Criteria

90% new build lending is available on new build houses only, not new build flats.

Applicants must have a clean credit history, meaning 0 missed payments in the last 3 years.

At least 50% of the owners' total income must be derived from permanent employed income, excluding income received from a director's own limited company and fixed-term or zero-hour contracts.

Applications where the homeowners have no employed income are not eligible for 90% LTV new build borrowing.

Maximum loan and LTI multiples apply.

95% lending is not available on any new build properties.

Applicants must have clean credit history, meaning 0 missed payments in the last 3 years.

At least 50% of the owners' total income must be derived from permanent employed income, excluding income received from a director's own limited company and fixed term or zero hour contracts.

Applications where the homeowners have no employed income are not eligible for 95% LTV borrowing.

Maximum loan and LTI multiples apply.

Properties with an absent or insolvent freeholder are only acceptable in blocks of up to 6 flats. We will also require an appropriate indemnity policy to be obtained on completion.

Properties with land up to 2 acres are accepted.

We don’t currently offer additional borrowing to existing Gen H customers.

Income from guaranteed additional duties or responsibilities is acceptable and weighted at 100%.

We’re required to verify the current address of all of our customers, including owners, income boosters and deposit boosters.

We will attempt to verify the customer’s address using the electoral roll in the first instance.

For deposit boosters, consent must be obtained to run a standalone credit search to collect their electoral roll data. No other credit data will be used.

Where we can’t confirm the customer’s address on the electoral roll, one documentary proof of address will be required.

The following document types are acceptable:

• Bank statement (must be dated within the last 3 months)
• Credit card statement (must be dated within the last 3 months)
• Utility bill (must be dated within the last 3 months)
• Mortgage statement (must be dated within the last 12 months)
• Council tax demand (must be dated within the last 12 months)
• Current full UK/EU driving licence
• Current UK/EU photo provisional driving licence
• HMRC or government issued letter, statement or demand (must be dated within the last 12 months)

Please note:

• Where a current full UK/EU driving licence has been used as proof of identity, it can’t also be used for proof of address.
• Proof of address cannot come from the same source or institution as the proof of identity. For example we would not accept a bank statement and a credit card statement both from HSBC.
• Optional services such as cable TV, internet or mobile phones are not considered to be utility bills.

We will decline applications from customers who, in the last 6 years, have entered or who intend to enter into an administration order.

Adoption allowance is acceptable and will be weighted at 100%. The allowance must be guaranteed.

All owners and income boosters are credit checked. A fully submitted mortgage application will leave a hard credit footprint.

Any individuals that are associated with the owner(s) through continuing linked finances, marriage or civil partnerships must be added to the application as an owner.

Each owner is subject to the same checks, whether contributing to the mortgage or not.

Minimum age

At least one applicant, including sole applicants, must be aged over 21.

All remaining applicants must be aged over 18.

Maximum age

For sole applicants the maximum age at the end of the term is 75.

For cases with more than one applicant, the loan must be repaid by the eldest applicant’s 85th birthday.

We may be able to extend the term beyond an income booster's 85th birthday using our ejector seat. This will be applied automatically by our systems when calculating the maximum term.

Working farms, smallholdings, and houses subject to an agricultural occupancy restriction are not acceptable.

We will accept alphabet shares if they have been paid and can be evidenced on the borrower’s last 2 years’ SA302s.

The average over the last 2 years should be entered under the “Investment Income” field. We'll weight this income at 50%.

An annex is a smaller habitable residence that is separate and self-contained from the main residence. We don't lend on properties with annexes.

We can accept applications with a maximum of 4 owners excluding income boosters and up to 6 borrowers in total including income boosters.

Any individuals that are associated with the owner(s) through continuing linked finances, marriage or civil partnership, must be added to the application as an owner.

Each owner is subject to the same checks, whether contributing to the mortgage or not.

There is no limit to the number of deposit boosters on an application.

We may lend on properties where asbestos is identified subject to the valuer's comments.

We do not lend to asylum seekers.

We will not lend on properties bought at auction.

We won’t lend on any property purchased within the last 6 months. There are no exceptions to this rule.

Income for borrowers in bank work can be considered on a case-by-case basis if the borrower has 12 months’ continuous employment within a similar role.

NHS bank work can be considered on a case-by-case basis if the borrower has 3 months of bank work history.

Key bank work as a zero-hours contract. We will weight bank work income at 100%.

We will decline applications from customers who, in the last 6 years, have entered or who intend to enter bankruptcy or a sequestration order.

We may lend on properties with more than 6 bedrooms. This is determined on a case-by-case basis.

We won’t lend on properties with more than 8 bedrooms.

At least one owner should be in full-time employment.

Benefit income (excluding Universal Credit and Child Benefit) should be evidenced through:

• Latest DWP benefit award statement for the current tax year, and
• Latest month's bank statement

Where the applicant's benefits fluctuate from month to month, take an average over the last 3 months’ payments.

100% of benefit income received by customers is allowable except for housing allowance, which is currently paid as part of Universal Credit.

All forms of tax credits are now paid as part of Universal Credit and can be found on the borrower's Universal Credit monthly statement.

Be mindful not to mistakenly duplicate payments across the benefit income fields.

To be accepted, bonus income must be earned within the last 12 months. Key the full amount and we will apply a 50% weighting.

Evidence required:

• Most recent 2 months’ or last 8 weeks’ payslips showing the bonus income, or
• Latest P60, or
• Annual compensation statement,

and the latest month’s bank statements showing income, expenditure and any rent or mortgage payments.

Only bonus income that has been evidenced will be used.

Where bonuses are received on a biannual, quarterly or more frequent basis, an annualised value should not be assumed and must be evidenced.

Income boosters can either remain on 'standby' or make a regular contribution to the mortgage repayment. If they intend to make a regular contribution please enter this in the Booster contributions field in the affordability calculator and DIP flow. We will use this as part of our affordability assessment and in some cases will mean that the owners can borrow more.

For the most accurate affordability figure please use our affordability calculator.

Please note that we will verify that boosters have sufficient disposable income to make these contributions.

Using dynamic ownership boosters can also opt to accrue equity in the property from their payments.

Note that all applicants, including income boosters, are liable for the full mortgage repayment.

Bursary income is not accepted.

We don’t offer buy for university or student mortgages.

We don’t offer buy-to-let mortgages.

Income from capital gains is not accepted.

Car allowance is acceptable and weighted at 100%. It must be a guaranteed contractual allowance.

Income from a carer’s allowance is acceptable and weighted at 100%. It must be guaranteed.

At least one owner on the mortgage should be in full-time employment.

We don’t accept salaries paid in cash as an income type.

Recent changes in employment type will be considered on a case-by-case basis.

If an applicant has moved from employed or contract work to self-employment, they must have traded for at least 1 year before they apply. This must be shown on their SA302.

All changes to employment type will only be considered where the work remains in a similar role and industry.

Cheque payments may be accepted subject to the borrower’s line of work and a full assessment by our underwriters.

At least one owner should be in full time employment. The benefit must be for the applicant and must be guaranteed.

Child benefits can only be used where no one in the household earns over £50,000 per annum and where the benefit will continue for at least 5 years from the date of the mortgage application. This will be dependent on the age of the children at the date of application.

Proof of child benefit income can be evidenced using the applicant's latest bank statement.

