refer to DMP Range
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For remortgages, we can capital raise to clear DMP
• Do not insist that DMP's are cleared – they can be left in the background
• No more than 1 active DMP per application.
Debt Management Plans acceptable – minimum
12 months satisfactory payment profile.
On any case with a formal DMP we will require a reference that confirms the DMP has been conducted satisfactorily for the past 12 months.
TML will not consider an applicant who has an active Debt Arrangement Scheme in Scotland.
UTB policy states we generally don’t lend to clients on a DMP, however, UTB can lend whether the client is clearing or not, as long as we have a 12-month statement confirming the payments have been made, any missed and it’s a decline.
(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'
Shared Equity - No
Forces help to buy: -
Armed Forces Advance of Pay (where the on-going commitment is included within affordability)
But will consider Forces "Help to Buy"
Help to Buy remortgage acceptable if property was originally purchased on a shared equity Help to Buy.
Capital raising acceptable for home improvements, transfer of equity and staircase (including partial)
Forces Help to Buy: - Yes, able to accept 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.
Forces help to buy: -
Acceptable with no additional deposit from the borrower, with evidence of the Ministry of Defence Personal Information note confirming the amount loaned under the scheme, the agreed monthly repayment and the agreed repayment period. The value of the interest only monthly repayment must be included in the affordability calculation.
Property type: -
A property is to be considered new if it is a first sale by the builder. However, properties which have not sold on physical completion will be considered on
an individual basis.
Helping first-time buyers purchase New Build homes
Helping customers who have 5% deposit
One year’s self-employed trading accepted
Latest year used for affordability when trading for two years or more
Employed and self-employed income from a maximum of two sources per applicant considered
Day rate contractors must be in a contract and able to demonstrate a minimum 12 months’ history (daily rate x 5)
100% of shift allowance
50% of variable income accepted including commission, bonuses and overtime
Maximum term is 35 years
Fully Gifted Deposit accepted
Applicant will need to provide a minimum 5% deposit from their own resources.
Payments will be required on the Shared Equity loan after five years in addition to the repayments on the loan the customer takes with Precise.
For further information on the Help to Buy shared equity loan scheme, applicant(s) should go to https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans for more information.
Can consider Scotland based properties, please see product guide.
Forces help to buy: - Yes, Saffron can consider applications where an element of the Deposit has come from the Forces Help To Buy Scheme
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
Max LTV
Purchase up to 75% LTV in England, London, and Wales.
80% in Scotland Max property value £600,000 in
England, £300,000 in Wales, £200,000 in Scotland
Purchase Gifted deposits and HTB ISA (& bonus) accepted
Builder incentives considered in addition to customers’ 5% deposit
Remortgage - up to 80% LTV remortgage when staircasing
New Build criteria - fast-tracked initial offer lasting 6 months, extendable by another 6
Minimum income £15,000
Gifted deposits accepted, builders incentives considered
Impaired credit history considered - see product guide
Self employed minimum 1-year trading
Contractors & short work history
Scotland First Home Fund - 80% LTV
Availability - Up to £25k towards the purchase of both new build and existing stock. No upper limit on property value however, at least one applicant needs to be an FTB
Mortgage payment holidays - 1 month evidence of payments.
credit search.
Clear: - 0 in 13 - 24 months
AAA: - 1 in 13 - 24 months
AA: - 2 in 13 - 24 months
A: - 3 in 13 - 24 months
BBB: 4 in 13 - 24 months
• Mortgage Payment holidays – for BTL need to make the next payment before completion
Secured Loan Arrears: 0 in last 36 months.
Residential (Core Range):
Secured Loan Arrears: 0 in last 24 months.
Resi 0 48 months+
Resi 1 36 months+
Resi 2 (0) 0 - 24 months
(1) 24 - 36 months
Resi 3 (0) 0 - 12 months
(2) 12 - 24 months
Resi 4 (0) 0 - 6 months
(3) 6 - 24 months
Applicant(s) must be up to date at the point of the application and must not have any arrears reported in the last 6 months.
Prime: Tiers 1 and 2
0 in 12 months,
1 in 36 months (worst status)
Almost Prime: Tier 3 and 4
1 in 12 months,
3 in 36 months (worst status)
Max status 2 in months 13-24.
*****
Worse status for example:
000010101011 = 1 missed payment.
0 in 12 months, 0 outstanding.
UTB-1: 0 in 3 months. 1 in 12 months.
Max 1 outstanding.
UTB-2: 0 in 3 months.
2 in 12 months.
Max 2 outstanding.
Vida 36, 0 missed mortgage/secured loan payments in the last 36 months, maximum worst status, 3 in the last 24 months. Maximum missed payments combined value - £500
Vida 24 0 missed mortgage/secured loan payments in the last 12 months, maximum worst status, 3 in the last 24 months. Maximum missed payments combined value - £500
Vida 12, 0 missed mortgage/secured loan payments in the last 12 months, maximum worst status, 3 in the last 24 months. Maximum missed payments combined value - £500
Vida 6, 0 missed mortgage/secured loan payments in the last 6 months, maximum worst status, 3 in the last 24 months. Maximum missed payments combined value - £500
12 months discharged bankruptcy
Current IVA’s cleared on completion
See Bluestone Guide.
