Foreign Nationals without indefinite leave to remain
We can consider foreign nationals without indefinite leave to remain where they hold an eligible work visa and have a minimum of 12 months’ employment history.
We can also consider applicants on a spousal visa as part of a joint application.
Applicants on a skilled worker visa or health and care worker visa must be in permanent employment.
The maximum LTV is 95%
We’ll allow additional borrowing, subject to meeting our lending criteria at the time of the new application.
We require a three-year address history for all applicants. For foreign nationals, we don’t set a minimum residency period in the UK, however we do require a minimum of one year’s employment history. We can also consider returning UK expatriates who have been back in the UK for at least six months, provided they have been away for no more than two years.
We can accept applications where documents have been certified by a suitable third party.
We accept applications from advisers applying for their own mortgage.
We calculate affordability based on the property’s rental yield. Full details of our ICR calculation can be found using our Holiday Let Calculator.
We can consider applicants intending to let their property through Airbnb, provided the whole property is rented out and suitable insurance is in place.
We won’t consider applicants that have an “arrangement to pay” registered on their credit file.
We can potentially accept applicants with up to one month’s mortgage or secured loan arrears in the past 12 months and up to a maximum of two months in the past three years. The account must be up to date at the time of application.
We will consider arrears on unsecured credit with a maximum of 2 months arrears in the last 2 years. The account must be up to date at the time of application.
Our Holiday Let mortgages are designed for short-term letting. Assured Shorthold Tenancies (ASTs) aren’t permitted.
We’ll consider this income as part of our affordability assessment. We’ll also consider how sustainable the income is over the mortgage term.
We may consider applicants who have been discharged from bankruptcy for more than six years. Applications will be assessed on a case-by-case basis. Please contact our team to discuss.
We can consider barn conversions, subject to the construction type and an acceptable warranty or architect’s certificate.
We can consider these properties, provided they are let as a single unit and subject to an individual assessment.
We may consider lending on basement flats.
We accept annual bonus payments as an acceptable source of income. We’ll use up to 100% of bonus income where there is evidence of a consistent payment history.
We can accept bonus income as a source of income for affordability purposes. We’ll use up to 100% where there is evidence of a consistent payment history.
We can accept bonus income as a source of income for affordability purposes. We’ll use up to 100% where there is evidence of a consistent payment history.
We can accept bonus income as a source of income for affordability purposes. We’ll use up to 100% where there is evidence of a consistent payment history.
We’ll accept both interest-only and capital and interest repayment methods.
We can potentially consider applicants who have had CCJs registered more than three months ago and less than 12 months ago.
We can’t accept more than one satisfied CCJ to the value of £250 in the past two years.
We can potentially consider applicants that have had CCJs registered in the past three months.
We can’t accept more than one satisfied CCJ to the value of £250 in the past two years.
We can potentially ignore any CCJs which were registered more than 36 months ago. We can look up to the past six years.
We’ll consider this income as part of our affordability assessment. We’ll also consider how sustainable the income is over the mortgage term.
We ignore ‘Child Care Vouchers’ when assessing affordability.
Income must be derived from a current contract with a minimum term of six months and at least three months remaining at the time of application.
We may consider coach houses, provided they don’t span an accessway.
We can consider 100% of commission as a source of income for affordability purposes, subject to underwriter assessment.
We can consider 100% of commission as a source of income for affordability purposes, subject to underwriter assessment.
We can consider 100% of commission as a source of income for affordability purposes, subject to underwriter assessment.
We can consider 100% of commission as a source of income for affordability purposes, subject to underwriter assessment.
We don’t lend on commonhold properties.
We lend on standard construction types. Please refer to our property criteria for further details.
We don’t accept properties situated on contaminated land.
We don’t accept seasonal contracts as a source of income for affordability purposes.
We accept applicants on fixed-term contracts, subject to:
- Having at least 12 months experience in a similar role
- At least three months remaining on their contract at time of application OR a confirmed renewal OR evidence that provides confidence of continued employment.
We’ll consider contractor income paid through an umbrella company.