All properties will be checked for cladding by the valuer and may proceed subject to the valuer's comments and, where required, a valid EWS1 form.

We will not accept properties with A3 or B2 rating.

Should the applicant be aware of cladding at the time of application submission, they should speak to the developer or seller to confirm whether an EWS1 is available. Where it is, it should be provided to us. The EWS1 form should be signed and dated within 5 years of the current date.

We won't lend on freehold coach houses.

The only exception is a long-term lease that covers both the flat and the garage related to the flat.

Properties used for home working are acceptable provided no alterations have been made for the commercial use which could impact saleability.

Properties that have been altered, adapted or converted for commercial use, or where there are commercial buildings on the same title – for example, a holiday let or rental cottage – are not acceptable.

Commission can make up a maximum of 50% of each applicant’s income.

Take an average from the applicant’s last 2 months’ payslips. Key the full amount and we will weight the income at 50%.

Commission income can be evidenced using:

• Most recent 2 months’ or last 8 weeks’ payslips, or P60, or
• Last tax year’s March payslip, where the YTD will be used, or
• Relevant payslips showing payments, or SA302,

and the latest month’s bank statements showing income, expenditure and any rent or mortgage payments.

Commonhold properties are not accepted.

Properties with compulsory purchase orders are not acceptable.

Income through the Construction Industry Scheme (CIS) can be considered if the applicant has 12 months’ continuous employment in the same line of work.

This can be from different companies and can be against previous or future guaranteed work. This income is weighted at 100%.

Evidence requirements

To verify income:

• 2 months' payslips or invoices

To verify 12 months continuous employment/income:

• Latest year’s SA302 & TYO, or
• Current contract, or
• Latest annual invoice schedule

Where future employment is being evidenced, a contract showing a minimum of 3 months remaining is required.

Calculating Income

An average of the last 2 months’ CIS payments should be declared, annualised over the full year.

The income should be in line with the contract, latest SA302 or annual invoice schedule. Where there is a large discrepancy, a rationale should be provided.

We typically lend on properties of standard construction which is defined as built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

We may consider properties constructed using nonconventional methods but will be entirely guided by the valuer’s comments and confirmation of the property being suitable security for mortgage purposes.

Generally acceptable construction types include:

• Solid walls of brick or stone
• Cavity outer walls of brick, stone or block rendered within inner walls of brick, stone or block
• Timber framed property with outer walls of brick or stone built 1970 or after
• Timber framed property with rendered outer walls of brick or stone built 1970 or after
• Craft techniques (e.g.Cob) and period timber framed dwellings built prior to 1900
• Roof of slate, tile, thatch or felt; glass roofing may be acceptable where part of an extension
• Laing Easiform post-1945
• Wimpey No-Fines
• PRC dwellings, repaired under a scheme originally licensed by PRC Homes Ltd, where all properties in the same structural block are repaired to the same standard. N.B. All documentation must be contemporaneous with the repair works.
• LPS houses, flats and maisonettes (no more than 2 stories in height), subject to a satisfactory report from a structural engineer.
• ICF is acceptable if adherent to the 2 conditions specified by UK Finance, namely, they must have valid third party product certification and ICF manufacturers must belong to and abide by the requirements of the ICFA.
• Steel framed built after 2000 (flats or houses)
• Modern Concrete framed flats
• Brick and Block Crosswall

Unacceptable types of construction include:

• Properties listed under the Housing Defects Act, unless repaired under the PRC Homes Ltd guarantee scheme, including the subject property and all adjoining properties in the structural block
• Reinforced forms of poured or shuttered concrete construction including Easiform construction, but excluding Laing Easiform from 1945 onwards and No Fines construction, which are acceptable construction types
• Metal clad properties
• BISF
• Steel framed construction built prior to 2000
• Large panel system (LPS) built concrete construction flats and maisonettes (houses, flats and maisonettes of not more than 2-storey in height are acceptable subject to a satisfactory report from a structural engineer)
• Timber/metal framed buildings where the cavity between frame & cladding has been filled with an insulation material post construction
• Pre-1965 softwood timber construction unless of high standard and in a location where there is proven, sustainable demand
• Buildings containing High Alumina Cement Concrete (HACC)
• Walls containing Mundic in Devon/Cornwall built between 1900 & 1960 unless a suitable specialist test of the concrete returns a Grade A rating
• Cranwell Construction
• Scotswood Pine Style
• Reema Construction (Both Reema Conclad and Reema Hollow Panel)
• Woolaway houses
• Concrete Crosswall

Our panel of approved conveyancers can be found here.

If you would like us to consider a new conveyancer for our panel, they must apply to join via our panel manager, LMS. They must also pass the following criteria to be considered:

• A minimum of 100 purchase completions
• A minimum Professional Indemnity limit of at least £2m
• Be regulated by the SRA or CLC
• Conveyancing Quality Standard (CQC) accreditation
• Minimum of 2 partners

Customers can also use Gen H Legal and take advantage of our homebuying bundle products with preferential rates.

Recorded CCJs over £100 are not acceptable.

Satisfied CCJs less than or equal to £100 can be considered where supported by a strong rationale.

CCJs satisfied more than 3 years ago can be considered.

Where any of the owners or income boosters have current formal or informal commitments in place, the commitments must be disclosed following the logic below.

We use Experian data and personal bank statements to verify this information.

Where an instalment loan is present (e.g. a personal loan) the loan payment should be included as expenditure.

Where a customer is looking to consolidate debt as part of our transaction upon completion (remortgage with additional borrowing), all debts must be included.

Where any debts are due to be repaid prior to completion, please inform your BDM of the details. Not doing so could result in the application being referred.

Revolving credit

Where the customer is using a revolving credit facility – such as a credit card or overdraft for everyday transactions – and repays the balance in full each month, the commitment may be excluded where:

• The payment does not exceed the customer net monthly income
• The repayment is covered by income, not by drawing on savings or additional borrowing

This will be verified against the last 6 months payment history confirmed on Experian.

For any standing revolving credit facility balances, 3% of the balance will be included as an expense.

The following policy applies where the customer or someone they are living with has a criminal record:

• convictions for fraud are not accepted
• convictions for minor traffic offences are accepted
• other convictions are accepted only if spent under the Rehabilitation of Offenders Act 1974

We will lend on the lower of the purchase price or current market value as determined by professional valuation.

All applicants are required to complete identity and address verification.

Day rate contractors' income will be calculated as follows:

Annual income = day rate x 5 working days x 46 weeks

Assessment will follow the same process as for fixed term contracts.

Debt consolidation is only available through the broker channel.

The maximum LTV for debt consolidation is 80%.

The amount we may lend would be the lower of £30,000 or 10% of the mortgage. Debts must be keyed prior to repayment as these will be included in our affordability assessment.

Evidence to support the purpose of the loan may be required, considering the size and circumstance of the additional borrowing.

We will decline applications from customers who, in the last 6 years, have entered or who intend to enter a debt management plan.

We will decline applications from customers who, in the last 6 years, have entered or who intend to enter a debt relief order.

Properties with deck or balcony access are acceptable subject to valuer's comments.

A default is defined as an account in a defaulted status.

Recorded defaults over £100 are not acceptable.

Defaults up or equal to £100 can be considered subject to underwriter assessment and approval.

Defaults satisfied more than 3 years ago can be considered.

Deferred shares are not accepted.

