Frequently Asked Questions For intermediaries

FAQs

Please see below our frequently asked questions - if you have any additional questions please do not hesitate to get in contact with our intermediary team.

England (including Isle of Wight) and Wales.

Residential houses must have a minimum property value of £50,000 if situated within 20 miles of one of the Society’s branch offices, in all other areas the minimum value is £75,000.

Flats (Residential and BTL) must have a minimum value of £100,000.

BTL houses must have a minimum property value of £75,000 if situated within 20 miles of one of the Society’s branch offices, in all other areas the minimum value is £100,000.

Acceptable
Property Types:
Purpose built leasehold flats and maisonettes (6 storeys maximum), standard construction, modern timber framed brick/block infill (post 1970), steel framed (built after 2000), flying freeholds up to 15%, land up to 3 acres (including gardens and property), thatched roofs, flat roofs (subject to satisfactory insurance). Properties built in the last 10 years with any of the following - NHBC, Zurich Municipal, Premier Guarantee, Architects Completion Certificate, Build Zone, Local Authority Building Control (LABC New Home Warranty), Protek Home Warranty and Building Life Plans.


Location:
England (including Isle of Wight) and Wales


New Builds/Newly renovated or converted properties:
Please provide a copy of the Council of Mortgage Lenders (CML) disclosure of incentives form with the application. This is required to evidence any incentives being offered to purchase the property by the developer. If there is a financial incentive, it will be deducted from the purchase price before calculating the maximum loan amount available. A copy of the form is available from the estate agent or the developers.


Auction Properties:
Where a property is being tendered for sale through an auction, a mortgage application can be considered. The application is processed and if acceptable, the mortgage offer must be issued prior to the auction date.

 

Unacceptable
Freehold flats and maisonettes, flats with more than 6 stories, studio flats and houses converted into flats, system built properties registered under the Housing Defects Act 1984, flying freeholds over 15%, properties with residential or agricultural restrictions, properties adjacent or in close proximity to commercial premises, properties owned by current owner for less than 6 months, (unless inherited or part exchanged).

Self-employed applicants must be able to provide at least 2 years accounts/tax returns.

We do offer BTL mortgages for non-homeowners, who will need to meet residential income multiple and affordability requirements in addition to the standard BTL criteria.

No maximum age at term end for residential applications - the following criteria apply:

Maximum age - 75 at maximum 90% LTV
                           80 at maximum 80% LTV
                           80 or over maximum 70% LTV

Where the term takes the mortgage beyond the applicants anticipated retirement age, we will require evidence that they will have sufficient income to continue to support the loan in retirement. 

There is no maximum age for BTL applications.

Our mortgage offers are valid for a period of 3 months from the date that they are issued.  

We do offer regulated BTL mortgages, applicants will need to meet residential income multiple and affordability requirements in addition to the standard BTL criteria.

All mortgage and credit commitments must have been fulfilled satisfactorily. However, we will consider CCJ's or Default's with a cumulative total of £500 or less and satisfied, registered over 3 years ago, with no other adverse credit, and a satisfactory explanation provided – Maximum 75% LTV.

Non EU citizens must have permanent right to reside and have been living and working in the UK for at least 2 years.  

The society does not discriminate against applicant’s who are planning to take, or are currently on maternity/paternity leave albeit that we are still required to ensure that the mortgage is affordable.

We will use the anticipated return to work salary to enable us to calculate the maximum borrowing amount, taking into account any additional childcare costs which may apply at this time.  As income is likely to be reduced whilst on maternity/paternity leave, an affordability assessment will also be carried out using the lowest level of income that they will receive during this period.  If affordability cannot be proven for the maternity/paternity leave, this is acceptable subject to evidence of savings to cover the shortfall of the proposed leave. 

Maximum portfolio of 15 properties, whether mortgaged or mortgage free.

Yes, the maximum LTV on a new build house is 90% and 75% on a new build flat. 

We will require a copy of the CML Disclosure of Incentives form and the value of any financial incentives offered by the builder/developer will be deducted from the purchase price/valuation to produce a reduced value.  The maximum LTV will be calculated using this reduced value, if applicable.