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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.
For applicant(s) that cannot provide evidence of adequate pension income, the maximum age is their stated anticipated retirement age (no greater than 70 years old) or state retirement age, where no anticipated retirement age has been provided.
Additional criteria apply where the mortgage term extends beyond the applicants' retirement age. Please see Lending into retirement.
We require three years' UK address history for all applicants. Where an applicant is not able to provide three years' UK address history, non-UK addresses should be recorded and the case reviewed on its own merits.
We allow up to four applicants on a mortgage application. However, we will only take into account a maximum of two applicants' income when assessing maximum affordability.
Applicants must currently be resident in the UK and have permanent leave to remain.
For non EEA-nationals (excluding Swiss nationals) each applicant must have been granted indefinite leave to remain or a right of abode to live and work in the UK. We will require evidence of two years' residency and employment history in the UK.
Applicants must not hold any level of diplomatic immunity.
We will carry out a credit check on all mortgage applicants as well as additional checks to verify the identity of the applicants. Please refer to our privacy notice for further details.
We will consider applications from applicants with previous CCJs, defaults or arrears, provided they do not exceed the limits in the Credit history matrix.
Standard acceptable limits | FTB acceptable limits | |
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Repossessions | Not acceptable | Not acceptable |
Bankruptcy | Acceptable if discharged for at least 6 years | Not acceptable |
IVA | Acceptable if completed for at least 6 years | Not acceptable |
CCJs in last 6 months | None allowed | None allowed |
CCJs over 6 months up to 3 years | Less than £500 satisfied, less than £250 unsatisfied | None allowed |
CCJs over 3 years old | Considered on an individual basis | Considered on an individual basis |
Defaults in last 3 years
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Less than £500 satisfied | Considered on an individual basis |
Defaults over 3 years
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Less than £1,500 satisfied or not, may be considered on an individual basis | Less than £500 satisfied or not, may be considered on an individual basis |
Defaults in last 3 years
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Less than £500 satisfied, less than £250 unsatisfied | Considered on an individual basis |
Defaults over 3 years old
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Less than £1,500 satisfied or not, may be considered on an individual basis | Less than £500 satisfied or not, may be considered on an individual basis |
Arrears in last year on unsecured debt | 1 month's arrears are allowed | 1 month's arrears may be considered on an individual basis |
Arrears in last 3 years on secured debt | 1 month's arrears are allowed | None allowed |
Two forms of identification are required for each applicant - please see Identification and verification - acceptable documents
All documents used for verification must be originals or certified copies of documents that were originally printed at source and posted to the address of the applicant(s). Copies printed from the internet are not acceptable.
If you have examined the original document, you may certify the copy.
If you have not examined the original document, copies of original documents can only be certified by one of the following:
Copies of original documents should have been certified within the last 12 months using the following words: ‘I confirm that I have seen the original document’. The certifier must sign their name and include the following details - full name, profession, business address (where applicable), phone number and date.
The person certifying should be in current employment, but we will also accept certification from a person who has retired (unless the list above specifically indicates that the person should still be serving), provided they still hold the qualification (and are a member of the relevant institute).
The person certifying must not be related to you in any way e.g. spouse, partner, sibling, parent, child or in-law, and they must not be named as a joint account holder/borrower on your mortgage. You cannot certify your own identification.
Photo proofs must be certified by the intermediary/intermediary admin only, with direct access to the physical document. Standard security checks must be completed of physical documentation. Photo proofs must not be accepted from customers.
*Documents downloaded from the Internet are not acceptable.
Please note, these lists are not exhaustive. Please contact the Intermediary Development Team for further clarification.
Please also refer to the Acceptable sources of income and Proof of income sections.
Type of employment | Minimum period |
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Employed (including Limited Liability Partnerships paid via PAYE) |
Continuous permanent employment for the last 12 months.
No more than one 3 month break in the last 12 months is acceptable. Probation If the applicant is currently in a probationary period, the application may be considered provided the applicant:
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Contracted Personnel (including zero hour contracts) |
Continuous employment in contracting over the last 2 years.
