From this page you can view our lending criteria for our Prime Second Charge Mortgage range in an alphabetical list. Visit our documents section to download your copy of our Criteria Guide.
We will consider 100% of the applicant’s net income providing the applicant is in a professional role and has been in the same continuous employment for at least 12 months. This income will need to be evidenced by way of:
All payslips provided as evidence of income must be original or certified copies. Where the applicant’s payslips are of a basic standard such as typed, word processed, SAGE, Iris or are internet produced, we will require the applicant’s bank statements.
We will consider on a referral basis and acceptance will be dependent on use of the annexe.
The maximum number of applicants for a loan application is 2.
Where the marital status is stated as separated, evidence of this should be obtained, particularly where the person who does not reside at the security address has a poor credit history. We will require evidence from the representing solicitor or documentary evidence from the courts to be satisfied of the separation prior to proceeding. The property must be in the sole name of the applicant only.
AVMs by Hometrack are acceptable in the following situations, subject to a minimum confidence score of 5:
Properties in England and Wales
Properties in mainland Scotland
We will consider 100% as additional income. Payslips will be required to show the payments being received. These must be regular and a consistent amount each month
We will consider 100% Carers Allowance as additional income, providing it is being received for someone who is party to the loan. The latest annual statement or entitlement letter must be obtained and provided together with the applicant’s last 3 months’ consecutive bank statements showing the payments being received.
The most recent statement must be dated no more than 5 weeks from the Binding Mortgage Offer issue date.
As a guide, our maximum adverse levels are:
CCJs: None in the last 12 months
Defaults: None in the last 12 months
Mortgage arrears: None in the last 12 months
Unsecured arrears: Highest arrear - 1 in last 12 months providing currently up-to-date
We will consider cases that do not meet our minimum credit score requirements on a referral basis subject to the score not having been affected by credit impairing issues.
We will consider 100% Child Benefit as additional income where the applicant is currently in receipt and where the child is no older than 12 years of age at the time the Binding Mortgage Offer was issued. We do not require any evidence of receipt.
Child Benefit cannot be used if the applicant’s gross income exceeds £50,099.99 unless evidence that the applicant is paying the ‘High Income Child Benefit Charge’ is provided.
Please refer to www.gov.uk/child-benefit for details on current payment rates.
Applicants working in construction as a Construction Industry Scheme (CIS) contractor are acceptable and will be assessed as self-employed and the relevant income verification will be required.
Please refer to ‘Income verification (self-employed)’.
Properties of non-standard construction will be considered on a case-by-case basis providing they are confirmed as mortgageable by the surveyor.
Wimpey no-fines and Laing Easi-Form construction types are acceptable with no additional LTV restrictions.
We will consider 100% of the applicant’s net income and will require the following as evidence:
Minimum time in current contract is three months, with a history of contracting over last 12 months and any industry will be considered.
To calculate the gross income, multiply the day rate by 5 days and then by 48 weeks (this needs to be in line with bank statement credits and will work off the lower of the two) and the ‘Listen to taxman’ website is to be used to calculate the net income.
First time contractors are acceptable, provided the current contract is in same profession/industry as to which they have been working for the last 2 years. Evidence will be required in the form of a signed letter from the applicant confirming details of their employment history over the past two years.
We will consider 100% Child Tax Credit as additional income providing this qualifies for the full term of the loan. The latest annual statement or entitlement letter must be obtained and provided together with the applicant’s last 3 months’ consecutive bank statements showing the tax credits being received.
The most recent statement must be dated no more than 5 weeks from the Binding Mortgage Offer issue date.
We will accept applications where the loan is being used for debt consolidation purposes. The loan proceeds must be enough to redeem the debt(s) being consolidated. We will require a fully completed and signed Debt Consolidation form confirming the information for each item that is to be cleared. These details must be consistent with the information on the credit search.
For consolidation loans, we will consider the recency of any secured or unsecured commitments and repeated debt consolidation as this may indicate financial distress. An explanation will be requested from the applicant, where appropriate, regarding the presence of other higher risk factors.
Any occupier over the age of 17 years and 11 months at the time of the Binding Mortgage Offer issue date, will be treated as an adult financial dependant unless advised otherwise.
We will consider 100% DLA/SDA as additional income. The latest annual statement or entitlement letter must be obtained and provided together with the applicant’s last 3 months’ consecutive bank statements showing the payments being received.
The most recent statement must be dated no more than 5 weeks from the Binding Mortgage Offer issue date.
We will accept a drive by valuation up to 85% LTV and a maximum net loan amount of £300,000, subject to the maximum LTV for the product.
Where the applicant(s) is employed by a family member, payslips being used as proof of income must be supported by bank statements evidencing the last 3 months’ salary credits, subject to no shareholding in the company.
We will consider ex-council flats up to a maximum LTV of 60% subject to a full internal valuation. The minimum property value considered is £150,000 together with a maximum net loan amount of £100,000.
Ex-council flats in a block with more than 5 storeys are unacceptable.
We use an automated expenditure model directly in our affordability assessment.