A dependent is a person not named on the mortgage application but supported financially by a party to the mortgage.

All child & adult dependants must be keyed for all borrowers (both owners and income boosters).

Where an owner does not evidence income, they should be entered as an adult dependent.

Visit the deposit booster page on our website for more information about the deposit booster proposition.

Deposit boosters help with the deposit in return for a protected financial interest in the property.

This is done through an interest-free loan or an equity loan. Loans can be converted into a gift at any time.

An interest-free loan is a straightforward loan – you get back what you put in.

With an equity loan, the booster's stake increases or decreases in line with the property value.

A booster’s capital is ring fenced to preserve a first-time buyer’s stamp duty status.

We provide the deposit booster legal agreement free of charge and manage the loan repayment.

There is no maximum number of deposit boosters for a mortgage application. Deposit boosters do not need to be UK residents, however, funds from the deposit booster must come from a UK-based bank account and be in the UK for 3 months prior to funds being released.

Deposit boosters must take independent legal advice (ILA) at their own cost before signing the deposit booster agreement.

Requirements for a deposit booster:

• Contact details (phone number, email and full name)
• National Insurance number
• Date of birth
• Latest 3 years of address history
• Details regarding deposit contribution, including amount, source and terms (specifying interest-free or equity stake)
• Proof of identification and address

Checks we carry out (KYC):

• Fraud
• PEP, sanction and media checks
• Address
• Identification
• Source of fund checks (where required)

The following types of deposit are acceptable:

• Savings
• Sale of property or equity release
• Sale of shares or crypto currency
• Inheritance
• Gifted deposit from a family member (a family member is considered to be a close relation defined as a spouse, domestic partner, grandparent, parent, sibling, half sibling, aunt, uncle, cousin, in-law relation or step relation)

Vendor’s deposits are not accepted as a deposit.

Unsecured loans are not accepted as a deposit.

Where deposit funds are coming from overseas, further due diligence checks will be applied.

Where deposit funds are the product of crypto currency trading, please refer to the acting conveyancer for further guidance on acceptability.

Our deposit booster proposition allows friends or family to make a contribution to the deposit in the form of an equity loan or interest-free loan.

Visit the deposit booster page on our website for more information.

We will collect all payments by Direct Debit.

We require Direct Debits to be set up by everyone on the mortgage.

The buying group (both owners and income boosters) decide how payments should be managed.

Income from a Disability Living Allowance is accepted and weighted at 100%. At least one owner should be in full-time employment. The benefit must be for the applicant and must be guaranteed.

We will consider applications on the basis that there is no sign of distress or vulnerability.

We will lend on the lower of the discounted purchase price or current market value as determined by professional valuation.

We don't allow distressed purchases or gifted equity.

Our dynamic ownership proposition can be used on cases where there are multiple applicants (either owners or income boosters).

Dynamic ownership uses the tenants in common legal structure and the home agreement.

Our home agreement acts as a deed of trust to represent everyone’s financial interest in the property. With the home agreement, everyone’s individual ownership stake can be tracked regardless of whether they put different amounts into the deposit or monthly payments.

Individual shares in the property reflect individual contributions towards the deposit and mortgage repayments. This means the ownership structure can change dynamically over time.

Learn more about the dynamic ownership.

Where properties require an EWS1 form, the form should be signed and dated within 5 years of current date and the appropriate rating should be clearly stated.

Early repayment charges are payable if the customer repays the mortgage loan or switches to another product before the end of the initial interest rate. They are based on a percentage of the amount that the customer repays or switches. Early repayment charges will also apply if the overpayment allowance is exceeded.

Early repayment charges do not apply after expiry of the initial fixed rate period.

See sourcing systems for details of current ERCs.

The ejector seat is only applicable to cases with income boosters.

Our ejector seat feature can be used to extend the term by removing boosters part way through the term so they do not exceed our maximum age criteria. We do this by adding a condition to the mortgage. All boosters will be removed at the same time, when the first one exceeds our age criteria. Owners can choose to remove boosters earlier by remortgaging, subject to passing affordability checks at that time.

We calculate how much of the loan will have been paid off by the time the boosters exceed our age criteria, and use this to determine if the owners would be able to afford the remaining loan on their own at that point.

Please note that ejector seat does not always allow the term to be extended to our 40 year maximum. For an accurate term range please get a DIP or contact us.

We'll accept 100% of employed basic income and guaranteed contractual allowances such as a car allowance and London weighting.

Evidence required:

• Most recent month’s or last 4 weeks’ payslips for basic pay only
• Most recent 2 months’ or last 8 weeks’ payslips where any bonus, overtime, commission etc. is evidenced
• Latest months’ bank statements showing income, expenditure and any rent or mortgage payments

Employer housing allowance is acceptable and weighted at 100%. It must be guaranteed.

Ex-local authority properties are acceptable where:

• The value of security exceeds £100k outside London and the South East and £150k inside London and the South East
• The valuer deems the property to be acceptable to most lenders and readily saleable on a owner occupier basis.

London and the South East includes areas I&J using the NUTS definition – see the Region section for more detail.

We do not lend to expats or borrowers who are using a BFPO address.

Expense income is not accepted unless it’s a contractually-guaranteed allowance.

Income from employment at a family business is acceptable where the applicant has been employed by the family business for a minimum of 12 months. 12 months’ bank statements are required as proof.

Where more than 20% of shares in the business are owned, the applicant must be treated as self-employed.

We don’t accept properties subject to feudal ownership.

We accept cases from both first-time buyers and previous homeowners.

Income boosters and first-time buyers

Of our affordability solutions, many first-time buyers find our income booster proposition to be useful.

Income boosters are close family members that go on the mortgage but not the property deed. This boosts the buyer's affordability but protects their first-time buyer stamp duty status.

Learn more about income boosters.

The first-time buyer bundle is now called the homebuying bundle and is available to all customers purchasing a property.

Fixed term contracts can be considered where the applicant has 12 months’ continuous employment within a similar role and industry.

The applicant must have a minimum of 3 months remaining on their current contract at the time of app submission or have a future contract in place.

As proof of income on fixed term contracts, we require:

• Current contract with at least 3 months remaining at time of submission
• Latest 2 months' payslips or invoices

To verify 12 months continued employment, we require:

• 12 months' payslips, or
• 12 months' bank statements, or
• Latest SA302, or
• Latest P60, or
• Previous contracts

We don’t accept properties that are at high risk of flooding due to rivers and/or the sea.

Please use the GOV.UK flood risk checker to check the subject property before submitting your application.

Flying freehold properties are acceptable where:

• It is a feature of local housing, and
• The element of flying freehold is less than 20% of the total floor area.

We don't lend with the use of the Forces Help to Buy.

We don't accept foreign income or income in a foreign currency.

Fostering income is allowable where it is likely to continue for at least 5 years from the start of the mortgage. It will be weighted at 100%.

Where fostering represents the applicant’s primary source of income (i.e. where 50% or more of overall income is derived from fostering) the applicant will be treated as self-employed and self-employed criteria apply. There should be a 2 year track record of fostering.

Where fostering is not the primary source of income a 12 month track record is required

Evidence required:

• Latest 3 months’ bank statements showing income
• Local authority or fostering agency letter or recent statement confirming income, broken down per foster child

Where 50% or more of overall income is from fostering income, the latest year’s SA302 and corresponding TYO will also be required.

