Lending Criteria – Applicant

 
This section of our criteria is all about the applicant. We have broken each element down, please click the required link from the list below to read each element.

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Age

  • Minimum Age: 18 years
  • RIO Minimum Age: 55 years
  • Maximum Age: 80 years at the end of the loan (the mortgage needs to finish before the 80th birthday of the oldest applicant)
  • RIO Maximum Age: no maximum
  • We do not consider earned income beyond the age of 70 years from applicants who wish to work beyond their statement retirement age (We would expect those borrowers whose mortgage terms extends beyond this age to have sufficient pension provision to support the mortgage)
  • The applicant’s plans should be discussed in view of their occupation and reasonability of working beyond state pension age and should be documented

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Address History

  • A minimum of 3 years residential history is required
  • Applicants should be on the electoral role for this period

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Number of Applicants

  • We allow up to 2 applicants on a mortgage application

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Residency Status

  • Applicants must have a minimum 3 years residency in the UK.
  • Applicants must have a permanent right to reside and work in the UK and/or have Settled Status for EU, EEA & Swiss citizens. Pre-settled status is not permitted.
  • The Society will check Settlement Status via the Gov.UK website using a Share Code which the applicant must provide with their application.

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Credit Check

  • We will carry out a credit check on all mortgage applicants

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Acceptable Credit History

Type Standard, Shared Ownership, Further Advance, Buy to Let, Self-Build, Custom Build Near Prime
CCJs A maximum of 1 per applicant for no more than £500 showing on the credit report. Must not have occurred in the last 12 months and must be satisfied prior to application. A Certificate of Satisfaction will be required. Maximum total value of £1,500.00 showing on the credit report (satisfied or unsatisfied).

 

CCJ must not have occurred in the last 12 months.

Defaults A maximum of 1 per applicant for no more than £500 showing on the credit report. Must not have occurred in the last 12 months, must be satisfied prior to application and evidence provided. None in the last 3 months.

 

By consideration only 3–12 months.

Anything over 12 months ignored.

Mortgage/ Rent/ Loan/ Secured/ Unsecured Arrears Below 80% Loan to value

 

A maximum of 3 missed payments in the last 24 months.

Reaching no more than a status 2 at any one time within the 24 month period.

Applicants will need to be clear of any arrears for the previous 12 months.

Above 80% Loan to Value

Need to clear of any mortgage/loan arrears for 24 months prior to application.

Rent

Need to be clear of any arrears for 12 months prior to application.

Mortgage/Loan Arrears

 

No more than 1 missed payment within the last 12 months.

None in the last 3 months.

Missed Payments – revolving credit e.g. mail order, credit cards, mobile phone, overdrafts (using an unauthorised overdraft or exceeding an arranged overdraft/credit card limit) Below 80% Loan to Value:

 

Maximum of 3 missed payments in the last 12 months totalling no more than £500. No missed payments in the last 6 months.

Above 80% Loan to Value:

In addition to the above no account(s) must have had a missed payment status greater than ‘1’ in the 12 month period.

Maximum of 3 missed payments in the last 12 months totalling no more than £500. No missed payments in the last 3 months.
Undisclosed Credit Not acceptable Not acceptable
Pay Day Loans

 

 

Applicants who have entered into a pay day loan agreement within the last 24 months are unacceptable. Applicants who have entered in a payday loan agreement within the last 12 months are unacceptable.
Debt Management Plans (DMP) & Arranged Payments Applicants who have had a previous debt management/arranged payment plan must have redeemed it in full more than 24 months ago. Applicants must not have entered into a DMP within the last 12 months.

 

Where a DMP exists no missed payments within the last 12 months.

Debt Relief Orders Applicants who have had a previous debt relief order must have redeemed it in full more than 24 months ago. Applicants must not have entered into a Debt Relief Order within the last 12 months.

 

Where a Debt Relief Order exists no missed payments within the last 12 months.

Bankruptcy Applications will be considered from discharged bankrupts subject to the applicant being discharged for a minimum of 6 years. Applications will be considered from discharged bankrupts subject to the applicant being discharged for a minimum of 6 years.
IVAs Applications will be considered from discharged IVAs subject to the applicant being discharged for a minimum of 3 years. Acceptable if satisfied for 12 months or more
Repossession Not Acceptable Not Acceptable

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Identification and Verification

Two forms of identification are required for each applicant, one from each of the lists below.

Please note:-

  • The same document cannot be used as evidence of both name and address
  • Documents are only acceptable if they are dated within the period stated
  • Internet statements are not acceptable
  • There are additional ID and Verification requirement for Ex Pat BTL borrowers which are listed here Ex Pat BTL Identification and Verification
Evidence of Name Evidence of Residential Address      
Current Signed Passport Utility bill or certificate from a supplier of utilities or pre pay terms issued within the last 3 months.

 

Mobile phone bills and Internet statements are not acceptable.

Resident Permit issued by Home Office Local Authority tax bill valid for current year
Current Full or Provisional UK photo card driving licence (showing correct address)

 

If not used for address ID

Current Full or Provisional UK photo card driving licence (showing correct address)

 

If not used for name ID

Current full driving licence (old style – showing correct address)

 

If not used for address ID

Current full driving licence (old style – showing correct address)

 

If not used for name ID

Letter from the Department of Work & Pensions

 

If not used for address ID

Letter from the Department of Work & Pensions

 

If not used for address ID

Inland Revenue tax notification Bank, Building Society, Credit Card or Credit Union statement or passbook showing current address issued within the last 3 months.

 

Internet statements are not acceptable.

Credit Card/Debit Card with inlaid holograph

 

(1st 12 digits of the long card number and the 3 digit security code on the reverse of the card are redacted with a marker pen)

Most recent mortgage statement from a recognised lender issued within the last 12 months.

 

Internet statements are not acceptable

  Local council rent card or tenancy agreement within the last 3 months.

All documents must be original or certified copies of documents. Copies of original documents can only be certified by one of the following:-

  • UK Lawyer or Notary
  • Banker
  • Authorised financial intermediary
  • FCA regulated mortgage broker
  • Accountant
  • Teacher or Lecturer
  • Doctor
  • Dentist
  • Minister of religion
  • Postmaster/sub post master
  • Councillor

We will require the certifier to print their name, occupation, professional body that they belong to and contact details on each document/page (in case we need to confirm their status).

Please see Ex Pat Identification and Verification for additional requirements regarding certification

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