Further supporting information will be requested by way of the last 2 months’ consecutive bank statements for any sole or joint current accounts used by the applicant(s) where:
It is important to note that whilst we use an automated expenditure model, there are certain types of miscellaneous expenditure not covered by the model, so all applicants must declare their committed expenditure for these items (where applicable) and this will be added to the automated monthly figure
These areas of miscellaneous expenditure are: Ground Rent/Service Charge, Maintenance/Child Support, School/University Fees and Childcare/Nursery fees.
Employed applicants only: Pension contributions (where not shown on the applicant’s payslip or verified elsewhere) will be deducted at a rate of 3% of allowable gross income and will be included in the income calculation
We will consider properties with a flying freehold element less than 25% of the gross floor area subject to no adverse comments in the valuation report.
We will consider lending behind a mortgage lender where:
Applicants must have permanent rights to reside and be a UK resident.
We will consider 100% foster care allowance as additional income, on a referral basis only.
We will require a copy of the contract held with the Local Authority or fostering organisation, the latest SA302 along with the tax year overview that corresponds with the SA302 and the last 3 months’ consecutive bank statements showing the payments being received.
As part of GDPR it is important that all applicants and intermediaries are aware of how we use personal data. Please select the relevant Privacy Notice.
We are unable to consider guarantors on any loan application.
In all cases we will try to electronically verify the identity of the applicant. On occasions this is not possible, and E-ID fails on the identity check, we require a certified copy of the applicant’s photographic identification. One of the following items is acceptable
All identification must be certified by the face-to-face introducing, advising or master broker who has had sight of the original document in the presence of applicant. The person certifying must include their full name, FCA number and signature. The certification must include the include the following statement: ‘I certify that this is a true likeness of the applicant (stating their full name and title) and I have seen the original document’
For non-UK issued documents, the following certifiers are acceptable:
We require a copy of the applicant’s signature identification in all cases. One of the following items is acceptable:
All applicants must be UK based and in receipt of taxed income in Sterling GBP. There is no minimum income threshold.
Unacceptable income types includes:
We will consider 100% of the applicant’s net income and will require the following as evidence:
All payslips provided as evidence of income must be original or certified copies, we do not accept handwritten or amended payslips. Internet payslips will be accepted where full PDF versions are provided, the URL address is visible and the applicants have given consent for us to contact their employer, if required. Where the applicant’s payslips do not show the URL address or if the payslips are of a basic standard such as typed, word processed, Sage, IRIS, bank statements will be required to support the payslips. The bank statements (including internet statements) can be filtered to only show salary credits.
We will consider 100% of the applicant’s net income and will require the following as evidence:
The SA302 will show the calculations for both Income Tax and National Insurance which are both to be deducted to leave the net income.
SA302 tax calculations are acceptable where they have been printed from the HM Revenue and Custom’s (HMRC) online services or where the applicant or their accountant uses commercial accounting software to file the applicant’s tax return.
We will consider 100% Incapacity Benefit as additional income. The latest annual statement or entitlement letter must be obtained and provided together with the applicant’s last 3 months’ consecutive bank statements showing the payments being received.
The most recent statement must be dated no more than 5 weeks from the Binding Mortgage Offer issue date.
Independent Legal Advice will be required in the following instances:
Interest is calculated daily on a capital and interest basis and is compounded monthly.
Payments are made monthly in arrears.
These can be considered on a case by case basis, subject to evidence of implementation of a professional treatment plan with an insurance backed guarantee
Acceptable loan purposes include:
For unacceptable loan purposes, please refer to the Criteria Guide for further details.
We will consider lending on residential properties in located England, Wales and mainland Scotland.
The minimum net loan amount is £5,000
The maximum gross loan amount £500,000. All loan amounts are net of fees except for loan amounts of £500,000, which must include all fees. Gross loan amounts greater than £500,000 may be considered by referral.
Maximum LTV 85%
Please refer to the Product Guide for further details.
| LTV | LTI |
| 0-85% | 6x |
Where pension income is the only source or is the majority of income, the LTI will be restricted to 4.5x.
We will consider 100% maintenance/CSA as additional income providing this has been court ordered. We will required evidence of income by way of official documents and the last 2 months’ consecutive bank statements confirming the payments received.
The applicant must qualify for the maintenance/CSA payments for the full term of the loan.
We will consider 100% income and require the following:
The minimum mortgage history required is 12 months. Where the applicants have been renting within the last 12 months, a rental reference from a reputable letting agent or a copy of the current AST together with supporting bank statements is acceptable.
Private landlords are not acceptable.
We will consider loan applications from UK and EU Nationals residing in the UK. Tiered Visas are not acceptable. However, these may be considered on a referral basis if we are not using the applicant’s income and the main applicant is a UK resident.
A Binding Mortgage Offer is valid for 30 days from the date of issue.
Any occupier:
This is not a requirement in Scotland.
We will consider lending to applicants who have made use of payday loans and this will be assessed individually. We will not lend if there has been any recent use, or a regular, heavy reliance on them.
We will consider 100% private pension income and will require the following as evidence:
Or
We will consider State Pension and require the DWP State Pension letter issued within the last 12 months or the latest bank statement identifying payment received from DWP.
Where the pension income is the only source or makes up the majority of income, the loan to income (LTI) will be restricted to 4.5x. Where it does not make up the majority, the LTI will be restricted to the product limit.
Ex-council houses and flats still within their pre-emption period will be considered. The outstanding years remaining of the discount must be factored into the LTV calculation. The current year will be ignored for LTV purposes.
A copy of the Right to Buy Section 125 documentation showing the council value, discount given and length of pre-emption must be supplied.
Private leasehold flats above commercial premises are acceptable up to a maximum LTV of 65%, subject to the premises not being a restaurant or food outlet and a full internal valuation.
The minimum property value requirement is £70,000.
The following types of property are not considered acceptable security:
Please note this is not an exhaustive list. Please refer to the Criteria Guide for further details.
In all cases, we require proof of residency to cover the last 3 years. Where the applicant is not registered on the electoral roll, one of the following items (certified as ‘original seen’) will be required to prove residency at the declared address(es) for the missing period in the last 3 years (internet bills are not acceptable):
The loan must be secured on the applicant(s) primary residential address which must be in the UK and already have a first charge secured against it. The property must be of a mortgageable condition prior to the Binding Mortgage Offer being issued.
Power of Attorney is not acceptable.
We will consider rental income as additional income for an applicant who has buy to let mortgages and will require evidence of the rental receipts with the applicant’s last 3 months’ bank statements along with a fully completed Assets and Liabilities form.
To calculate the rental income, please refer to the ‘Rental Income Affordability Calculator’ on our Online Mortgage Portal (DJ).
If the applicant has less than 4 BTL properties, please complete the ‘Non-portfolio landlords’ calculator, and the ‘Portfolio landlords’ calculator, if the applicant has 4 or more BTL properties.
The annual income will display on the calculator and if this is a positive figure, this can be added in the ‘Net rental income’ field on the Applicants Details page of the Online Mortgage Portal (DJ). This figure can also be entered in the gross annual income field.
If the annual income displayed is a negative value, this cannot be used for income purposes and will need to be added as an additional item of expenditure.
If SA302s are provided, we will consider using but will work off the lower of the rental calculator or SA302.
All loans are offered on a capital and interest repayment basis only.
Each applicant is required to provide satisfactory proof of residency for the last 3 years
Retentions are not acceptable. Our loan assessment will be based on the current value of the property, which must represent suitable security.
If the loan term takes the applicant beyond the age of 67 years old or they declare an earlier retirement age, an explanation must be provided to confirm how they intend to maintain the loan payments for the duration of the loan.
At the time of application, if the applicant is within 10 years of their planned or standard retirement age of 67 (whichever is lower), we will require evidence of how they intend to maintain the loan payments for the duration of the loan.
Please refer to the Criteria Guide for further details.
All sole traders, sub-contractors and applicants holding 25% or more of the issued share capital of a company will be classed as self-employed. The minimum time in self-employment is 12 months.
Applicants must be UK based and in receipt of taxed income in Sterling GBP.
Provided the property is mortgageable and saleable and no retention is given, it is not usually necessary to obtain any specialist reports.
Specialist mining reports are not required.
Properties where solar panels are owned outright are acceptable.
Properties with solar panels installed where there is a lease in place for the roof space are unacceptable.
May be requested subject to valuation recommendations.
Any student loan payments showing on the applicant’s payslips will need to be included in the expenditure unless taken directly from their income.
May be referred and will be considered on a case by case basis.
A breakdown outlining the schedule of works to be undertaken and costings will be required where the level of work is disconnected from the property value, profile of the borrower and/or condition of the property.
3% will be applied to both first and second charge mortgage payments.
The 3% stress test is not applied to our 5 year fixed rate products and/or when the first charge has more than 5 years remaining on the fixed rate (evidence will be required). In this instance, the stressed affordability will be subject to a minimum surplus of £100 per month.
We will consider 100% income from a second job where evidenced this is both ongoing and sustainable.
We will require either the latest P60 or confirmation from the applicant’s employer that the position has been held for a minimum of 12 months and evidence of this income will need to comply with the standard requirements for employed applicants.
Acceptable tenures include:
The minimum acceptable time in employment is 3 months.
The minimum length of time in the property is 3 months.
We do not currently offer a product for this type of property.
A full internal valuation, drive by or Automated Valuation (AVM) by Hometrack are acceptable.
We will consider a valuation bypass in circumstances where the property has been purchased within the last 12 months and the loan is being used for the purposes of home improvements. The purchase price can be used as the valuation figure for loans up to a maximum net loan of £100,000 up to 75% LTV.
All applicants must be UK based and in receipt of taxed income in Sterling GBP.
We will consider 100% Working Tax Credit as additional income. The latest annual statement or entitlement letter must be obtained and provided together with the applicant’s last 3 months’ consecutive bank statements showing the tax credits being received.
The most recent statement must be dated no more than 5 weeks from the Binding Mortgage Offer issue date.
We cannot consider any applicant who is employed on a zero hours contract.