Freehold flats are not acceptable. Leasehold flats with a share of freehold are acceptable.

Maximum annual ground rent must not exceed £250 (£1000 in Greater London) or 0.2% of the current property value (new builds restricted to 0.1%), whichever is lower.

Ground rent review period must be equal to or greater than 10 years.

Ground rent should double no sooner than 20 years.

If there is the potential or the ground rent currently exceeds the above limits, it should be reduced to within the required threshold.

This would require a lease variation to include a new clause in the Lease that states that under no circumstances can rent be increased so that it comes within the applicable Assured Shorthold Tenancy (AST) threshold in the Housing Act 1988 (as amended).

We don't allow guarantors, but we do allow income boosters.

We do not offer mortgages with the use of a Help to Buy loan.

We accept applications where the remortgage will also cover the full repayment of the Help to Buy loan.

The maximum LTV for this type of loan is 90%.

We will lend on high rise flats up to 10 stories. Any building over 5 floors must have a working lift.

We will not lend on holiday homes.

Where income from property represents an applicant’s primary source of income (i.e., where 50% or more of overall income is derived from properties), the applicant is considered to be self-employed.

Income from holiday lets is acceptable where it has been received for a minimum of two years and can be evidenced by the latest two years’ SA302s or SA100s and the corresponding TYOs.

We will also require the latest 3 months’ personal or business bank statements showing the holiday let income.

The declared annual income should match that of the latest years SA302 or SA100. Where recent trading has decreased, a rationale should be provided and the annual income should reflect this decrease accordingly.

Holiday let income should be entered as self-employed income with the annual figure matching the latest years SA302/SA100. The property information, such as the address, and annual mortgage expenses should be added under the rental income section with the annual income entered as £0.

We can lend to applicants moving home as long as the property they’re purchasing will be their main residence.

These products are only available to customers who are instructing Gen H Legal to act as a conveyancer for their home purchase transaction.

Gen H Legal can also act on sales. Your customer isn’t obliged to use Gen H Legal for their sale. However, it’s usually in a their best interest to use the same conveyancer for their purchase and sale.

More information on Gen H Legal and their fees is available here.

Should you wish to switch to a different conveyancer prior to receipt of your mortgage offer, you may do so but will no longer be eligible for this or any other products in our Homebuying Bundle. In this case you will not need to re-submit your application, but you will be required to confirm the selection of a new product.

If you are unhappy with Gen H Legal and wish to switch to a different conveyancer following receipt of your mortgage offer, you may do so and your mortgage offer will remain valid until its expiry.

For information on the fees that may be payable by you to Gen H Legal in the event that you terminate their engagement prior to completion of the transaction, please refer to Gen H Legal's Discontinued Transaction Charges.

We don’t lend on house boats.

Identity verification is required for all owners, income boosters and deposit boosters.

Identity verification will be completed using Veriff.

Where this is not possible, an original of one of the following documents must be supplied:

• Current full UK or EU passport – valid and signed
• Current UK/EU photo provisional driving licence
• Current full UK/EU driving licence
• Current year’s HMRC tax code notification
• Current valid and signed overseas passport or identity card

Please note:

Where a current full UK/EU driving licence has been used as proof of identity, it cannot be used for proof of address.

Proof of address cannot come from the same source or institution as the proof of identity. For example, we would not accept a bank statement and a credit card statement both from HSBC.

Optional services such as cable TV, internal or mobile phones are not considered to be utility bills.

Income from an incapacity benefit is weighted at 100%. At least one owner should be in full time employment. The benefit must be for the applicant and must be guaranteed.

Visit the income booster page on our website for more information about the income booster proposition.

We will factor income boosters' disposable income into our affordability calculations to increase the amount we can lend. Please note that we apply additional tests to make sure the owners are not excessively reliant on the boosters.

If you tell us that a booster will be regularly contributing we will factor this into our affordability calculations.

For the most accurate affordability figure please use our affordability calculator.

To preserve a first-time buyer’s stamp duty status, an income booster is not on the property deeds, but they are on the mortgage. This is structured like a Joint Borrower Sole Proprietor (JBSP) mortgage.

Income boosters are subject to the same credit checks, eligibility criteria, and evidence requirements as the owners, as detailed elsewhere in this guide. However our ejector seat feature can be used to extend the term by removing boosters part way through the term so they do not exceed our maximum age criteria.

Only close relatives can act as income boosters. A “close relative” is defined as parents (including step-parents), children (including step-children), grandparents, siblings (including half-siblings and step-siblings), uncles and aunts (siblings of parents only).

Income boosters may choose to contribute regularly to the mortgage repayments or simply be on standby. If they do contribute they can build up a stake in the property using our dynamic ownership feature.

Applicants' interests are protected through the home agreement, our version of a deed of trust. It provides robust legal protection to each individual borrower throughout the term of their mortgage.

Income boosters must take independent legal advice (ILA) at their own cost before signing the home agreement.

Income boosters are not allowed to reside in the property.

Note that all applicants, including income boosters, are liable for the full mortgage repayment.

ILA (independent legal advice) is provided by a solicitor before the customer enters into a financial arrangement to ensure everyone is aware of their obligations, the risks involved, and rights regarding the transaction.

We require both income boosters and deposit boosters to obtain ILA. This is to ensure that they understand their legal obligations and responsibilities as a booster.

More information on this can be found here.

We will decline applications from customers who have entered in the last 6 years or who intend to enter into an Individual Voluntary Agreement (IVA) or Trust Deed.

Interest is calculated on a daily basis but charged monthly on all our mortgages.

We don’t offer interest-only mortgages.

The total balance of the investment divided by the term should be keyed. We will weight this income at 50%.

Evidence required:

• Latest annual statement, or
• Last 3 months’ statements showing investment funds, or
• Latest investment portfolio valuation

We will not lend on investment properties.

Properties with Japanese Knotweed Management Category A – C are unacceptable.

Properties with management category D may be acceptable subject to adherence to RICS guidance and on the basis there is no impact on future salability.

Income boosters are our version of JBSP. You can ask your BDM for more detail.

We will not lend on a property where there is more than one kitchen.

We don’t offer mortgages with the use of the LIFT scheme.

Leases must have at least 85 years unexpired term on commencement of the mortgage with a minimum of 50 years remaining at the end of the term.

We will accept properties with an extension to the lease, but extensions will need to be confirmed by the solicitor prior to completion and meet the above length requirements.

We will accept applications where a management company is in place. We only accept leasehold properties where the freeholder or management company has no connection to our customers.

Let To Buy applications are acceptable as long as the existing residential mortgage is changed to a BTL mortgage. We will need to see a copy of the BTL mortgage offer BEFORE our offer is issued. The BTL must be drawn down before Gen H completes on the mortgage. We will not accept any consents to let. Where a current residential property is being converted to a LTB, we will not accept any future rental income.

Income from a limited company is accepted and weighted at 100% where an applicant has been trading for 2 years or more.

If the applicant has a shareholding of less than 50%, we would accept dividends and director's salary for the affordability assessment.

If the applicant has a shareholding of 50% or more, we would use director's salary and share of net profit for the affordability assessment.

We will check the net profit for the company to ensure that the applicant’s income is sustainable.

Where the business has made a loss in any of the last 2 years or the business’s net worth has been negative in the last 2 years the application will be declined.