We assess contractor income using the day rate multiplied by five and then by 48 weeks.
Applicants should have 12 months’ experience or employment in a similar role.
Where there are gaps of more than three months, we’ll require an explanation.
There must be at least three months remaining on the contract, or evidence of a new contract.
We can also consider multiple contracts where there is evidence of experience and a history of managing multiple contracts.
We’ll use 100% of contract income for assessment. We can consider applicants from Day 1 if they have:
– At least 12 months’ experience in a similar role
– A 12 month contract
– A current contract with a minimum of three months remaining at the time of
application
Please note: where there is less than three months remaining in the applicants’ contract, we can still consider if the applicant can evidence a contract renewal or other confirmation that provides confidence of ongoing work.
We’ll accept satisfied CCJs up to a total of £500 within the last three years, or where they were registered more than three years ago with balances over £500. Applicants must have maintained good credit conduct since and provide a satisfactory explanation. Unsatisfied CCJs must not exceed £250 in total, must be more than three years old and no more than six years old.
We primarily assess the property’s ability to service the loan, while also considering the applicant’s ability to withstand short-term rental voids. We’ll review credit files and bank statements as part of our assessment.
We complete both a credit check and a credit score assessment. A hard footprint will be recorded at Decision in Principle stage.
We can potentially accept applicants with criminal convictions.
Please refer to our Lending Support team on 0800 138 9109 for more details.
We can consider Day 1 remortgages, subject to the following:
- The purchase price must not be inflated and must match the original purchase
price - As the Land Registry is unlikely to have been updated, the original
solicitor (used to purchase the property) must confirm that the
charge has been submitted for registration - The completion statement will be required from the solicitor to confirm the
original purchase price. - If the broker or client is using our fee-assisted legal service, this information may need to be provided by a different solicitor to the original solicitors used to
purchase the property.
We can ignore debts that will be repaid before or on completion, subject to underwriter assessment of the applicant’s overall expenditure.
We’ll consider IVAs that have been satisfied for more than three years.
We don’t accept current or unsatisfied Debt Management Plans. We can only accept Debt Management Plans if they have been discharged for at least six years.
We can accept Debt Management Plans if they have been discharged for at least six years.
We can consider applicants with a satisfied Debt Relief Order, provided it was satisfied at least six years ago.
We can ignore communications and utility defaults unless the balance or overall credit conduct gives cause for concern. Satisfied defaults over three years old can be ignored where recent conduct is good. Unsatisfied defaults over three years old can be ignored where the total balance is less than £250.
We can potentially consider applicants who have had defaults registered more than 12 but less than 24 months ago. Providing no more than one default satisfied up to the value of £250 in the past two years.
We can potentially consider applicants who have had defaults registered more than 24 but less than 36 months ago.
We can’t accept more than two satisfied defaults less than or equal two £500 in the past six years.
We can potentially consider applicants who have had defaults registered more than three but less than 12 months ago.
We can’t accept more than one satisfied default less than or equal to £250 in the past two years.
We can potentially consider applicants who have had defaults registered in the past three months.
We can’t accept more than one satisfied default less than or equal to £250 in the past two years.
We can potentially ignore any defaults that were registered more than 36 months ago.
We can’t accept more than two satisfied defaults less than or equal to £500 in the past six years.
We’ll consider this income as part of our affordability assessment. We’ll also consider how sustainable the income is over the mortgage term.
We can potentially consider applicants permitting they have been discharged for at least six years.
We can consider Employer’s Housing Allowance as a source of income for affordability purposes.
We can consider additional duty hours as an acceptable source of income for affordability purposes.
We can consider car allowance as a source of income for affordability purposes, subject to underwriter assessment.
We don’t have a minimum income requirement for contractor applicants.
We can consider future income in our affordability assessment where an applicant is due to start a new role, receive a promotion or receive a pay rise within three months of the mortgage application date.
We’ll accept EPC ratings A to E. Where the property has an EPC rating of E, please refer the case to us before submission.