Clear range: over 6 years discharge.
All other ranges, over 3 years since discharge.
If defaults and CCJ are wrapped up in a Bankruptcy or IVA they can be ignored and we will just apply the IVA/ Bankruptcy criteria - evidence of the bad debt wrapped up in the IVA/ Bankruptcy is key
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Above 80% LTV - Must have been satisfied for at least 6 years and all credit conducted satisfactorily since then
Unless 85% LTV - then it has to be clear for 6 years and discharged.
80% LTV -
Any bankruptcies or IVA’s need to be clear for at least 3 years, with no residual debt, and there can be no repossession, voluntary or otherwise, as part of the order. We would require reason for the bankruptcy/IVA, and would be underwriter’s discretion.
as per plan criteria, check guide for further information.
Currently up to 85% LTV.
- Discharged bankruptcies and IVA with a minimum period of 12-23 months past accepted as long as clean credit history in last 12 months
12 months discharged bankruptcy
Current IVA’s cleared on completion.
See Bluestone Guide.
Clear range: over 6 years discharge.
All other ranges, over 3 years since discharge.
If defaults and CCJ are wrapped up in a Bankruptcy or IVA they can be ignored and we will just apply the IVA/ Bankruptcy criteria - evidence of the bad debt wrapped up in the IVA/ Bankruptcy is key
as per plan criteria, check guide for further information.
Currently up to 85% LTV
- Discharged bankruptcies and IVA with a minimum period of 12-23 months past accepted as long as clean credit history in last 12 months
Otherwise, 6 years from discharge considered.
Level 1 - Not accepted.
6 years since repossession and only acceptable on Real Life 3.
Values < £300 or telecom ignored (even if in last 6 months)
Recency 0 in last 6 months; > 36 months ignored
CCJ’s over £500 must now be settled for 3 years.
CCJs registered more than 3 years ago but only satisfied in last 3 years acceptable if total balance does not exceed £500
(CCJs satisfied over 3 years ago considered)
Defaults:
1 (satisfied) in 36 months
Values < £300 or telecom ignored (even if in last 6 months)
Recency 0 in last 6 months; > 36 months ignored
(Defaults registered over 3 years ago considered)
Value < £300 or telecom ignored (even if in last 6 months)
Recency: 0 in last 6 months; > 36 months ignored
CCJ's: - 0 in 36 months
Value < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
AAA
Defaults: - 1 in 36 months
Value: < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
CCJ's: - 1 settled in 36 months
Value: < £300 or telecom ignored (even if in last 6 months)
Recency: 0 in last 6 months; > 36 months ignored.
AA
Defaults: - 2 in 36 months
Values: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
CCJ's: - 1 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
A
Defaults: - 3 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
CCJ's: - 2 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
BBB
Defaults: - 4 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
CCJ's: - 3 in 36 months
Value: - < £300 or telecom ignored (even if in last 6 months)
Recency: - 0 in last 6 months; > 36 months ignored
Defaults and CCJ's ignored for
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
0 missed payments on secured credit in months 0 - 12 and up to 4 missed for months 13 - 24
If defaults and CCJ are wrapped up in a Bankruptcy or IVA they can be ignored and we will just apply the IVA/ Bankruptcy criteria - evidence of the bad debt wrapped up in the IVA/ Bankruptcy is key
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.
For Mortgage applications above 75% LTV, applicant(s) must satisfy the following criteria:
• No missed payments in last 12 months on any mortgage, other secured loan or rent and no more than 1 missed payments in the last 2 years. No current arrears.
• No more than 1 missed payment in last 12 months on any unsecured loan or credit card and no more than 2 missed payments in last 2 years. No current arrears.
• CCJ(s) with a total not exceeding £2,500 registered more than 3 years ago are acceptable if satisfied more than 12 months ago.
• Defaults – one or more with a total value not exceeding £500 issued more than 12 months ago are acceptable, as long as satisfied by time of application.
Defaults must have been satisfiied 3 years+ ago.
1 x Communication issue can be referred provided it is under £500.
F1: 0 in 36; Unsatisfied defaults within the last 36m are accepted where the cumulative value is below £250 and relates to mail order, comms and utility payments. All other defaults must be satisfied.
F2: 0 in 24; Unsatisfied defaults within the last 24m are accepted where the cumulative value is below £250 and relates to mail order, comms and utility payments. All other defaults must be satisfied.
F3: 0 in 12; Unsatisfied defaults within the last 12m are accepted where the cumulative value is below £250 and relates to mail order, comms and utility payments. All other defaults must be satisfied.
