Lending Criteria – Loan to Value

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

 

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Loan to Value Criteria

These are the maximum LTV and maximum advance limits we apply. If applicants are Lending in Retirement or Lending into Retirement there are LTV caps which over-ride those set in other elements of criteria

Repayment Types

Lending Type Repayment Interest Only
Lending into Retirement 80% 80%
Lending in Retirement 70% 70%
Standard 95% 80%
Shared Ownership 95% Not Permitted
Near Prime 70% Not Permitted
Further Advance 80% Not Permitted
Term ends before or on age 70 95% 80%
Buy to Let 80% 80%
Self-Build/Custom Build – During Construction

Interest only is permitted for a maximum of 2 years. The account will be transferred to a repayment basis 2 years after inception or 6 months following release of the final stage payment whichever occurs first

80% 80%
Self-Build/Custom Build – On Completion

Interest only is permitted for a maximum of 2 years. The account will be transferred to a repayment basis 2 years after inception or 6 months following release of the final stage payment whichever occurs first

80% 80%
RIO n/a 70%

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Purchase – Including First Time Buyers.
Maximum Loan Standard Shared Ownership Near Prime

(inc Shared Ownership & RTB)

Buy To Let Right to Buy
Up to £500,000 Up to 95% Up to 95% Up to 70% Up to 80% 100% of discounted purchase price

Max 70% of valuation

Over £500k up to £750k Up to 70% n/a n/a n/a n/a
Over £750k up to £1m Up to 65% n/a n/a n/a n/a
Over  £1m up to £1.25m Up to 50% n/a n/a n/a n/a

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Remortgage – No Additional Borrowing
Maximum Loan Standard Shared Ownership Near Prime Buy To Let
Up to £500,000 Up to 95% Up to 95% Up to 70% Up to 80%
Over £500k up to £750k Up to 70% n/a n/a n/a
Over £750k up to £1m Up to 65% n/a n/a n/a
Over  £1m up to £1.25m Up to 50% n/a n/a n/a

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Remortgage – Additional Borrowing for Home Improvements

A limit of £30,000 applies to all LTVs over 80% where additional borrowing is required for home improvements.

Maximum Loan Standard Shared Ownership Near Prime Buy To Let
Up to £500,000 Up to 90% Up to 90% Up to 70% Up to 75%
Over £500k up to £750k Up to 70% n/a n/a n/a
Over £750k up to £1m Up to 65% n/a n/a n/a

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Remortgage – Additional Capital Raising
Maximum Loan Standard Shared Ownership Near Prime Buy To Let
Up to £500,000 Unlimited up to 75%

Capital Raising Restrictions apply

See Capital Raising Restrictions in Loan Criteria Section.

Restrict to £15k up to 85%

Up to 95% Up to 70% Up to 75%
Over £500k up to £750k Up to 70% n/a n/a n/a
Over £750k up to £1m Up to 65% n/a n/a n/a

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Further Advances

Self build projects – additional lending is only permitted during the construction/conversion/renovation phase of the project where the project is at risk of not reaching final completion subject to the following:

  • A valuation report
  • A breakdown of works and associated costs
  • All available funds on the account must have been drawn down

Right to Buy – additional lending is not permitted whilst the applicant is in the discounted period.

 

Maximum Loan Standard for Home Improvements Standard for Capital Raising Shared Ownership to Purchase Additional Shares Buy To Let for Home Improvements BTL for Capital Raising RIO for Capital Raising
Up to £500,000 Up to 90% Unlimited up to 75%

Restrict to £15k up to 85%

Up to 95% Up to 80% Up to 75% Up to 70%
Over £500k up to £750k Up to 70% Up to 70% n/a n/a n/a Up to 70%
Over £750k up to £1m Up to 65% Up to 65% n/a n/a n/a n/a
Over  £1m up to £1.25m Up to 50% Up to 50% n/a n/a n/a n/a

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Self-Build and Custom Build – including first time buyers.
Maximum Loan Self-Build

During Construction

Self-Build

On Completion

Custom Build

During Construction

Custom Build On Completion
Up to £500,000 Up to 80% Up to 80% Up to 85% Up to 80%
Over £500k up to £750k Up to 70% Up to 70% n/a n/a
Over £750k up to £1m Up to 65% Up to 65% n/a n/a
Over  £1m up to £1.25m Up to 50% Up to 50% n/a n/a

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RIO

RIO Mortgages have the

  • Maximum loan of £750,000
  • Maximum LTV of 70%

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