We don’t accept ground rent exceeding 0.1% of the property’s value. Ground rent must not double more frequently than every 20 years or be linked to the property’s value.
We may consider lending on freehold properties where there’s an estate charge for general upkeep and maintenance of shared areas.
We accept applications from EU nationals with pre-settled status under the EU Settlement Scheme.
We accept applications from EU nationals with pre-settled status under the EU Settlement Scheme.
We may consider an application on ex-MOD properties on a referral basis. Houses must have a minimum value of £200,000.
We can consider returning UK expatriates who have been back in the UK for at least six months, provided a credit history can be identified and they have been away from the UK for no more than two years.
We can potentially accept applicants who are financially associated with persons who have adverse credit.
We accept applications from non-owner occupiers.
We can consider first-time landlords for our Holiday Let range.
We don’t usually lend on properties where the value may be affected by nearby commercial premises, such as food outlets or public houses. We may consider these cases individually, so please contact our team to discuss.
We’ll allow up to 85% LTV on repayment mortgages and up to 75% LTV on interest only mortgages.
We’ll allow up to 95% LTV for purchases and remortgages. Interest only mortgages are capped at 80% LTV and new-build flats at 85% LTV.
We accept flying freeholds where they account for no more than 25% of the property’s gross floor area.
We don’t consider foreign currency as an acceptable source of income for affordability purposes.
We don’t accept foreign nationals living overseas.
Foreign nationals with indefinite leave to remain are assessed under our standard lending policy.
We can consider foreign nationals without indefinite leave to remain where they hold an eligible work visa and have a minimum of 12 months’ employment history.
We can also consider applicants on a spousal visa as part of a joint application.
Applicants on a skilled worker visa or health and care worker visa must be in permanent employment.
The maximum LTV is 95%
We offer free legals on remortgage applications when using Hodge’s nominated solicitors.
We do not consider Grade I (one) listed buildings. However, Grade II (two) listed properties in England & Wales and B or C in Scotland can be accepted on a term mortgage.
We may consider Grade II (two) listed properties in England and Wales, and Category B or C listed properties in Scotland, on a repayment mortgage.
We don’t accept Grade II (two)* listed buildings. Grade II (two) listed properties in England and Wales, and Category B or C listed properties in Scotland, may be considered on a repayment mortgage.
We only lend on properties that are let as a single unit.
We’ll allow up to 95% LTV on repayment mortgages and up to 80% LTV on interest only mortgages.
We’ll allow up to 95% LTV for purchases and remortgages and up to 80% LTV on interest only mortgages.
We calculate affordability based on the property’s rental yield. Full details of our ICR calculation can be found using our Holiday Let Calculator.
We can consider Debt Management Plans that have been satisfied for at least three years.
We can potentially consider applications permitting IVAs have been discharged for at least six years.
We don’t apply a maximum age limit. We welcome interest-only applications that continue into retirement and also offer Retirement Interest Only (RIO) mortgages.
We can consider investment income as an acceptable source of income.
We can consider trust income as an acceptable source of income, subject to underwriter discretion.
We don’t accept properties affected by Japanese knotweed classified as Category 2, 3 or 4 under the RICS Risk Assessment Framework, regardless of any treatment plan in place.
We can consider benefit income where it’s guaranteed for life.
We can consider rental income and may consider up to 100% of rental income.
We accept Large Town Allowance as an acceptable source of income.
We can potentially accept applicants with previous ‘Late Payments’.
We can consider leasehold flats and apartments where the applicants own part or all of the freehold, subject to suitable legal arrangements and a charge over both interests.
We may consider lending on leasehold properties where there is no separate management company.
Houses must have a minimum unexpired lease term of 250 years. Flats must have a minimum unexpired lease term of 85 years.
We lend in England. If the property is in London, please refer to our leasehold requirements guidance.
We don’t offer Holiday Let lending in London due to leasehold restrictions commonly found across the city.
Properties located within a Planning Control Area should be referred to us before submission.
We lend in Wales.
We don’t lend on properties in the Channel Islands.
We lend on properties in England.