We will not accept dividends where the applicant’s drawings exceed the net profit of the business for the latest year. Where the dividends exceed the net profit, we will only accept the share of the net profit for our affordability calculations.

Evidence requirements:

• Last 2 years’ SA302s with their corresponding Tax Year Overviews
• Last 3 months’ business bank statements showing consistent income in line with the latest year’s submitted figures and to evidence trading through COVID
• Latest month's personal bank statements showing income and expenditure
• 2 years’ worth of limited company accounts certified by a suitably qualified accountant

Where annual accounts are required, they must be finalised, submitted to Companies House and signed by a suitably qualified accountant.

The accountants qualification must be verifiable through the association's or institute's website. We will not accept certificates alone.

Acceptable Accountants Qualifications:

• Institute of Chartered Accountants in England & Wales – A.C.A or F.C.A
• Institute of Chartered Accountants of Scotland – C.A (Chartered Accountant), A.C.A.S or F.C.A.S
• Institute of Chartered Accountants in Ireland, also known as Chartered Accountants Ireland – C.A (Chartered Accountant)
• Association of Chartered Certified Accountants – A.C.C.A, F.C.C.A, A.A.P.A or F.A.P.A
• Association of Authorised Public Accountants – A.C.C.A, F.C.C.A, A.A.P.A or F.A.P.A
• Chartered Institute of Management Accountants – A.C.M.A or F.C.M.A
• Certified Public Accountants Association – A.C.P.A or F.C.P.A
• Association of Accounting Technicians – M.A.A.T or F.M.A.A.T
• Association of International Accountants – A.I.A or F.A.I.A [not FAIA (acad)]
• Chartered Institute of Taxation – C.T.A (Fellow), F.T.I.I (Fellow), C.T.A or A.T.I.I
• Institute of Financial Accountants – A.F.A (Associate) or F.F.A (Fellow)
• Chartered Institute of Public Finance & Accountancy – C.P.F.A.

AAT can be accepted where the firm or another accountant from the firm holds one of the above acceptable qualifications.

We will take the latest year's salary and dividend as evidenced by the latest 2 years’ SA302s, corresponding TYO and the latest 3 months’ bank statements.

A partner must have a minimum of 2 years as an employee or equity partner or shareholder.

We do not lend on grade 1 listed properties.

Grade 2 listed properties are considered on a case-by-case basis where the building is in a good state of repair and no negative comments are made by the valuer.

We use a model to determine applicants' living costs. We do not require this information to be keyed.

Our model is based on ONS data and the number of adults and dependants in each household. Each month the rate of inflation applied to the ONS data may be amended.

We will only consider residential mortgage loans for either purchases or remortgages for properties that will be an owner’s main residence (excluding income boosters).

We don’t offer bridging loans.

We don’t offer loans to purchase or remortgage second residential properties.

Our minimum loan amount is £25,001.

Our maximum loan amount is £1,000,000.

Larger loans may be considered as exceptions with referral to the Credit Director.

Loans may be subject to a lower maximum LTV for certain property types or LTVs.

The maximum loan-to-income ratio is 5.5x gross income.

The following additional restrictions apply:

• For LTVs above 85%, LTI is capped at 4.49x.
• If the primary borrower is self-employed, the LTI is capped at 4.49x.

Non-new build properties

The following table shows the maximum amount we can loan by LTV, property type and region for non-new build properties:

*Lending to 95% LTV is allowable where the application meets additional criteria.

London and the South East includes areas I&J using the NUTS definition – see the Region section for more detail.

New build properties

The following table shows the maximum amount we can loan by LTV and property type for new build properties:

**Lending to 90% LTV is allowable where the application meets additional criteria.

Remortgages

LTV is limited to 90% for all remortgages. Further limits apply to remortgages with additional borrowing.

We currently only lend in England and Wales.

We can lend to locum doctors. Locum income is acceptable and weighted at 100%.

We’ll use their income as found on their tax return for the affordability assessment.

If the customer wishes to let a room in their property to a lodger consent must be obtained from us prior to the agreement.

A maximum of one room can be let. Only one individual lodger is permitted.

The lodger must meet the following definition of an 'excluded occupier':

• they live in the main home of the owner
• they share a kitchen, bathroom or living room with the owner
• they cannot have exclusive possession of the room that they are staying in. For example if the owner only has a key to the room for emergencies the lodger is likely considered to have exclusive possession, therefore this is not permitted.

Income from lodgers is not accepted.

Where the customer is required or is committed to pay maintenance, these payments should be keyed as expenditure.

Maintenance income is allowable if guaranteed by a signed Maintenance Agreement received under court order or Child Support Maintenance agreement. It is weighted at 100%.

Acceptance is subject to:

• Confirmation the agreement will be in place for a minimum of 5 years from the start of the mortgage, and
• A satisfactory track record of receipt evidenced in 3 months’ bank statements

Mileage allowance is acceptable and weighted at 100%. It must be guaranteed.

The gross internal floor area (GIA) of a given property must be a minimum of 30 sqm.

Single borrower (owner)

£18,000 annual minimum income

Joint borrowers

£20,000 annual minimum combined income, including any income boosters

Within the last 3 months, applicants cannot have:

• Any missed mortgage payments
• Any unsecured lending more than 1 month in arrears

Within the last 3 years, applicants cannot have:

• Any mortgage payment more than 1 month in arrears
• Any unsecured lending more than 1 month in arrears, unless the total amount in arrears is £100 or less
• Any unsecured lending more than 3 months in arrears, regardless of the amount

We don't lend on mobile homes.

The minimum term for a Gen H mortgage is 5 years.

The maximum term is 40 years, subject to the applicant’s age at application and the end of the term.

These minimum terms apply for new mortgages or remortgages.

We don’t lend on new build developments where incentives paid to the purchaser are more than 5% of the purchase price.

Where incentives are less than £2,000, the incentive is allowed with no change to lending.

Where incentives are greater than £2,000 but no more than 5% of the purchase price of the property, the value of the incentive will be deducted from the property value when calculating the LTV.

We class any items supplemented by the developer or vendor as incentives, including contributions to deposits.

New build developments are properties built or converted within the past 24 months.

Newly converted properties, completed by a professional and reputable development company, will be treated as new builds. Examples include offices converted into flats or a professional barn conversion.

We don’t accept stage payments on new build properties.

New build certificates

For any property built or converted within the last 10 years, one of the following certifications will be required:

• National House-Building Council Buildmark Scheme (NHBC)
• Zurich Municipal Newbuild Scheme
• Zurich Municipal Rebuild Scheme
• Premier Guarantee for Private and Completed Housing
• Build Assure (FMB)
• Building Life Plans Scheme
• Buildzone
• LABC Warranty
• LABC Warranty Scheme
• ICW Warranty Scheme
• One Guarantee Warranty Scheme
• Castle Ten/Checkmate
• Global Home Warranties
• Protek
• Q Assure
• Advantage HCI
• Architect’s Certificate*

*The Professional Consultants used must have one or more of the qualifications listed in the CML Handbook 6.7.4 National.

New build valuations

Valuations can be assessed using the floorplan provided by the builder and the plot map. The market value is derived from that plus comparable property information. A reinspection may be required where:

There are significant changes from the floor plan reviewed by the valuer, The valuation is more than 180 days old and therefore expired, or It has been specified by the valuer within the original valuation report

The reinspection fee is £75.