There must be a minimum of 6 months remaining on their existing contract. If there is less than 6 months remaining, this is only acceptable if the employer confirms in writing that the contract will be renewed for a minimum of a further 6 months or provides a copy of the new contract. |
Self Employed - Sole Trader, Partnerships (including Limited Liability Partnerships) and Sub-contractors | The applicant must have owned the business for a minimum of 2 years and be able to provide proof of income over a minimum period of 2 years. |
Directors with less than 20% share in the Company | Directors of limited companies with a shareholding of less than 20% in the company are treated as employed applicants. |
Directors with 20% or more share in the Company |
The Limited Company must have been trading for a minimum of 2 years and the applicant must be able to provide proof of income over a minimum period of 2 years.
To calculate gross annual income, we take the total of the applicant's share of the latest year's net profit of the company after deduction of Corporation Tax (excluding dividends) and their salary. |
Type of employment | Proof of income |
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Employed (including Limited Liability Partnerships paid via PAYE) |
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Contracted Personnel (including zero hour contracts) |
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Self Employed - Sole Trader, Partnerships (including Limited Liability Partnerships) and Sub-contractors |
We will use the latest year's figures to determine income unless the last two years' figures vary significantly, we may require additional information. Latest financial year on documentation should be no older than 12 months at the date of application. The documentation may show a latest financial year up to 18 months old at the date of application when supported with three months' personal bank statements showing income received. Last two months' personal bank statements (first time buyers). |
Directors with less than 20% share in the Company |
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Directors with 20% or more share in the Company |
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Pension Income
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Investment Income
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And/Or
The latest year’s figures should be used to determine income. Latest financial year should be no older than 12 months at the date of application. Three months’ personal bank statements may be required in other circumstances. |
Dividend income where the applicant is retired |
And/Or
The latest year’s figures should be used to determine income. Latest financial year should be no older than 12 months at the date of application. Three months’ personal bank statements may be required in other circumstances. |
We will generally accept the following as sources of income.
The incomes of a maximum of two applicants will be considered.
We will consider more than one source of income per applicant, provided they meet our acceptable income criteria and can be evidenced in line with our standard proof of income criteria.
The following are examples of unacceptable sources of income. Please note this list is not exhaustive. If you are unsure, please call us.
Where an applicant is on maternity/paternity leave, we will use the income that they expect to receive upon returning to work when calculating affordability. We will request an employment reference directly from the employer to confirm this. The applicant's plans to repay the monthly mortgage payment during maternity/paternity leave must be in place at the point of application.
Accountant's certificates should be prepared by an Associate or Fellow of an approved accountancy body:
It is important that all applicants can afford to repay their mortgage before we enter into a regulated mortgage contract with them, and we take a range of factors into account to determine how much an applicant can borrow.
Our affordability assessment aims to ensure that, after the mortgage payment has been made, there is sufficient net income remaining to cover financial commitments and additional outgoings, including general household and lifestyle costs. We will also consider the impact of possible future interest rate increases on the long term affordability of the mortgage.
The actual loan amount will be subject to: a full credit score, affordability assessment, review of current credit commitments and our current lending policy.
Our affordability calculator provides you with both the maximum loan amount and maximum monthly payments, based on your client's individual circumstances. This can be found in the calculators section of our website.
Applicant(s) who are currently employed or self-employed (i.e. not yet retired) and the mortgage will continue when the applicant(s) retire(s) and will have:
The lower of current income or anticipated retirement income (both must be net of any ongoing commitments) will be used to calculate the maximum monthly payment and maximum loan amount.
If proof of acceptable income past retirement age cannot be provided then the loan term will be restricted to the retirement age (maximum age 70). Please refer to applicant age.
If you would like to discuss individual cases in more detail, please call our Intermediary Development Team on 0800 121 7788 (selecting option 2).
Properties must be situated in England (including the Isle of Wight), Wales (including Anglesey) or Scotland (including the Scottish Isles).
Please note: We accept transcribed valuations for residential purchases in Scotland. Transcriptions must be carried out by a valuer on our approved panel and must be no more than three months old at the date of application.