We don’t lend on properties on the Isle of Man.
We may consider lending on properties located on the Isle of Wight.
We don’t lend on properties in Northern Ireland.
We don’t lend on properties in the Scilly Isles.
We lend on properties in Scotland. If the property is located on the Scottish Isles, please contact our Lending Support team to discuss.
We lend on properties in Wales.
We don’t lend to limited companies
We’ll allow one lodger, provided they’re not subject to an Assured Shorthold Tenancy (AST).
We can consider London Weighting as an acceptable source of income.
The maximum age at application is 88.
We accept properties with a value of up to £10 million as standard.
The maximum age at application is 88.
We don’t have a maximum age at the end of the mortgage term.
The maximum age at the end of term is 95 years.
The maximum age at application is 88 for both residential and RIO mortgages.
We don’t apply a maximum age at the end of the mortgage term for Retirement Interest Only (RIO) mortgages.
The maximum employment age we consider is 80. For residential mortgages, the maximum age at application is 75.
We require ground rent to be no more than 0.1% of the property’s value and not to double more frequently than every 20 years.
Our maximum loan amount is £2 million as standard.
We offer Retirement Interest Only (RIO) mortgages up to a maximum loan amount of £2 million.
We can potentially accept applicants with up to one months mortgage arrears in the past 12 months and up to a maximum of two months in the past three years. The account must be up to date at the time of application.
We’ll accept a maximum of two applicants per application.
We don’t set a maximum number of bedrooms, provided the property is let as a single unit.
We can consider a maximum of two satisfied defaults less than or equal to £500 in the past six years and no more than one satisfied default less than or equal to £500 in the past two years.
For mail-order or communications debts only, no more than two defaults less than or equal to £100.
We will not consider applicants with unsatisfied CCJs.
We can consider a maximum of two satisfied defaults less than or equal to £500 in the past six years and no more than one satisfied default less than or equal to £500 in the past two years.
For mail-order or communications debts only, no more than two defaults less than or equal to £100.
We can’t consider more than one unsatisfied default with a balance of £100 or less in the last two years for mail orders, communications, or utilities debts only. Defaults for any amount more than two years ago are accepted whether satisfied or unsatisfied.
We won’t consider unsatisfied defaults within the past six years for any other type of account.
We accept ex-public sector flats and maisonettes with no storey limit. Properties with four or more storeys must have lift access.
The following must also be considered:
- They must also have a minimum value of £100,00
- There must be no no communal balconies
- There must be no open communal access
- There must be at least 50% private ownership within the block and development.
We don’t apply a maximum number of storeys, however properties with four or more storeys must have lift access.
We’ll only consider flats without lift access where the building is up to three storeys high.
We offer mortgage terms of up to 40 years on both repayment and interest-only mortgages.
We offer mortgage terms up to 41 years.
We don’t apply a maximum mortgage term for Retirement Interest Only (RIO) mortgages.
All accounts must be up to date at the time of application. We can consider a maximum of two month’s arrears in the past two years. Unsecured loans must have been up to date for the three months prior to application.
Mail Orders and Communications – we have no restrictions on historic arrears but the account must be up to date at application.
Utilities – the account must be up to date at application. Arrears balances under £250 can be accepted. For balances of £250 or more, a maximum of two months arrears in the past two years will apply.
We can consider a maximum value of £500 for satisfied CCJs.
We can consider no more than one satisfied CCJ less than or equal to £250 in the past two years. We can consider no more than two satisfied CCJs less than or equal to £500 in the past six years. We’re unable to accept unsatisfied CCJs.
We will not consider applicants with unsatisfied CCJs.
We can potentially consider the following:
- No more than one satisfied default less than or equal to £250 in the past two years.
- No more than two satisfied defaults less than or equal to £500 in the past six years.
For mail order or communications debts only:
- No more than two defaults up to the value of £100.
We don’t accept properties located close to a mine shaft.
The minimum age at application is 18.
The minimum age for Holiday Let applications is 18.
The minimum age for a Retirement Interest Only (RIO) mortgage is 50. For joint applications, one applicant must be aged 50 or over and the other must be at least 18.