If the borrower is due to start their new role during the application process, we will need to see a copy of their signed contract, their first payslip and corresponding bank statement.

Where the applicant is a Foreign National, the applicant must be a UK resident who is entitled to live and work in the UK.

We define UK Residency as an individual who is registered for, and pays, UK tax and has either:

• UK citizenship
• EU settled or pre-settled status
• Indefinite Leave to Remain
• UK Spousal visa (5 or 10 year route), where applying in joint names and where at least one borrower on the application has permanent right to reside in the UK

All Foreign Nationals are required to have a minimum of 3 years’ address and credit history within the UK and have current active UK credit.

Where applicants do not meet the above requirements, e.g. have not been in the UK for 3 years or where they have entered on a visa, the following criteria will be applied:

• At least one customer on the application must have permanent right to reside in the UK as defined above
• Applicant's credit profile must evidence 2 years residence in the UK.
• Loan to Value (LTV) must be up or equal to 80%
• The combined income on the application is at least £100,000. As this is the combined income of all applicants, it does not need to be the income of the applicant who does not have permanent right to reside.

The applicant must have one of the following Visas:

• Skilled Worker (previously known as Tier 2)
• Health & Care Worker
• Senior or Specialist Worker
• International Sportsperson
• Ancestry Visa
• Spousal Visa (5 or 10 route), where applying in joint names

Document requirements

Leave to remain in the UK and all visas outlined above must be evidenced by a stamp in the Customer’s passport or Biometric Residence Permit showing indefinite rights to remain. This includes “indefinite leave to remain”, “indefinite leave to enter” or “no time limit”.

Where an applicant has EU Settled or Pre-Settled status, we will require the applicant's immigration status online gov.uk share code. The code provided lasts for 30 days and enables us to view their immigration status.

Where any of the above documentation cannot be provided, we may require a Home Office letter to verify the applicant's current residential status.

No exceptions to the above documentation are permitted.

We do not lend on properties in Northern Ireland.

Income boosters and deposit boosters are not permitted to reside in the property.

Any occupiers – defined as individuals residing or due to reside in the security – not associated with the owner(s) through continuing linked finances, marriage or civil partnership, such as adult children (17+), must be disclosed and must complete an occupancy waiver form.

Any occupiers associated to the owner(s) through continuing linked finances, marriage or civil partnership must be included as an owner in the mortgage application.

Occupier's consent and postponement deed

This document must be signed by every person aged 17 or over who will occupy the property after the mortgage is completed and who is not a party to the mortgage.

Occupier's Consent and Postponment Deed.pdf

Please note: we will not be able to issue a mortgage offer without this document signed and returned to us.

Our offers are valid for 180 days.

We don’t accept properties with overage clauses.

Annual overpayments can be up or equal to 10% of the mortgage’s balance at the start of the current fixed rate period. If the borrower exceeds this limit, an Early Repayment Charge (ERC) will apply.

We do not accept overseas applicants.

Income from overtime is acceptable. Key the full amount and we will weight the income at 75%.

Take the average overtime income from the last 2 months’ payslips.

Evidence required:

• Most recent 2 months’ or last 8 weeks’ payslips, or
• P60, or
• The last tax year’s March payslip, where the YTD will be used, or
• Relevant payslips showing payments, or
• SA302

and latest months’ bank statements showing income, expenditure and any rent or mortgage payments.

We define an owner as an applicant who will be party to the mortgage and live in the property.

We will accept 100% of the borrower’s returning employed income where the applicant will be returning to work within 12 months of the application being submitted.

The customer should evidence how they are able to cover the reduction in income and that they have sufficient resources in place to maintain their financial commitments for the parental leave period.

Self-employed customers taking parental leave will be reviewed on a case-by-case basis.

Child dependents must be declared along with any known future additional expenses.

Evidence requirements:

Returning within 3 months

• Letter from the employer confirming the return to work date, the return basis – i.e. part time or full time – and the returning income
• The latest payslip prior to the commencement of parental leave, as per income evidence policy, or an employer’s letter confirming the employment terms of their parental leave
• The latest payslip showing parental leave pay

Returning within 3 to 12 months

• Letter from the employer confirming the return to work date, the return basis – i.e. part time or full time – and the returning income
• The latest payslip prior to the commencement of parental leave, as per income evidence policy, or an employer’s letter confirming the employment terms of their parental leave
• The latest payslip showing parental leave pay
• Evidence of savings to cover any income shortfall

Savings in addition to any parental leave pay will be required to cover all expenses.

Where the builder or developer is purchasing the customer’s existing residential property, part-exchange transactions are acceptable. The value of the property should be reflective of market value.

Pay increases are acceptable and must be confirmed by the employer. Increases must be within a reasonable timeframe and will be reviewed by our underwriters.

We will need to see evidence by way of a payslip showing the increased income prior to completion.

Any customer with active payday loans within 6 months will be declined.

We don't offer payment holidays on our mortgages.

If a borrower has taken a payment holiday on secured debt or a current mortgage, they must be back to repaying in full instalments by the time they apply.

On unsecured debt, we will decline the case if the payment holiday was taken in the last 6 months.

We will accept 100% of state, private, group, occupational and pension annuities, including SIPPs. We do not accept pensions held in trust.

We can potentially consider self administered drawdown pension income. We will need evidence that the pension pot remaining is sufficient to cover the term of the mortgage. Please speak to your BDM for further information.

We don’t accept income from permanent health insurance.

Personal independence payments are acceptable and weighted at 100%.

At least one owner should be in full-time employment. The benefit must be for the applicant and must be guaranteed.

Work done by the piece and paid at a set rate per unit is acceptable and weighted at 100% where:

For employed applicants:

The applicant must have a 12-month employment history within the same role. The latest P60, 3 months’ payslips and bank statements will be required to verify income.

The lower of the annual income on the latest P60 or annualised income from the latest 3 months’ payslips should be declared as the annual income.

For self-employed applicants:

The applicant must have 2 years’ trading history. The last 2 years’ SA302, TYOs and the latest 3 months’ business bank statements will be required to verify income.

The lower of the annual income seen on the latest SA302 or annualised income from the latest 3 months’ business bank statements should be declared as the annual salary.

Shorter terms of employment or self-employment may be reviewed where the individual is a skilled worker or professional.

Our mortgages are not portable.

Previous BTL or HMO use is acceptable where:

• the property is being purchased for residential use only,
• positive valuer comments are received, and
• any change of use agreements are completed on or before completion.

Customers in the first 6 months of employment are considered to be in a probationary period.

Where an applicant is within a probationary period, the following are required:

• Confirmation that the customer is guaranteed to become permanently employed (e.g. contract or letter showing a completed probation period), or
• 12 months' track record within a similar role or profession, evidenced through contracts, bank statements, payslips, a P60 or an SA302.

At the end of a fixed-rate period where there are no material changes to the mortgage, a product switch will be allowed without an affordability assessment.

Product switches are only available where there are no material changes to the loan. A full new remortgage application needs to be submitted if there are changes to term, changes to the customer group (including removing an income booster), or if additional borrowing is required.

The process to product switch an existing customer is quick and straightforward. To get started please email your BDM a maximum of 180 days before the end of the customer's current product period. Additional documentation or assessment will not normally be required.