Freehold (also known as Feuhold, heritable or absolute ownership) tenure is acceptable for houses, bungalows and cottages in England, Wales and Scotland.
Freehold (including the previous Feuhold and Heritable Security Tenures) is the only acceptable tenure for properties in Scotland.
Leasehold tenure is acceptable for houses, bungalows and cottages in England and Wales.
Leasehold is the only acceptable tenure for flats and maisonettes in England and Wales.
Leasehold tenure is acceptable provided:
Properties must be built of brick or stone with a tile or slate roof. For flats, we will also accept a flat mineral felt roof. The mortgage valuation will be used to confirm the suitability of the property.
Single skin brickwork is only acceptable for garages and porches provided they are single storey, or a small proportion of the habitable area subject to valuer’s guidance.
We will consider steel framed properties provided that they were built on or after 1 January 1990. The cladding must be predominantly (67%) either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However, areas of less than 33% of the total external wall area formed in these materials may be considered on their own merits provided that the remainder of the walls are constructed of an acceptable material.
Timber framed properties built after 1990 can have up to a maximum of four storeys considered.
Timber framed properties built after 1945. Cladding must be predominantly (67%) of either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However areas of less than 33% of the total external wall area formed in these materials can be considered on their own merits if the remainder of the walls are constructed of an acceptable material.
Timber framed construction built pre 1995 up to two storeys maximum and post 1995 up to four storeys maximum. The outer skin must be predominantly (67%) either brick, concrete block or stone block at all levels.
Please note, the information above outlines our general construction criteria. If you have a specific query, please contact our Intermediary Development Team on 0800 121 7788 (selecting option 2).
Applications where solar power panels are installed on the property being purchased, or remortgaged, are acceptable, subject to the valuer confirming the property is suitable security, and where the solar panels have a lease the acting conveyancer confirms that the lease is acceptable.
Flats above shops are restricted to a maximum LTV of 75% and dependent on the nature of the business, we may not be able to lend at all.
We will not consider a mortgage application for ex-local authority flats or ex-housing association flats:
The loan to value on ex-council or housing association flats or maisonettes is restricted to 70%.
We also will not consider the following:
Maximum LTV, criteria, and definition for new build flats, can be found within new build properties (less than or equal to three years old, or first occupation)
The maximum loan to value for a new build or converted apartment, flat or coach house is 75% 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 ten.
The maximum loan to value for a new build house is 85%.
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.
Any new build properties must hold either:
Second hand properties under ten years old must have been built with the benefit of an acceptable builder's guarantee scheme subject to the following exception:
Where the property was built or converted within the past six years, we will accept the application if it was built with the benefit of a Professional Consultant's Certificate (PCC) where cover was valid for the first six years.
For both new and converted properties the legal representative must confirm:
The vendor of any new property is required to disclose the full value of any incentive in connection with the purchase of the property.
Where we are notified of any incentives, the value of the incentives will be deducted from the purchase price to ascertain the net purchase price. The maximum loan and mortgage offer will be based on the net purchase price.
For purchase applications, the vendor must have owned the property for a minimum of six months.
Our ability to lend may be restricted for properties that are in close proximity or influential distance of commercial outlets. We will take advice from our valuers when assessing the property to be mortgaged.
Applications are not considered where the property offered for security is a self-build property or a self-build conversion, where the construction or conversion of the property is not fully completed at the time of application.
Applications where it is identified that the customer owns more than 10% of the development, in which the proposed property will be located, will not be accepted.
Where there are ten or less properties on the development or estate, if the applicant already owns one or more properties in the development or estate, we will not consider lending under these circumstances.
Properties affected by Japanese knotweed, RICS categories 1 and 2, are acceptable subject to a satisfactory valuation report.
Category 1 – Japanese knotweed was not seen on the property, but it could be seen on a neighbouring property or land where it was more than seven metres away from the boundary.
Category 2 – Japanese knotweed was not seen on this property, but it was seen on a neighbouring property or land within seven metres of the boundary but more than seven metres away from habitable spaces, a conservatory and/or a garage.