The minimum age of the second applicant is 18.
We require a minimum equity amount of £100,000 for interest only mortgages.
Where Sale of Property (SOP) is the repayment vehicle, the following minimum equity requirements apply:
- Scotland (except Edinburgh and Dundee) and North East: £100,000.
- North West, Yorkshire & Humber and Wales: £120,000
- Rest of UK: £150,000
- London: £250,000
We don’t have a minimum income requirement.
We don’t have a minimum income requirement for interest only mortgages.
Our minimum loan amount is £50,000.
We accept ex-public sector flats and maisonettes where at least 50% of the block and development is privately owned.
The following must also be considered:
- They must have a minimum value of £100,000
- For more than fours storeys or above must have lift access
- There must be no communal balconies
- There must be no open communal access.
We require a minimum property value of £100,000
We require a minimum property value of £100,000
Houses must have a minimum unexpired lease term of 250 years at completion of the mortgage. Flats must have a minimum unexpired lease term of 85 years at completion of the mortgage.
Houses must have a minimum unexpired lease term of 250 years at completion of the mortgage. Flats must have a minimum unexpired lease term of 85 years at completion of the mortgage.
We offer mortgage terms from a minimum of five years.
We’ll allow up to two months’ arrears in the last two years. All accounts must be up to date at application.
We’ll allow up to one month’s arrears in the last year and up to two months’ arrears in the last two years. Accounts must be up to date at application and have remained up to date for the previous six months.
Our mortgage offers are valid for three months.
We don’t accept off-plan new-build purchases.
We may consider AEDIS as an acceptable new build warranty. Please contact our Lending Support team on 0800 138 9190 for more details.
We don’t accept Build Assure as a new build warranty provider.
We can accept Building Life Plans as a new build warranty provider.
We may consider Buildzone as new build warranty provider. Please contact our Lending Support team on 0800 138 9190 for more details.
We may consider Checkmate as a new build warranty provider. Please contact our Lending Support team on 0800 138 9190 for more details.
We don’t accept CRL Management Ltd as a New Build warranty provider.
We don’t accept Global Home Warranties as a New Build warranty provider.
We can accept ICW as a New Build warranty provider.
We don’t accept NHBC Guarantee as a New Build warranty provider.
We may consider Premier Guarantee Scheme as a new build warranty provider. Please contact our Lending Support team on 0800 138 9190 for more details.
We accept a Professional Consultant’s Certificate (PCC) where it follows the UK Finance prescribed format without amendments and is signed by an appropriately qualified consultant (identified in Part 1 of the CML Lenders Handbook).
We may consider Protek as a new-build warranty provider. Please contact our Lending Support team on 0800 138 9109 for full details.
We don’t accept Q Assure Build as a new-build warranty provider.
We don’t accept Zurich Municipal as a new-build warranty provider.
We accept both new-build houses and new-build flats.
Properties above, opposite or adjacent to certain commercial premises may be referred for further assessment.
We can consider cases where an applicant’s related sale does not complete on the same day as their onward residential purchase, subject to underwriter assessment.
We can consider foster care income as an acceptable source of income, subject to six months’ remittances and three months’ bank statements being provided. We’ll also consider how sustainable the income is over the mortgage term.
We don’t accept properties with an overage clause.
We don’t accept properties within 100 metres of high-voltage overhead power lines, pylons, large sub-stations or adjoining local sub-stations. Local low-voltage supply lines found in rural areas may be acceptable.
We allow overpayments, subject to our terms and conditions. Typically, up to 10% of the outstanding mortgage balance can be repaid each year without penalty.
We allow overpayments of up to 10%.
We can consider overtime paid less frequently than monthly as an acceptable source of income. We’ll assess the frequency, consistency and sustainability of the payments. Regular overtime may also be considered.
We can consider up to 100% of regular but non-guaranteed overtime, subject to plausibility. We’ll use the actual amount received, averaged over the last 12 months, and require evidence of consistency during that period.