You should advise your client and help them to select a suitable new product. Details of current retention products are available via your sourcing system or on our website.

Customers in the following situations are not eligible for product switches:

• Active consent to let
• Renting a room to a lodger, except with our permission and where any conditions we impose continue to be met
• Customers in arrears
• In breach of our Terms & Conditions
• Remaining mortgage term less than period of the new product
• Mortgages offered under the Help to Buy scheme
• Leasehold properties with less than 50 years left on the lease at the end of the mortgage term

If any of the funds being used for the deposit have been gifted to the owner(s), we will require a gifted deposit letter to be completed by the gifter.

Any other proof of deposit documentation is only required when requested. The acting conveyancer will always complete thorough checks in regards to the deposit funds.

Where the deposit funds are coming from overseas, documentation will be required and further due diligence checks will be applied.

Where the funds are being received from a high risk country, we may choose not to proceed.

Where the deposit funds are the product of cryptocurrency trading, please refer to the acting conveyancer for further guidance on acceptability.

We don’t accept properties that will be held in trust on/after completion.

It is acceptable if the property being purchased is currently held in trust.

Other charges, such as rent charges, will be reviewed on a case by case basis and should be entered under “Other”.

The valuer will always be asked to confirm whether the annual property charges would affect property suitability and marketability as part of the mortgage valuation.

Where we are advised of an impact, we may choose not to proceed.

The maximum property value we lend on is £3,000,000 or up to £5,000,000 on referral.

The minimum property value we lend on is £75,000, with a few exceptions.

Exceptions:

• The minimum value of a studio flat that we’ll lend on is £100,000.
• The minimum value of ex-local authority/MOD/housing association properties that we’ll lend on is £100,000 outside London and the South East (LSE)* and £150,000 inside LSE.
• The minimum value of properties in proximity to commercial premises that we’ll lend on is £100,000 outside LSE and £150,000 inside LSE.
• The minimum value of freehold properties converted into flats that we’ll lend on is £100,000 outside LSE and £150,000 inside LSE.

London and the South East includes areas I&J using the NUTS definition – see the Region section for more detail.

We will only consider properties within a close proximity to commercial premises where:

• The minimum valuation exceeds £100,000 outside London and the South East (LSE) and £150,000 inside LSE, and
• The valuer’s comments are positive and recommend the property as suitable security

London and the South East includes areas I&J using the NUTS definition – see the Region section for more detail.

We will not consider these properties where any of the following factors apply:

• Where the valuer deems the property to be unsuitable on the grounds of noise, smell or danger to health and safety,
• Where the valuer advises the location of the property is likely to attract antisocial behaviour,
• Where the valuer cannot recommend the security and believes the location materially impacts future saleability, or
• Where a property is in close proximity to or within influencing distance of food outlets, public houses, nightclubs, licenced premises, takeaways, shops selling perishable foodstuffs, petrol stations and large or predominantly industrial locations.

Some of our lending criteria is different in the London and South East regions. We use the NUTS / ITL definitions for regions.

The London and South East regions approximately correspond to the following counties:

• Berkshire
• Buckinghamshire
• East Sussex
• Greater London
• Hampshire
• Isle of Wight
• Kent
• Oxfordshire
• Surrey
• West Sussex

Our systems will determine the region from the supplied postcode and apply the correct criteria. To lookup the region for a postcode you can also use the tool below:

The purpose of additional borrowing must be genuine and legal. We don't support speculative investments.

Maximum LTVs

Standard new business maximum LTVs per property type, region and loan amount also apply.

LTV is limited to 90% in the following scenarios:

• Remortgage only
• Remortgage and transfer of equity (i.e. buying out another owner)
• Remortgage and staircasing to 100% shared ownership*
• Remortgage and repay Help to Buy loan*
• Remortgage and repay shared equity loan*
• Remortgage and non-structural home improvements
• Remortgage and capital raise for lease extension or purchase of freehold.**

*Must staircase to full ownership.

**Must meet minimum lease criteria. Based on pre-lease extension value.

LTV is limited to 80% in the following scenarios:

• Remortgage and capital raise for gift to a relative – limited to £10k unless for a house deposit for a close relative
• Remortgage and capital raise to purchase a BTL property
• Remortgage and capital raise to purchase a timeshare – limited to £20k and 1 drawdown only
• Remortgage and capital raise to purchase consumer goods – limited to £20k
• Remortgage and capital raise for school fees –1 drawdown only
• Remortgage and capital raise to repay 2nd charge
• Remortgage and capital raise for debt consolidation – limited to lower of £30k or 10% of mortgage, and affordability assessment must assume debts are not repaid
• Remortgage on unencumbered property – only for buying out partners

Unacceptable loan purposes

The following borrowing types are not acceptable. This list is not exhaustive.

• Accident, sickness and unemployment premiums
• Business purposes
• Tax bills, e.g. unpaid self-employed corporation tax
• Court fines
• Illegal activity
• Speculative purchases, including currency speculation e.g. cryptocurrency, gambling, stocks and shares
• Transfer of title where the transferor(s) are bankrupt and/or the purpose is to avoid payment of their liabilities to creditors
• Where the purchase application is part of an assignable contract

Acceptable types of additional borrowing include:

• Staircase to 100% shared ownership
• Repay Help to Buy Loan
• Repay Shared Equity Loan
• Purchase of Timeshare
• Purchase of a Buy to Let Property
• Purchase of second home or holiday home
• Home improvements, specifically, non-structural improvements to a habitable property, such as a new kitchen or bathroom, central heating, replacing double glazing, decoration, essential repairs, or maintenance to the property, etc.
• Purchase lease extension
• Purchase of freehold
• School fees
• Debt consolidation (broker channel only)
• Remortgage on unencumbered property (e.g. buying out another owner)

We don’t accept rent to buy schemes.

Where income from property represents an applicant’s primary source of income (i.e., where 50% or more of overall income is derived from rental properties), this will be treated as self-employment.

In cases where the rental income makes up less than 50% of the customer's total income, we will include the income as long as it can be evidenced clearly by the latest 3 months’ bank statements.

Key the full amount and we will weight it at 83%.

We will require the following for each of the rental properties:

• Address of property
• Outstanding mortgage balance
• Total annual rental income
• Total annual mortgage repayment

Where there are other associated costs relating to the property, such as management fees, they must also be declared or offset against the income.

All loans must be taken on a capital and interest repayment basis.

We do not accept interest only mortgages.

Any retention up to £5,000 – subject to the valuer’s comments – will be acceptable, and the case will be allowed to proceed to full drawdown.

We won’t lend on properties where the valuer recommends a retention of more than £5,000.

We do not accept applications where all borrowers are retired at the time of completion.

We do accept applications where all borrowers are due to retire within the term of the loan.

Planned retirement age must be keyed and cannot exceed 75.

Underwriters will assess whether the planned retirement age is reasonable for the line of work, e.g. in the case of physically demanding roles.

Maximum age limits apply.

We don’t lend on retirement flats.

Currently retired

If any of the borrowers are currently retired, the appropriate pension income fields should be completed.

Please ensure that any retirement income such as rental income or investment income (not including pensions) are also entered under the appropriate fields.

