We do not accept applications from people employed on a casual basis. We do however accept zero-hours contracts, subject to enhanced mandating.

Where an applicant is a child-minder or full-time fosterer they are treated as self-employed.

Where an applicant is a full-time fosterer, any appropriate dependants (including those fostered) should be declared and this, combined with fostering income, will be taken into consideration when reviewing affordability.

The annualised payments on any continuing commitments including shared ownership rent, maintenance that extend more than 6 months beyond the anticipated date on which the Society’s loan is completed are deducted from the ‘qualifying income’. For the purpose of this calculation, credit card commitments must be based on the lower of 3% of the balance outstanding or the required minimum repayment level specified by the credit provider (if known).

Certain properties will be eligible for the Society’s Eco product range. Residential properties which currently have an EPC rating of A or B or BTL properties with a rating of A-C qualify. A copy of the current EPC certificate should be provided during the underwriting assessment.

Applicants must be able to demonstrate a continuous track record of employment or self- employment and, currently, must be either:

•    Permanently employed for the preceding 6 months and have been with their present employer for at least three months unless starting a new job with no probationary requirement or

•    Employed on a contract of a minimum 6 months’ duration, or 3 months’ duration if the applicant can prove that they have had regular contracts over the last 2 years in the same line of work or

•    Self-employed - defined as an individual who controls their own business, such as a Sole Trader, Partner or Shareholding Director (holding in excess of 25% of the share capital) of a company. We would normally expect applicant(s) to be self-employed for a minimum of 1 year

•    Casual Employment – We do not accept applications from people employed on a casual basis. We do however accept zero-hours contracts.

The applicant must complete The Society’s Property Schedule.

 The mortgage debt(s) may be disregarded providing the mortgage is conducted satisfactorily and rental income cover is sufficient, (i.e. the appropriate ICR percentage coverage is met) in accordance with the Society’s assessment process for buy to let applications.

The Society will accept as income the Net rental figure from existing BTLs, provided that this can be evidenced for at least the previous 12 months. Evidence will be required in the form of SA302s or company accounts.

Mortgage lending exposure in any one property development is capped, where practicable, to 25%.

Where this is residential Buy-to-Let or Shared Ownership, a maximum of 25% exposure is allowable in blocks of 4 flats or more. For blocks of 3 flats or less, we will only lend on one property.

Minimum:

There is no minimum loan amount (although at times, some product specific minimum loans may apply)

Maximum:

•    The maximum loan is £2.5 million

•    Loans in excess of £500,000 must be approved by the Credit Committee (excluding further advances that remain in policy)

•    Loans over 80% must be referred to the mortgage indemnity insurers.

We will accept the income that the applicant expects to receive after maternity / paternity leave. Confirmation in writing from the applicant that they intend to return to work must be obtained.

We will not accept applications where income is derived from incapacity benefits, housing benefit, income support and/or job seeker’s allowance unless they are for HOLD mortgage applications. Applications where income is derived from Universal Credits will not be accepted unless evidence can be provided on how any acceptable benefit is derived, exemptions may be made for HOLD mortgage applications.

1.    Flats (up to 5 Storeys)

• Flats are acceptable subject to a maximum loan to value of 90% (or 80% if new build)
• Flats above 5 storeys high are acceptable providing that they were constructed in or after the year 2000 (note: this would include conversions post 2000 where original build was prior to 2000) and are recommended by the valuer as suitable security with satisfactory on-going demand. The maximum LTV is 75%

2.    Studio Flats

• Studio Flats are acceptable subject to no adverse comments from the Valuer and confirmation from the valuation report that demand for the property is good. Although there is no minimum square footage requirement, where this is below 35m2, the application will be subject to enhanced mandating.

Loans may be accepted up to 100% of the discounted purchase price, provided that they do not exceed the Society’s lending limits based on valuation and subject to the loan to value against the full open market value, not exceeding 85%. Additional borrowing is permitted for home improvements only subject to being no more than 20% of the discounted sum. For funds to be released, we require sight of invoices. The loan must be conducted on a capital and interest basis.

All applicants that wish to be included in the mortgage must show on the right to buy documents. Joint applicant sole proprietor is permitted as long as the name(s) to go on the title match the right to buy paperwork. 

Please note that Right to Buy applications are subject to product availability and restrictions may apply.

• Maximum mortgage of 95% of the initial share without mortgage indemnity insurance, minimum share 5%, subject to Mortgage Protection Clause
• The Shared Ownership arrangement must be through a registered Housing Association or Registered Social Landlord
• The borrower(s) must be able to evidence affordability of both the mortgage and the rent payable on the remaining share; with the rent plus any service charge/maintenance costs being deducted as a commitment
• Shared Ownership loans are only offered on a capital repayment basis only, interest only is not available
• If lease does not allow the borrower to staircase to a full 100% of the value of the property the application is not acceptable
• Additional borrowing on shared ownership properties can be considered for the purchase of additional / final shares and for home improvements
• Additional borrowing for home improvements up to 85% of current value of the share owned can be considered. Consent from the Housing Association must be obtained in all cases
• Additional borrowing for non-home improvements, for example, debt consolidation cannot be considered
• On purchase of the final share, mortgage indemnity insurance is required for any amount then owing above 80%, up to a maximum loan of 95%
• Please note that Shared Ownership applications are subject to product availability and restrictions may apply

The full property must be used as a holiday let, therefore properties where individual rooms or sections of the property are let, will not be accepted.

The Society can accept holiday lets on both a purchase and remortgage basis.

Existing BTL assessment rules apply, therefore applications may be assessed on either an ICR or full affordability basis depending on the scenario of the borrower. Borrowers are allowed to use the property for personal use when not rented, the standard BTL condition that denies this should be removed from the offer.

For valuation purposes, the valuer will confirm there is a sustainable market, on the assumption of a 6-12 month AST basis (this is to provide confidence on re-saleability). The valuer will also confirm that there are no onerous restrictions or covenants affecting the usage of the property, e.g. no holiday parks or restricted usage periods.

Properties which include larger acreage of land are acceptable provided there are no farming activities or planning restrictions. The applicants must undertake not to use the land for any agricultural or business purposes. For re-mortgages there must be no tenancies in place.

If the property is for owner-occupation we will consider applications subject to a maximum loan to value of 80%.

We will consider applications where the purchase price is below the market value, subject to the relationship between vendor and purchaser being plausible e.g. parent selling to son/daughter. Any charge placed on the property by a vendor must be subordinate to the Society’s.

The equity must be gifted and not subject to any subsequent charge.

The Society operates a panel management arrangement via LMS.

All details regarding LMS can be found on the Intermediary section of our website.  Go to: 

•    Tools and Downloads

•    Important Documents

•    Conveyancing section

When a Standard Valuation is required it must be independently instructed by the Society. Panel Management is provided by Connells.

The valuation is valid for six months from the date it was carried out. If the valuer confirms valuation remains valid after this period of time it may be used. If confirmation cannot be obtained a new valuation must be instructed.

The minimum packaging requirements for all cases:

•    Fully Completed Application Form on DPR*, along with a signed declaration. (If there are more than 2 applicants, please submit a manual form for additional applicants)

•    3 months of most recent bank statements

•    Fully completed Direct Debit Mandate

•    Two forms of ID for each applicant, one confirming name and one confirming address

•    Latest years P60 & last three consecutive months’ payslips plus possible Employment reference (dependant on LTV)

•    Company Accounts for self-employed (3 years evidence of earnings for self-employed applicants)

•    Valuation fee (including £125 application fee). Please refer to Valuation Fee Scale

*Please ensure that each applicant’s telephone number and e-mail address (if applicable) are keyed into our intermediary portal.

Ad-hoc packaging requirements

•    If applicant has any other properties whatsoever, mortgaged or unencumbered (BTL/resi/holiday home) – completed Property Schedule is required

•    Completed Loan into Retirement Declaration form where term takes applicant over desired retirement age

•    Proof of retirement income is required when applicant is within 10 years of desired retirement age at the time of application

•    Memorandum of Sale of Housing Association for all Shared Ownership cases

•    Right to Buy Notice from Council for all Right to Buy cases

•    Proof of rental payment covering 12 months where applicable. Bank statements are required where Tenancy is not via a Professional

•    Letting Agent or Private Landlord’s reference. A reference alone is acceptable where Tenancy is managed by a Letting Agent

•    Proof of mortgage payments, covering 12 months, where applicable

•    Proof of Deposit

•    Three year’s Proof of Residency if applicant not on Voters Roll

•    LMS declaration form

•    Consent to Mortgage Form is required when there will be any persons residing in the property on completion age 17 or over

•    BTL Supplementary Declaration

All forms/reference templates can be downloaded here.

It is a condition of all our mortgages that buildings insurance is taken out for a sum recommended by the Society and must be maintained throughout the lifetime of the mortgage but does not have to be taken out through the Society.

If the Society does not arrange the insurance the conveyancer is instructed to ensure that suitable insurance starts no later than completion.