Applicants can use the property for their own purposes for up to 90 days each year.
We can potentially accept applications from applicants currently in receipt of maternity/paternity pay.
We don’t accept properties undergoing renovation where a surveyor is likely to deem them uninhabitable.
We’ll assess LLP partners in the same way as self-employed applicants. We can consider applicants from day one of becoming a partner in an established partnership where they are replacing an existing partner or joining as an additional partner. Income will be assessed using the latest two years’ partnership accounts and confirmation from the practice accountant or managing partner. Please contact your BDM or our Lending Support team for further details.
We don’t usually offer payment holidays. However, if customers experience unexpected financial difficulties, we’ll consider support on a case-by-case basis. Please contact our Lending Support team on 0800 138 9109 for more information.
We can consider company pension income as an acceptable source of income for affordability purposes (UK sterling only).
We can consider private pension income, including annuities, personal pensions and company pensions, as an acceptable source of income for affordability purposes (UK sterling only).
We can consider income from a self-administered drawdown pension as an acceptable source of income for affordability purposes (UK sterling only).
We can consider income from a Self-Invested Personal Pension (SIPP) as an acceptable source of income for affordability purposes (UK sterling only).
We accept state pension income as an acceptable source of income. This can be based on pension income already in payment or future entitlement.
Our mortgages are portable as standard, subject to the new property meeting our eligibility requirements.
We don’t lend to portfolio landlords. At completion, applicants can have a maximum of three holiday let properties.
Our mortgages are portable, subject to the new property meeting our eligibility criteria.
We can consider applications where a person is acting under Power of Attorney.
We don’t accept applicants who have had a property repossessed.
We allow product transfers up to three months before the end of the current deal period.
We can consider professional landlords who use rental income as their primary source of income.
We don’t accept properties with asbestos or cement sheet roofs.
We don’t accept applications on properties with occupancy restrictions.
We can consider applications on properties purchased at auction.
We accept period timber-framed properties built before 1900, provided the valuer identifies no repair issues.
We don’t require BOPAS accreditation for acceptable non-standard construction types. A BLP Warranty will be required.
We don’t accept British Iron and Steel Federation (BISF) properties.
We accept Precast Reinforced Concrete (PRC) properties where they have been fully repaired under a PRC Homes Ltd guarantee scheme, including adjoining properties in the same block.
We may consider an application on converted church properties.
We may consider Cornish construction properties where a PRC Homes Limited Certificate is available and adjoining properties have also been repaired.
We don’t accept Dutch Barn properties.
We may consider Easi Form Construction properties.
We can accept properties identified as a No Fines or Easi Form Construction and built after 1945 as suitable security. We don’t accept properties identified as No Fines or Easi Form Construction and built prior to 1945 as suitable security. Please contact our Lending Support team on 0800 138 9109 for full details.
We’ll require an EWS1 form where recommended by the valuer and in the following circumstances:
- Buildings of five or more storeys where there’s cladding, curtain wall glazing or balconies vertically stacked above each other and are of a combustible material
- Building of four or less storeys where there is ACM, MCM or HPL panels on the building.
We accept flying freeholds comprising less than 25% of the total floor area. Anything above 25% falls outside our policy.
We may consider properties built using Insulated Concrete Form (ICF) construction.
We don’t accept Large Panel System (LPS) properties.
We accept flat roofs to blocks of flats. We can consider 100% flat roofs subject to valuer’s comments where value and demand are not impacted.
For those flat roofs outside of policy or roofs 30% – 50% flat please contact our Lending Support team on 0800 138 9109 for full details.
We accept standard traditional construction and is considered to be:
- Solid walls built of stone, brick and/or concrete block with a minimum width of – 225mm (excluding finishes)
- Cavity walls built of stone, brick and/or concrete block with a minimum width of – 275mm (excluding finishes)
- Single skin/half brick walls 110 to 150mm thick are only acceptable as long as the walls are within a single storey structures and only contain non-habitable rooms (for
example, a kitchen and/or bathroom), providing there are no obvious signs of structural movement, the roof is traditional and the Valuer does not raise the issue of Building Regulations and Planning consent. Any single skin wall structure above single storey height is normally unacceptable.