CCJs:
F1: 0 in 36; All CCJs must be fully satisfied at the time of application
F2: 0 in 24; 1 unsatisfied (if older than 24m) to the value of £200 otherwise must be satisfied at application
F3: 0 in 12; 1 unsatisfied (if older than 12m) to the value of £200 otherwise must be satisfied at application
CREDIT CARDS, COMMS, MAIL ORDER, UTILITIES ARREARS (Must be up to date on application):
F1: Worst status 2 in 36 per account; 0 in 12
F2: Worst status 2 in 24 per account
F3: Worst status 2 in 12 per account
UNSECURED LOAN ARREARS (Must be up to date on application):
F1: 0 in 36
F2: Worst status 1 in 24 per account
F3: Worst status 2 in 12 per account
Defaults: 0 in last 24 months.
CCJ’s: 0 in last 24 months.
Secured Loan Arrears: 0 in last 24 months.
Unsecured Arrears: Max status 2 in 12 last months.
£500,000 max loan
***********
Unsecured Credit arrears acceptable if accounts now up to date (max status of 2 in last 12 months)
Select Range: Defaults: 0 in last 36 months.
CCJ’s: 0 in last 36 months.
Unsecured Arrears: Max status 2 in 12 last months
Max Loan £750,000
All Communication arrears are ignored except for when they have reached CCJ.
For 90% - Defaults and CCJs - 0 in 24 months - not counted where registered over 24 months.
Up to 2 defaults and 1 CCJ considered in last 2 years (not counted where registered over 24 months)
Ignore CCJ/default criteria: <£300 in total & satisfied >12 months prior to application OR registered >24 months whether satisfied or not
Resi 0
Registered Defaults: - 48 months+
Satisfied CCJs: - 48 months+
Resi 1
Registered Defaults: - 36 months +
Satisfied CCJs: - 36 months+
Resi 2
Registered Defaults: - 24 months +
Satisfied CCJs: - (0) 0 - 24 months
(1) 24 - 36 months
Max £2000
Resi 3
Registered Defaults: - (0) 0 - 12 months
(2) 12 - 24 months
Max £5000
Satisfied CCJs: - (0) 0 - 12 months
(2) 12 - 24 months
Max £2000
Resi 4
Registered Defaults: -
(0) 0 - 3 months
(2) 3 - 24 months
Max £5,000
Satisfied CCJs: - (0) 0 - 6 months
(2) 6 - 24 months
Max £2000
Unsatisfied CCJs: Subject to further consideration. Maximum product available LI Resi 2
Unsecured Credit Arrears: -
Resi 0
(0) 0 - 3 months
(2) 3 - 24 months
Resi 1
(0) 0 - 3 months
(2) 3 - 24 months
Resi 2
(0) 0 - 3 months
(2) 3 - 24 months
Resi 3
(0) 0 - 3 months
(2) 3 - 12 months
Resi 4
Underwriter Discretion
• Don't need to be satisfied
• Can be registered as recently as 12 months ago
Defaults
• Don't need to be satisfied and no value limit
• Can be registered as recently as
12 months ago
• 2 individual utility, communication or mail order account defaults up to and including £150.00 each ignored (applicable to Pepper 24, 18 and 12 products - excluding DMP)
Pepper 48 - Light: -
CCJ's - 0
Defaults - 0 in 48 months
Pepper 48: -
CCJ's/Defaults: 0 in 48 months
Pepper 36 - Light
CCJs: 0
Defaults: 0 in 36 months
Pepper 36: -
CCJs: 0 in 36 months
Defaults: 0 in 36 months
Pepper 24 - Light
CCJs: 0
Defaults: 0 in 24 months
Pepper 24: -
CCJs/Defaults: 0 in 24 months
Pepper 18 - Light
CCJs: 0
Defaults: 0 in 18 months
Pepper 18: -
CCJs/Defaults: 0 in 18 months
Pepper 12 - Light
CCJs: 0
Defaults: 0 in 12
Pepper 12: -
CCJs/Defaults: 0 in 12 months
Defaults 0 in 24 months
CCJs 0 in 24 months
Almost Prime: Tiers 3 and 4
2 in 24 months (max £1,500 in 12 months, unlimited thereafter)
1 in 24 months (max £1,000 in 12 months, or £2,500 in 24 months)
Unsecured arrears Not counted but may affect customer’s credit score
Unsettled CCJs/Defaults are allowed up the total of £100 and up to £500 at underwriter’s discretion.
Although Tandem don’t count CCJs/defaults <£750, they are still considered for affordability. Is that just any committed payment or would we take the balance outstanding (if no payment agreed)?
– Tandem would include any monthly payment that the applicants are making to any CCJs or Defaults in the I&E. Also, if it’s within 2 years and they’re not making a payment, we would put 1% of the balance in as a payment for affordability.
RL2 - 1 in 36 months (0 in 24) CCJ's & Defaults
RL3 - 3 in 36 months (1 in 24) CCJ's
4 in 36 months (1 in 24) - Defaults
No more than 2 missed payments in last 6 months and most recent paid on all unsecured credit.
