LENDING CRITERIA

PROPERTY TYPE
Standard construction.  Houses in England and Wales.

(We do not lend in Scotland or on Flats/apartments at all whether new or old)

INCOME MULTIPLES
4 x main income OR 3.5 x joint - up to 90% LTV

AFFORDABILITY
All residential mortgage applications must satisfy affordability criteria.

An income and expenditure statement requires completion and the loan applied for is stress tested using the following:-

-  Capital and interest repayment method
-  Mortgage term as required (subject to max 25 year term)
-  Interest rate will be at the Society's standard variable rate, currently 5.19%

Note:  This is not required for Buy-To-Let applications.

LENDING LIMITS
Purchase Price/Valuation - whichever is the lower:-

Not exceeding £300,000................................max 90% LTV
                      £300,001 to £350,000.............max 85% LTV
                      £350,001 to £400,000.............max 80% LTV
                      £400,001 upwards..................max 75% LTV

REPAYMENT METHOD
Interest only (no repayment vehicle) available up to 75% LTV subject to a credible repayment strategy.

Capital and Interest available up to 90% LTV.

Part interest only/part capital and interest also acceptable.
 
PERSONAL CREDIT/COMMITMENTS
All existing mortgages and loans/credit cards must have been conducted satisfactorily.

We deduct the annualised monthly payments on loans from income before applying income multiple. 

We use 3% of the total credit card debt to give the monthly amount and then apply the same as above.

APPLICANTS AGE
The Society will normally lend up to an applicant's elected retirement age.  Consideration can be given to extending the mortgage term beyond this date, subject to ability to repay ie. Pension income.

CAPITAL RAISING
Restricted to 75% LTV.

MULTIPLE PROPERTIES OWNED
Applications will be considered where a second property is owned.  A maximum residential loan of 90% LTV applies, providing any other properties owned meet an interest coverage of 125%.  Please ask for further clarification.

HIGHER LENDING CHARGES
For applications over 75% LTV a Higher Lending Charge is payable by the applicants which can be added to the loan provided the total loan amount does not exceed 90% LTV, or the product maximum LTV.  When it cannot be added, it will be payable on completion of the mortgage.

Premiums are calculated as follows - 75%-80% LTV is 3.23%
                                                      80%-85% LTV is 4.08%
                                                      85%-90% LTV is 5.09%


UNACCEPTABLE APPLICATIONS
-  Any type of flats
-  Lending in Scotland/Ireland
-  Adverse Credit

Please note this is not an exhaustive list.