We may consider properties where the construction type is modular and POD construction. Please contact our Lending Support team on 0800 138 9109 for full details.
We accept properties with concrete components containing Mundic provided there is a satisfactory Grade A classification report available in accordance with the latest RICS guidelines.
We accept Wimpey No Fines houses, but not flats.
We don’t accept non-repaired prefabricated reinforced concrete properties.
We may consider properties where the construction type is off site manufactured (MMC)
We may consider Potton homes properties.
We accept PRC properties where they have been fully repaired under a PRC Homes Ltd guarantee scheme, including adjoining properties in the same block.
We don’t accept single-skin properties.
We don’t accept steel-framed properties unless they’re purpose-built blocks of flats.
We don’t accept Structural Insulated Panel (SIP) properties.
We accept thatched-roof properties where the valuer confirms no repairs or replacement work is required.
We accept period timber-framed properties built before 1900, provided the valuer identifies no repair issues.
We accept period timber-framed properties, provided the valuer identifies no repair issues.
We accept period timber-framed properties, provided the valuer identifies no repair issues.
We accept period timber-framed properties built before 1900, provided the valuer identifies no repair issues.
We don’t accept tower blocks with cladding. Flats must meet our EWS1 requirements.
We don’t accept wholly-timbered properties.
We may consider Woolaway properties where they’ve been rebuilt under the PRC Homes Scheme and are being mortgaged on a repayment basis.
We don’t lend on properties with spray foam insulation.
Properties above, opposite or adjacent to certain commercial premises may be referred for further assessment.
Properties above, opposite or adjacent to certain commercial premises may be referred for further assessment.
Properties above, opposite or adjacent to certain commercial premises may be referred for further assessment.
We don’t lend on properties bordering Class A5 commercial premises.
We don’t lend on properties bordering Class B commercial premises.
We don’t lend on properties bordering Class C commercial premises.
We don’t lend on properties bordering Class D commercial premises.
We don’t lend on properties bordering Sui Generis commercial premises.
We accept properties with one self-contained annexe where it’s used for short-term holiday lets or occupied by family members of the owner.
We may consider properties with shared access or shared services, subject to underwriter review.
We don’t accept applications where a title split will take place on completion.
We consider joint applications where ownership will be held as tenants in common with unequal shares.
We don’t lend on properties owned by a trust and won’t accept applications from trusts or trustees.
We accept ex-public sector houses and bungalows where more than 50% of surrounding properties are privately owned and the property is worth at least £100,000.
We don’t accept studio flats.
We accept properties being used as a second home or holiday home.
We don’t accept applications on properties intended as a home for a dependant.
We accept properties with large acreage. Where the land is used as a farm or smallholding, acreage is capped at three acres.
We don’t accept retirement, sheltered or age-restricted properties, except for transfers of existing cases.
We accept properties with an annexe, provided the annexe isn’t sublet separately and the property is let under a single booking.
We accept properties with one self-contained annexe where it’s used for short-term holiday letting or occupied by family members of the owner.
We accept properties with more than one kitchen. Properties with a self-contained annexe (which subsequently may have its own kitchen area) may be considered on referral.
We don’t accept properties with restrictive covenants.
We allow debt consolidation up to 90% LTV on capital and interest mortgages, and up to 75% on interest only mortgages.
For remortgages where capital raising is for home improvements, we’ll allow:
- Up to 95% LTV on repayment mortgages
- Up to 80% LTV on interest only mortgages
- Up to 85% LTV for remortgages on new build flats and apartments.
We don’t allow capital raising on a remortgage where the funds will be used to pay a tax bill.
We can consider capital raising on a residential remortgage for the purpose of purchasing commercial property.
We base maximum lending on an Interest Cover Ratio (ICR) calculation. Full details can be found using our Holiday Let Calculator.
We can consider rental income from:
- Buy to Let
- Commercial Let
- Holiday Let
We’ll use up to 100% of the income, subject to evidence through SA302s.
