Employment

Applicants must have been in 6 months continuous employment.

• Up to 80% LTV – last months payslip and bank statement, please send originals.

• Over 80% LTV – last three months salary / wage slips, or income reference, please send originals. P60 can be used to verify bonus/commission payments.

Self-employed

Sub Contractors and company directors with more than 33% shareholding are classed as being self-employed. If the Accountant is not chartered or certified Self-Assessment terms are required, which must be stamped and verified by the Inland Revenue, or signed off by a qualified accountant.

• Up to 95% LTV – Society’s Accountants Certificate to be completed.Where the length of trading is less we will also consider the following: 2 years accounts, plus 100% of a satisfactory projection – loans up to 95%. 1 years accounts, plus 100% of a satisfactory projection– loans up to a maximum 80%.

Proof of Mortgage Payments

• Up to 80% LTV – latest mortgage statement - we will utilise Credit Bureau Data where available to confirm payment of other mortgages/loans.

• Over 80% LTV – last 12 months proof of mortgage payment on an existing mortgage or last annual mortgage statement if year end statement date is within 6 months of mortgage application.

All Applicants

The following will be required:

1. Proof of identity

2. A bank statement will be required for the last month showing the salary/wage credit.

3. 24 months proof of occupancy (if not on electoral roll).

Second job

Income from a second job can be considered provided the applicant has held both jobs for at least 6 months and the employment can be established as permanent. Applicants must demonstrate they can sustain both jobs.

Application

For individual product fees see overleaf. Please note that application fees for loans of £500,000 are by referral.

Income multiples

Guarantors

Considered for close relationships (e.g. parent and child) where there is a shortfall of income. The guarantor must be able to demonstrate their ability to cover the whole of the advance, plus any outstanding commitments they may have.

Income: other

The following will be taken into account in assessing income:

Buy to Let and Let to Buy

Minimum valuation £50,000, except for London postcodes where it is £85,000 or the South East where it is £70,000.

Maximum loan – 80% LTV.

• Rental income must equate to 130% of mortgage payments calculated on an interest only basis:

• Single tenancy only.

• Tenancy must be assured shorthold tenancy which does not predate the mortgage.

• Private individuals only.

• Buy to let remortgages will be considered.

• A Let to Buy where the owner wishes to let existing property and purchase a new property may be considered.

• A Let to Buy can be considered for a 95% mortgage on a new property.

Shared Ownership

Shared Ownership is for loans on properties purchased through a registered Housing Association. Initial share of 25% must be purchased by the borrower and the maximum loan will be 90% of the borrowers share, up to a maximum 75% LTV. This product is not available in Scotland.

The lease must provide:

For the borrower to acquire further interest in the property up to 100% of the market value.

An adequate mortgage protection clause, protecting the Society from any potential losses.
A clause allowing the Society to exercise the right to purchase 100% of the property and assign the lease. 

Self Build Schemes/Stage Payments

Applicants for self build and stage payments will be considered.

• Maximum ultimate LTV does not exceed 90%.

• Stage payments to be released in up to 5 stages, agreed by a suitably qualified surveyor/valuer (a fee will be charged for each stage re-inspection).

• Finance to purchase land is acceptable as first stage, provided detailed planning permission is obtained and full schedule of cost is available.

• Up to 85% LTV allowed at each stage.Flexible Mortgage

• Payment holidays can be taken after the first 6 mortgage repayments.

• Payment holidays are taken from previous overpayments which have built up.

• A maximum of 6 monthly repayments can be taken as holidays each calendar year.

• The Society’s consent will be required for a lump sum withdrawal. Any lump sum withdrawal will be by way of a Further Advance (for home improvements and over £25,001 for any other purpose) or Secured Personal Loan pursuant to the Consumer Credit Act 1974 (the "facilities"). The Society reserves the right to grant the facilities and makes no representation that such facilities will be made available. The Society may perform a credit check.

Valuation Fees

Relevant fees should accompany the application form.

Current Scale:

Higher Lending Charge Premium Rates

When the percentage loan to value is from 90.01% to 95% the premium rate is 8.95%. The Higher Lending Charge will always be calculated from 75% LTV and will be payable on loans above 90% LTV. The minimum Charge is £250.

Portability

All products are portable if you’re moving (except shared ownership). Therefore, any loan which is immediately replaced by a new mortgage with the Society of at least equivalent value to the loan outstanding at the time of repayment and is maintained at the product rate of interest for the remainder of the product term, can have any repayment fee payable credited to the new account.

PLEASE NOTE:

1. All discounts will be calculated from the Society’s Standard Variable Rate. Following expiry of a fixed, capped rate, tracker or discount period, the interest rate will revert to the Society’s Standard Variable Rate applicable at that time.

2. Loan to value is calculated against the lower of property valuation or purchase price.

3. Payments are to be made by direct debit.

4. A £35 Telegraphic Transfer fee will be payable on all completions.