Mortgage Criteria

New build definition:

• A property is to be considered new if it is a first sale by the builder
• However, properties which have not sold on physical completion will be considered on an individual basis

Minimum property value:

• £70,000

Locations considered:

• England, Wales & Isle of Wight

Retentions:

• Not offered

Acceptable property:

• Houses: private and ex local authority or social housing
• Flats & Maisonettes: Private and ex Local Authority. For Local Authority, restrictions may apply dependent on block size and location.

Timber framed construction:

• Modern timber framed properties clad with masonry are considered as acceptable
• Timber framed properties which are not deemed to be of a modern type clad with masonry will be reviewed on an individual basis and will be considered on their merits

Flying freeholds:

• Flying freeholds will only be considered up to 20% of the total floor area

Coal mining and other forms of extraction:

• Any properties with a coal mining or metalliferous mining entry/feature within 20m of any building will not be considered

Electromagnetic fields:

• Any properties within 100m of above ground high voltage electrical supply apparatus will not be considered

Contaminated land:

• Where there is potential for contaminated land, a pass certificate must be available from an appropriate body

Japanese knotweed:

• Where a property has Japanese knotweed (or any other invasive weed) located within or immediately adjacent to the site defined in accordance with the latest RICS guidance, will not be considered

Solar panels:

• Properties where solar panels have been installed and are subject to a lease agreement may be considered. An amendment to the lease may be required

Freehold:

• Houses only. No freehold flats.

Leasehold:

• The lease must have a minimum unexpired term of 85 years at the time of completion

Commonhold:

• Not accepted

Structural reports

Reports may be accepted from members of the following bodies:

•  The Institution of Structural Engineers (www.istructe.org.uk)
• The Institution of Civil Engineers (www.ice.org.uk)

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report.

The valuer may request additional reports from specific governing bodies.

Specialist reports

We may require specialists’ reports. These most commonly will be:

• Timber and damp, electrical, trees, cavity wall ties;
• Mining report (as these are obtained by the solicitors, a special condition is imposed at offer);
• Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer

The valuer may request additional reports from specific governing bodies

General:

• New build properties without suitable warranty
• Properties suffering ongoing structural movement or insurance claims
• Grade I & Grade II* listed properties
• Back-to-back/cluster homes
• Properties located within 20m of a mine entry/feature
• Properties within 100m of above ground high voltage electrical supply apparatus (excluding small substations)
• Properties subject to compulsory purchase orders
• Large flying freeholds (greater than 20% of floor area)
• Japanese knotweed located within or immediately adjacent to the site, defined in accordance with the latest RICS guidance
• Properties without an internal WC, bathroom or kitchen
• Properties subject to any onerous occupancy restrictions, including agricultural
• Shared equity schemes (only acceptable if applicant will own 100% of the interest on completion)
• Properties subject to enforcement notices
• Crofting properties/land
• Self-build properties
• Properties with a commercial element
• Non-standard construction

Flats/Maisonettes:

• New build flats/maisonettes
• Flats with a gross external floor area less than 35m2
• Studio flats
• Freehold flats
• Balcony access

Non-standard construction:

• Pre-cast reinforced concrete (PRC)
• Cast-in-situ concrete
• Metal framed construction
• Single skin
• Large panel systems (LPS)
• Modern methods of construction (MMC)

Flooding:

• Properties at significant risk of flooding or that cannot be suitably insured will not be considered

Restrictive covenants:

• We are unable to consider any property with a restricted occupancy clause within the planning permission. For example, it can only be occupied for a maximum of 11 months in any one year
• Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market
• Please note: for new builds we do consider Section 106 planning obligations
• We are unable to consider properties within a pre-emption period

Defaults:

• None registered in the last 24 months

CCJs:

• None registered in the last 24 months

Mortgage arrears:

• No missed payments in 24 months
• Arrears status of 0 in the last 6 months

Unsecured arrears:

• Fixed Term – Fixed Term Agreements – No missed payments in the last 6 months
• Revolving credit – Missed payments considered

IVA/Bankruptcy:

• Accepted where applicants have been discharged 6 or more years ago

Pay day loans:

• Accepted where the account closed more than 12 months ago

Repossessions:

• Accepted where repossession occurred more than 6 years ago

Debt management plans (DMP):

• Standard range
• Accepted if satisfied over 12 months ago

Please refer to the Shared Ownership product page for further details on each product level.

Maximum LTV:

• Available to 95% Loan to Purchase Price (excluding fees) and 75% LTV

Maximum term:

• 35 years

Minimum term:

• 5 years and 1 month

Maximum Loan:

• Up to £500,000

Acceptable property:

• Houses: Private and ex Local Authority or social housing
• Flats & Maisonettes: Private only

Repayment:

• Interest Only is not available for Shared Ownership applications

Locations considered:

• England & Isle of Wight

Rent Payable:

• The rent payable must be no more than 3% of the value of the property in the ownership of the provider

Ownership:

• The property being purchased must be able to be staircased to 100% private ownership

Leasing:

• The completing Solicitor must confirm that the lease meets our requirements, including
  that it contains all fundamental clauses, the lease must contain a mortgage protection
  clause in the same form as clause 6 of the Model Lease (Houses)/clause 8 of the Model
  Lease (Flats)

Memorandum of Sale/Offer Letter:

• A Memorandum of Sale or Offer Letter from the Housing Association will be required for
  Purchase applications.
• Evidence from the Housing Association of ownership percentage will be required for Remortgage applications. The original Memorandum of Sale is acceptable.

Rent/Service Charge(s):

• The Rent, maintenance and service charge must be included as a commitment on the
  application.

Vendor:

• Acceptable subject to the vendor being a registered Housing Association or Registered
  Social Landlord