No CCJ’s or defaults in last 6 months.
Utility and Communications defaults are not considered adverse credit.
Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
Note: must meet unsecured credit, secured lending and CCJ & default criteria to be considered, please refer to product guide.
Assessed by number (whether satisfied or not) AND £-value.
All CCJ’s and defaults will be ignored if under £300
Ignore if under £300 mail order or Communications.
UTB-0 Range: 0 in last 2 years
Max of 5 over 2 years old, providing total is less than £5,000
UTB-1 Range: 1 in last 12 months
No max number over 1 year old, providing all in total less than £10,000
UTB-2 Range: 2 in last 12 months
No max number over 1 year old, providing all in total less than £15,000
Ignore Mail Order and Comms Defaults regardless of size or when registered.
Registered Defaults: 0 in 48 months.
No unsatisfied CCJ's (unsecured arrears last 6 months - 0)
Vida 36, Registered CCJs: 0 in 36 months
Registered Defaults: 0 in 36 months.
No unsatisfied CCJ's (unsecured arrears last 6 months - 1)
Vida 24, Registered CCJs: 0 in 24 months
Registered Defaults: 0 in 24 months.
Max £1000 unsatisfied CCJs (unsecured arrears last 6 months - 2)
Vida 12, Registered CCJs: 0 in 12 months
Registered Defaults: 0 in 12 months.
Max £2,500 unsatisfied CCJs (unsecured arrears last 6 months - 2)
Vida 6, Registered CCJs: 0 in 6 months
Registered Defaults: 0 in 6 months.
Max £5,000 unsatisfied CCJs (unsecured arrears last 6 months - 3)
(*Bluestone will consider any loan as high-cost short term finance that is flagged in the client’s credit report by Experian or found on the customer's bank statements that relate to lenders that offer loans for 12 months or under with an APR of at least 39%)
Only one applicant can have had a Pay Day loan in the last 12 months
• 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.
Resi 3 - 12 months + Resi 4 - Underwriter Discretion
Payday loans must be satisfied 12 months prior to the application including defaulted payday loans.
4, if there is a family tie between the applicants and the LTV is less than 80%
Married/civil partnership applications can be considered in sole names.
Additional applicants without permanent rights to reside now accepted if income not needed
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Tier 2 Visa - on a case by case basis, Tier 2 Visa’s can be considered on case merit. Subject to product loading.
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If EEA national, will need to have been in the UK for a minimum of 36 months before able to apply for mortgage.
EU Citizens
Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card.
Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years. Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.
Must be a UK resident and have been resident in the UK for the last 3 years, or have a 3 year UK residential history and a permanent right to reside in the UK.
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UK citizens who are returning to the UK permanently are acceptable.
Applications from Foreign Nationals are acceptable, however all applicants must:
Live and work in the UK (UK citizens working abroad are acceptable where their main residence is in the UK and they are a UK taxpayer).
Be UK taxpayers (where income is being used in support of the application).
Have resided in the UK for the last 3 years.
Applicants residing in the Isle of Man and Channel Islands are not acceptable.
Non‐UK citizens (UK & European Union (EU) Nationals and Non‐European Union Nationals) must provide evidence of a minimum employment history of 3 continuous years in the UK(where income is used in support of the application).
Non‐European Union citizens must provide evidence confirming indefinite rights to remain in
the UK and have a statutory right to work in the UK.
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Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.
EU Citizens
Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card.
Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years. Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.
Accept skilled Worker, Health & Care Worker and Global talent Visas subject to:
• Maximum LTV of 75%
• Remaining term of visa exceeds fixed term period.
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.
Non-EEA nationals - Resident in the UK for the last 2 years and have permanent rights to reside in the UK
If married at least one applicant must have permanent rights to reside or indefinite leave to remain, both would need to be applicants on the mortgage but affordability must fit on only the applicant with permanent rights to reside or indefinite leave to remain.
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.
Interest Only on BTLs is only available on Clear Products - NOT residential.
Interest only considered up to 75% LTV
Repayments of loans either on capital and interest (a repayment mortgage) or
by payment of interest only or a combination of both.
LTV Limits
Repayment 90%
Interest Only 75%
Part Interest Only / Part Repayment * 75%
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.
For the following types of borrower the repayment method is restricted to repayment (capital &
interest) regardless of loan to value:-
• Right To Buy
• Shared Ownership
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, Endowment Policy
Part & Part (If loan is 50%+ on Repayment than the C & I term option can be used for the whole of the loan).
Interest Only
The Borrower will pay interest only to Foundation Home Loans. No assignment of any repayment vehicle, such as a life assurance
policy, will be required but the lending will be subject to Foundation Home Loans Interest Only Policy as documented in the
Responsible Lending Policy.
For Interest Only Mortgages:
• Will assess affordability on a Capital Repayment basis;
• The maximum loan size for an Interest Only loan may be smaller than for Capital Repayment;
• Interest Only lending is reduced to a maximum of 70% LTV; Sale of Property will be accepted as a repayment method subject
to there being at least £200,000 equity (to allow for sale costs); and Repayment methods, other than sale of property, will only be
accepted as shown below and satisfactory documented evidence must be obtained for each loan that is agreed on this basis.
Part and Part Loans:
A borrower may choose to take a mortgage on a part repayment, part interest only basis. The Lending Policy, as stated, in relation
to Interest Only loans will apply to the Interest Only element of the loan. Where a borrower wishes to have a mortgage of more than
70% LTV on a part and part basis, any borrowing over 70% LTV must be on a repayment basis. Part and part mortgages are subject
to a maximum of 80% LTV.
- 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%
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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%.
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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.
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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.
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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.
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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.
Residential Interest Only products are designed for your clients who have sufficient background assets, such as equity in other property or investments that can be used to repay the capital in the future.
This product is available for property values over £500,000
Repayment
Interest Only, and the Interest Only element of Part &
Part, is restricted to a maximum of 70% of the LTV.
Where sale of the securing property is the primary
repayment strategy, this maximum is reduced to 50%
of the LTV.
Interest only - 65% LTV. (£150,000 equity required)
Part & Part up to 75% LTV (Interest only element must not exceed 50% LTV)
Available on Tier 1 and 2 only - NOT ALLOWED ON Help to buy or Right to buy.
Repayment vehicles allowed:-
Sale of Security
Sale of additional property
Savings / Investments
Pension
Interest only accepted up to 70% LTV max, subject to satisfactory repayment vehicle criteria;
Sale of financed residential property(ies): -
*Minimum of £250,000 equity in the property being financed if plan is to downsize in the future;
*Confirmation of customer’s future plans following the sale of the residential mortgaged property and that they will have sufficient equity/funds to carry out those future plans.
*Where ‘Purchase a new residential property’ is stated as the future plan and the remaining loan term is less than ten years, additional information should be requested on the property location, type and size.
Evidence of this information must be retained on the file for the life of the loan.
Please view Saffron's published criteria on their website for intermediaries for further repayment vehicles options.
£50,000 minimum income for Interest only repayment vehicle.
Interest only - they assess the Interest only payment, not on C&I - 75% max LTV (70% for downsizing)
Interest Only max 70% across all tiers.
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Acceptable repayment strategies include:
• Cash ISA or other savings
• Stocks, Shares, ISA or other liquid investment
• Endowment policy
• Pension (Personal, Executive or Employed pension plan)
• Sale of another mortgaged property
• Sale of the customer's main residence (downsizing) - customers are expected to have a minimum amount of equity remaining in the property at the end of the mortgage term in order to repay the mortgage debt and also feasibly purchase another property:
• £200,000 equity required at the start of the mortgage for all securities located within London and the South East of England
• £150,000 equity required at the start of the mortgage for securities located in the rest of the UK
• Other repayment strategies, including sale of other assets and occasional payments from income will be considered. Interest only Repayment Strategy Declaration Form will be required, clearly setting out the repayment strategy and amount(s) to be used.
No minimum credit score for First Time Buyers
Vida then select a tier based on exact credit profile, not score, for transparency.
affordability calculator and must be used prior to DIP submission
Precise Mortgages Affordability Calculator
Saffron Affordability Calculator
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.
Currently not lending to applicants within the retail, leisure and hospitality sectors.
Contractors with 3 months remaining on contract accepted
Foster Care Income
24 month history and evidence of income required.
Remittance slips or local authority reference used to evidence income
Latest 12 months income figures will be used to calculate affordability.
• 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.
employed in the same line of work with 12 months continuous.
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
Contractors: - Fixed Term Contracts: Fixed term contracts and contractors using an umbrella company considered
Applicants must have 3 months remaining on their contract and must have been employed continually in the same industry for two years
Contractors: Contractors must have at least 6 months remaining on their current contract, or proof of renewal, at time of offer
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
Young Professional range, which offers significantly enhanced Loan to Income for applicants aged up to 40, qualified in the following professions;
• Medical Doctors
• Dentists
• Chartered Accountants
• Solicitors
• Barristers
• Commercial Pilots
• Actuaries
Heroes range, which offers enhanced income multiples for applicants aged up to 40, working in the following professions;
• Armed Forces Personel
• Firefighters
• NHS Clinicians (Including Nurses & Paramedics)
• Police Officers
• Teachers.
employed in current job with 12 months continuous.
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Specific product range for - mortgages for young professionals, aimed at Chartered Accountants, Actuaries, Barristers, Commercial Pilots, Dentists, Doctors and Solicitors.
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Must be out of probation period. If been in role for less than 3 months then we will require an employers reference that the bank will request. We would need to see a copy of the employment contract to verify out of probationary period. Will need 12 months continuous employment.