Properties affected by Japanese knotweed that do not meet the above criteria are unacceptable.
We will consider applications for the following loan purposes providing the application meets all our lending criteria:
We will not accept applications for the following:
We will not consider lending to anyone who wishes to purchase a property in their own name from a limited company in which they have a major interest.
For property purchases applicants must provide a deposit from their own resources.
The following exceptions apply:
Where the applicant is purchasing another property, all existing Residential mortgages must be redeemed or the applicant(s) released from their covenants before completion of the new loan.
Maximum repayment term requirements apply to all loan types. The maximum repayment term is 35 years.
The maximum term may be restricted by the maximum age restrictions.
We will only accept applications for new lending, (including further advances) on a capital and interest repayment basis.
For porting and transfer of equity applications, if any part of the current mortgage is on an interest-only basis then evidence of a repayment plan must be provided.
These are the maximum LTV limits we apply. Certain products may have restricted loan to value criteria in which case the lower LTV will be applied.
Loan amount | Purchase | Further advance | ||
---|---|---|---|---|
£ | All Cases | No Additional Borrowing | With Additional lending | All Cases |
Over £1.25m up to £2m | 65% | 65% | 65%** | 65%^ |
Over £1m up to £1.25m | 75% | 75% | 75%** | 75%^ |
Over £750k up to £1m | 80% | 80% | 75%** | 80%^ |
Over £500k up to £750k | 85% | 85% | 75%** | 85%^ |
Over £250k up to £500k | 90% | 90% | 75%** | 95%^ |
Up to £250,000* | 95% | 95% | 75%** | 95%^ |
Additional borrowing on the applicant’s current scheme as a result of either porting or further advances is restricted to a maximum LTV of 95% or the product limit whichever is lower.
* The maximum loan for specific First Time Buyer Products is £250,000.
** If the property is unencumbered or there is less than £5,000 outstanding on the current mortgage the maximum LTV is 50%
^ If the property is unencumbered or there is less than £5,000 outstanding on the current mortgage the maximum LTV is 50% these limits may be restricted further if product limits are lower.
Offers of advance for purchases (including Transfers of Equity) and remortgages are valid for a period of six months from the date of application.
Offers for further advances are valid for a period of four months from the date of application.
Please note: Where there is a simultaneous request for a further advance and a transfer of equity, the Transfer of Equity offer will be valid for six months and the further advance offer will be valid for four months.
Mortgage offers will not be extended, completion of the mortgage must take place by the mortgage offer expiry date.
For applications to remortgage properties for owner-occupation, the applicant (or in the case of joint mortgages, all applicants) must reside in the property at the date of application.
We accept the following loan purposes (subject to loan amount and LTV limits):
First time buyer products have a maximum loan amount of £250,000.
We define a first time buyer as an applicant that has never owned a property. For first time buyers applying for products from our Standard Residential and Offset product ranges, normal residential policy applies. In addition to normal lending policy, a FTB will also need to provide the additional requirements set out in policy where applicable (two months bank statements).
For applicants applying for products in our Coventry Building Society first time buyer product range, the extra rules in this section apply.
For applicants applying for products in our Coventry Building Society first time buyer product range, the following extra rules in this section apply.
All applicants must be first time buyers.
Applicants must have been in continuous employment for at least one year prior to application (in the case of a joint application, both applicants must have been in continuous employment for at least one year, where both applicants' income is being used to calculate affordability).
Applicants must never have been declared bankrupt or had an IVA registered against their name.
The maximum loan is £250,000. The maximum loan to value is dependent on the specific first time buyer product.
The Step-Up facility is no longer available to new customers. However, existing Step-Up customers can still apply for porting, transfers of equity and further advances.
Portability means that your client can move (or 'port') their existing mortgage scheme to purchase a new property.
Our porting policy varies according to the customer's type of mortgage scheme. Please contact the Intermediary Development Team on 0800 121 7788 (selecting option 2) for any porting queries.
We require the following information:
We will also ask the following questions: