We require security for any mortgage. This means that we will take a first legal charge over your property as security to protect the Society against loss in the event that you fail to meet your mortgage commitments.
All our mortgages are provided subject to status. When you apply for a mortgage with us we will take into account your personal and financial circumstances, the amount you want to borrow and the value of your home. Our decision whether to lend will be based on these factors along with any criteria specific to the mortgage product you have chosen for example if the product has a minimum loan size or specific loan to value criteria.
We will generally be able to lend to you if:
- You are in permanent employment and have been for 12 months or more, or
- You are self-employed and can provide proof of income over a minimum of a two year period
- All applicants must be aged 18 or over, and they must be no more than 75 years old at the end of the mortgage term
- You are a resident in the UK and have permanent leave to remain
- You do not have any County Court Judgements, defaults or arrears recorded against your name within the last six years
- You do not have a bankruptcy or IVA currently registered against your name. We may be able to lend to you if you were previously bankrupt or subject to an IVA, provided that it has been fully discharged/completed for at least six years
We will consider a mortgage to buy any property that meets the following criteria:
- It is in England, Wales, mainland Scotland or the Isle of Skye
- It is of acceptable construction. This generally means built of brick or stone with a tile or slate roof. A mortgage valuation will be used to confirm the suitability of the property
- For leasehold properties there must be at least 70 years remaining on the lease at the time of application
- If you are remortgaging, the property must be your main residence and you must be living in the property
- For purchase applications, the vendor must have owned the property for a minimum of six months
We are unable to offer mortgages for freehold flats, ex-local authority flats in blocks that have more than five storeys in total, or for flats/maisonettes above certain types of commercial premises. The maximum LTV we will consider for flats/maisonettes situated above commercial premises is 75%. If the flat/maisonette is an ex-local authority/housing association property, we will only lend where there is no more than five storeys in the block and up to a maximum of 70% LTV. The maximum we will lend on a **new build/converted apartment is 75% LTV. The maximum we will lend on a **new build house is 85% LTV.
**We define new build as properties that have been built within three years of the mortgage application or are properties to be occupied for the first time. This includes flat conversions where the number of flats in the development exceeds 10.
New FCA mortgage rules
With the Mortgage Market Review (MMR), the Financial Conduct Authority (FCA) has changed the way providers sell mortgages. This is to prevent people from taking out mortgages they can't afford, so they don't fall behind on their payments or lose their homes.
From April 26 2014, all financial lenders and advisors must follow new rules. All mortgage advice given must be based on what you, the customer, can afford. Please read through the FCA's 'Getting a mortgage' leaflet for more information.
To help you understand what you can comfortably afford per month, and the maximum loan we may be able to offer you, we have developed an easy to use affordability calculator.