We can only consider an applicant still in their probation period if the applicant is in the same line of work (e.g. hotel receptionist for one hotel chain, then hotel receptionist for another hotel chain) in which we would obtain an employment reference and request site of the employment contract.
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85% LTV for self-employed contractors trading for one year.
100% of income can be taken for clients with a second job
Construction sub-contractors are now treated as employed customers when paid net of tax.
Zero hour contract - 12 months minimum also
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Employment gaps of up to 3 months in the last 24 months will now be accepted if not in a probation period. 3 months in the last 12 will be considered by referral
Where the applicant has previous self‐employment within the last 12 months, evidence must be provided.
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Contract/Temporary Employees
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Applications will be accepted for contract or temporary workers, provided they have been in employment with the same employer for the last 12 months. Confirmation must also be provided that the contract will be on‐going and renewed.
Income from seasonal work is unacceptable.
Furloughed employees: - Can be considered; 80% of income to a maximum of £2,500, with the use of any evidenced employer top-up over and above this
Bonus: - Reviewed on a case by case basis. If acceptable we will take 50% of regular bonus / commission
Bounce back loans: - reviewed on a case by case basis. Not acceptable as a source of deposit
Second jobs can be used (50% income taken but key 100% into DIP). Max hours between all jobs 60 hours and must have 12 months continuous employment in second job as well.
Contractors.
Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed.
If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 mths to run then letter of intent to extend is required.
Zero contracts are NOT acceptable
Have to be outside probationary period and have been employed for a minimum of three months with as many payslips.
Agency/Temp/Zero hour contracts - 2 years agency worker experience, must be the secondary income earner and maximum LTV - 80%
Bonus - percentage used, Track record and proof required - 50% (non-guaranteed) – of additional / secondary income paid in the previous tax year. 100% (guaranteed) – evidence of track record of up to 3 years required.
Overtime - percentage used, Track record and proof required See note 100% (guaranteed) – evidence of track record of up to 3 years required. 50% (non-guaranteed) – of additional / secondary income paid in the previous tax year.
Second Job - 100% of income can be used if second job has been held for a minimum of 6 months and the applicant is not working more than 60 hours per week.
Evidenced by last 3 months salary & P60.
CIS contractors. How do we treat them if they work under an umbrella company?
– If the umbrella company deals with the finance side for the applicant, i.e. the tax, national insurance, and pension contributions, then Tandem would be able to class them purely as an umbrella company.
Evidenced by 3 months’ payslips.
Overtime, Employment Bonus, Commission and Shift Allowance can be included at 50% with Car Allowance and Regional Allowance at 100% 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.
50% of annual bonuses if the applicant can demonstrate this has been paid during or after 2021 as evidenced by a payslip, or equivalent.
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.
For any joint application, only one can be on furlough, where this should not be the main earner unless TML is satisfied that affordability is sustainable from the second applicant’s income.
For any single applicants, if they are on furlough they will be excluded.
For any applicant returning from furlough, for the maximum income considered must be evidenced in the latest months’ payslip.
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
Maximum 75% LTV.
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 recent letter from pension provider(s)
confirming the pension due on retirement.
Evidenceof any additional post-retirement income will be required for the income to be considered.
SEE MAIN COMPARE CRITERIA FOR ADDITIONAL INCOME DETAILS REGARDING BENEFITS.
Please note: United Trust Bank currently will not consider: -
• Travel – For example airlines, travel agents, tour operators or travel call centre sales staff
• Hospitality – For example, hotel or B&B staff
• Entertainment and Leisure – For example bar, restaurant or venue staff
• Retail – For example, high street shop workers or online retail support staff
Note: -
Guaranteed income, such as Basic earnings and Car Allowances, accepted.
Accept 50% of all regular Bonus, Overtime and Commission income for employed staff, including key workers and non-key workers
Regular Bonus/Overtime payments will now not be accepted for most employees.
For Key Workers listed on www.gov.uk regular Bonus/Overtime, including Shift Allowances, will be considered on an individual case basis, subject to the standard 18m history and evidence.
As forms of employment.
Contractor: -
Gross Annual Income will now be calculated at the day rate x 5 days x 48 weeks.
A minimum 12m contract history with at least one renewal is required, along with 24m in a similar role. If less than 3m remain on the current contract, evidence of a renewal must be provided and signed by both parties.
Proof of Income:
Applicants paid by Employer or via an Umbrella Company: Last 2m payslips, supported by the latest P60 and latest 3m bank statements.
Umbrella Company fees/costs will be deducted from Gross income.
Applicants paid via a pure income servicing Limited Company: Latest Accounts or Accountants Certificate, supported by the latest 3m personal and business bank statements. The company must be 100% owned by the Applicant and trading for a minimum of 12m.
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3 months in currently employed role with 12 months continuous or 6 months in the current job, neither can be in probation.