Evidence requirements

For a private pension:

• Last three months’ pension payslips (if paid more frequently than monthly, 3 months’ equivalent payslips), or
• Latest pension statement or annuity letter, and
• Last three months’ bank statements

For a state pension:

• Latest DWP state pension letter, or
• Latest bank statement

Retiring within 10 years

If any of the borrowers are retiring within the next 10 years, their expected retirement income must be entered. We will use the lower of the expected retirement income or the current income in our affordability calculations.

The expected retirement income entered should include all income received after retirement age at the appropriately weighted amount.

Evidence of pension such as an annual statement, latest pension projection and/or SIPP valuation will be required.

Where the retirement income is coming from other sources such as rental properties or investments, please refer to the relevant page.

Retiring in over 10 years

If any of the borrowers are retiring in 10 years or more but within the mortgage term, proof of pension contributions or funds will be required:

• Evidence of pension contributions on payslips or a pension pot

We don't accept right to acquire schemes.

We don't accept right to buy schemes.

We do not lend on properties in Scotland.

We don’t lend to seasonal workers.

We will not consent to second charges.

Can be considered where basic hours do not exceed 60 hours a week, in which case income will be weighted at 100%. Any hours completed over 60 hours a week will be classed as overtime and weighted at 75%.

We don’t accept properties with a section 106 that restricts resale.

The property must be located in England or Wales and have an indisputable title without onerous covenants, restrictions or burdens on the title which adversely affect the value of the property or its future marketability as a private residence.

We don’t accept properties with a section 157.

We don’t lend on self builds.

We define self employed applicants as those who:

• Are operating as a sole trader/partnership, or
• Are a shareholding equity partner in a Limited Liability Partnership (LLP) where they have been in continuous employment with their firm for a minimum of two years as an employee or partner/shareholder, or
• Have a shareholding of 20% or more in a limited company. This is the combined shareholding of all customers on the mortgage application who are associated with the same business.

We require proof of the latest 2 years’ trading for all self-employed applicants, but we use the latest year’s accounts for our affordability assessment.

For all self-employed applicants, we will require the latest 3 months’ bank statements showing trading (business or personal) to ensure that current earned income is consistent with that of the latest accounts and SA302.

Where the trading has reduced, we will reduce the income accordingly.

The maximum LTI is 4.49 where the primary borrower is self-employed.

Service charges must not exceed 1% of the value of the property.

We will proceed with properties where there is a share of freehold as long as the share is equally divided by the number of dwellings. The underlying lease should meet our leasehold criteria.

We don't lend on any type of shared equity scheme such as Help to Buy. We will offer remortgages with additional borrowing for the purpose of buying out another owner.

We do not lend on any type of shared ownership scheme for purchases.

Income from shift allowances is acceptable and weighted at 100%. It must be guaranteed and evidenced across a minimum of 2 payslips or invoices.

Solar panels are acceptable where owned. Leased solar panels or where the valuer comments that the saleability of the property would be affected are unacceptable.

The business must:

• Be registered in the UK,
• Have been trading for at least 2 years, and
• Provide tax calculations dated within 18 months of application

We will take the latest net profit for the affordability assessment where the income is deemed to be sustainable.

Where there have been large increases or decreases in the year-on-year profit or income, please provide us with full details. We may ask for additional documents to ensure income used is sustainable.

Evidence requirements:

• Last 2 years’ SA302s and corresponding TYOs to match the declared income
• Last 3 months’ bank statements (business or personal as appropriate) showing income and consistent trading as per their declared income
• If not used for trading, the latest month's personal bank statement showing expenditure

We will not lend on properties with spray foam insulation.

We don't lend with the use of the Starter Home Scheme.

We don’t accept statutory sick pay.

Due to the temporary nature of stipend income, it will not be accepted unless evidence is provided of a future employment contract.

In these circumstances, the stipend income can be included on the basis that it is lower than the future employed income.

Stipend income is accepted for members of the clergy where the stipend income is guaranteed for a longer term.

Student loan repayments should only be included where they are currently being repaid. Where the applicant’s annual income does not meet the minimum threshold to begin repaying, it should not be included.

We will consider applications where one or more of the applicants is a student.

We will only accept stipend income where a future contract of employment can be evidenced or where received long-term as a member of the clergy.

We will not consider bursaries, student loans or grants as part of their income.

Studio style flats are acceptable where:

• The value is confirmed as being greater than £100k.
• The property has a city centre location
• The valuer confirms that there is a resale demand for such property in the residential property market

We will not lend on any property purchased within the last 6 months. There are no exceptions to this rule.

Income from temporary work is acceptable and weighted at 100%. The applicant must have 12 months’ continuous employment within the role.

We allow cases with multiple owners to choose tenants in common. This can be either with fixed shares in the property, or using our dynamic ownership feature.

Tronc income is acceptable. Key the full amount as overtime and we will weight the income at 75%.

Trust income is only acceptable where:

• The income is in the applicant's name,
• The income and tax paid can be evidenced, and
• It is due to be paid for no less than 5 more years.

Income from an umbrella company is acceptable and weighted at 100%.

This income is treated as employed where tax is paid by the employer, and treated as self-employed where the applicant pays their own tax.

We allow capital raising on unencumbered properties that have been owned for a minimum of 6 months and are registered at the Land Registry for the purpose of buying out another owner only.

In such a case, the max LTV is 80%.

For remortgage cases where the property is either unencumbered or inherited property, proof of property ownership must be obtained.

We do not lend where a property has a unilateral notice on it unless this is removed upon completion.

For a property to be considered an acceptable security for mortgage lending, it must be structurally sound and secure, easy to appraise and immediately habitable as a residential property.

The definition of habitable requires the property to be capable of being lived in with relative comfort. The property must:

• Be wind and weather tight.
• Be plastered out
• Have all services functioning and connected, and a kitchen with:
• Functioning hot and cold-water supply to a sink
• Adequate food preparation and storage facilities
• Have a functioning bathroom with bath or shower and WC, and
• The inspecting surveyor must not have commented that the property in its current condition is deemed uninhabitable.

Universal Credit is accepted with the following restrictions:

• The benefit must be for the applicant and must be guaranteed
• Housing allowance must be deducted
• At least one owner should be in full-time employment

Child Tax Credit should only be included where payments are guaranteed for the next 5 years from date of application.

Required documents:

• 3 months’ Universal Credit statements
• Latest month’s bank statement

Income from working unsociable hours is acceptable but must be guaranteed. It is weighted at 100%.

A mortgage valuation is conducted on all applications to ensure the property is a suitable security. Completion of the loan should take place within 6 months of the original valuation date. We will monitor completions that fall outside this window.

Customers may choose to upgrade their valuation to a Homebuyers Survey.

For valuation fees (if applicable), see the product details in your sourcing system.

We won’t lend on applications using Voluntary Right to Buy.

If you believe your customer may potentially be vulnerable, or is defined as vulnerable as per the FCA’s Guidance on vulnerability, you must notify your dedicated case manager.

✉️ [email protected]

☎️ +44 3308 081791

Income from a Widow’s Pension or Bereavement Support Payment (BSP) is acceptable and weighted at 100%.

Zero-hours contracts can be considered where the applicant has 12 months’ continuous employment within a similar role and industry, and where continued employment can be verified.

We require:

• Latest employment contract
• Latest 2 months’ payslips or invoices

To verify 12 months’ continued employment, we require:

• 12 months’ payslips, or
• 12 months’ bank statements, or
• Latest SA302, or
• Latest P60.