We’ll accept both interest-only and capital and interest repayment methods.
We’ll lend up to 80% LTV. We accept the following repayment strategies: sale of property, endowment, ISA and sale of another property.
We don’t accept retrospective new-build warranties.
We’ll allow a maximum LTV of 75%, subject to the following minimum equity requirements:
- Scotland (except Edinburgh and Dundee) and North East: £100,000
- North West, Yorkshire & Humber and Wales: £120,000
- Rest of UK: £150,000
- London: £250,000 We’ll allow up to 80% LTV on interest-only mortgages, with Sale of Property capped at 75% LTV and a second repayment vehicle used for the remaining 5%.
We can consider income from a second job as an acceptable source of income for affordability purposes. We’ll assess whether both roles are likely to be maintained over the mortgage term.
We can consider applications where self-employed profits have reduced year on year. We’ll use the most recent, or lowest, year’s income for affordability purposes.
We can consider applicants with only one year’s accounts on a case-by-case basis, subject to underwriter discretion.
We can consider applicants with only one year’s accounts on a case-by-case basis, subject to underwriter assessment. Please contact your BDM or our Lending Support team for further details.
We can consider applicants with only one year’s accounts on a case-by-case basis, subject to underwriter assessment. Please contact your BDM or our Lending Support team for further details.
We can consider applicants who have been self employed for 12 months, subject to first-year SA302s or equivalent evidence. We can also consider applicants with less than 12 months’ self-employment where they have moved from employed to self employed work within the same profession and can provide year-to-date income evidence.
We can accept projected self-employed income figures for the latest year where provided by an accountant and supported by the last three months’ bank statements. This is subject to plausibility checks and a full underwriting assessment.
We can consider applications where there has been a recent change in self employed status. These cases are assessed on a referral basis. We can’t consider applications involving a change of business direction or a new company start-up.
We don’t add back accounting deductions when assessing income.
We don’t currently offer self-build mortgages.
We don’t accept the repayment of a director’s loan as an income source for affordability purposes.
We accept salary and dividends as income for self-employed applicants who are limited company directors.
We don’t accept salary and net profit when assessing affordability.
We accept salary and dividends and can also consider retained profits where:
- The applicant(s) are 100% shareholder(s)
- Accounts for the last two years which show the retained profit at the start and end of each tax year. Retained profit is taken as the growth in retained earnings across each financial year (closing vs opened). We calculate retained profit as the average of retained profits.
from the latest and current year - Income remained stable or increasing over the last two years
- We can also consider one year’s figures where the latest year is close to completion and an accountant can confirm the expected profit.
We accept retained profits as an income source where the applicant is a 100% shareholder. We’ll use 100% of the lower of either the latest year’s figure or the average of the last two years.
We accept net profit for sole traders and partnerships as an acceptable source of income for affordability purposes.
We can consider shift allowance as an acceptable source of income.
We can consider applications from sports professionals. Please contact our Lending Support team on 0800 138 9109 for further details.
We can consider standby and call-out payments as an acceptable source of income.
We don’t lend on studio flats.
We can potentially ignore “telecommunications adverse ignored” providing it’s no more than £100.
We don’t accept applicants who are exceeding any agreed overdraft limit and receiving unauthorised overdraft charges.
We may consider properties that have previously been underpinned or undergone significant structural repairs more than five years ago.
We’ll allow up to two months’ arrears in the last two years. All accounts must be up to date at application.
We can consider applicants on a spousal visa as part of a joint application.
Where an applicant has been in the UK for a minimum of two years and has at least 18 months’ employment history, we don’t set a minimum remaining visa term requirement.
We can consider foreign nationals without indefinite leave to remain where they hold a Tier 1 or Tier 2 visa with a minimum of 24 months remaining at the time of application.
Applicants must also have at least one year’s employment history.
The maximum LTV is 95%.
We can consider applicants who hold a Tier 2 work visa.
We can consider applicants on zero-hours contracts on a case-by-case basis, where there is an evidenced track record.