Where a client has been in employment for 1 month (with 12 months continuous) in the same line of work as previous UTB can consider
Overtime: - policy states 0% but UTB can use up to 100% if regular, consistent, intrinsic to roll and evidenced with 18 months proof.
Annual bonus: - can take bonuses/ commission if it is monthly, bi-monthly or quarterly if an annual bonus is received UTB wouldn't normally use it, with 2 years P60's though we can refer to credit.
Benefits - £25k earned income: - policy states that they can use benefits where the client is earning £25,000, UTB can look as low £20,000
Maintenance: - where there is no court order/ CSA in place - if we can evidence via 18 months of filtered bank statements UTB can look to refer to credit.
Income over the age of 70: - employed income can't be used passed 70, but where the client is self-employed but not actively working, I.e. just receiving salary or dividends whilst family run the business, UTB can consider.
Day 1 contractors considered where at least a 1 year track record of employment within same line of work
Plus, reduced minimum time requirement in 2nd job down to 3 months
100% of the following; Income from trust funds, Rental Profit, Investment incomer supported by SA302, Occupational pension income, Second and other jobs providing 12 months record, Car allowance, shift allowance, London/Large Town Allowance, Housing allowance. 75% of the following; Regular annual/monthly bonus. 50% of the following; Non regular bonus & commission, Overtime or Profit related pay, Universal credit/ child/ working tax benefit, Income related employment and support allowance, Disability/Carers allowance.
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
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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.
Bluestone allow an accounts certificate for self-employed as long as from a registered accountant.
If income/profits are increasing year on year, the average of the last 2 years net profits will be used.
• If income/profits are fluctuating, average of the last 3 years should be used or the latest year’s net profit, whichever is the lower.
• If income/profits are decreasing, the lowest net profit figure should be used for the past 3 years, together with an explanation as to why profits are reducing.
Foster Care Income
24 month history and evidence of income required.
Remittance slips or local authority reference used to evidence income
Latest 12 months income figures will be used to calculate affordability.
CIS Contractors
- Can use 12 months remittance slips instead of SA302
- Can still use SA302 if more favourable
PAYE Fixed term contractors
- Day 1 contract accepted
- Must have 6 months industry experience which must be evidenced.
- 3 months payslips required (from previous role if necessary) along with a copy of current contract.
We can allow a maximum 4 week gap between jobs
Must have 3 months remaining on the current contract at offer stage.
2 & 3 years accounts required for all other products, exceptions by referral
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.
Consider retained profit
Where a company director owns 20% or more of the company shares they will be classed as self-employed
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 on current weekly contract.
Both 1 years trading and 3 years considered.
For Standard range - Self employed applicants will need to have been trading for a minimum of 3 years, evidenced by 3 years’ SA302’s or audited accounts.
We can accept both professionals (doctors, lawyers, teachers, etc.) and non-professionals that have been trading for 1 year with income needing to be based on finalised accounts prepared by the accountant acting for the business who must be suitably qualified.
We would require a projection for the 2nd year income, also provided by the accountant, the applicant must have a minimum of 12 months previous track record in the same sector as their current business, which would need to be evidenced by proof of previous PAYE income.
We will not be able to accept self-assessment tax returns or SA302’s as proof of income, and income would be verified by means of an accountants reference. Second year projection can be used if no more than 30% growth.
Please note: -
2 years company accounts (as provided by a qualified accountant) where available
OR 1 years company accounts where they have been filed in the last 9 months
OR if the applicant doesn’t maintain accounts, SA302’s (or equivalent tax calculation from HMRC self-service system) and tax year overviews
• 1 Years final accounts plus 3 months personal and business
bank accounts statements showing applicants share of net profit
• SA302s can be provided as long as they are supported by 3 months personal and business bank statements
For applicants who have been trading for less than two years, one year’s finalised accounts is acceptable. For applicants who have been trading for two years or more, two years’ accounts will be requested and the latest year’s figure will be used for affordability.
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Company Director
(Note: Shareholding = or < 25% treated as employed, shareholding
>25% treated as s/employed)
• 2 Years final accounts plus 3 months personal and business bank statements showing - this is required if more than 1 years trading.
Add backs’ accepted for controlling Limited Co Directors,
including pension contributions, car allowance, and use of home office, to boost affordability
Share of Dividends Yes - minimum 25% shareholder
Share of Directors remuneration Yes - named shareholder
Share of directors car allowances Yes
Share of directors pension contributions Yes
Share of use of home as office Yes
Share of private health insurance Yes
Share of spouse's income (sole app) No
Operating profit No
Retained net profit No
Finalised accounts will be required where additional remuneration is to be added back.
Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income).
Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:
HMRC Tax Calc + Overview
OR SA302 + Overview
OR Accounts
For Directors add together for total income 100% of:
Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP
Changes in trading style ie Sole to LTD Co treated as continuous self employment
NOTE: underwriters reserve the right to ask for further information where necessary
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Precise can also use the following in order to help affordability if they are declared on the accounts: -
Rooms used as an office
Use of spouse's income
Share of dividends
Director's car allowance and pension
• For businesses who started trading prior to the 2020/21 tax year, we may be able to discount this pandemic year from your affordability assessment.
