Lending criteria.

Indicates if we can potentially accept income where it is primarily made up of benefits. An example of this would be where benefit income exceeds earned income or represents more than 50% of total income.

We are not able to accept an application where the income is primarily made up of benefits.

Indicates the maximum income multiple that cannot be exceeded when assessing how much joint applicants are able to borrow. This is the maximum potential income multiple and should just be used as a guide as other factors may reduce this figure.

For sole and joint applications our standard income multiplier is 4.49. If at least one applicant earns £100,000 then the multiplier can go up to a maximum of 5.49x income.

Indicates the maximum income multiple that cannot be exceeded when assessing how much single applicants are able to borrow. This is the maximum potential income multiple and should just be used as a guide as other factors may reduce this figure.

For sole and joint applications our standard income multiplier is 4.49. If at least one applicant earns £100,000 then the multiplier can go up to a maximum of 5.49x income.

Indicates if we can potentially consider borrowers who have had an IVA and if so how many years it must have been satisfied for. An IVA is satisfied when the payment plan has been completed. For example, a home buyer is looking to obtain a mortgage to fund a house purchase but entered into an IVA 6 years ago which consisted of a 5-year plan to repay the agreed amount to their creditors. The plan was successfully completed without any unsatisfactory conduct so their IVA has now been satisfied for 1 year.

IMPORTANT NOTE: An IVA usually stays on the credit file for 6 years from the date it was REGISTERED not from the date it was satisfied which typically occurs 5 years after the date the IVA was entered into (the registered date). 

We can consider applicants who have had an IVA. The IVA must have been satisfied for 3 years. Please note that a maximum LTV of 75% is applicable with a previous IVA.

Indicates if we can potentially consider borrowers who have had an IVA and if so how many years ago it must have been registered. An IVA is registered when a payment plan is agreed with the creditors. For example, a home buyer is looking to obtain a mortgage to fund a house purchase but entered into an IVA 6 years ago which consisted of a 5-year plan to repay the agreed amount to their creditors. The plan was successfully completed without any unsatisfactory conduct so their IVA has now been satisfied for 1 year and was registered 6 years ago. 

IMPORTANT NOTE: An IVA usually stays on the credit file for 6 years from the date it was REGISTERED not from the date it was satisfied which typically occurs 5 years after the date the IVA was entered into (the registered date). 

We can consider applicants who have had an IVA. The IVA must have been satisfied for 3 years.Please note that a maximum LTV of 75% is applicable with a previous IVA.

Indicates if we can potentially consider an application from an applicant who has previously had an Individual Voluntary Arrangement (IVA) registered against them. 

This criteria displays if a person who has had an IVA can be considered on a general level but you should read the policy notes and related criteria carefully to dig deeper with regard to your client’s specific situation.

We can potentially consider applicants up to 75% LTV, as long as the IVA was satisfied at least 3 years ago.

Indicates if we can consider an inter-family application with no discount being offered

We can potentially consider an application from an inter-family sale with no discount being offered

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is the borrowers intention to make periodic lump sum reductions from savings, bonus payments, sale of assets and the like.

We are not able to accept interest only applications where the repayment vehicle is the borrowers intention to make periodic lump sum reductions from savings, bonus payments, sale of assets and the like.

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is from the proceeds of an existing endowment or ISA.

We are able to accept Stocks & Shares ISA and Endowment as a repayment method – Maximum LTV of 70%. Maximum loan to value 50% if already retired.

Indicates if we can potentially accept interest-only lending and if so do we have a minimum equity requirement for interest-only lending.

We will require a minimum of £200,000 equity for interest only lending. If a residential loan contains an element of interest only, the following loan to values apply: Maximum loan to value 50% if already retired. Maximum loan to value 80% if going into retirement (up to 70% on interest only subject to a suitable repayment vehicle, the remainder on capital and interest). Maximum loan to value 80% if ending before retirement (up to 70% on interest only subject to a suitable repayment vehicle, the remainder on capital and interest).

Indicates if we can potentially accept interest-only lending and if so do we have a minimum income requirement for interest-only lending. 

We have no minimum income requirement for interest only lending. We do have a general minimum income requirement for applicants that are retired which is £20,000 as joint or sole requirement

Indicates if we can potentially accept interest-only lending and if so are there any other acceptable assets that we could potentially accept as an acceptable means of repaying an interest-only mortgage. This does not include the standard repayment method like sale of mortgage property, sale of other property, endowments, ISAs, pensions and the other standard methods of repayment.

We are not able to accept other assets as a repayment method

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is intended to be the proceeds from a pension lump sum.

We are able to accept interest only applications where the repayment vehicle is intended to be the proceeds from a pension lump sum.The maximum LTV acceptable is 70%. Maximum loan to value 50% if already retired.

Indicates if we can potentially accept interest-only lending and if so are we able to potentially accept mortgage applications on an interest-only basis where there is no repayment method (pure interest only).

We are not able to accept mortgage applications on an interest only basis where there is no repayment method (pure interest only).

Indicates if we can potentially accept interest-only lending and if so is ‘sale of the mortgaged property’ an acceptable repayment method on residential mortgages.

Indicates if we can potentially accept interest-only lending and if so is the sale of another mortgaged property (Not the security property) an acceptable repayment vehicle for residential interest-only lending.

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is the sale of another mortgage-free property (Not the security property).

Indicates if we can accept Investment Income (not rent) as an acceptable source of income for affordability purposes.

We can accept 75% of the income the portfolio generates.

Indicates if we can accept Rental Income (from a mortgage-free property) as an acceptable source of income for affordability purposes.

We can now accept 100% of the profit from land and property on the clients tax calculations. An average of the last two years figures will be used.

Indicates if we can accept Rental Income (from a mortgaged property) as an acceptable source of income for affordability purposes.

We can now accept 100% of the profit from land and property on the clients tax calculations. An average of the last two years figures will be used.

Indicates if we can accept Trust Income as an acceptable source of income for affordability purposes.

We cannot accept trust income