Self Employed product specifically can have 1 year accepted.
Self-employed with 100% Ownership can be considered on net profit after tax plus salary - for any other scenario, affordability assessed on salary plus dividend.
Partnerships assessed as share of net profit
Average or latest what ever is the lesser. If reasonable increase year on year over the last 3 years can take latest subject to underwriters discretion.
Umbrella companies can be considered on Contractor range/criteria.
- 3 years income rising or downward trend – the system will now use the latest years figures
- 3 years fluctuating income – the system will use a 3 year average.
- 1 or 2 years income – the system will use the latest and must go on the self-employed product range
Contractor Applicants
Specific product range for applicants who are deemed a contractor. Our policy has previously been silent on CIS workers and contractors working through an umbrella company so we have updated our policy to provide clarity to all our brokers.
CIS Workers
- Must have 2 years min – CV Required as evidence
- Require 6 month’s payslips and bank statements
- A contract of employment if they have one
- Will assess via the contract terms or if no contract available we will us an average of the last 6 months payslips.
Contractors working under an umbrella company
- Must have 2 years min – CV Required as evidence
- Require 3 month’s invoice/payslips and bank statements
- Evidence of a contract of employment
- For affordability will use our day rate x days worked x 48 but factor in the deductions taken by the umbrella company.
Rental income usage for professional landlords - 50% of surplus income considered
If there is a minimum of 1 year of accounts (12 months) but less than 3 years, we can consider on our Specialist Self Employed product range - please view product guide for further information.
Latest years’ figures used for self-employed customers, potentially including retained profits for Ltd Co Directors.
Evidenced by latest SA302, HMRC & Accts certificate.
When taking rental income into account does the applicant need to have been a landlord for 3 years? Or just the latest SA302?
- If the use of rental income is being used as additional income, Tandem just need to see 1 years SA302’s/ tax calculations and the HMRC Tax overview statement but if it were the applicant’s sole income, it would refer to our self-employed criteria and they would need to have been trading for 3 years under same company name etc.
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 months’ 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 applicant’s 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.
Max 80% LTV for all self-employed applicants - only 0-Status, no other range.
Contractor: -
Gross Annual Income will now be calculated at the day rate x 5 days x 48 weeks
A minimum 12m contract history with at least one renewal is required, along with 24m in a similar role.
If less than 3m remain on the current contract, evidence of a renewal must be provided and signed by both parties.
Proof of Income:
Applicants paid by Employer or via an Umbrella Company: Last 2m payslips, supported by the latest P60 and latest 3m bank statements.
Umbrella Company fees/costs will be deducted from Gross income.
Applicants paid via a pure income servicing Limited Company: Latest Accounts or Accountants Certificate, supported by the latest 3m personal and business bank statements.
The company must be 100% owned by the Applicant and trading for a minimum of 12m.
Sole Traders: 100% of Net Profit. Partnerships/Limited Companies: 100% of all sustainable drawings or dividends in addition to any salary.
Retained Profits and Directors Loans are not accepted.
Pension/Maintenance – 100% of all regular income.
Working Family Tax Credit, Child Benefit and Child Tax Credit – 100% of all income, providing there is a minimum of £25,000 total earned income across the application.
Sole trader to limited company: - where the client has only had a limited company for a short time but changed from being a sole trader we can consider with an explanation from the accountant (normally for tax reasons).
• Latest SA302, dated within 12 months
• Accountants reference: one years accounts
• Minimum 12 months accounts with 1 years accounts or SA302
Applications will be considered as long as there is a minimum of 1 years verified accounts or an Accountants reference.
Where the applicant is a Sole Trader or LLP/Partnership, 1 years SA302's and Tax Year Overviews will be acceptable.
All self-employed income will be verified by accounts that must be certified by qualified accountant or where applicable, the SA302. Where the trading period is over 2 years, 2 years evidence of income will be required.
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Acceptable Income Sole traders and partnerships - most recent net profit if stable or increasing
• Limited Co Directors - drawings and dividends. Net profit after tax can be considered.
Last year’s net profit after tax
can also be considered if 100% shareholders are on the mortgage.
Enhanced affordability: 48x weekly rate for self-employed contractors
CIS workers now only need to provide 1 year’s SA302 and tax year overview along with the last 3 months' payslips or invoices
All LTVs and Adverse Tiers available to contractors
A completion fee and Chaps fee is payable in all cases. The customer will have the option to pay their completion and/or Chaps fees up front or they can be added to the loan.
However, any fees to be added to the loan must not exceed the hard cap rule of 85% as a maximum LTV for all Residential cases.
AVM's available up to £250k on remortgages and unencumbered properties only, not for purchases
£995 to £1,495 depending on scheme selected. Can be added to the loan above max LTV except at 90%.